LendingClub is the largest peer-to-peer marketplace that matches lenders with borrowers, instead of going through a lending institution such as a bank.
APR
8.30% – 36.00%
Loan Amount
$1,000 - $40,000
Term
36 - 60 months
Min score
600
LendingClub is the largest peer-to-peer marketplace that matches lenders with borrowers, instead of going through a lending institution such as a bank.
APR
8.30% – 36.00%
Loan Amount
$1,000 - $40,000
Term
36 - 60 months
Min score
600
LendingClub is the largest peer-to-peer marketplace in the world. Established in 2006 out of San Francisco, CA, it has lent over $42 billion in personal loans and offers personal loans with a minimum of just $1,000. Peer-to-peer lending is a platform that matches lenders with borrowers, instead of going through a lending institution such as a bank. This means you can have common investors or investment groups funding your loan.
Where Lending Club stands apart from other lenders is that it allows co-borrowers on personal loan applications. This can be helpful if you think you may need an additional applicant who has better finances to improve your chances of qualifying.
Lending Club loans can be used for almost any purpose including debt consolidation, balance transfers, and major expenses. However, you cannot use a Lending Club loan for post-secondary education, making investments, or purchasing securities.
- Soft Pull Inquiry
- Joint Borrowers
- Diversity
- Competitive Interest Rates
- Peer-to-Peer
- More than One Loan
- Business Use
- No Prepayment Penalty
- Origination Fee
- Potentially Long Turn-Around Times
- Not Available in All States
- Potential to Go Unfunded
- Processing Fee
Do LendingClub personal loans offer soft credit check?
LendingClub does allow potential customers to check if they qualify and look at their rates. This involves submitting a basic online form, so LendingClub can check if you meet the basic eligibility requirements.
At this stage, LendingClub will perform a soft credit check that will not impact your credit score. If you decide to complete the application process and submit any required documentation, this will trigger a hard credit search.
Is LendingClub suitable for debt consolidation?
LendingClub does allow you to borrow $1,000 - $40,000
, which is more than many other personal loan lenders.
However, if you’re looking to quickly consolidate your debt and avoid incurring additional higher interest on your accounts, you may find this lender a little frustrating. It can take several days for your loan to get funded after approval, which is far slower than many competing lenders.
Can I add a cosigner to a LendingClub personal loan?
If you are concerned that you may not be able to qualify for a personal loan with LendingClub, you can include a co-borrower on your application.
This differs from a cosigner, who is financially responsible if you fail to repay the loan. A co-borrower is sharing the loan with you. So, while their credit can support your application, a co-borrower can legally access the loan funds.
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Requirements & Repayment Options
LendingClub allows you to borrow up to $40,000 and requires a minimum credit score of 600. LendingClub does not specify a minimum annual income requirement for obtaining a personal loan.
LendingClub allows you to change the payment due date on your personal loan. If you miss a payment, you will be charged late fees, and there is no autopay discount available. If you use the loan as a way of consolidating your debt, you can make direct payments to your creditors.
Lending Club Loan Pros & Cons
As we know, each lender has its own pros & cons – here are the relevant things we found for potential borrowers:
- Soft Pull Inquiry
LendingClub allows for an initial soft pull inquiry so the borrower can get an idea of the options for which they may qualify.
- Joint Borrowers
LendingClub allows for joint borrowers on their personal loans. Many loan providers do not.
- Diversity
LendingClub began by allowing only borrowers with strong credit history and cash flow. They have now allowed more diverse borrowers on their platform, but those with good credit histories can get good rates.
- Competitive Interest Rates
Interest rates are competitive and rates are not as high as those of many other lenders for personal loans.
- Peer-to-Peer
LendingClub matches up borrowers with investors. Many borrowers like the idea of knowing that their payments and interest goes to lenders who are everyday people.
- More than One Loan
The borrower can get two loans at a time from LendingClub.
- Business Use
LendingClub allows for borrowers to use their personal loans for business purposes. Other lenders do not allow for personal loans to be used for business. They also have a business lending arm, but you should check out the requirements before you apply because a personal loan may be the best way to get your business off the ground.
- No Prepayment Penalty
The borrower can pay off the loan early without any fees.
- Origination Fee
Lendingclub deducts a one-time origination fee of 1 to 6.00% of your loan amount directly from your loan funds. This should be considered in the pricing of your loan when you apply.
