6 loans fully paid since May

[Amelia]

Could it be that paying the LC loan on time for 12 to 18 months boosts the credit score enough that they can borrow money at a much lower interest rate?

When I look at the paid in full notes individually, it indicated that 3 scores had gone up, 2 had gone down and 1 had no change.  Do they do another credit pull when the loan is paid or are they making an assumption based on .... something?

[edward]

I think I read on this forum that LC actually sends out letters to borrowers with good payment history whose credit score has increased a soliciation to make a new loan with a lower interest rate and pay off the current loan at the higher interest rate. Can anyone else confirm this?

[gamassey]

I think I read on this forum that LC actually sends out letters to borrowers with good payment history whose credit score has increased a soliciation to make a new loan with a lower interest rate and pay off the current loan at the higher interest rate. Can anyone else confirm this?

I really hope that is not true, that would mean LC is reducing our returns to increase the origination fees they earn up front.  Seems like that would be a big conflict of interest.

[cfb]

I think I read on this forum that LC actually sends out letters to borrowers with good payment history whose credit score has increased a soliciation to make a new loan with a lower interest rate and pay off the current loan at the higher interest rate. Can anyone else confirm this?

From reading lots of comments, I have seen many people saying they were paying off an existing LC loan and further reducing debt or doing a home improvement.  I didn't know they were actively promoting this.  And I don't like it.  LC gets another origination fee and I get the shaft.

[New Jersey Guy]

"I think I read on this forum that LC actually sends out letters to borrowers with good payment history whose credit score has increased a soliciation to make a new loan with a lower interest rate and pay off the current loan at the higher interest rate."

That is absolutely untrue!
They send Emails on a frequent basis, not letters.

[edward]

NJG, thank you for pointing out the immense difference between letters and emails.

[dontvote]

Not sure I have an issue with this. Can't force peeps to keep higher interest rates loans than they deserve. Refi seems fine to me, as long as they aren't truly churning (applying higher interest rates with the INTENTION of refinancing later)...

[Fred]

From reading lots of comments, I have seen many people saying they were paying off an existing LC loan and further reducing debt or doing a home improvement.  I didn't know they were actively promoting this.  And I don't like it.  LC gets another origination fee and I get the shaft.

From their LC Loan Stats data (https://www.lendingclub.com/fileDownload.action?file=LoanStatsNew.csv&type=gen), I do not see any members with 2+ loans:

select memberid, count(*) from loanstatsnew group by memberid having count(*) >= 2

returned no results.

[core]

There are definitely members who have had more than 1 loan, but perhaps not both active at once.  If the Q+A can be believed.  I haven't poked around in that LoanStatsNew.csv file before so I cannot really comment on it.  It's possible that memberid is an auto increment field which doesn't remain the same for a given person necessarily.

Perhaps a more plausible explanation:  Don't you have to use a different email address to get a 2nd loan?  So you would be assigned a second memberid anyway.

Not sure I have an issue with this. Can't force peeps to keep higher interest rates loans than they deserve. Refi seems fine to me, as long as they aren't truly churning (applying higher interest rates with the INTENTION of refinancing later)...

There's a big difference between allowing someone to refinance and sending them emails ASKING them to refinance so LC can get another origination fee, not to mention 1% of both balances.  LC should consider waiving the 1% servicing fee on the lump sum payoff under these circumstances.

[TonySaunders]

There are definitely members who have had more than 1 loan, but perhaps not both active at once.

...

I personally have two active loans from LC, right now. They appear to limit it to two active loans.

[core]

I personally have two active loans from LC, right now. They appear to limit it to two active loans.

You might want to PM your loan IDs to Fred so he can investigate what's wrong with his query.

[Fred]

I personally have two active loans from LC, right now. They appear to limit it to two active loans.

You might want to PM your loan IDs to Fred so he can investigate what's wrong with his query.

Yes, that would be nice, if you don't mind.  I'd like to see how the Loan Stats data is populated; or at least get some kind confidence of its completeness and accuracy.