Lending Club - FICO 780, $215k a year income - denied

234 of 245 Lending Club reviews

Much like the other reviews here, they put me through the ringer. Forms, tax returns, bank statements, W-2's, etc. One step at a time. So first fill out forms. 3 days later, ask for w-2's. 3 days later, ask for tax returns, etc.

I have a credit score of 780 (higher with the other 2 agencies), make $215k per year plus a bonus and was quoted $21,000.00 / 3 years / 6.62% - and fully funded within 48 hours of submitting initial request.

After over a week of dribbling forms to them they come back and say my bank account reserves aren't adequate for the loan. Meaning I don't have enough cash in my accounts to cover the loan.

If I had $21k in cash I wouldn't be asking for a $21k loan.

This appears to be a secured lending outfit. So unless you don't actually need a loan it's probably a total waste of your time to try to get one from here.

Note the small print on application - less than 10% of loans are approved. I assume this means they only loan money to people who already have the cash to cover a default or who don't really need a loan.

Anyway - total waste of time....

This review is a subjective opinion of a user.
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234 of 245 Lending Club reviews

Aug 09, 2014 #853876

215k/yr and not enough cash in your account to cover 21k, you have a serious problem
and Lending Club isn't it.

5 4 Reply

Dec 07, 2013 #754194

"If I had $21k in cash I wouldn't be asking for a $21k loan."

1. You need cash in case you lose your job.
2. You would take out a loan so you didn't have to blow that cash.

1 2 Reply
Loan if You want it

Oct 28, 2013 #734502 Austin, Texas, United States

You people responding negatively are idiots. If he or you or Donald Trump wants a loan for what ever reasons he should be able to get it.

3 2 Reply

Dec 07, 2013 #754190

Uh, no. When you make $215k and don't even have $21k in cash, you are not prepared to weather an emergency like a job loss and should NOT get a loan.

Without knowing a debt-to-income ratio, we can't assume this reviewer is living beyond his/her means (maybe they just have less-liquid investments) but I totally understand why they would be denied a loan based on lack of cash.

3 3 Reply
banker man

Sep 02, 2013 #710539 Louisville, Kentucky, United States

Sounds like you have a spending problem not an earning problem. Our society loves for you to spend and be materialistic. Remember it's not what you earn, it's about what you keep.

4 1 Reply
Debt Is Not Always Bad

Aug 02, 2013 #692152

Per the previous comments, there are many great reasons for someone with that income to use loans, depending on interest rates.

If you can invest money and make a higher return than the interest you are paying on the money you borrow, this makes great sense! When I bought my last car, I got a 2% interest rate. I also had more than enough cash to buy the car outright. I took the loan so I could invest the cash.

In fact, with Lending Club, if you had excellent credit you could conceivably borrow money from them at around 6%, and turn around and invest that same money with Lending Club in moderate risk loans and earn a return of 9% as an investor on the other side of the equation. This illustrates the value of debt if used wisely.

I'm not for or against Lending Club, but there are many good reasons to borrow money even if you have enough to pay cash. Loans aren't only for "poor" people, nor do they indicate that someone is living beyond their means. They are simply a financial tool, and should be evaluated in terms of opportunity cost of using the money in some different way.

1 0 Reply

Jul 28, 2013 #689118 Dover, Delaware, United States

If you make $215K a year and you asked me if you could borrow some money, I would reject you too. Live within your means, it's not very hard in your income bracket.

2 2 Reply
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