11 April 2014

The Lending Club Experience

So as I mentioned awhile back in my self-made raise post, I finally took the plunge and went over to Lending Club* a couple months ago. However, while most PF bloggers are there to invest, my mission was different: pay off my high interest debt. Lending Club is somewhat famous for this sort of mission, so I figured that it would be a good place to start. Since the overwhelming majority of the pieces I see about Lending Club come from said investors, I'm taking it upon myself to offer my experience with them.

It was basically like my computer giving me money.
Photo from jannoon028.
The process wasn't as easy as applying for some other types of credit have been (i.e. credit cards), though it wasn't pure drudgery either. The whole process took about a week, including fielding a call from a Lending Club agent to confirm information, the trial credit/debit to my bank account to make sure it worked, and setting up an actual account online. (By the way, you can't borrow and lend from the same account, but it seems like making separate accounts for those two functions would allowed. I've yet to experiment with that.)

Once the formalities were done, money made its way to my bank account and my interest-charging credit card balances quickly became zero. In addition to freeing up money from interest, it also simplified the whole debt repayment ordeal. Instead of having several bills to keep track of, I now only have a single payment for a single amount. No more juggling and constant checking to make sure several different cards all get their amount at the various times. And of course, paying it off also comes with the financial benefit of lower interest costs.

Eight months later, things continue to go smoothly. I guess perhaps the true test would come if I were unable to pay, but I don't see that happening. Lending Club doesn't wait for you to "forget" to send in the payment because they do a direct debit to your account for the payment amount. To further make sure that you're ready, they send an email reminder 5 days in advance to give the heads up and make sure the money is there.

All in all, I'd recommend an account with Lending Club* to anyone looking to get back on their financial feet but needing a little extra help. While some places offer "instant approval", Lending Club certainly isn't in that camp. They don't do payday loans. However, they may offer a decent opportunity to anyone looking to seriously wrest control of their financial ship. The lower interest rate as well as simplification are also welcome. As they say, "less is more". In this case, more in money your pocket and more peace of mind. Don't forget to cut up your cards!

*Note: If you choose to borrow from Lending Club via that link, I'll get a referral bonus. Thanks for the support!.

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