Personal Loans » Personal Loan Lender Reviews » Lending Club Personal Loan Review 2024: What To know Before Apply
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Lending Club Personal Loan Review 2024: What To know Before Apply

LendingClub has a high standard for their personal loans. Those they approve are borrowers who have well-established and good credit history with very strong cash flows.
Author: Andrew O'Malley
Andrew O'Malley

Writer, Contributor

Experience

Andrew O’Malley has a BSc in Economics and Finance. He has worked in the finance industry as a risk analyst and is now pursuing a career in writing. In recent years, he has written for a number of leading publications. He studied Economics and Finance and has been fascinated with the financial markets since his teens.
Interest Rates Last Update: June 3, 2024
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Andrew O'Malley
Andrew O'Malley

Writer, Contributor

Experience

Andrew O’Malley has a BSc in Economics and Finance. He has worked in the finance industry as a risk analyst and is now pursuing a career in writing. In recent years, he has written for a number of leading publications. He studied Economics and Finance and has been fascinated with the financial markets since his teens.
Interest Rates Last Update: June 3, 2024

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

lendingclub_logo svg

On Credible Website

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

9.57% – 35.99%

Loan Amount

$1,000 - $40,000

Term

24 - 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.

lendingclub_logo svg

APR

9.57% – 35.99%

Loan Amount

$1,000 - $40,000

Term

24 - 60 months

Min score

600

On Credible Website

Our Verdict

LendingClub personal loans offer borrowers a convenient and flexible option for financing various needs, such as debt consolidation, home improvements, medical bills, and more.

With loan amounts ranging from $1,000 – $40,000 , borrowers have access to funds for a wide range of purposes. One of the standout features of LendingClub is its joint loan option, allowing applicants to apply with a co-borrower, potentially improving eligibility and securing lower rates or higher loan amounts.

Additionally, LendingClub provides direct payment to creditors with debt consolidation loans, streamlining the process for borrowers looking to manage multiple debts. The ability to pre-qualify with a soft credit check offers transparency and helps borrowers understand their potential loan terms without impacting their credit score.

While LendingClub boasts a quick and easy online application process, borrowers should be aware of the origination fees ranging from 3% to 8%, which can reduce the total loan amount received. Moreover, the APR for LendingClub personal loans can be as high as 35.99%, making it crucial for borrowers to compare rates and explore other options.

Qualifying for a LendingClub Personal Loan

To apply for a LendingClub personal loan, several requirements must be met, including:

  • Credit Score: Minimum credit score of 600
    is required to qualify for a personal loan through LendingClub.
  • Debt-to-Income Ratio (DTI): Applicants must have a DTI ratio of less than 40% for single applicants and 35% for joint applicants, ensuring that total monthly debt obligations do not exceed a certain percentage of monthly gross income.
  • Proof of income: Applicants are required to provide proof of income during the application process, which can include W-2 forms, tax documents, or pay stubs.
  • Social Security number (SSN): Borrowers must provide their SSN for identity verification and to facilitate loan processing.
  • Verification of personal information: LendingClub may request additional documentation to confirm applicant information, such as address verification and employment details.
  • Joint applications available: Prospective borrowers can apply with a co-borrower, which can help less creditworthy applicants qualify for better APRs or larger loan amounts.
  • No co-signers allowed: Unlike joint applications, LendingClub does not permit co-signers on personal loans, meaning borrowers cannot bring on a secondary individual to guarantee the loan.

Navigating LendingClub Repayment Options

LendingClub offers various repayment methods tailored to borrowers' needs:

  • Payment options: LendingClub offers multiple payment methods including autopay, check, phone, or wire transfer, providing flexibility for borrowers to choose the most convenient option.
  • Missed payments: If a borrower misses a payment, they may incur a late fee of 5% of the late payment amount or $15, whichever is greater. However, LendingClub provides a 15-day grace period for late payments, allowing borrowers some leeway.
  • Rescheduling payments: Borrowers with a current account in good standing can temporarily or permanently change their payment due date. Temporary changes must be made at least three days before the current due date and can be facilitated via phone or email.
  • Payment date flexibility: LendingClub allows borrowers to change their payment due date, offering both temporary and permanent options. Borrowers can make permanent changes through their online account or via telephone, providing additional flexibility in managing loan repayments.
  • Assistance for difficulties: In case of financial difficulties, borrowers are encouraged to contact LendingClub's customer service for assistance. LendingClub may offer hardship programs or alternative repayment plans to help borrowers manage their loan obligations during challenging times.

LendingClub Loan Pros & Cons

As we know, each lender has its own pros & cons – here are the relevant things we found for LendingClub potential borrowers:

Pros
Cons
Soft Pull Inquiry
Origination Fee
Joint Borrowers
High APR Range
No Prepayment Penalty
Limited Loan Term Options
Direct Payment To Creditors
Limited Co-Signer Options
Wide Availability
No Rate Discounts For Autopay

LendingClub allows for an initial soft pull inquiry so the borrower can get an idea of the options for which they may qualify.

