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Whether you’re stuck in a high-interest auto loan and want to save money, or you’re looking to slash your monthly car payment, an auto refinance may be the answer for you. However, if your credit score is less than 700, you may be wondering if you can refinance your auto loan with bad credit.

If your credit isn’t so hot, you may not be able to qualify for <a href="https://www.lendingclub.com/auto-refinancing">auto loan refinancing</a> as easily as someone with average or excellent credit—and you could face high interest rates. Refinancing may be possible with poor credit, but it’s important to consider if it makes financial sense before ditching your current loan.[1] Let’s take a closer look at how to refinance your car with poor credit.  <h2>Can you refinance a car loan with bad credit? </h2><a href="https://www.lendingclub.com/resource-center/auto-refinance/how-does-refinancing-a-car-work">Refinancing an auto loan</a> with less-than-perfect credit is possible. If you have poor credit, it may be better to stick with your current loan. Some lenders offer refinancing loans to people with bad credit, such as a FICO® score below 580, and make it easy to get approved.[2] However, such lenders may be predatory and target people with poor credit. The loans usually have very high interest rates, fees, and large monthly payments—which can put you in a cycle of debt.[3]   Still, if your credit score has improved since you first took out the loan or market rates have come down, shopping around can’t hurt. If you find your credit is still too low to qualify for an affordable rate, you can take steps to improve your creditworthiness and overall financial situation before you apply.[1]  <h2>How to refinance a car loan if you have poor credit </h2>While there’s no guarantee you’ll be approved for a refinance auto loan with poor credit, some lenders offer competitive interest rates and flexible eligibility criteria. Here are a few things to consider when <a href="https://www.lendingclub.com/help/auto-refinance-faq/how-do-i-refinance-my-car-loan">refinancing a car loan</a> with a low credit score. <h3>Step 1: Know your credit situation  </h3>Generally, the higher your credit score, the lower your interest rate. <a href="https://www.lendingclub.com/resource-center/personal-finance/how-to-read-your-credit-report-identify-red-flags">Check</a><a href="https://www.lendingclub.com/resource-center/personal-finance/how-to-read-your-credit-report-identify-red-flags"> your credit reports</a> regularly to keep tabs on your scores and look for inaccuracies. You can also request free copies of your credit reports from each of the three major credit bureaus—Equifax, Experian, and TransUnion—once a week at <a href="http://annualcreditreport.com/">AnnualCreditReport.com</a>. Consider using a credit monitoring service to keep tabs on your credit regularly. Review your reports for accuracy, and if anything looks off, be sure to dispute the accuracy.[1]  <h3>Step 2: Understand lender requirements </h3>Once you know your score, research lender minimum score requirements. Many lenders share their required credit score range or minimum required credit score in their online FAQs. If your score is too low to qualify with most auto refinancing lenders, consider taking steps to build your credit. Watch out for lenders that advertise loan options for people with “bad credit” or “subprime” scores. While your score may qualify, these loans usually come with very high interest rates and fees.[3]  <h3>Step 3: Reach out to your current lender </h3>Ask your current lender about refinancing options. If your credit score has improved or you’ve made a few on-time payments in a row, your lender could be willing to do what it takes to keep your business. Not all lenders refinance their own auto loans, though, so even if your financial situation is solid, you may still need to go elsewhere.  <h3>Step 4: Compare lenders </h3>You should be able to check your rate for auto refinance loans through several lenders without doing more damage to your score. Shop around for lenders, like LendingClub Bank, that allow you to check your rate with just a <a href="https://www.lendingclub.com/resource-center/personal-finance/key-differences-of-a-soft-credit-check-vs-hard-credit-check">soft credit inquiry</a>—meaning no ding to your score. Once you find a few options that look like a good fit, you can submit your applications.[4]  Be sure to do this in a short time period as applying for auto refinancing typically results in a hard credit pull. However, most credit scoring models count multiple loan inquiries as one if they’re done within a short time frame, so feel free to apply at multiple banks, credit unions, or online lenders.[4]  Compare loan offers carefully. Be sure to read the fine print about your rates, payment terms, and fees. It’s also important to make sure your car is eligible, as some lenders put restrictions on details like mileage and time left on the original loan. <h3>Step 5: Accept an auto loan refinance offer </h3>If you find an offer that works for your budget and financial situation, accept the offer and complete any paperwork. If you use an <a href="/auto-refinancing">online auto refinancing lender</a>, like LendingClub Bank, your old loan is usually paid electronically using funds from the new loan. To avoid any gaps in your payment history, continue to make payments on your existing loan until you receive confirmation it’s been paid off. Be sure to also make note of your new loan’s first payment date, as payments begin right away when you refinance.[1]  <h2>When is the best time to refinance your loan? </h2>Timing matters when refinancing an auto loan—especially if you have less-than-perfect credit. If your credit situation has changed or market rates have come down, it makes sense to refinance. However, sometimes it’s not the <a href="https://www.lendingclub.com/resource-center/auto-refinance/when-can-i-refinance-my-car-loan">right time to refinance</a>, like if you’re upside down on your car loan or interest rates have gone up. Let’s take a closer look at times when it may make sense to refinance an auto loan and when you may be better off sticking with your existing auto loan. <h3>When it makes sense </h3>Some common situations when it’s typically a good time to refinance your auto loan include:  <ul><li>Your credit score has improved since you took out the loan. Even if your credit score is less than stellar, having a slightly better score than when you first took out your auto loan could help you get a better rate if you refinance.[1] </li><li>You want to add or remove a cosigner. Adding a personal loan cosigner with better credit than yours can help lower your rate. Or you may be ready to remove the cosigner you needed when you first got the loan.[1] </li><li>You want a lower monthly payment. Refinancing an auto loan can help get you more affordable payments. Keep in mind your new lower payments may be spread over a longer repayment period than your original loan, which increases your total interest costs.[1] </li><li>You didn’t get the best rate. If you got your loan at the dealer, chances are you’re paying more interest than some of the auto refinance options out there.[1]  </li><li>Lower interest rates available. Market rates may have come down since you first got your loan. Even a small difference can make a big dent in what you’ll need to pay throughout the lifetime of your loan.[1] </li></ul><h3>When you should wait </h3>Refinancing an auto loan doesn’t always make sense. Here are some common reasons you may want to hold off:  <ul><li>The interest rate is too high. Ideally, you want a lower interest rate when you refinance an auto loan. So if your credit score has gone down or rates have gone up, you may want to hold off.[1] </li><li>You owe more than your car’s worth. If you financed the vehicle and you’re now upside down on your loan—meaning the balance on the loan is higher than your vehicle’s value—refinancing usually isn’t a good idea.[5] </li><li>You have to pay an origination fee. Lenders sometimes deduct an origination fee when you take out an auto refinance loan. It’s usually a percentage of the new loan amount—meaning you may not have enough loan proceeds to pay off your existing loan.  </li><li>Your current loan has a repayment fee. Some auto lenders charge a fee if you pay off your loan early. If this fee costs more than what you’d save by refinancing, it may make sense to stick with your current loan.[6] </li><li>You don’t want to affect your credit. Lenders usually perform a hard inquiry when you refinance an auto loan, so your credit score will dip a few points. The impact is temporary, but if your credit is already poor, you may not want to hurt your score.  </li></ul><h2>The bottom line </h2>Refinancing an auto loan with bad credit isn’t the easiest, but it can be done. Still, it may not always be the best choice, especially if you’re worried about higher rates or monthly payments. If it’s not the right time, <a href="https://www.lendingclub.com/resource-center/personal-finance/credit-score-hacks-to-increase-your-credit-score">work on improving your credit</a>. This includes consistently making payments on your current loan to help build a positive payment history.   If you can’t afford to make your auto payment, talk to your lender about options to modify the terms of the current loan. The company may also have options to help you catch up on payments. Or, if you need to get out of the loan altogether, consider trading in or selling the vehicle.<hr/><ol><li> <a href="https://www.consumerfinance.gov/ask-cfpb/what-should-i-know-before-i-shop-for-auto-loan-at-a-bank-credit-union-dealership-or-other-lender-en-755/#will-my-credit-impact-my-interest-rate">Consumer Financial Protection Bureau</a>. “What should I know before I shop for a car or auto loan?” </li><li><a href="https://www.experian.com/blogs/ask-experian/credit-education/score-basics/what-is-a-good-credit-score/?pc=sem_exp_google&cc=sem_exp_google_ad_1974573071_127718684813_550261321854_kwd-18335061_b___k_Cj0KCQjwpP63BhDYARIsAOQkATYSFtF-hSoe21DsarMNtxQbBgfhEqy44_4oB_0zphblZzbTwjEPb_gaAvG7EALw_wcB_k_&ref=generic&awsearchcpc=1&gad_source=1&gclid=Cj0KCQjwpP63BhDYARIsAOQkATYSFtF-hSoe21DsarMNtxQbBgfhEqy44_4oB_0zphblZzbTwjEPb_gaAvG7EALw_wcB">Experian</a>. “What is a good credit score?” </li><li><a href="https://consumer.ftc.gov/articles/auto-loan-refinancing-scams#:~:text=Scam%20refinancers%20often%20tell%20you,pay%20your%20lender%20for%20you.">Federal Trade Commission Consumer Advice</a>. “Auto loan refinancing scams.” </li><li><a href="https://www.consumerfinance.gov/ask-cfpb/whats-a-credit-inquiry-en-1317/#:~:text=Hard%20inquiries,frequently%20you%20apply%20for%20credit.">Consumer Financial Protection Bureau</a>. “What’s a credit inquiry? </li><li><a href="https://consumer.ftc.gov/articles/auto-trade-ins-and-negative-equity-when-you-owe-more-your-car-worth">Federal Trade Commission Consumer Advice</a>. “Auto Trade-Ins and Negative Equity: When You Owe More than Your Car is Worth” </li><li><a href="https://www.consumerfinance.gov/ask-cfpb/can-i-prepay-my-loan-at-any-time-without-penalty-en-843/">Consumer Financial Protection Bureau</a>. “Can I prepay my loan at any time without penalty?” </li></ol>