- Potentially Long Turn-Around Times
It can take many days to fund your loan and then a few days after to send your money. If you need money more quickly, there are other providers that can turn around your application much faster.
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- Not Available in All States
LendingClub does not operate in West Virgina or Iowa.
- Potential to Go Unfunded
There is a possibility that your approved loan might end up not being funded. If investors do not want to invest in your loan, you will not be able to move forward.
- Processing Fee
If you pay LendingClub using a check they will charge a $7 processing fee.
Customer Experience
- 4.06/5 on BBB customer reviews (+500 reviews): BB customer reviews allow customers to post positive, negative, or neutral reviews about marketplace experiences.
- 4.7/5 on Trustpilot ( +1,100 reviews): TrustScore is also an overall measurement of reviewer satisfaction, represented numerically from 1 to 5.
- 865/1000 points on J.D Power: Lending Club ranks 5th in the study and got 865 out of 1000 possible points in the 2020 JD power research, higher than industry average.
Recently, there have been customer service issues with LendingClub. It was forced to pay a $18 million lawsuit settlement in July 2021 for including hidden fees in its loan offerings. LendingClub is now working to improve its transparency.
However, it does have a good member center where you can get financial education as well as learn a lot about the personal loan offering.
LendingClub | |
|---|---|
iOS App Score | 4.5 |
Android App Score | 3.3 |
WalletHub Rating | 4.5 |
Contact Options | phone |
Availability | 5 am – 5 pm (PT) |
What Can a LendingClub Personal Loan Be Used For?
LendingClub offers personal loans for many different reasons and groups them into 3 categories: to pay off high-interest debt, to pay for something unexpected, and to pay for something planned.
- Pay for Something Planned – LendingClub loans can be used for a wide range of costs that you expect in the future. For example, loans can be used for home improvement. They can be used for expected medical costs, wedding expenses, vacations, moving, business expenses, and can even be used to help buy a home. The great thing about using a personal loan instead of credit cards for these types of expenses is that the terms will not change over the course of the loan.
- Debt Consolidation – LendingClub debt consolidation is paying off one or more prior unsecured loans with the new loan. Instead of multiple payments to multiple lenders, you can create one payment to one lender. The advantage of a debt consolidation loan with LendingClub is that the payment and term are fixed so you know exactly when you’ll be out of debt. The idea is that you can take a high revolving interest credit card and save money by replacing it with a low-rate fixed installment. LendingClub also has a debt consolidation calculator, so you can get an idea of how much you can save.
- Unexpected Payment – LendingClub loans can be used for unexpected costs like medical bills, or the death of a loved one. Many times in life unexpected expenses come up and if you do not have emergency savings, a LendingClub loan can help you pay.
How to Apply For a Personal Loan With Lending Club
- 1.
LendingClub is a peer-to-peer marketplace, so you not only apply but also create a profile for potential investors to evaluate you as a risk and accordingly lend you money for a portion of the loan. You start the process by checking your rate through a soft pull.
- 2.
You will fill out some basic information and they will give you a couple of rates and loan options. You will choose the option you would like to apply for.
- 3.
Then you fill out the rest of the application. At this point, LendingClub will do a hard pull and check your credit. Then you will need to provide verification information.
- 4.
LendingClub will have a list of information for you to provide. They may request documentation to verify your identity, income, or employment.
- 5.
Your listing will then be posted on LendingClub’s marketplace where investors can look at your profile and decide whether to invest in your loan. Many listings are funded in the first few days. You will sign documents electronically for the loan and then the funds will be sent to your bank.
LendingClub FAQs
Lending Club is a good option if you have a fair or good credit score, but the rates are typically higher than many competitors. You can use the loan for large expenses, but a more popular option is debt consolidation or credit card refinancing.
If you're still not sure which lender is best for your needs, you can always keep comparing lenders or take a look at our picks for the best personal loan for fair credit.
While you need to provide basic income details to obtain a quote, if you want to proceed with processing your loan application, you may need to confirm your employment and income. Lending Club may ask you to submit documentation such as bank statements or pay stubs. In some cases, a member of the Lending Club team may contact your employer.
You will need a FICO credit score of 600 or more, but you may be able to secure a rate that lowers your interest costs.