LendingClub allows for joint borrowers on their personal loans. Many loan providers do not.

The borrower can pay off the loan early without any fees.

With debt consolidation loans, LendingClub offers direct payment to up to 12 creditors, simplifying the consolidation process.

LendingClub personal loans are available in all 50 states, offering accessibility to borrowers nationwide.

LendingClub charges an origination fee ranging from 3% to 8%, reducing the total loan amount received by the borrower.

The APR for LendingClub personal loans can be as high as 35.99%, potentially resulting in high interest costs for borrowers with less favorable credit profiles.

LendingClub offers loan terms restricted to 3 to 5 years, limiting flexibility for borrowers seeking longer or shorter repayment periods.

While joint applications are allowed, LendingClub does not support co-signers, potentially limiting options for borrowers with weaker credit profiles.

Unlike some lenders, LendingClub does not offer rate discounts for borrowers who sign up for automatic payments, potentially missing out on potential savings opportunities.

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.
LendingClub
iOS App Score
4.5
Android App Score
3.3
Contact Options
phone
Availability
5 am – 5 pm (PT)

To reach customer service at LendingClub, borrowers can access support through multiple channels. This includes contacting LendingClub via phone, email, or through their online account dashboard.

Additionally, LendingClub provides a comprehensive FAQ section on their website, addressing common inquiries and providing self-help resources for borrowers

What Else You Should Know?

Before applying for a personal loan with LendingClub, it's important to understand additional factors that could impact your borrowing experience:

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.

The funding time for LendingClub personal loans typically takes up to five business days. After a borrower's application is complete and information is verified, LendingClub works to finalize a funding match with investors on its marketplace.

Once matched, loan funds are then sent directly to the borrower's bank account within about five business days.

If you miss a payment on your LendingClub personal loan, there are a few consequences:

  • Late Fee: LendingClub typically charges a late fee, which is usually 5% of the late payment amount or $15, whichever is greater. This fee is added to your next payment.

  • Impact on Credit Score: Missing a payment can negatively impact your credit score. LendingClub reports loan payments to credit bureaus, so a missed payment could lower your credit score.

  • Collection Efforts: LendingClub may attempt to contact you to collect the missed payment. This could involve phone calls, emails, or letters reminding you of the missed payment and requesting payment.

What Can a LendingClub Personal Loan Be Used For?

A LendingClub personal loan can be used for a variety of purposes, including:

  • Debt Consolidation: Combining multiple debts into one loan to simplify payments and potentially secure a lower interest rate.

  • Home Improvements: Renovations, repairs, or upgrades to enhance the value or comfort of your home.

  • Medical Expenses: Covering medical bills, treatments, or procedures not fully covered by insurance.

  • Auto Financing: Purchasing a new or used vehicle, refinancing an existing auto loan, or covering repair costs.

  • Major Purchases: Buying appliances, furniture, electronics, or other big-ticket items.

  • Education Expenses: Paying for tuition, books, or other educational costs not covered by scholarships or financial aid.

  • Special Events: Funding weddings, vacations, or other significant life events.

  • Emergency Expenses: Covering unexpected costs such as car repairs, home repairs, or medical emergencies.

How to Apply For a Personal Loan With Lending Club

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.

Lending Club Personal Loan

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.

Lending Club Personal Loan

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.

Lending Club Personal Loan

 LendingClub will have a list of information for you to provide. They may request documentation to verify your identity, income, or employment.

Lending Club Personal Loan

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.

Lending Club Personal Loan  

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 300 .

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

happy money loan review - logo

Upstart logo

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.
11.52% – 24.81%
6.99% – 35.99%
5.20% – 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
640
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

Compare Alternative Lenders

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

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?

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?

Picture of Andrew O'Malley

Andrew O'Malley

Andrew O’Malley has a BSc in Economics and Finance. He has worked in the finance industry as a risk analyst and is now pursuing a career in writing. In recent years, he has written for a number of leading publications. He studied Economics and Finance and has been fascinated with the financial markets since his teens.
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Loan Reviews Methodology

When it comes to choosing personal, student or car loans, we make sure that we evaluate all of the different products and services that are available for the lender we review. 

The Smart Investor’s selection of loan providers for inclusion here was made based on key areas we evaluated: loan types and loan products offered, fees, and APR. We also considering customer satisfaction and reliable external ratings such as J.D power/Trustpilot.

Cutting fees is now table stakes in the personal and student loans market. In addition, the most valuable loan products tend to offer a deep bench of options that meet a wide array of customer needs. These include a diverse range of loan amounts and terms, as well as loan structures. We also make sure that you’re going to save money by cutting down on the APR that goes along with the loans offered.