From buying gifts to traveling, entertaining, decorating, and even cultivating a holiday wardrobe, you may have a lot on your shopping list. By preparing a holiday budget ahead of time—and sticking to it—you’ll be better equipped to make it through the holiday season without breaking the bank.   

Holiday spending can add up quickly. From buying gifts to traveling, entertaining, decorating, and even cultivating a holiday wardrobe, you may have a lot on your holiday shopping list. However, a holiday budget can help you avoid racking up debt that carries over into the new year—all while still being able to pay your day-to-day expenses. By preparing a holiday budget ahead of time—and sticking to it—you’ll be better equipped to make it through the holiday season without breaking the bank.   <h2>6 ways to build a holiday budget that will work every year  </h2>The holidays are often a joyful time, but they can come with steep expenses and lots of stress if you’re not financially prepared. A holiday budget can help ensure you’ve got enough money to cover your holiday expenses—as long as you stick to it. Consider these strategies to build a holiday budget that will work year after year.[1]  <h3>1. Consider last year’s spending </h3>The first step to planning your holiday budget is to understand what you spent money on last year. Take a look at your bank account or credit card statement to gauge your holiday expenses in the past. Make a list of everything you bought or spent money on for the holiday season. Don’t forget to include holiday-specific purchases you made in advance, like gifts and flights.  Reviewing last year’s expenses can help you understand how much you spent, what you bought, and how you paid for everything. Look closely at your purchases. What payment method did you use—cash, credit cards, a special savings account? How much did last-minute purchases add up to? How much did you spend on gifts? On travel? On hosting? What about holiday pictures or cards? Are you still paying off any debt from last year? <h3>2. Set your spending limit </h3>Just like a traditional budget, your holiday budget should be limited to the cash you have available after paying all your monthly expenses. If you’re coming up short, you might consider using some of your savings, but be sure to leave extra padding for your emergency fund. It might also be a time to eliminate extras—like paying to have your groceries delivered—at least until the holiday season is over.  The goal is to set a spending limit based on your cash flow without putting too much strain on your overall budget. Don’t forget to consider ways you can <a href="https://www.lendingclub.com/resource-center/personal-finance/best-ways-to-save-money-this-holiday-season">stretch your holiday budget</a> like making DIY gifts, skipping travel, or upcycling decorations.  <h3>3. Create holiday budget categories </h3>To better track your spending, create categories for all your usual holiday expenses. Categories can include things like gifts, holiday cards (plus postage), decorations, entertainment, hosting, and travel. Split up your holiday budget among these categories, making sure not to exceed your spending limit.  You can still shift the dollar amounts around to different categories if needed, as long as the total stays within your budget. For example, you may plan to spend 75% of your gift budget on family presents, leaving the remaining 25% to be spent on holiday tips, host gifts, and other types of gifting. If you decide you need more of the budget for family gifts, you can cut spending on others.   <h3>4. Make a gift list </h3>Deciding ahead of time who will be on your gift list—and assigning a dollar amount for each of them—is just as important as setting your spending limit. At first, you may feel a little stingy if you have to make some cuts. However, effective budgeting often comes down to making tough decisions.  If you can’t cut back on the number of people you have to buy for, consider revising your budget to afford smaller items for friends, coworkers, and extended family. Or, you can choose to keep your gift lift the same, but make cuts in other areas of your budget, like skipping expensive tickets to a holiday show. Remember, it’s your budget, so you get to make the rules.  <h3>5. Plan ahead </h3>To maximize your time, reduce stress, and make the most of your budget, start preparing for holiday spending about six months in advance. Even if you’re not quite in the holiday spirit during the summer months, planning early offers many benefits. Setting your holiday spending limit and getting your budget in order early helps minimize holiday stress and allows you to prepare financially. You’ll have more time to bulk up your holiday savings, pay off past holiday debt, and take advantage of any sales or promotions during the summer months. Good planning can also help you avoid impulse purchases and stick to your budget. <h3>6. Figure out how you’ll pay </h3>To avoid racking up debt, commit to a cash-only holiday budget from your income, savings, and any money you earn on the side. This can be especially helpful if you think you’ll overspend when using credit cards. If you do use your credit cards, try to pay off the balance by the end of the grace period to avoid interest.  You may also consider using a <a href="https://www.lendingclub.com/resource-center/personal-loan/what-is-buy-now-pay-later">Buy Now, Pay Later</a> (BNPL) service to split the cost of purchases over time. BNPL can be helpful for large purchases like expensive airline tickets or large gifts—especially if you’re able to secure interest-free financing. Just be sure you can make your scheduled payments on time.[2]  <h2>How to stick to your holiday budget </h2>Creating a holiday budget can help you stay organized financially and avoid overspending, but <a href="https://www.lendingclub.com/resource-center/personal-finance/sticking-to-a-budget-common-problems-and-solutions">sticking to a budget</a> isn’t always easy. It can be tempting to just get one more thing, or to dip into your holiday savings for a vacation. Setting goals can help you stay on track with savings or early gift-giving.  For instance, set a goal to save a certain amount each week or to hit a certain amount in your savings by a specific date. You can also set goals around when you want to have all your shopping done. Consider what works best for you. Do you want more time to save and make all your purchases during the holiday? Or will shopping early help you save, reduce last minute purchases, and give you more time to relax? Remember, you can make adjustments based on what works for you.  <h2>The bottom line </h2>Just like any other budget, a successful holiday budget comes down to planning. The sooner you start making your plan, the better. Committing to a cash-only budget, setting a spending limit you can stick to, and saving enough to cover holiday expenses can help you make the most of the giving season and avoid lingering debt. If you’re still paying off last year’s holiday credit card bills, don’t be too hard on yourself. A <a href="https://www.lendingclub.com/personal-loan/debt-consolidation">debt consolidation loan</a> can help you get back on track.  <hr/><ol><li><a href="https://www.consumerfinance.gov/about-us/blog/budgeting-how-to-create-a-budget-and-stick-with-it/">Consumer Financial Protection Bureau</a>. “Budgeting: How to create a budget and stick with it.” </li><li><a href="https://www.consumerfinance.gov/compliance/compliance-resources/consumer-cards-resources/buy-now-pay-later-bnpl-products/buy-now-pay-later-product-faqs/">Consumer Financial Protection Bureau</a>. “Buy Now, Pay Later Product FAQs.” </li></ol>

If you’ve missed payments and creditors are calling, you may be feeling like you’re drowning and desperate for a lifeline. Even if you proactively seek solutions, finding a solution to becoming debt-free can be difficult. 

