Interest is calculated daily on the basis of a 360-day year with 12 months, each of which is 30 days (or 30/360) long, regardless if a month has more or less than 30 days.
There are a few advantages of getting a loan through Lending Club:
* You aren’t charged a fixed cost for interest. The amount of interest you pay is related to the outstanding principal for your loan. (Fixed-cost interest, which many alternative lenders use, is usually much more expensive than our traditional approach to interest.)
* You aren’t charged all of the interest on day one, regardless of how long you keep the money. (That practice, used by many alternative lenders, doesn't allow you to save money by paying your financing off early.)
* You aren’t charged interest on the interest you owe, unlike a credit card.