A balance transfer loan through LendingClub offers borrowers a simple way to pay down credit card and high-interest debt. A portion of your loan is paid straight to your creditors, and the rest of the money is deposited right into your bank account. Just tell us which creditors you'd like to pay, and we'll take it from there.
We don't close your accounts or negotiate with your creditors as a part of the balance transfer loan. If you want a loan for a major purchase or other expense, a traditional cash loan may be a better option.
Read on to find out more about balance transfer loans and whether it's the right option for you.
Sections in this article cover:
- Debt consolidation loans versus balance transfer credit cards
- Why your offers may differ
- Closing creditor accounts
- Remaining loan funds
- Minimum and maximum amounts
- If you don't reach the minimum amount
- When creditors will receive payment
- Maximum number of creditors or accounts
- Which creditors you can add
- Paying creditors while your loan is in process
- Viewing your balance transfer loan summary
- Changing your loan type
Balance transfer loans versus balance transfer credit cards
A balance transfer loan through LendingClub differs from a balance transfer credit card because it has fixed terms. As a result, your APR, monthly payment, and loan amount won't change. A balance transfer loan through LendingClub is not revolving debt, so you have a clear payoff date and a path toward financial stability.
Why your offers may differ
Because some of your loan contributes directly to paying down your debt and improving your financial standing, you typically get a lower APR with a balance transfer loan than with a cash loan offer.
Closing creditor accounts
We don't close accounts with your creditors or negotiate with them on your behalf. If you want to close one of your accounts, you'll need to contact that creditor directly. Remember that your credit can be impacted by a variety of factors. You can find out more about how opening lines of credit, closing accounts, and other situations can affect your credit score and the interest rates you receive.
Remaining loan funds
After your creditors have been paid, any remaining money from your loan will be deposited into your bank account.
Minimum and maximum amounts
You decide how much to pay your creditors. While there is a minimum and maximum total amount you can allocate based on the size of your loan, you control how the money is split among the creditors you add.
The maximum amount gives you extra room in case any of your credit card or loan balances increase between the time of your application and when the money is applied toward your debt. The rest of the money is sent to your bank account.
If you don't reach the minimum amount
If you can't reach the minimum required amount, we may be able to help you reapply for a cash loan offer if one was available to you when you applied. Contact us for help.
When creditors will receive payment
Payment to your creditors will be initiated as soon as your loan issues. Creditors typically get electronic payments within 3–5 business days and check payments within 5–10 business days. It can take them an additional 1–3 days to process and post the funds. If you don't see the payment when you expect it, it's best to contact your creditors directly.
Maximum number of creditors or accounts
Up to 12 creditors or accounts can be added for each balance transfer loan. Consider prioritizing them by interest rate (paying down the highest interest rate first) or loan size (paying down the largest balance first).
Which creditors you can add
We work with a partner network to process payments to your creditors. This network includes over 1,700 credit card, bank, and loan companies.
Unfortunately, we can't help pay existing loans through LendingClub, mortgages, auto loans, or student loans.
To see which creditors can be paid with a debt consolidation loan through LendingClub, continue your application and add your creditors' names.
If your creditor isn't showing up and you've tried all our tips, it's possible they're not currently in our payment network. We're always working to improve our network and hope to include additional creditors in the future.
Paying creditors while your loan is in process
It's important to keep making payments to your creditors while your loan is processing. Continue making payments until your creditor confirms receipt of payment from your loan. Any overpayment typically results in a refund to you.
Viewing your balance transfer loan summary
Changing your loan type
Once you choose an offer, you can't switch to another type of loan. If you need to make updates due to incorrect information or a change in circumstances, contact us for help.