Finding a solution to <a href="https://www.lendingclub.com/resource-center/personal-finance/best-creative-ways-to-pay-off-de">becoming debt-free</a> can be difficult and stressful—especially if you’ve  missed credit card payments and have creditors calling. A debt management plan (DMP) can help you become debt-free in just three to five years, often paying less out-of-pocket than you would if you paid your creditors directly. Debt management plans don’t cover secured debt, like auto loans and mortgages and can sometimes cost a fee, so it’s important to weigh the pros and cons carefully before signing up.[1]  Here’s a closer look at what you need to know.  <h2>What is a debt management plan and how do they work? </h2>A DMP is managed by a credit counseling agency that works on your behalf to help you negotiate more favorable terms and combine all your monthly payments into a single payment.[1]  Qualified counselors work with you to make sure the new payment plan fits into your budget. You make monthly payments to the agency, which distributes the funds to your creditors until your debts are paid in full. Some credit counseling agencies may charge you a small fee for the service, but you’ll likely have smaller monthly payments, lower interest rates, or a waived penalty—which can save you money in the long run.[1]    Here are some other things to keep in mind about how DMPs work:  <ul><li>Only for certain types of unsecured debt. Debt management plans are primarily designed for credit card debt. If you’re struggling with other types of unsecured debt such as student loans or tax debt, you may have to look elsewhere. Secured debt, like your mortgage or auto loan, also can’t be included in a DMP.[2]   </li><li>No guarantees. While credit counselors may try to negotiate with creditors on your behalf, credit card companies and other creditors aren’t required to agree to new terms and concessions or participate in a DMP. So, you may still be responsible for managing accounts that don’t end up being part of your DMP.[1]  </li><li>Less access to credit. As part of your DMP agreement, you might not be allowed to open any new credit cards or use your existing cards until your DMP is completed. However, depending on the situation, your credit counseling agency may allow you to keep one card for emergencies.[2]   </li><li>DMPs take a long time. A DMP may take three to five years to complete. If you drop out early, you’ll still owe the included debts, but your creditors might end concessions the credit counselor was able to secure.[2]   </li><li>Your credit might take an initial hit. DMPs often require you to close your credit cards, which could hurt your credit score temporarily. However, if you follow through and make your payments on time, you may see your credit score rise as your debts are paid off.[2]    </li></ul><h2>Pros and cons of debt management plans </h2>Borrowers who are struggling with their bills may find DMPs a practical solution that offers relief from unaffordable debt payments. If you’re feeling overwhelmed or your monthly payments aren’t making a dent in your debt balance, a DMP can put you on a path to paying off debts, but they’re not for everyone.[3]   Here are some advantages and disadvantages to consider before signing up.  <h3>Benefits of debt management plans </h3><ul><li>Single monthly payment that’s likely lower than your current total payments[1]   </li><li>Potential to save money if your counselor negotiates lower interest rates and fees[1]   </li><li>Collection calls will stop while you’re enrolled[1]   </li><li>Less impact on your credit than debt settlement or bankruptcy[3]  </li><li>You’ll have an exact end date for when your debt will be paid off[2]   </li></ul><h3>Downsides of debt management plans </h3><ul><li>Not available for secured debts, like a car or house[2]   </li><li>Creditors may not be willing to negotiate with your counselor[1]   </li><li>You will likely lose access to credit cards for a few years[2]   </li><li>Your credit score may take an initial dip[2]   </li><li>Doesn’t address issues with money management[2]   </li><li>You typically have to pay an upfront fee and monthly fees[3]  </li></ul><h2>How debt management plans may impact your credit score</h2>Signing up for a DMP doesn’t directly impact your credit score, but your credit might take a hit while you work on your debt management plan. For instance, you may need to close your credit card accounts—which could hurt your credit score by shortening the average age of your accounts, increasing your credit utilization, and altering your credit mix.[2]    When you sign up for a DMP, your credit report may also show that you’re working with a financial counselor. Lenders reviewing your credit report will see this information, but it won’t impact your score.  <h2>Types of debt management plans </h2>Debt management plans are offered by two types of credit counseling agencies—nonprofits and for-profits. Before signing up for a DMP, be sure to compare different agencies. Whether you decide to work with a nonprofit or a for-profit credit counseling agency, research reviews and complaints from trusted sites, like the Better Business Bureau and Consumer Affairs.[1]   It’s also important to compare fees (monthly and startup costs), plan terms, the types of debts you can include, and how long the DMP will take to complete. It may also make sense to narrow your search to agencies that have certified credit counselors and are part of an accredited association, such as the <a href="https://www.nfcc.org/">National Foundation for Credit Counseling</a> (NFCC).[1]  <h3>Nonprofit credit counseling agencies </h3>According to the Federal Trade Commission, the most reputable credit counseling agencies for DMPs are typically nonprofits that offer services for no cost or at a lower cost than for-profit agencies. In addition to helping with your debt repayment, the agency may also provide access to credit education and budgeting tools. However, the FTC warns that not all nonprofits are legitimate, and some may disguise high fees or ask for contributions that add to your debt.[1] <h3>For-profit credit counseling agencies </h3>DMPs offered by for-profit agencies offer the same services as nonprofit agencies, but might come with higher fees. Watch out for agencies offering DMPs that seem like a “quick fix” or too good to be true. Remember, it takes about three to five years to pay off debt under a DMP.[1],[2] <h3>Debt management plan alternatives </h3>If you’re struggling with debt, a debt management plan isn’t your only option. A qualified credit counselor can discuss the pros and cons of different options that may make sense with your goals and financial situation.[1]  For example, you may be able to revise your budget to afford your monthly payments without having to close your accounts or set up a DMP. You might also consider using the <a href="https://www.lendingclub.com/resource-center/personal-finance/steps-to-decimate-debt-the-debt-snowball-method">debt avalanche method or debt snowball method</a> to tackle your debt.[4]   Or, you might find it makes more sense to combine your debts and lower your interest rate with a <a href="https://www.lendingclub.com/personal-loan/debt-consolidation">debt consolidation loan</a>. In some last-resort cases, bankruptcy could be worth considering.  The bottom line If you’re struggling with paying your credit card bills or other unsecured debt, a debt management plan might offer you the help you need to get back on track. DMPs lump your payments into a single payment and can help cut your interest rates while providing you a structured path toward financial freedom.[1]  However, it’s not for everyone. If you enroll in a debt management plan, you may have less access to credit, and your credit score might take an initial hit. Debt management plans also come at a cost, as most credit counselors charge a fee for their services.[1]  <h2>Debt management plan FAQ </h2>Still have questions about debt management plans? Some of these commonly asked questions may provide the answer. <h3>Do debt management plans hurt your credit? </h3>Signing up for a DMP doesn’t directly impact your credit score, but your credit might take a hit while you work on your debt management plan. You may need to close your credit card accounts, which could hurt your credit score by affecting your credit utilization, age of accounts, and credit mix.[3] <h3>Is a debt management plan a good idea?</h3>Debt management plans can be a good idea if you’re consistently paying down your priority loans (like a mortgage), but are struggling to keep up with your credit card debt. Using a DMP allows you to make smaller monthly payments to improve your cash flow while lowering your interest rate so debt stops mounting up so fast.[3] <h3>What are the disadvantages of a debt management plan? </h3>Debt management plans may require an upfront and monthly fee, they won’t help you with secured debts, and they may require you to close your credit cards. There’s also no guarantee that creditors will agree to participate and you’ll have to trust that the credit counselor will pay your creditors on time.[3]  <h3>How long do debt management plans last? </h3>Most DMPs are intended to pay off the included debts within three to five years. You may have a fixed monthly payment during the repayment period. As you pay off one account, the counseling agency will take that money and apply it to the other outstanding accounts.[2] <h3>What’s the best way to manage debt? </h3>Everyone’s situation and debt are different. If you want to pay off debt quickly, consider listing your debts and making a plan for which ones to tackle first. Sometimes using another resource, such as a DMP or debt consolidation loan, can be helpful.[4] <h3>What does a debt management program do? </h3>Debt management programs may offer different approaches to paying off debts. Some are guidelines or strategies, such as the debt avalanche and debt snowball methods. Others require working with a third party, such as a credit counselor, or with a new creditor to consolidate and refinance your debt.[3] <h3>What is the best way to manage debt? </h3>The best debt management program may depend on your financial circumstances and credit. Bankruptcy might be the best option for some, while others may benefit from a DMP or even from debt settlement. Or, if you’re able to qualify, a debt consolidation loan may be a good choice to consolidate high-interest credit card debt with one monthly payment—often at a lower interest rate.[3] <h3>What’s the difference between a debt management plan and debt settlement program? </h3>Debt management plans are sometimes confused with debt settlement programs. DMPs are offered by credit counseling agencies and intended to give you breathing room while you pay back your debt. Debt settlement programs negotiate debt forgiveness—usually about 50% to 80%—and are often costly. Settlement often takes years while your accounts continue to accrue interest and fees and can even leave you at risk for creditor lawsuits and wage garnishment.[3]    <hr/><ol><li><a href="https://www.consumerfinance.gov/ask-cfpb/what-is-credit-counseling-en-1451/">Consumer Financial Protection Bureau</a>. “What is credit counseling?” </li><li><a href="https://www.ncoa.org/article/what-is-a-debt-management-plan">National Counsel On Aging</a>. “What Is a Debt Management Plan?” </li><li><a href="https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-credit-counseling-and-debt-settlement-debt-consolidation-or-credit-repair-en-1449/">Consumer Financial Protection Bureau</a>. “What is the difference between credit counseling and debt settlement, debt consolidation, or credit repair?” </li><li><a href="https://www.consumerfinance.gov/about-us/blog/how-reduce-your-debt/">Consumer Financial Protection Bureau</a>. “How to reduce your debt” </li></ol>

Taxes may not be the most exciting thing you'll ever do, but if you have a personal loan, knowing the potential tax implications can help when it comes time to file your return. 