Compared to similar credit lenders, the required score is average. For example, Best Egg required score is 640 while Upstart minimum score is 600 .
Prosper is very similar to Lending Club in that you need a credit score of 630+ to qualify and it takes approximately one week to process your application. However, Prosper does require an additional one to three business days to issue the funds. So, if you’re looking for quicker access to the money, Lending Club is a better option.
Like Lending Club, Prosper does not charge fees if you want to pay off your loan early and the late fees are the same.
One area where Prosper stands apart from Lending Club is that it is open to borrowers with a high debt to income ratio of up to 50%, whereas Lending Club’s maximum is 40%.
LendingClub is a decent option for debt consolidation and joint applications. You can borrow slightly more with rates which are lower than what is on offer with Avant. However, the downside of this is that you need a credit score of 600 or more to qualify.
Lending Club dies allow you to pay your creditors directly with the funds from your loan, but it can take one week or more to receive the funding. So, if you need access to money quickly, you’re likely to find that Avant is a better option.
Alternative Peer to Peer Personal Loans Lenders
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APR Range
The annual percentage rate (APR) is the total annual cost of borrowing money. This rate includes the interest rate as well as any additional finance charges. When you take out a personal loan, for example, you may be required to pay loan origination fees.
| 8.99%-29.99%
| 7.99% – 35.99%
| 5.60% – 35.99%
|
Term
The term of your loan is the amount of time you have to repay it. For example, if you get a 24 months personal loan, the loan term is 24 months.
| 24 – 60 months
| 36-60 Months
| 36-60 Months
|
Loan Amount | $5,000 – $40,000
| 2,000 – $40,000
| $1,000 – $50,000
|
Minimum Score | 600
| 600
| $12,000
|
Funding Time | 2-5 days
| Up to 14 days and then 1 to 3 days to deposit
| 1-2 Days
|
Review Personal Loan Top Lenders
Avant
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OneMain Financial
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SoFi
Upgrade
Upstart
Wells Fargo
Compare Alternative Lenders
LendingClub vs LendingPoint vs Upstart
Each of these lenders caters to people with less-than-perfect credit. If you need funds quickly, LendingPoint is probably the best option, while Upstart is a good fit for people looking for small loans.
Finally, if you are looking for a joint loan or want to get some of the most competitive rates, LendingClub stands out.
Read Full Comparison: LendingPoint vs Upstart vs LendingClub: Which Personal Loan Suits You Best?
LendingClub vs OneMain vs Avant
LendingClub is a peer-to-peer online lending marketplace that prefers to work with people who have poor credit. The California-based company has over three million customers in the United States.
Avant is a Chicago-based lender that provides personal loans to people with bad credit. It also gives you quick access to funds as well as flexible repayment options. While OneMain is an online lender, it also has over 1,500 physical locations throughout the United States. This lender offers quick access to funds as well as a variety of loan options.
Read Full Comparison: OneMain Vs Avant Vs LendingClub: Which Personal Loan Suits You Best?
LendingClub vs Payoff vs Upgrade
Payoff is a lender that focuses on improving its borrowers' financial knowledge while also providing them with maximum repayment flexibility.
If you need quick access to funds and a variety of loan types, Upgrade is the best option of these three lenders. Finally, if you need a joint loan or have a low credit score, LendingClub is a good option.
Read Full Comparison: Payoff Vs LendingClub Vs Upgrade: Choose The Right Personal Loan
LendingClub vs Prosper
In many ways, Prosper and LendingClub are very similar. They are both peer-to-peer lending marketplaces that require a minimum credit score of 600 and offer the same term lengths. They also have flexible repayment options and a fee structure that is similar to ours. Even the APR rates and fee structures are very similar, so there isn't much to differentiate these two products.
Read Full Comparison: Prosper vs LendingClub: Which Personal Loan Is Better?
LendingClub vs SoFi
Both of these companies have advantages and disadvantages that will be discussed throughout this comparison. LendingClub, based in California, has over 3 million customers in the United States, while SoFi has won numerous awards in recent years for its offering.
LendingClub is better suited to people with low credit scores, whereas SoFi has better rates and more repayment flexibility. Both of these options are centered on their online operations and offer a simple way for you to obtain a personal loan without having to jump through a lot of hoops.
Read Full Comparison: SoFi Vs LendingClub: Which Personal Loan Is Better?
