Report: #808577

Complaint Review: Lending Club

  • Submitted: Tue, December 13, 2011
  • Updated: Tue, December 13, 2011
  • Reported By: Richard — Conway Arkansas USA
  • Lending Club
    71 Stephenson St., Suite 300
    San Francisco, California
    United States of America

Lending Club False Offer, Don't Bother Applying San Francisco, California

*Consumer Comment: Pre-Qualification

Show customers why they should trust your business over your competitors...

As the title says, don't bother applying here if you could actually use the money for what they suggest. This company is representative of what is wrong with the lending industry and the credit reporting model in general. I have a strong income, and I have NEVER had a late payment recorded to my credit, let alone any delinquencies or write-offs.

Because my balance-to-limit is high right now, they claim that is a reason (#1 of 2) they denied me. Even though I had the same balances at the time they made their offer, "pre-approved based on my credit", so the propaganda says, now suddenly it's a problem. Isn't this exactly the situation that a loan for debt consolidation/credit card payoff would be for?

Reason #2 of 2 they denied me was because of too many recent inquiries. They mean the auto loan I received on a vehicle I bought two months ago, which lowered my payment, and then a recent refinancing, which made my payment even lower. And the huge slap in the face is that this false offer will now show yet another inquiry on my credit.

I realize the debt is my own and I will be paying it off with or without the help of a consolidation. However, I don't believe it is right for them to send an offer that they have no intention of honoring, especially when applying further impacts my credit score. I did enough research on this company before the fact to find out that they aren't an outright scam, however, subsequent research has turned up that they are only bound to give you a loan if you want a small amount, have good credit AND low balances, and, according to other reports, they want you to cosign with other people even with good credit and high income.
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This report was posted on Ripoff Report on 12/13/2011 06:20 AM and is a permanent record located here: The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#1 Consumer Comment


AUTHOR: Robert - (U.S.A.)

Is just that..PRE Qualification. 

When you are "pre-qualified" they don't check your full credit report.  They only get a very limited set of general information.   This does not include things such as other inquiries or actual account balances.  Because they only have a limited amount of information you may meet a companies "pre-qualification" guidelines but not their actual approval guidelines.

As you have found out your account balances are almost as important as your payment history.  For example with your FICO score; 35% of your score is based on your payment history, but right behind that is your account balances to limit ratios which accounts for 30% of your score.

But just one thing about consolidation.  Contrary to what the Government wants you to believe you can not get out of debt by borrowing more money. 

You can talk to people who deal with people with credit issues and they will tell you that consolidation loans are generally a bad thing overall.  People who get these loans do initially pay off the cards, but then over time they fall back into their old habits and charge the cards back up again.  So then they not only have the same debt they had before, but now a consolidation loan they are still paying off.  In effect doubling their debt.  Now, you may be the exception to this, but honestly the odds are against you and if you really want to get rid of your debt it is probably better that you didn't get the loan.
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