In most cases, you cannot get a tax deductible interest on personal loans. You may not deduct interest expenses from an unsecured personal loan unless the loan is for business expenses, qualified education expenses, or eligible taxable investments. Taxes may not be the most exciting thing you&#39;ll ever do, but if you have a personal loan, knowing the potential tax implications can help when it comes time to file your return. The good news: There is no set personal loan tax. However, knowing when and how a personal loan might impact your taxes can help ensure you don’t miss out on any potential deductions. Here is what you need to know: <h2>Are personal loans tax deductible? </h2>In most cases, no, however, there are a few exceptions to the rule. You can get tax-deductible interest on personal loans if you use the loan proceeds for business expenses, qualified education expenses, or eligible taxable investments. If you do not use the loan for one of these reasons, then a personal loan won’t affect your taxes. <h2>Why don’t personal loans affect your taxes? </h2>A <a href="https://www.lendingclub.com/personal-loan">personal loan</a> could help you save money by consolidating high-interest debt, or provide the funds you need to pay for an emergency or unexpected expense. While there are exceptions, generally, personal loans don’t affect your taxes.  <h3>1. It&#39;s not income </h3>The money you receive from a personal loan isn’t added to your taxable income, which means that the borrower does not have to pay taxes. <h3>2. It&#39;s for personal use </h3>Personal loans are often for personal use, and you generally don’t get to deduct personal expenses. <h3>3. Even when allowed, only interest is tax deductible </h3>Some types of loans can qualify for a tax deduction. Generally, you can deduct only the interest portion you pay on the loan (and sometimes origination fees in the case of <a href="https://www.irs.gov/publications/p970%22%20/l%20%22en_US_2019_publink1000178257">student loans</a>, for example), not the loan amount. <h2>When can you get tax deductible interest on loans? </h2>Depending on how you use the funds, there are a few circumstances when you can get tax deductable interest on personal loans. For example, if you take out a loan solely to pay for qualified education expenses or to refinance a student loan, you may be able to claim the <a href="https://www.irs.gov/publications/p970%22%20/l%20%22en_US_2019_publink1000178257">student loan interest deduction</a>. Similarly, you may also be able to take an investment interest expense or business expense deduction if you used a personal loan for these purposes. However, some lenders and lending marketplaces (like LendingClub) may not allow you to take out a personal loan for these types of purchases. Additionally, an unsecured personal loan won’t qualify for mortgage-related deductions because the loan isn’t <a href="https://www.irs.gov/taxtopics/tc505">secured by your home</a>. This is true even if you take out the loan for home improvements. <h2>4 types of loans with tax-deductible interest </h2>You can get a tax deductible interest on certain types of loans if you meet all the criteria. According to the IRS, you can get a tax deductible interest on the following loans: <ul><li>Interest on outstanding student loans </li><li>Interest on mortgages &amp; second mortgages </li><li>Investment interest expenses </li><li>Interest on business loans </li></ul><h3>1. Student loans </h3>If you took out student loans for qualified higher education expenses, you may be able to deduct up to $2,500 in interest payments each year. For the interest deduction, <a href="https://www.irs.gov/publications/p970%22%20/l%20%22en_US_2019_publink1000178257">qualified expenses</a> may include tuition, fees, lodging, textbooks, and other necessary expenses. The definition varies for certain higher education tax credits. You can take this deduction even if you don’t itemize. However, you can’t take the deduction if you use the married filing separately status or if someone can claim you or your spouse as a dependent. The deduction also phases out based on your modified adjusted gross income. <h3>2. Mortgages </h3>While the <a href="https://www.irs.gov/publications/p936">Tax Cuts and Jobs Act of 2017</a> created new rules for deducting mortgage interest payments, it didn’t get rid of the deduction altogether. Individuals can still deduct interest on mortgages when they use the money to buy, build, or improve a home. For example, if you paid mortgage interest points, those payments can also be deductible. In both cases, if you qualify, you must itemize your deductions to benefit. The law limits how much interest you may be able to deduct. Now, you can deduct interest on up to $375,000 worth of mortgage debt (or, $750,000 if you’re married and file jointly). Higher limits of $500,000 and $1,000,000 apply if you took out the mortgage before December 16, 2016. <h3>3. Second mortgages </h3><a href="https://www.irs.gov/newsroom/interest-on-home-equity-loans-often-still-deductible-under-new-law">Interest payments on second mortgages</a>, such as a home equity loan (HEL) or home equity line of credit (HELOC) may also be deductible. However, the mortgage value limit applies to the combined balance of your first and second mortgages. To qualify, you need to use the proceeds from the loan to substantially improve the home by increasing its value or extending its life. In other words, building an addition might qualify, but making purely cosmetic changes that don’t increase its value wouldn’t. <h3>4. Investment interest expenses </h3>The <a href="https://turbotax.intuit.com/tax-tips/investments-and-taxes/what-is-form-4952-investment-interest-expense-deduction/L9BaPovJ4">investment interest deduction</a> is an itemized deduction for the interest you pay if you borrow money to buy an eligible taxable investment. For example, you may be able to claim the deduction if you have a brokerage account and took out a margin loan to buy stocks. Buying tax-advantaged municipal bonds won’t count. If you qualify, the deduction is limited to the net investment income you earned at your ordinary income tax rate. You may be able to carry over interest expenses if you can’t claim the full deduction this year. <h3>5. Business loans </h3>If you run a business or are self-employed, you may be able to deduct the interest you pay on a business loan (or the portion of a personal loan) you use for business purposes. To qualify, you must: <ul><li>Be liable for the debt </li><li>Intend to repay the debt, and the credit must be expected to be repaid </li><li>Have a true debtor-creditor relationship </li></ul>For example, if a family member offers to give you money to start a business and you later decide to repay the gift plus interest that won’t count. If you take out a personal loan to buy supplies and equipment for your business, then you may be able to deduct your interest payment. Or, for example, you take out an auto refinance loan for a vehicle that you use for business half the time. You may be able to deduct half of the interest on the loan. <h2>How does canceled personal loan debt affect your taxes? </h2>If a creditor cancels, discharges, or forgives part of your debt, the portion of the loan that you didn’t repay may be considered <a href="https://www.irs.gov/taxtopics/tc431">taxable income</a>. Often, this occurs if you fall behind on payments and agree to a settlement with the creditor. The creditor will send you a Form 1099-C, Cancellation of Debt, which shows how much debt was canceled. You may need to include the canceled debt in your income and pay taxes on the amount. However, there are exceptions, and you may be able to exclude the amount from your income if you’re insolvent (i.e., your liabilities exceed your assets). <h2>The bottom line </h2>With the potential tax consequences in mind, you can be more strategic about when and why you take out a loan. In particular, small-business owners can benefit, as some loans may qualify them for a deduction even if they use only a portion of the proceeds for business expenses. Remember, tax planning is a year-round process and an important part of managing your personal finances. Many individuals often think about using a tax refund to pay down debt. However, a better approach might be to use a more reliable source of funds—such as a personal loan. <h2>FAQs  </h2><h3>Are loan repayments tax deductible? </h3>No, loan repayments on personal loans, auto loans, and credit card debt are not tax-deductible. <h3>What kind of personal expenses are tax deductible? </h3>The top personal expenses that remain tax deductible for individuals include mortgage interest, student loan interest, charitable donations, medical expenses, 401(k) and IRA contributions, and certain education expenses. Most of these can only be taken if you file an itemized tax return.

Chances are, you’re managing money differently today than you were a few years ago. If your shopping, spending, and money management have moved online and onto your phone, you might want to consider whether an online-only bank is a fit for you.

