Author Topic: Documentation advice?  (Read 3429 times)

mbboynton

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Documentation advice?
« on: January 20, 2020, 09:28:59 PM »
I've applied for a loan with LC to consolidate debt that accumulated after a major medical event in 2018 which wrecked my year financially, however, after my recovery I've been gainfully working as an IT contractor and had a great year in 2019 and 2020 is looking strong.  Since this is first of 2020, I don't have 2019 tax returns yet and I've not received my 1099's.   LC wants the last tax return which is 2018, I"m concerned they will not fund my loan due to the financial results of that year.  Looking for advice on how they will likely respond and what I might be able to do to help secure the loan, which will be part of a plan i have to work out of the debt that accrued during 2018.

Fred93

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Re: Documentation advice?
« Reply #1 on: January 21, 2020, 01:27:41 AM »
Just send them what they asked for and find out.

AnilG

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Re: Documentation advice?
« Reply #2 on: January 21, 2020, 04:15:44 AM »
Currently, I donít think LC or other lenders use tax return to decide whether to issue loan or not. Competition is too much to decline borrowers right now. The request for tax return document is just extra data capture to use as training data to improve credit models in the future.
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mbboynton

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Re: Documentation advice?
« Reply #3 on: January 21, 2020, 09:50:22 AM »
Thanks guys

mbboynton

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Re: Documentation advice?
« Reply #4 on: January 23, 2020, 08:04:53 PM »
Well, Lending Club didn't even give me a chance to communicate with the loan reviewer, and exactly what i told the account validator would be an issue has happened, the person I spoke to on the phone said they noted it in the account and the reviewer would reachout to me if they had any questions.  I never got a chance to present supporting documentation to prove my current income.  I made 150k last year and they declined me due to insufficient income for a 25k loan, that doesn't even make sense.  The loan reviewer must have never read the comments the account validator supposedly posted on the account and only went by the 2018 returns, or flat ass didn't care, which is more like it.  All I wanted to do is consolidate the debt from high interest credit cards i had to use during my recovery period.  LC doesn't really seem to operate as they say they do, presenting a loan opportunity to a community of investors, if that were the case, there would be a pool of investors who would take the loan possibly at a different rate. This was not even presented and no inquiry or opportunity to communicate with the loan officer, is that even legal?  What they tell the public is definitely different than what they do.   They even got the loan amount wrong on the decline, they added 5k to what i asked for , so their applications don't even track transactional information correctly.  I've never seen a lender that won't give you a chance to communicate or respond with more supporting information, they seemed to ignore the income I put on the application and only looked at the 2018 return. lesson learned.
« Last Edit: January 23, 2020, 09:23:34 PM by mbboynton »

Rob L

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Re: Documentation advice?
« Reply #5 on: January 24, 2020, 10:20:20 AM »
You might try Prosper or Marcus. Marcus is cutting back on personal loans of late so Prosper may be a better bet. We're only a week away from the required date for you to get your 1099's. Get the 2019 taxes done before applying and it should be a breeze. If you do try one of these let us know how it works out.

mbboynton

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Re: Documentation advice?
« Reply #6 on: January 25, 2020, 12:08:13 PM »
I found their interest rates very high in comparison to Sofi and LC.  Seems I'll need to get my credit score up to 660+ which is difficult carrying $90k on cards, but I'm almost there, and get the 2019 returns done.  Thanks for the support.