The Borrowing Club Review – Fair Chance for Fair Credit
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Borrowers with fair credit may be able to find a personal loan that doesn’t require collateral through The Borrowing Club that they may not normally qualify for at their bank or credit union.
9/10
Cost
9/10
Features
8.5/10
Ease of use
8/10
Services
9/10
Finding loan offers when you have a low credit score, credit card debt, or a credit history of missed payments, among other problems, can be next to impossible.
Some financial institutions specialize in subprime loans, often with the highest interest rates and fees. Such loans aren’t easy to find, and some borrowers turn to companies such as The Borrowing Club or TBC to connect them with lenders they might not be able to find on their own.
It can be worth taking if you need an unsecured loan to pay for an unexpected expense, consolidate debt, make home improvements, or even start a business. Paying a subprime loan, however, can feel like you’re about to enter the world of payday loans with interest rates that some payday loans start at.
Related: Best Personal Loans for Bad Credit
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What is The Borrowing Club?
The Borrowing Club is based in Pompano Beach, Florida, and has been in business since 2017. It’s licensed to do business as a lender in Florida and California.
It provides personal and business loan consulting, advice, and assistance to people seeking unsecured personal loans. It isn’t a direct lender, though it’s licensed as a lender in five states.
While loan assistance is offered to people with excellent credit, TBC focuses on people with poor credit who can’t find a loan from a traditional lender.
According to a few areas of the website, loan amounts range from $10,000 to $100,000, though one area lists the maximum personal loan at $500,000. Loans are for one to five years.
Its website doesn’t offer much information on fees or name the lenders it works with. It also offers conflicting information, such as telling advertising affiliate applicants that a fair credit score is needed. At the same time, other areas point to customers with credit problems and being unable to get a loan anywhere else.
Part of its service includes explaining to clients the current cost of their debt service and how a consolidated loan program can save them money. TBC helps people rebuild their credit profile by settling and consolidating high-interest debt.
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
How does The Borrowing Club work?
Potential borrowers must join The Borrowing Club by completing an online form or calling a customer service phone. The pre-qualification process takes about five to 10 minutes, the company says.
From the home page, click the green “Join Today” button in the upper right.
You’ll then go to a page where you pick the type of loan you need: personal, business, consolidation loans, or home improvement.
I chose a personal loan, which took me to this page, where I clicked the green “Find my rate” button.
I’m then asked how much I want to borrow, from $5,000 to $100,000. I entered $10,000.
I’m asked if I have over $10,000 in credit card debt, which I don’t.
My credit rating is asked for, which I list as excellent.
Questions continued about my employment status, gross annual income (which must be verifiable), and homeownership. For homeowners like me, you'll continue with monthly mortgage payments and rates.
Next, you'll be asked a series of identity questions, including your date of birth, address, and phone number, and you'll be asked to authorize The Borrowing Club and its affiliated companies to contact you.
After clicking three times because a popup kept disappearing, I was taken to a TBC webpage that said a loan advisor would call and text me soon. I can’t wait.
Unlike Bankrate’s prequalification steps, The Borrowing Club didn’t take me to a web page showing lenders and their rates or give me lender links to click on to continue the application process.
Instead of having information online, I now have to wait for a phone call.
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
How much does The Borrowing Club cost?
The Borrowing Club isn’t upfront about how much its services cost.
The good news is that the company doesn’t charge any up-front fees. Also, applicants aren’t obligated to choose a loan offered by its loan providers.
TBC only charges a consulting fee if a borrower chooses a third-party loan that TBC finds. It doesn’t say on its website how much the fee is.
The fees TBC charges customers who take on loans it recommends seem to be the main way it makes money. The company says it isn’t affiliated with lenders, which usually means it isn’t paid by a lender when a loan is agreed to. It also says it doesn’t “have any relationships, and any lending institution does not pay us.”
Lenders will probably charge you fees, which they must disclose in the loan documents that detail the repayment terms. These fees can include an origination fee, prepayment penalties, late fees, and application fees.
The normal disclaimers are at the bottom of every page. The last one gives an idea of how much lenders could charge. It states that interest rates range from 5% to 35.36%.
It gives the example of someone with excellent credit seeking a loan for $10,000 getting an interest rate of 5%, and an origination fee of $111 for an APR of 5.74%. The fees would be deducted from the loan amount, leaving the borrower with $9,889 and 36 monthly payments of $299.66. Prepayment penalties are never charged, the site says.
The Borrowing Club features
Unsecured loans
The Borrowing Club lists four types of loans on its website that it helps consumers find and get prequalified. They basically fall into two categories—personal and business use—and they’re both unsecured loans.
Unsecured personal loans
The unsecured personal loans can be used for three purposes, the company says:
- Personal
- Debt or credit card consolidation
- Home improvement
Under its personal loans category, TBC combines the three. Some lenders don’t care what you’re using a personal loan for. You could take out a loan for debt consolidation, but the lender wouldn’t know if you blew all of the money on a vacation. Others may specify that the loan can only be used for home renovations.
Business loans
It also offers unsecured business loans. The company says that being turned down by a bank or loan company doesn’t prevent customers from getting unsecured business loans through TBC. Co-signers or collateral aren’t needed either.
Customer service
The Borrowing Club offers a service that’s often difficult to find online: a phone number to call.