Chances are, you’re managing money differently today than you were a few years ago. If your shopping, spending, and money management have moved online and onto your phone, you might want to consider whether an online-only bank is a fit for you. At a traditional bank, fees and interest charges support retail branches and other services you may no longer want or need. Online banks don’t have retail locations. Instead, they hone in on providing online loans and deposit accounts with great rates, low fees, and digital features that make managing money easier now.Would an online bank work for you? Read on to learn more about the benefits of online banking.<h2>How managing money went digital</h2>Managing money online is now a primary way to transact. How many of these digital money moves do you recognize?<ul><li>Using your phone to deposit checks</li><li>Shopping and paying bills online</li><li>Using an app to pay or reimburse friends and family</li><li>Opening a bank, investment, or cryptocurrency account online</li><li>Paying a contractor through a payment app</li><li>Using a digital wallet</li><li>Adding multi-factor authentication (single-use passcodes) to your accounts for security</li><li>Monitoring your credit online</li></ul>You may check your real-time account balance before making a big purchase. You receive text alerts that remind you to pay bills. You use an app to pay a babysitter or split a check.Now that your relationship with money has gone mostly digital, how well does your bank support that relationship? If you’re not sure how to answer, you might want to look into an online bank.<h2>What is online banking?</h2>Online banking is what you do whenever you use a bank’s website or mobile app, but it also refers to a type of bank that focuses on digital banking. These banks don’t rely on retail locations to serve their customers (or members). <h2>How does online banking work? </h2>Just about everything happens online or by <a href="/mobile-app">mobile app</a>. You can:<ul><li>Use a banking website to open and access your accounts;</li><li>Download an app to get an instant read on transactions, transfer money between accounts, or send money to friends and family;</li><li>Pay bills and receive security alerts on your phone; and</li><li>Use any ATM to access cash (you may receive a refund for out-of-network fees).</li></ul>Online banking isn’t new: People have been using their bank’s websites to view accounts since the 1990s and mobile banking apps have been around for more than a decade. Online banks are taking digital banking to a new level by changing the economics of financial services.Branch locations cost money to operate along with other trappings of traditional banking, like paper statements and paper checks. By focusing on the key digital banking features consumers want, and ditching legacy features that drive up overhead, online banks can provide a great digital experience while keeping costs low.These savings translate to competitive rates on loans and savings, or <a href="/personal-checking/rewards-checking">rewards checking accounts</a> without maintenance fees—to name a few. You won’t get a nicely decorated branch to visit, but you will get the convenience of a bank that never requires you to visit a branch. And with less overhead, you may pay less and receive more on the loans, checking, and savings accounts you want.<h2>Traditional banks vs. Credit unions vs. Online banks</h2>When you shop for a bank online, you’ll find a wealth of options. Not every bank you find online is an online bank. Some, like credit unions, aren’t banks at all. Here’s a quick rundown on three common types of financial institutions:<h3>Traditional banks</h3>Traditional banks deliver a familiar mix of checking, savings, credit, and loans. Expect to find a network of national or regional retail branch locations, branded ATMs, online banking, mobile apps, and telephone-based customer service. Although banks can range from small community banks to nationwide megabanks, banks on the whole are full-service operations - a good place to look when you need a cashier’s check or safe deposit box. They’re also for-profit companies with profit margins to manage and shareholders to answer to.<h3>Credit unions</h3>Credit unions offer many of the same products and services as banks, but with a member-based business model that is not-for-profit. Rates and fees are typically competitive, and personalized service is a hallmark. Credit union membership is often based on where you live or work. You can go to <a href="https://www.mycreditunion.gov/about-credit-unions/find-join-start">mycreditunion.gov</a> to find credit unions you are eligible to join. Expect a range when it comes to digital experience: Some credit unions are tech-forward while others are a few steps behind.<h3>Online banks</h3>Online banks center on digital experience instead of maintaining branch locations or their own network of ATMs. Online banks typically offer lower rates and fees on loans and higher interest on checking and savings and have strong mobile apps and customer service features. As an example, <a href="/personal-checking/rewards-checking">Rewards Checking</a> at LendingClub Bank pays cash back rewards on Qualified Purchases using a debit card tied to Eligible Accounts, no maintenance fees, and no minimum balance requirements (aside from $25 to open the account).1 Like traditional banks, online banks are regulated, for-profit companies with profit margins and shareholders to manage.<h2>Pros and cons of banking online</h2>If you’re comfortable managing your money digitally, an online bank may give you a better deal on basics like checking, savings, and loans. Because online banks are built to function virtually, they’re invested in offering technology that works. Of course, you should check out any bank you’re considering individually, to make sure they have the accounts, features, and competitive rates you want.<h3>Do you need a branch?</h3>Some people prefer banking face-to-face. You might use in-branch services frequently - for example, if you own a small business and make regular large cash deposits. Maybe you’ve developed personal relationships with the people at your bank branch, and that gives you a sense of security and belonging.On the other hand, maybe you haven’t seen the inside of a bank branch in years. Maybe you only go grudgingly, when you can’t accomplish what you need online or at an ATM. Maybe your branch is now populated with automated tellers that handle tasks efficiently but can’t deliver a personal touch. Only you know whether you really need a branch to manage your money comfortably and effectively.<h3>Is an online bank safe?</h3><a href="/">Online banks</a> that are insured by the Federal Deposit Insurance Corporation (FDIC) offer the same protections as traditional banks. The FDIC insures up to $250,000 per depositor, per bank, for each ownership category including single accounts, joint accounts, trust accounts, and so on. Credit unions have similar insurance through the National Credit Union Association (NCUA).Wherever you bank, online security is a serious concern. Card-not-present (online) fraud is rising; security features that protect your account data and identity are a must. Look for security tools like single-use passcodes and biometric (face ID or fingerprint) identification that works with your phone. Online banks are constantly improving security technology to stay ahead of fraud. Avoid public Wi-Fi when you’re banking or shopping. Seek out and use your bank’s security features to keep your data as safe as possible.<h2>9 features you may find at an online bank</h2>One of the best reasons to consider an online bank is their range of convenient, money-saving products and features. Here are nine useful items you might find at an online bank:<ol><li><a href="/personal-checking/rewards-checking">Fee-free rewards checking with no minimum balance requirement</a></li><li><a href="/personal-savings/high-yield-savings">High-yield savings accounts</a> and CDs that pay top interest rates</li><li>A <a href="/mobile-app">mobile banking app</a> that covers all your basic banking</li><li>Nationwide <a href="/help/checking-accounts-faq/how-do-i-earn-atm-rebates-on-my-checking">ATM access with rebates</a> on out-of-network fees</li><li>Faster direct deposits that let you access your paycheck sooner</li><li><a href="/personal-loan">Loans with competitive rates</a> and fast online application, approval, and funding</li><li>24/7 customer service by chat or phone</li><li>Security features like multi-factor authentication and alerts that keep you connected to your accounts in real time</li><li>FDIC insurance (Member FDIC)</li></ol><h2>The bottom line</h2>In a digital-first world, an online bank can provide you with the loans, checking, and savings you want, with lower costs and a higher upside. If you already manage your finances in the digital realm, choosing a bank that does everything online and by app might not require much adjustment. Choose the right banking partner (or partners), plug in, and enjoy the benefits of banking online.<hr/>Terms and Conditions1. Rewards Checking Cash Back Rewards: The Debit Card Rewards Program (“Cash Back Rewards”) provides 1.00% cash-back on all Qualified Purchases using a debit card tied to Eligible Accounts. Eligible Accounts are: Rewards Checking accounts that meet the following requirements for the calendar month in review: (1) Maintain an average monthly balance of at least $2,500.00; or (2) Receives at least $2,500.00 in Qualifying Direct Deposits.Qualifying Direct Deposits are defined as: Recurring Automated Clearing House (ACH) credits, including payroll, pension or government payments (such as Social Security) made by your employer, or an outside agency. We may require documentation to verify that credits are Qualifying Direct Deposits. Qualifying Direct Deposits do not include peer to peer payments or ACH transfers (funds transfers) from your external accounts.Qualified Purchases are defined as: Signature-based purchases made using the debit card tied to an Eligible Account. These are “credit” purchases that can be made in stores and online. To make a signature-based purchase, select “credit” rather than debit at point-of-sale kiosks. The “credit” option is most often pre-selected when making purchases online using a debit card. Online subscription payments may not be considered signature-based purchases. The payment transaction type (signature-based or other) is ultimately decided by the merchant and is based on how the transaction is transmitted at the time of processing. Qualified Purchases do not include: (1) any goods or services purchased that are returned or otherwise credited to your Eligible Account; (2) unlawful purchases; or (3) purchases of currency, cash or cash equivalents (including, without limitation, currency from the U.S. Mint, Travelers Checks, gift cards, cryptocurrency, casino chips, peer to peer payments, prepaid debit cards, account openings, loan payments, or other cash equivalents). Any earned Cash Back Rewards will be credited to your account on or before the 10th calendar day of the next calendar month. The Eligible Account must be open and active at the time the Cash Back Reward is credited.

