Author Topic: Question on Approval  (Read 9971 times)

texaspi

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Question on Approval
« on: September 26, 2014, 10:37:50 PM »
I applied for a $7K debt consolidation loan based on a pre-approval mailing. So on Wednesday 9/24 I applied and my loan funded quickly within a few hours. My "To Do" list was verify email, bank account and submit ID. Did all that by Thursday 9/25 and my status changed from "under review" to approved. Then later that day (9/25) I got a pop-up window congratulating me and saying my loan had been fully funded and approved and that LC plans to transfer funds to my bank on 10/02. I didn't get an email, just this pop-up and it comes up everytime I log into my account.

So does that mean I'm good and all I have to do is wait for the funds?

It just seems so quick and effortless. Didn't even need to call to verify phone number or provide paystubs etc.

Fred

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Re: Question on Approval
« Reply #1 on: September 27, 2014, 04:17:15 AM »
Perhaps you have a good FICO, or good credit history, or low revolving balance, etc.

If you don't mind, can you share the Loan ID?

Peter

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Re: Question on Approval
« Reply #2 on: September 27, 2014, 08:29:10 AM »
Lending Club's verification differs depending on the risk bucket you fall into. If you have great credit and a high income they want to make it as easy as possible for you to get your loan quickly. If there is any red flag on your account then verification will be much more detailed. 

On the investor side there is so much demand for borrowers like you that funding typically happens very quickly.
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Randawl

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Re: Question on Approval
« Reply #3 on: September 27, 2014, 01:26:45 PM »
Perhaps you have a good FICO, or good credit history, or low revolving balance, etc.

If you don't mind, can you share the Loan ID?

I'd say my credit is pretty average. I had some issues a few years back when my first child was born and a ton of medical debt that pretty much ruined me financially. What's interesting is my FICO per LC is 664 and my loan is rated a B1. I've browsed other notes and there are many with higher FICOs with a lower loan grade. I also apped with Prosper and they offered a 25.04% interest rate for the same terms vs LC at 9.17%.

Here's a link to my loan: https://www.lendingclub.com/browse/loanDetail.action?loan_id=28663976

I'd be interested to see what it shows for investors. Does it show income verified? LC never asked for my paystubs or W2s, so I'm assuming they contacted my employer?

Nope, the income is not verified.  I don't think they contacted your employer.

Fred

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Re: Question on Approval
« Reply #4 on: September 27, 2014, 01:29:40 PM »
Here's a link to my loan: https://www.lendingclub.com/browse/loanDetail.action?loan_id=28663976

I'd be interested to see what it shows for investors. Does it show income verified? LC never asked for my paystubs or W2s, so I'm assuming they contacted my employer?

Thanks. 

From lenders' perspective, your loan does not show that your income was verified.  It does show that you have a very high total balance excluding mortgage, your earliest credit was from Sept 1998, your DTI (Debt-to-Income) was about 15%, etc.

I've browsed other notes and there are many with higher FICOs with a lower loan grade.

Yep, we've seen many of what seems "discrepancies" -- some can be explained, some not.

Anyway, congrats on getting a good loan with LC.

texaspi

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Re: Question on Approval
« Reply #5 on: September 27, 2014, 01:48:53 PM »
Here's a link to my loan: https://www.lendingclub.com/browse/loanDetail.action?loan_id=28663976

I'd be interested to see what it shows for investors. Does it show income verified? LC never asked for my paystubs or W2s, so I'm assuming they contacted my employer?

Thanks. 

From lenders' perspective, your loan does not show that your income was verified.  It does show that you have a very high total balance excluding mortgage, your earliest credit was from Sept 1998, your DTI (Debt-to-Income) was about 15%, etc.

I've browsed other notes and there are many with higher FICOs with a lower loan grade.

Yep, we've seen many of what seems "discrepancies" -- some can be explained, some not.

Anyway, congrats on getting a good loan with LC.

