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Up to 5% APR discount¹

Debt Paydown Loan

How a Debt Paydown Loan Works

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Use this loan to pay down credit card or personal loan balances.
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LendingClub pays your creditors directly to make it easy for you.
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Any leftover money will be sent right to your bank account.

Why Our Members Love This

Easy to apply, quick turnaround, paid off my 5 credit cards, credit score got a big boost, payments and interest are lower. Highly recommend!2

- Kerry, a member from New York

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Frequently Asked Questions

The debt paydown loan is a personal loan that helps you consolidate and pay down existing debt. Just tell us which accounts to pay and how much. If approved and when your loan is issued, we'll send these one-time payments to your creditors directly to reduce your current debt balances. After subtracting your origination fee and the money used to pay your creditors, any leftover cash will be deposited into your bank account. Then, you’ll pay down your new loan with LendingClub over time. 

You can pay down existing credit card or personal loan debt. You can not use a debt paydown loan for student or business loans. 

You can pay a part of your debt balance with this type of loan. You can also use this loan to pay your debt in full, just make sure you get the exact payoff amounts from your creditors.

To qualify for the discounted rate, you will be required to use a portion of your loan amount to pay down qualifying existing debt directly through LendingClub. Once you apply, you will see the amount that you will need to use to pay existing debt, in order to qualify for the discount. When you let us pay your debts directly, we're able to give you a discounted rate because we know you're using the loan to consolidate other debt. 

Yes, your discounted rate is fixed and will not change. 

After you complete your application, we'll verify your information. If approved, your loan should be issued within 1 to 3 days. Immediately after that, we'll start processing the payments to your creditors. This process usually takes about 3 to 7 days. Please continue making at least the minimum payments on your accounts to avoid late fees until the payments to your creditors are confirmed.  

Once your loan is issued, it usually takes about 3 to 7 days to complete the payments to your creditors. You can check the status of these payments by contacting your creditors directly. 

No, we will not close your credit card or personal loan accounts. We'll only pay your creditors the amounts you told us in your application, which may or may not pay your balance in full. If you want to close your accounts, contact your creditor or lender. 

If approved, your loan will be issued, and we’ll subtract your origination fee and any money used to pay your creditors. The leftover cash will be deposited into your bank account generally within 1 to 3 days. 

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595 Market Street, Suite 200

San Francisco, California 94105

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  1. The APR discounted rate is a discount that some customers may receive for taking out a loan to pay down existing debt, which is discounted from the rate given for taking a full cash loan. Not all applicants will qualify for the discount. Any actual discount rate will be determined at the time of application. The best APR discounts are available to borrowers with excellent credit. Advertised discounted rates are subject to change without notice. 

  2. Any reviews presented are individual experiences and results may vary. Reviews are collected and authenticated by Bazaarvoice. Any average rating presented is based on these reviews. All reviews can be accessed at https://www.lendingclub.com/company/reviews.

A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $19,169 for a term of 36 months, with an interest rate of 10.49% and a 6.00% origination fee of $1,150 for an APR of 14.81%. In this example, the borrower will receive $18,019 and will make 36 monthly payments of $623. Loan amounts range from $1,000 to $40,000 and loan term lengths range from 24 months to 60 months. Some amounts, rates, and term lengths may be unavailable in certain states.

For Personal Loans, APR ranges from 8.98% to 35.99% and origination fee ranges from 3.00% to 8.00% of the loan amount. APRs and origination fees are determined at the time of application. Lowest APR is available to borrowers with excellent credit. Advertised rates and fees are valid as of March 8, 2024 and are subject to change without notice.

Unless otherwise specified, all credit and deposit products are provided by LendingClub Bank, N.A., Member FDIC, Equal Housing Lender (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. Credit products are subject to credit approval and may be subject to sufficient investor commitment. Credit union membership may be required. Deposit accounts are subject to approval. Deposit products are FDIC-insured up to $250,000 per depositor, per ownership category.

"LendingClub" and the "LC" symbol are trademarks of LendingClub Bank.

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