From groceries and diapers to Halloween costumes for pets, nearly 60% of American consumers prefer to shop online for everyday items that make life more convenient, comfortable, and enjoyable. And with rising prices showing no signs of stopping anytime soon, we’re pleased to introduce StackitTM from LendingClub Bank—a new browser extension that automatically finds and rewards eligible members with coupons and cash back for extra savings at more than 15,000 favorite online retailers.

From groceries and diapers to Halloween costumes for pets, nearly 60% of American consumers prefer to shop online for everyday items that make life more convenient, comfortable, and enjoyable. And with rising prices showing no signs of stopping anytime soon, we’re pleased to introduce StackitTM from LendingClub Bank—a <a href="/member-benefits/stackit/install?utm_source=Internal&utm_medium=Blog&utm_campaignid=stackit_launch">new browser extension</a> that automatically finds and rewards eligible members with coupons and cash back for extra savings at more than 15,000 favorite online retailers.<h2>Limited Time Offer to Double Your Cash Back Through 12/31/22</h2>Stackit is a free, new cash back and rewards program available to personal loan members that’s easy to download and install. Eligible members can activate their favorite offers with one click to start saving while stacking cash back offers with existing loyalty program rewards at eligible stores.“We’re relentless when it comes to giving customers more, and Stackit is a perfect example of this,” said Amber Carroll, SVP of Membership and Lifecycle Marketing. “Stackit appears as you shop so it’s easier to activate. You can redeem your cash back for gift cards from hundreds of online stores. And you can continue accumulating loyalty points from merchants and rewards from credit cards while we stack coupon savings and cash back earnings on top of all of it,” she said. “Stackit demonstrates our promise to help members make smart money moves that are both easy and rewarding.”To celebrate the new Stackit rewards program, LendingClub is offering its personal loan members double the cash back on eligible purchases made now through the end of the year. To start earning and stacking rewards, eligible members can simply <a href="/member-benefits/stackit/install?utm_source=Internal&utm_medium=Blog&utm_campaignid=stackit_launch">add the new Stackit Extension</a> to their browsers—doubling their earnings for a limited time through 12/31/22.* Cash back can be redeemed for e-gift cards through the Earnings Dashboard.<h2>New Name, Better Rewards</h2>Earlier this year, LendingClub soft-launched its exclusive member rewards program as a separate Chrome browser extension test that was made available to a small subset of customers. Drawing from these learnings,Stackit is LendingClub Bank’s new and improved rewards program featuring a new extension, expanded browser availability, and enhanced account integration that is rolling out to a wider member audience beginning in November.Currently, any LendingClub personal loan member can download and start using the new Stackit browser extension. (Users of the old LendingClub Chrome Extension can continue earning cash back through 11/30/22; any amount remaining in users’ accounts after 11/30 will automatically be paid out via PayPal. Members are advised to add the new Stackit Extension to continue earning cash back and rewards, including double cash back, on future purchases.) In addition to Chrome,Stackit expands browser availability to Safari and Edge, and enables members to view recent transactions and cash back earnings inside their LendingClub account instead of a third-party site. Planned rollouts to LendingClub members with Auto, Deposit, and other accounts beyond personal loans are expected, however, timing is still under consideration.*Double Cash Back Offer on eligible transactions expires 12/31/22. See <a href="/legal/terms-of-use">Terms of Use</a> for full details. Offer is subject to change without notice.Stackit is a non-deposit product offered by LendingClub Bank.

Even in today’s low-yield, high-inflation environment, it’s essential to keep a certain amount of money in an easy-to-access checking or savings account for things like daily household and emergency expenses, or to meet short-term financial goals. 

Even in today’s low-yield, high-inflation environment, it’s essential to keep a certain amount of money in an easy-to-access checking or savings account for things like daily household and emergency expenses, or to meet short-term financial goals. However, recent <a href="https://www.fdic.gov/analysis/household-survey/">FDIC research</a> shows approximately 7.1 million Americans are “unbanked,” meaning they do not have a basic checking or <a href="/personal-savings">savings account</a>.<h2>Being Unbanked Increases Costs for Families</h2>Reasons for being unbanked (and underbanked) vary from not having enough money to meet a minimum balance and high or unpredictable fees, to having a history of credit, ID, or banking problems, and/or a general distrust of financial institutions.As a result, this drives unbanked individuals to expensive, alternative financial outlets—such as check cashers, payday lenders, and pawn shops that charge high fees for financial products and services—to manage their money. Such fringe financial “solutions” hold people back from making meaningful financial progress, many of whom are living on low incomes and, likely, already struggling to make ends meet. Without a <a href="/personal-checking/rewards-checking">checking account</a>, these families wind up overpaying for basic financial transactions, making it difficult for them to build savings and assets over time.<h2>More Rewarding Banking for More People</h2>In light of this, we’re proud to share that recent improvements to LendingClub Bank’s <a href="/personal-checking/rewards-checking">award-winning Rewards Checking</a> has earned us official certification by the national Cities for Financial Empowerment Fund as meeting the BankOn National Standards for trust and affordability for consumer transactional accounts.Key features of our award-winning Rewards Checking account include:<h3>Low Minimum Opening Balance</h3><ul><li>Access Rewards Checking with an opening deposit of only $25</li><li>Freedom from Fees Save more of your hard-earned money with no overdraft, monthly maintenance, and incoming wire transfer fees1</li></ul><h3>Unlimited Cash Back</h3><ul><li>Earn <a href="/personal-checking/rewards-checking">unlimited 1% cash back</a> on Qualified (signature-based) Purchases when using your Rewards Checking debit card2</li></ul><h3>Free ATM Access</h3><ul><li>Enjoy <a href="/help/checking-accounts-faq/how-do-i-earn-atm-rebates-on-my-checking">ATM access with no LendingClub ATM fees</a>, plus get unlimited ATM fee rebates on fees charged by other banks3</li></ul><h3>Get Your Paycheck Early</h3><ul><li>Set up direct deposit into your account and you could be eligible to receive your money up to 2 days earlier4</li></ul><h3>Earn Interest</h3><ul><li>Earn an APY that’s more than the national average with account balances of at least $2,5005</li></ul><h3>FDIC Insurance</h3><ul><li>Rest easy knowing your deposits are FDIC-insured up to the maximum amount allowed—$250,000 per depositor for each ownership category</li></ul><h3>Best Online Experience</h3><ul><li>Based on our easy-to-use mobile app and award-winning <a href="/personal-checking/rewards-checking">online checking account</a>, NerdWallet named us Best Bank or Credit Union for Online Experience</li></ul><h2>What Our Members Say</h2>It’s important knowing we’re offering products and services that are helping to improve the financial lives and stability of all Americans, including unbanked and underbanked individuals and families, in every community across the United States.Here’s what some of our members have to say about their Rewards Checking experience with LendingCLub Bank:“I never knew how much money I was losing with my old bank whenever I used an ATM. [LendingClub Bank] reimburses fees from ATM’s and now I look forward to getting the cash back every month.”Robin, a LendingClub Bank Member“The rewards checking account with cash back every month has helped me ditch my credit card and debt.”Lauren, a LendingClub Bank MemberRead more member reviews.<h2>Your Financial Well-Being Matters to Us</h2>At LendingClub Bank, making <a href="/personal-checking/rewards-checking">checking accounts</a> more rewarding for more people is an example of our belief that financial well-being should be attainable for everyone—not just for those who can afford it. Everything we do is centered around empowering our members to meet their personal financial goals by enabling access to a broad range of financial products, services, and educational resources, all designed to help them pay less when borrowing and earn more when saving. Testimonials reflect the real-life experiences of individuals who used our products; however, individual results may vary.<hr/><h4>Terms and Conditions</h4>Accounts subject to approval. $25 minimum opening deposit required. See Product Terms &amp; Conditions for additional details.1. Miscellaneous fees may apply. View Product Terms &amp; Conditions for complete details.2. The Debit Card Rewards Program (“Cash Back Rewards”) provides 1.00% cash-back on all Qualified Purchases using a debit card tied to an Eligible Account.Eligible Accounts are: Rewards Checking accounts that meet the following requirements for the calendar month in review:1). Maintain an average monthly balance of at least $2,500.00; or 2). Receives at least $2,500.00 in Qualifying Direct Deposits.Qualifying Direct Deposits are defined as: Recurring Automated Clearing House (ACH) credits, including payroll, pension or government payments (such as Social Security) made by your employer, or an outside agency. We may require documentation to verify that credits are Qualifying Direct Deposits. Qualifying Direct Deposits do not include peer to peer payments or ACH transfers (funds transfers) from your external accounts.Qualified Purchases are defined as: Signature-based purchases made using the debit card tied to an Eligible Account. These are “credit” purchases that can be made in stores and online. To make a signature-based purchase, select “credit” rather than debit at point-of-sale kiosks. The “credit” option is most often pre-selected when making purchases online using a debit card. Online subscription payments may not be considered signature-based purchases. The payment transaction type (signature-based or other) is ultimately decided by the merchant and is based on how the transaction is transmitted at the time of processing. Qualified Purchases do not include: (1) any goods or services purchased that are returned or otherwise credited to your Eligible Account; (2) unlawful purchases; or (3) purchases of currency, cash or cash equivalents (including, without limitation, currency from the U.S. Mint, Travelers Checks, gift cards, cryptocurrency, casino chips, peer to peer payments, prepaid debit cards, account openings, loan payments, or other cash equivalents). We may report the value of Cash Back Rewards to the IRS as required by law. Any client whose tax status would require us to impose tax withholding of any sort will not be eligible for Cash Back Rewards. Accounts are reviewed after the end of each month. Any earned Cash Back Rewards will be credited to your account on or before the 10th calendar day of the next calendar month. The Eligible Account must be open and active at the time the Cash Back Reward is credited.3. LendingClub does not charge a fee for using another bank’s ATM. Plus, get unlimited automatic ATM surcharge rebates for ATM fees other banks charge you. ATM surcharge rebates apply to cash withdrawals from a Rewards Checking account. ATM fees will be rebated at the end of each statement cycle. Excludes international exchange fees. LendingClub makes its best effort to identify those ATM fees eligible for rebate. In the event that you have not received a rebate for a fee you believe is eligible, please contact Customer Service at 800.242.0272. LendingClub reserves the right to modify or discontinue the ATM surcharge rebate program at any time. Out-of-network ATM fees cost $2.50 on average — source: CNBC as of 01/26/2022. If someone were to use an out-of-network ATM 6 times per month at an average fee of $2.50 per withdrawal, they would spend $180 in ATM fees in 12 months.4. Any account features that enable you to receive direct deposits, or that enable direct deposit funds to be made available to you early, are contingent upon and subject to the payor’s support of such features. 5. Annual Percentage Yield (APY) accurate as of 8/1/2022. Rate tiers are as follows: 0.00% APY applies to balances of $0.00–$2,499.99, 0.10% APY applies to the entire balance on balances of $2,500.00–$99,999.99, and 0.15% APY applies to the entire balance of $100,000.00 or more. Rates are variable and are subject to change, at the discretion of the bank and without notice, at any time after an account is opened. Fees may reduce earnings.