Much of the prequalifying work of the loan application is done online. Still, loan offers aren’t presented until a company representative calls you back to review your information and answer any questions. Borrowers can call TBC without applying online if that’s easier for them and can call to talk to a loan advisor anytime.
TBC makes it a point throughout its website to provide advice and assistance to people seeking unsecured personal loans who might not be able to find such loans otherwise. It has a detailed service agreement and often states that it wants to help its customers during the loan process. Much of this work may be best done over the phone, where customers can talk to a person and get immediate answers instead of having to wade through a website.
Next day approvals
Many online lenders say they can deposit loan funds in a customer’s account as quickly as two business days after finding them the best loan. The Borrowing Club says it can help expedite approvals and closing times, in some instances as soon as the next day.
No prepayment penalties
Lenders sometimes charge pre-payment penalties when a customer wants to pay off a loan early and avoid any further interest charges. TBC says it can help customers find loans without prepayment penalties so they can pay off the loan amount whenever they choose.
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
Who is The Borrowing Club best for?
Don’t have collateral or co-signer. It can be difficult to get a new loan if you have bad credit, and lenders may ask for collateral or a co-signer to take over the loan if you don’t make the monthly payments. If you don’t have a car, home, or other valuables or can’t find a co-signer, then you may be out of luck getting any personal loans or other types of loans.
The Borrowing Club doesn’t refer lenders that require collateral or co-signers. This can make getting a loan easier if you at least have fair credit. It can also mean paying higher interest rates than you would for loans requiring collateral.
Who shouldn’t use The Borrowing Club?
You want more information online. The Borrowing Club doesn’t list its fees for customers who accept a loan it finds for them. Instead, it requires potential customers to call its customer service representatives to get this information. Phone calls can lead to hard-sell tactics, which nobody likes.
TBC also doesn’t list interest rates, though it gives broad APR ranges of 5% to 35.36%. The highest rate is where payday loans can start, which people with bad credit may have to use because they often don’t qualify for other types of loans.
With so much information online that doesn’t require calling someone, TBC doesn’t seem to cater to people shopping for a loan at a lower rate. Online shopping is much quicker than by phone, and people who make the call are probably much more likely to apply for a high-interest loan because they can’t get the money elsewhere.
Pros and cons
Pros
- A customer service phone line makes calling and getting answers to your loan questions easy.
- The prequalification process can easily be done online, a phone call is required to find out if you’re approved for a loan.
- Loans with next-day approvals, no prepayment penalties, no co-signer or collateral can be found.
Cons
- The customer service phone line is open weekdays from 9 a.m. to 9 p.m. EST, which may make it difficult for West Coast customers to call, though Saturday phone calls are open from 10 a.m. to 3 p.m. EST.
- TBC doesn’t list the price of its consulting fee that borrowers who accept a loan must pay.
- Personal loans start at $10,000, which may be a high minimum loan amount for some people.
The Borrowing Club vs. competitors
Here’s a quick look at how The Borrowing Club stacks up against lending networks LendingClub and Mission Asset Fund.
Company | Fees | Best for |
The Borrowing Club | Not listed | Borrowers with fair credit |
LendingClub | An origination fee of 3% and 8% of the loan amount | Fair credit |
Mission Asset Fund | Not listed | Small loans |
LendingClub
LendingClub is a peer lending network that provides personal loans. Borrowers with a “fair” credit score of 660 or higher can qualify for loans up to $40,000. Money for loans is through its network of investors. Our reviewer found that its loan rates are high.
Mission Asset Fund
Mission Asset Fund, or MAF, is a lending circle company that offers loans of up to $2,400, with typical monthly payments from $50 to $200. Members must take at least one online financial education course, have a reliable source of income, and have a manageable amount of debt. Lending circles are formed between six and 12 people, and each month, a member of the circle receives the loan until everyone in the group gets their chance.
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
FAQs
Does TBC help with debt consolidation?
Yes. It helps consumers find personal loans for debt consolidation that can be used to lower and consolidate monthly credit card debt payments. The loan amount can be used to pay off your outstanding debts. You’ll then have one loan payment to make at a set rate.
Is my home collateral for a home improvement loan?
No. Some home improvement loans, such as a home equity loan, require your home to be the collateral to back the loan. They typically have lower interest rates than unsecured loans like personal loans. But TBC’s home improvement loans are unsecured personal loans that don’t require any collateral.
Will these loans affect my credit score?
TBC doesn’t say on its website if it or its lenders report late payments or on-time payments to the credit bureaus, but they probably do. Most loans are reported to credit reporting agencies, so a late payment or not meeting the repayment terms can be reported and lower your credit score. Plus, you’ll likely be charged late fees by the lender.
The bottom line
Borrowers with fair credit may be able to find a personal loan that doesn’t require collateral through The Borrowing Club that they may not normally qualify for at their bank or credit union. Still, potential borrowers should shop around for the best interest rates, fees, and loan terms, and the limited information on TBC’s website makes it difficult to compare what it offers. To get that information, call The Borrowing Club and talk to a customer service agent.
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Writer
Aaron Crowe is a freelance journalist who specializes in personal finance writing and editing. He has worked at newspapers, where he won a Pulitzer Prize, and has written for numerous online publications. These include AOL, US News & World Report, WiseBread, Bankrate, AARP, and many websites focusing on housing, credit and insurance. He lives in California with his wife and daughter.
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