Thank you. I was surprised about the lack of income verification. I had pulled together my W2s and recent paystubs in anticipation of having to submit proof.

rawraw

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Re: Question on Approval
« Reply #6 on: September 27, 2014, 02:38:28 PM »
Wow 660 FICO with a loan grade of B1?  No offense to the OP as he seems like a nice guy, but that seems a little weird to me.

texaspi

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Re: Question on Approval
« Reply #7 on: September 27, 2014, 03:46:00 PM »
Wow 660 FICO with a loan grade of B1?  No offense to the OP as he seems like a nice guy, but that seems a little weird to me.

No offense taken and I'm a gal, not a guy  8). I guess my loan underscores the fact that FICO is only one part of their equation in grading a loan?

rawraw

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Re: Question on Approval
« Reply #8 on: September 27, 2014, 03:47:41 PM »
Yes, but there is going to be some correlation because Lending Club doesn't get many more variables in excess of what the credit companies have. Maybe they heavily weight PTI

lascott

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Re: Question on Approval
« Reply #9 on: September 27, 2014, 04:06:47 PM »
Wow 660 FICO with a loan grade of B1?  No offense to the OP as he seems like a nice guy, but that seems a little weird to me.
No offense taken and I'm a gal, not a guy  8). I guess my loan underscores the fact that FICO is only one part of their equation in grading a loan?

The must because you are not alone getting a good grade with a lower FICO:
http://www.lendacademy.com/forum/index.php?topic=2647.msg23073#msg23073
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Victor

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Re: Question on Approval
« Reply #10 on: September 27, 2014, 06:30:34 PM »
The 660 FICO and B1 grade did not surprise me.  I was specifically looking at 36 month B grade notes the other day and many of them had FICO scores in the upper 600's.  I ended up selecting one with a FICO in that range.

Congratulations on your loan!

BruiserB

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Question on Approval
« Reply #11 on: September 27, 2014, 11:06:48 PM »
I is interesting that you were approved on the 25th but that Lending Club has told you that you will receive your funds on 10/2. Looks like they are holding back issuing your loan until it falls into 3rd Quarter's business. They must have already made their 2nd Quarter target.


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Randawl

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Re: Question on Approval
« Reply #12 on: September 27, 2014, 11:51:56 PM »
I is interesting that you were approved on the 25th but that Lending Club has told you that you will receive your funds on 10/2. Looks like they are holding back issuing your loan until it falls into 3rd Quarter's business. They must have already made their 2nd Quarter target.


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Perhaps that time includes the several days Web Bank holds the note so that they can circumvent that law?  Or, should I say, an effort to "tidy things up" before the IPO.

BruiserB

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Question on Approval
« Reply #13 on: September 28, 2014, 09:51:41 AM »

I is interesting that you were approved on the 25th but that Lending Club has told you that you will receive your funds on 10/2. Looks like they are holding back issuing your loan until it falls into 3rd Quarter's business. They must have already made their 2nd Quarter target.


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Perhaps that time includes the several days Web Bank holds the note so that they can circumvent that law?  Or, should I say, an effort to "tidy things up" before the IPO.

But that wouldn't delay the issuance to the borrower. The borrower will get their money on the 2nd and WebBank will be the lender as of the 2nd and then the loan will be "sold" on the 6th to those who "funded" the loan back on 9/25.

Therefore Lending Club will have tied up investors' money in limbo for nearly 2 weeks before we start earning interest.


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core

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Re: Question on Approval
« Reply #14 on: September 28, 2014, 10:26:25 AM »
I is interesting that you were approved on the 25th but that Lending Club has told you that you will receive your funds on 10/2.

Interesting indeed.  But not all that surprising.  I do find it interesting that they are being so open about it though.

At any rate, it makes little sense to continue to address comments to the OP.  You guys drove her away and she has apparently deleted her account already.  Congrats.  24 hours has gotta be a record here.