Since 2007, LendingClub has been on a mission to deliver a world-class experience to all our members. This month we took a moment to reflect on the more than four million members who have chosen LendingClub as their partner to help them reach their financial goals.

Since 2007, LendingClub has been on a mission to deliver a world-class experience to all our members. This month we took a moment to reflect on the more than four million members who have chosen LendingClub as their partner to help them reach their financial goals.As the leading digital marketplace bank in the U.S. built on the belief that innovative, creative solutions deliver more value and a better experience, we’re always looking for new ways to provide more. In early 2021, LendingClub became a bank holding company operating a national bank, allowing us to expand our products and level the playing field for everyone.  “Every day we help members leverage their money so they can earn more when saving and pay less when borrowing,” said Amber Carroll, Senior Vice President of Membership &amp; Lifecycle Marketing at LendingClub. “We&#39;re working to redefine banking, which means ensuring our interests are well aligned with those of our members and introducing new ways to better serve their needs.” Since the beginning of the pandemic, how we work, live, and manage our finances has evolved in ways most of us would never have imagined. Increasingly, more Americans across varying credit profiles are struggling to stretch their dollars between paychecks. According to a recent survey from LendingClub and PYMNTS, even among workers earning more than $100,000 per year nearly half are living paycheck to paycheck.  At LendingClub, we’re inspired every day by our members who continue to strive for financial well-being during these unprecedented times—such as by consolidating their credit card debt into a single, more manageable payment, refinancing their auto loan to free up room in their budget, or taking advantage of a CD or high-yield savings account to invest in their future. The Club is working hard to help members reach their goals and we’re incredibly proud to help simplify their path. As one of member recently shared: “This is the third time I have utilized LendingClub&#39;s great rates and lending plans to assist with home repairs and debt consolidation. Their application and payment processes are quick and simple to use. I have saved so much time and money using this funding!” — Christine, a member from Texas We believe everyone deserves a better financial future. If you’re ready to improve your financial well-being and are not already a member of the Club, we can help. From banking smarter with your <a href="/personal-deposits/online-banking">personal checking and savings</a>, to working toward larger financial goals—like <a href="/personal-loan">consolidating debt</a>, <a href="/auto-refinancing">refinancing an auto loan</a>, or making home improvements—you can easily check your rate for a personal loan in minutes, with no impact to your credit score. Thanks again to all of our members for helping us achieve this incredible milestone.

In March 2022, we hosted our first quarterly webinar where we celebrated our one-year anniversary as a digital marketplace bank. 

In March 2022, we hosted our first quarterly webinar where we celebrated our one-year anniversary as a digital marketplace bank. During the webinar, Anuj Nayar, our Financial Health Officer, discussed:<ul><li>Our journey to get to where we are today </li><li>Lessons learned from our 15-year history as a fintech pioneer</li><li>How we’re leveraging our digital marketplace bank to further our mission to help Americans on their path towards financial health</li><li>We recently reported Q4 2021 and year-end earnings</li><li>New data on the financial health of U.S. consumers from our latest Paycheck-to-Paycheck report</li></ul>A historic milestone, as one of the first fintech company to acquire a national bank we’ve paved the way for other fintechs to follow suit. With 15 years under our belt, more than 3.9 million members, and over $70 billion in loan originations, the marriage of LendingClub’s marketplace fintech business with all the benefits of being a bank is fundamentally changing the nature of our business and influencing change across the banking industry as a whole. We’re also creating something new for our members -- a bank that puts the customer at the center of what we do. <a href="https://vimeo.com/686043451">Check out the video below to learn more.</a>

LendingClub completed the acquisition of Radius Bank in February 2021. At that time, in addition to the direct-to-consumer deposit business, we inherited a fintech partner program, and several lending businesses. As we reach the one-year anniversary of the acquisition, and in conjunction with the conclusion of a strategic review of our business operations, we have made the decision to discontinue certain businesses that don’t fit our mission.  

LendingClub completed the acquisition of Radius Bank in February 2021. At that time, in addition to the direct-to-consumer deposit business, we inherited a fintech partner program, and several lending businesses. As we reach the one-year anniversary of the acquisition, and in conjunction with the conclusion of a strategic review of our business operations, we have made the decision to discontinue certain businesses that don’t fit our mission.  This includes our yacht loan business. Yacht loans are simply not in line with our mission to help everyday Americans on their path to financial health and we plan to grow our auto refinance business to take its place.  During the review, we also thoroughly examined relationships and operating activities for the fintech partners. As a result of our review, we are asking certain partners to modify their activities and/or operations to match expectations and contractual commitments, and we have begun exiting certain partners. As part of the ongoing dialogue with these partners, we have discussed transition plans or operational changes that could impact the services available to these partners and their customers.   As a pioneer in this space, we have a unique perspective. We operated for 15 years as a fintech with a partner bank model and now we operate as a fintech, a bank, and a partner bank. We work hard at LendingClub to maintain and build a robust, secure, compliant and scalable enterprise. We are guided by our core values, our extensive experience, our deep data set and technology investments, and governed by strong controls, to deliver on behalf of our members, communities, shareholders, partners, and team members.  These business model changes will have no material effects on our business operations and we plan to report more details when we issue our Full Year 2021 and Q4 earnings in a few weeks. Scott Sanborn CEO  LendingClub<hr/>Safe Harbor StatementSome of the statements above, including statements regarding  the effect on our business operations as a result of the business model changes, are &quot;forward-looking statements.&quot; The words &quot;anticipate,&quot; &quot;believe,&quot; &quot;estimate,&quot; &quot;expect,&quot; &quot;intend,&quot; &quot;may,&quot; &quot;outlook,&quot; &quot;plan,&quot; &quot;predict,&quot; &quot;project,&quot; &quot;will,&quot; &quot;would&quot; and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include those factors set forth in the section titled &quot;Risk Factors&quot; in LendingClub&#39;s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, each as filed with the Securities and Exchange Commission, as well as in LendingClub&#39;s future filings made with the Securities and Exchange Commission. LendingClub may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. LendingClub does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Related Impact

We offer several ways for you to make your monthly auto loan payment, so you can choose the method that works best for you. A statement will be mailed to you every month that shows the payment amount and due date.

