Lending clubs provide a good platform for people with extra money to lend those in need of loans. The clubs have been in use for many years. However, even the richest investors work on tight budgets on some days. During such times, you may need a boost and that’s where lending clubs come in, providing convenient loans.
Lending clubs do a good job in connecting those in need of loans with lenders. Unlike other ways of accessing loans, the clubs are convenient. Even so, just like any other service, complaints often rise from time to time with regards to these clubs. Here are top lending club complaints:
5 Main Lending Club Complaints
1. Unapproved Loan Applications
Getting a loan approved is one of the main challenges borrowers have to deal with. Due to the large amounts of money lending clubs offer borrowers, the loan application process is often strict. Lending clubs prefer working with high income earners. They are more interested in people with stable jobs.
Nevertheless, to access a lending club loan, your credit score must be considerably high. To be on the safer side with lending clubs, first build a good credit reputation. All lenders opt to work with reputable clients with good credit history.
2. High Interest Rates
When applying for a loan from a lending club, sometimes, the interest rates can be high. A low interest rate can save you a lot of money. There are several factors that determine the rate of interest you pay on a loan.
Ways You Can Lower Your Interest Rate
- Improving Credit Score: to improve your credit score, make sure your report is free from errors. And, always pay your loans on time.
- Apply Only for Amounts You Need: people who borrow the highest amounts of loans pay high amounts of interest money.
- Repay in the Shortest Time: many people opt for 5-year loans. Taking a loan you can repay in three years can reduce your interest rate compared to repaying your loan in five years.
- Avoid Shopping On Credit: when you apply for credit, your score goes down. Your low credit score impacts on your interest rate.
3. High Loan Payments
Lending clubs mostly offer big loans. Many borrowers sometimes have difficulties repaying their loans. This is because they are required to pay huge amounts of money on monthly loan payments. To avoid finding yourself in this tough situation, take loan amounts you can pay with ease.
4. How Safe are Lending Clubs?
One of the most commonly asked question is whether lending clubs are legitimate businesses. How can we be sure? Lending clubs have a good rating and many security features on their sites. Multiple sources such as magazines and journals have proof that lending clubs are clean businesses, and not scams.
5. Too Many Follow Up Calls
At one time or the other, a borrower may default in payment. At such times, lending clubs remind them of the default through email or a telephone call. When payments delay further, the clubs assign people to your account for follow up.
Borrowers often get annoyed when they receive many follow up calls. If at one point you fail to make your payment on time, fix things fast to prevent your account and yourself from getting into such a situation with regards to loan collection.
A lending club is a good option for accessing loans. While some borrowers have difficulties, most borrowers have no complaints. Many customers find lending clubs a satisfying and convenient way to access loans. They enjoy lower interest rates than other lending sources.
If you’re in need of a loan, don’t hesitate to find a reputable lending club to loan your some money at reasonable rates.