Lending Club Loan offer [35,000 AA miles]
 

I just got an offer in the mail to apply for a loan via Lending Club and earn up to 35,000 AA miles, depending on how big the loan is. I saw some past threads about Lending Club, but nothing too specific.
I wouldn't mind taking a big loan, earning the miles, then paying back the loan right away before any interest payments kick in.
Are there threads here on Flyertalk about this offer that I'm missing?

I doubt we're going to be able to help you with that.

You should attempt to determine if they're a legitimate lender, then pore over the terms to determine if you can pay back early without penalty, interest rates, etc.

At the least, there'll be an origination fee that might make this non-worthwhile.

I got the same offer today. You get miles 1 for 1 from loans $10,000 and greater, but do have a 1% origination fee. There is no prepay penalty, so theoretically you could pay it off right away and receive the miles. It states it'll take 6-8 weeks for the miles to hit. I couldn't find anywhere that you had to keep the loan for any time period to be eligible for the miles.

$0.01 isn't too high of a cost compared to other manufacturing ways, but I guess it's a matter of whether you need up to 35k AA miles before the deval date (assuming it hits before then).

I myself am undecided after the recent deval.

Lending Club is a legitimate lender, a big player in the personal installment lending arena, and you are absolutely on target with advice to pore over the loan terms.

Yeah, I guess it works out to spending $300 for a 30,000 miles. But it doesn't sem as safe as other MS or credit cards. I know Lending Club is legit, but I am leery of so much fine print. I have to assume that it will raise red flags to borrow $30K and then replay it immediately before interest kicks in and possibly cancel the mileage bonus.

Is anybody here know the requirements in order to avail the loans they offer?

Thanks!

Jessica

I've borrowed through them. These are unsecured loans so the interest rates are higher. Also, there are origination fees based on credit grade (2-5%) IIRC.
Also remember these are classified as a loan and a hard hit to your credit report.

Current offer is 1 American Airlines mile per $1 borrowed, up to 20,000 miles. They say "Rates from 5.99% to 35.89%* APR. Best APR is available to borrowers with excellent credit."

I suspect with fees and such, the only way this is a good deal is if your already are going to get a similar loan for a similar rate.

Lending Club is legit, I've invested in their loans before, they themselves are not actually a lender they offer loans to investors where you can fund all or part of a loan request. They basically just do the screening and grade the loan, take their fee and collect the payments.