We offer several ways for you to make your monthly auto loan payment, so you can choose the method that works best for you. A statement will be mailed to you every month that shows the payment amount and due date.<h3>Set up automatic payments</h3>Signing up for automatic payments means you won’t miss any payments, and you’ll save money on postage. You can set up autopay from your To-Do List after you apply. Once you sign up, we’ll debit your payment from your bank account each month. If you do not elect this option during the application, you can enroll after a loan is issued to you by visiting our servicing partner’s site: <a href="https://santanderconsumerusa.com/payments/auto-pay">https://santanderconsumerusa.com/payments/auto-pay</a> <h3>Pay online, by phone, or by check</h3>Once your loan documents are finalized, you’ll receive a welcome email or letter providing details on how to make your payments. You can also visit our servicing partner&#39;s site for payment options: <a href="https://santanderconsumerusa.com/payments">https://santanderconsumerusa.com/payments</a>. Payments and loan payoffs for Auto loans should be mailed to our servicing partner, Santander Consumer USA, at:Santander Consumer USA3000 Kellway Drive, Suite 120Carrollton, TX 75006If you need help or have any questions, please call 888-845-0010 Monday through Friday from 8 am to 4 pm Pacific Time.

LendingClub provides a year-end statement that summarizes your account activity, including how much interest you’ve earned and information regarding Notes tied to loans that have been charged off.

LendingClub provides a year-end <a href="/help/investing-faq/where-do-i-find-statements-and-forms">statement</a> that summarizes your account activity, including how much interest you’ve earned and information regarding Notes tied to loans that have been <a href="/help/investing-faq/what-do-the-different-note-statuses-mean">charged off</a>.Consult with your accountant or other tax advisors on how to properly type: asset-hyperlink id: 3qvoScA6m5AgjXtqJMLU6r on your annual Notes activity, including whether you can <a href="/help/investing-faq/what-affects-my-notes-portfolio-performance">claim losses from Notes</a> tied to charged-off loans.

Once you’ve submitted your application, we’ll try to confirm your information on our own. Sometimes, you may need to submit a few documents to confirm your identity, income, or vehicle ownership.

Once you’ve submitted your application, we’ll try to confirm your information on our own. Sometimes, you may need to submit a few documents to confirm your identity, income, or vehicle ownership. For some documents, you can upload a screenshot or copy to your <a href="/auth/login">To-Do List</a>. If you initiate a title transfer, we’ll need documents mailed to us.<h2>Documents you can upload to your To-Do List</h2><ul><li>Driver’s license—a current and valid state-issued driver’s license.</li><li>Proof of registration—the registration for the car you’re refinancing. To prevent delays, ensure that your registration is up to date and that you’ve paid all outstanding fees.</li><li>Proof of insurance—the insurance card for the car you’re refinancing. Ensure your name, vehicle identification number (VIN), and policy number are clearly visible. LendingClub requires that you carry full-coverage insurance on your car. Full-coverage insurance includes comprehensive and collision coverage.</li></ul>Learn <a href="/help/auto-refinance-faq/how-do-i-upload-auto-refinance-documents">how to upload documents</a>.<h2>Documents to mail using a prepaid shipping label</h2><ul><li>Title transfer documents—enables LendingClub to transfer your car title from your previous lender to us. A limited power of attorney (LPOA) shows that you’ve authorized the title transfer. Once we’re ready for the title transfer, we’ll email you a form to print out and sign. You can then mail the form back to us using the prepaid shipping label we provide. In some cases, your LPOA may need to be notarized.</li></ul>Learn more about <a href="/help/auto-refinance-faq/how-do-i-submit-title-transfer-documents">title transfer documents</a>.

Once you submit your Auto Refinance application, we may ask you for additional paperwork to verify your information.

Once you submit your Auto Refinance application, we may ask you for additional paperwork to verify your information.Check out your <a href="/auth/login">To-Do List</a> to see if we&#39;ve requested that you send us any documents. If we have, the fastest and easiest way to submit them is to upload them right to your account.<h2>Upload from your computer</h2>To upload documents from your computer:<ol><li>Scan or take a picture of the document and save it to your computer.</li><li>Double-check that the image is clear, legible, and includes the whole page.</li><li>Sign into <a href="/auth/login">your Member Center</a>.</li><li>In your To-Do List, click the document you want to upload.</li><li>Click Choose files to select the file you want to upload or drag and drop the file from your computer.</li><li>If you want to submit additional pages or documents, click Choose files or drag and drop the other files from your computer instead. You can upload up to 20 separate files for each document type.</li></ol><h2>Upload from a mobile device</h2>To upload documents from your mobile device:<ol><li>Sign into <a href="/auth/login">your Member Center</a>.</li><li>In your To-Do List, tap the document you want to upload.</li><li>Tap the +  icon at the bottom of the screen.</li><li>Upload the document by taking a photo, selecting an image from your photo library, or browsing for the file.</li><li>If you want to submit additional pages or documents, tap Upload another. You can upload up to 20 separate files for each document.</li></ol><h2>Fax your documents</h2>To fax us your documents:<ol><li>Click I&#39;d prefer to fax my documents at the bottom of your To-Do List.</li><li>Select which documents you&#39;d like to fax.</li><li>Click Print Fax Cover Sheet and fill it out.</li><li>Fax the cover sheet with your documents to 844-303-6887.</li></ol>If you don&#39;t have access to a printer, you can make your own cover sheet. Just make sure it includes:<ul><li>Your name</li><li>Your <a href="/help/personal-loan-faq/how-do-i-manage-my-account">loan number</a></li><li>The total number of pages in your fax</li></ul><h2>Tips on uploading documents</h2>Follow these tips to make sure your documents are ready for review:<ul><li>File is 8 megabytes (MB) or smaller</li><li>File type is GIF, JPG, PDF, PNG, or TIFF</li><li>Document is clear, legible, and not cut off</li><li>Photos show the document at a readable size and have a dark, contrasting background</li><li>Your name is on the document</li><li>It shows an address that matches the address you provided on your loan application, if relevant</li><li>Document is current—not expired</li><li>All pages are included (yes, even those blank ones at the end!)</li></ul><h2>Confirming we received your documents</h2>When we receive your documents, the status in your To-Do List will reflect that we have them. We get notified automatically and will start reviewing them. We’ll be in touch if we need anything else.

If we’re not able to offer you a lending product, you're welcome to apply through one of our lending partners.

If we’re not able to offer you a lending product, you&#39;re welcome to apply through one of our lending partners. Sign into <a href="/auth/login">your Member Center,</a> or check your Adverse Action notice for more information on those options.You’re also welcome to come back and apply with us again in the future. Your credit profile can change as frequently as every 30 days, and this (along with changes to your employment, income, or existing debt) could change the outcome.Still have questions? Keep reading for answers.<h2>Why was I declined?</h2>The specific reasons for the decline are provided in an Adverse Action (AA) notice. Sign into <a href="/auth/login">your Member Center</a> and head to the Loan Documents page to see that notice.The AA reasons you’re given should help provide some context for why we couldn’t approve the application—and what you can focus on changing before you reapply.<h3>Understanding terms in your AA notice</h3>These are a few terms you might see in your notice, and what they mean:<ul><li>Credit Inquiries—Instances when your credit was checked</li><li>Delinquent Payments—Payments not made on time</li><li>Installment Account/Installment Loan—Loans or accounts with fixed payments over a fixed period of time, like a mortgage or auto loan</li><li>Revolving Accounts—Accounts with maximum limits that allow you to use variable amounts of credit up to that maximum, like a credit card</li><li>Revolving Balance—The portion of an account balance that goes unpaid at the end of a billing cycle and accrues interest, like your outstanding credit card balance</li><li>Revolving Debt—Another term for the debt you have on your revolving accounts</li></ul><h2>Will a decline hurt my credit score?</h2>No, when you apply, we perform a soft credit inquiry to understand your credit history, which doesn’t affect your credit score. You’ll see the inquiry if you look at your report, but other lenders won’t see it at all.<h2>Why was I declined after receiving an offer?</h2>At LendingClub, you apply online and find out instantly whether you’re pre-approved and what your offer is. If you choose to take the offer, we may ask you for documentation to verify your identity, employment, or income.If you don’t send us the documentation, or if your documents don’t match the information on your application, this may result in a decline.<h3>Pre-approved mail offers</h3>We use information provided by credit bureaus to identify potential borrowers and proactively mail them invitations to apply.When you respond to a pre-approved offer, we request updated information from credit bureaus to verify that you still meet the criteria the offer was based on. We may also request additional information, such as income and employment status. If changes have occurred in your credit report or other information since we identified you as a potential borrower, your application may be declined.Whatever the reason for the decline, it’s important to us that we let you know the final decision as soon as possible. That way you can know how to improve your application next time, or you can explore your other options as needed.

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