In this Comparison
There are so many different online lenders around today that it can be hard to see the differences between the various options. This review is going to create a comparison between two of the leading online lenders – LendingClub and Prosper.
Overall, Prosper and LendingClub are very similar in a ton of ways. They are both peer-to-peer lending marketplaces that have a minimum required credit score of 600 and the same term lengths available. They also have flexible repayment options and a similar fee structure. Even the APR rates and fee structures are very similar, so there is not much to separate these two offerings.
When to Consider LendingClub?
LendingClub is a peer-to-peer lending marketplace that caters to a wide range of needs. It has been in operation for a number of years and tries to deal with a range of borrower types.
LendingClub personal loans gives you the chance to get a joint loan, which is not something that every online lender offers. You can also get numerous loans at the same time, as well as only needing to submit to a soft credit check when you are looking to pre-qualify. Finally, you can easily alter the due dates for your LendingClub payments.
However, there is an origination fee in place, as well as late fees. You also can only choose between three and five-year loan terms lengths.
When to Consider Prosper?
Prosper is similar to LendingClub as it is also a peer-to-peer-based offering. It has been operating since 2005, catering to over one million people over the years with its offering.
Prosper has a relatively small minimum loan size of $2,000, as well as giving you the option to get a joint loan. There is the option the alter your payment due dates, while it provides loans to people with credit scores of just 600.
However, you will need to pay an origination fee and a late fee if you get a Prosper personal loan. There are also limited repayment term lengths available, similar to LendingClub.
LendingClub can provide you with a loan of just $1,000 and up to a max loan size of $40,000. Prosper also has a max loan size of $40,000, with its smallest possible loan being $2,000. You need to have a credit score of at least 600 to apply for a LendingClub or a Prosper personal loan.
LendingClub is not very transparent with the income and debt requirements it has in place of prospective borrowers. At Prosper, you can’t have a debt-to-income ratio of more than 50% and still get a loan. The lender also requires you to have at least two years’ worth of credit history. Both LendingClub and Prosper are going to require borrowers to be adults, as well as either being a US citizen, permanent resident, or a visa holder.
There is the option given to you by Prosper and LendingClub to change the due date for your repayments. A late fee needs to be paid if you are late meeting your repayments with both lenders, while Prosper and LendingClub do not offer you any type of autopay discount.
However, you are given the option to directly send your payments to creditors with LendingClub, but not with Prosper.
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LendingClub has been in the news for bad reasons in recent times, having to pay an $18 million settlement in July 2021 as a result of a lawsuit over hidden fees within its loans. As time goes on, LendingClub is aiming to become a lot more transparent with its offering. There is a member center in place that allows you to learn a lot more about personal finance. However, there is no LendingClub mobile app available to you.
The Prosper customer support team can be reached five days per week and it offers both phone and email support. The help center can offer a solution to a lot of questions, while you can also brush up on your financial education. While there is a Prosper app, this does not give you the capability to manage your personal loan. Prosper does have an A+ Better Business Bureau rating.
Compare Alternative Lenders
All of these lenders have some things in common, such as similar credit score requirements. There are, however, some significant differences that you will notice.
Prosper is a great option for people looking for a small loan, whereas Happy Money is better suited to applicants looking to minimize fees. Finally, if you want to get very competitive rates, Peerform is a good option.
Read Full Comparison: Peerform vs Happy Money vs Prosper: Which Personal Loan Is Better?
SoFi is widely regarded as the best option for people with excellent credit who require larger loan sizes while paying low fees. Prosper is best suited to people with low credit scores, whereas FIGURE is best suited to people who want quick and easy access to funds.
Read Full Comparison: FIGURE Vs SoFi Vs Prosper: Which Personal Loan Is Better?
Each of these three lenders shares and differs in some ways. In general, Upstart is the best option for people who need a small loan or who may not be able to obtain a FICO score. Rocket Loans is a viable option if you need quick access to borrowed funds, whereas Prosper allows you to get a joint loan and caters to people with fair credit.
Read Full Comparison: Rocketloans Vs Prosper Vs Upstart: Which Personal Loan Is Best?
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 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?
Happy Money 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: Happy Money Vs LendingClub Vs Upgrade: Choose The Right Personal Loan
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?