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LendingClub Personal Loan Review
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LendingClub personal loans at a glance
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7.04% to 35.89% APR | Loan terms from 36 or 60 months | Loan amount from $1,000 to $40,000 | Origination fee from 3.00% - 6.00% |
Online loan marketplace LendingClub offers fixed-rate unsecured personal loans. Loan amounts range from $1,000 to $40,000, and personal loans have an origination fee of 3.00% - 6.00%. This puts LendingClub at a disadvantage, as there are many no-fee personal loan companies to choose from.
LendingClub lets borrowers enlist the help of a co-borrower, which can be advantageous for people who are seeking a loan but who have subprime credit. Not all personal loan companies offer joint personal loans.
A unique feature of LendingClub personal loans is the ability to use funds for business purposes. Loan companies tend to disallow personal loans for business costs.
| Pros | Cons |
| Check rates quickly: Prequalification lets you see your loan eligibility and potential APR with a soft credit pull, which won’t affect your credit score.
Joint applications: You can apply for a personal loan with a co-borrower. No prepayment penalty: You won’t have to pay a fee for paying off your loan early. |
APRs can be high: The max APR is 35.89%, which is high.
Origination fee: The 3.00% - 6.00% origination fee is high. Many personal loan companies don’t charge origination fees. Funding timeline: Funding may take a few days, whereas other loan companies offer same-day or next-day funding. |
LendingClub personal loan requirements
LendingClub doesn’t list specific credit score requirements or a minimum credit score on its website. However, to qualify for the lowest possible APR on a LendingClub personal loan, applicants should have:
- A high credit score
- A low debt-to-income (DTI) ratio
- An established credit history of on-time payments
Borrowers who don’t meet the above requirements might consider enlisting the help of a cosigner to qualify for a lower APR (or to qualify at all).
Who’s the best fit for a LendingClub personal loan?
LendingClub is your average online personal loan company. Loan amounts closely match those offered on the lending market. However, a repayment period of 36 or 60 months is limiting, and LendingClub APRs can run high, especially for borrowers without an established credit history. But since LendingClub offers prequalification without affecting your credit score, it doesn’t really hurt to check your rate through this loan company while shopping around for a loan.
One thing that stands out about LendingClub is the potential to fill out a joint application. Borrowers who can enlist the help of a co-borrower could potentially use a LendingClub loan to pay off credit cards, consolidate other debts to secure a lower rate or accomplish some other shared goal.
What borrowers are saying about LendingClub
LendingClub borrower reviews are overwhelmingly positive. Customers who have reviewed this company on LendingTree are particularly happy with the responsiveness and customer service. People who have closed a loan through LendingClub noted that the application process was quick and easy.
The only area where borrowers rated LendingClub a little lower is in the fees and closing costs. It’s worthwhile to note that LendingClub does charge an origination fee, while many loan companies do not.
Applying for a personal loan from LendingClub
- Check your rate. LendingClub lets you prequalify for a personal loan without impacting your credit score. To do this, you’ll need to enter a loan amount and loan purpose, as well as some personal information to verify your identity. At this step, you can choose to complete an individual or joint loan application.
- Choose a loan offer. Qualified borrowers will get multiple loan offers with different terms and APRs, so choose the one that works best for your needs. Keep in mind that longer loans will cost you more in interest throughout the life of the loan, and a higher APR will cost you more annually.
- Formally apply online. Submit more information, such as your Social Security number and address, as well as documents to verify your income and employment. At this point, LendingClub will conduct a hard credit inquiry, which will affect your credit.
- Wait for a loan decision. As LendingClub reviews your information, you can check your loan’s progress on LendingClub’s online account portal. Keep in mind that prequalification doesn’t guarantee approval.
Alternative personal loan options
There are plenty of personal loan companies like LendingClub out there, so it’s important to shop around and compare your options before formally applying for a personal loan and committing to a hard credit inquiry. Compare some of your alternative options below:
| How LendingClub compares to… | |||
| LendingClub | Best Egg | Happy Money | Upstart |
| Est. APR: 7.04% – 35.89%Loan length: 36 or 60 monthsLoan amount: $1,000 to $40,000Origination fee: 3.00% - 6.00% Min. credit score: |
Est. APR: 5.99% – 35.99%Loan length: 36 or 60 monthsLoan amount: $2,000 to $50,000Origination fee: 0.99% - 5.99% Min. credit score: |
Est. APR: 5.99% – 24.99%Loan length: 24 and 60 monthsLoan amount: $5,000 to $40,000Origination fee: As high as 0.00% - 5.00% Min. credit score: |
Est. APR: 4.37% – 35.99%Loan length: 36 or 60 monthsLoan amount: $1,000 to $50,000Origination fee: 0.00% - 8.00% Min. credit score: |
Best Egg vs. LendingClub
Online lending platform Best Egg offers a lower maximum loan amount but has more flexible repayment options than LendingClub. However, Best Egg has LendingClub beat in terms of APRs. Since APR affects the overall cost of borrowing, this means Best Egg’s loans may be cheaper in the long run, depending on the terms you’re offered.
Both Best Egg and LendingClub allow you to check your estimated APR with a soft credit pull, so it doesn’t hurt to shop around with both to see if you can get a lower rate at one or the other.
Happy Money vs. LendingClub
Like Best Egg, Happy Money (formerly Payoff) offers a lower starting APR at just 5.99%. The most qualified borrowers with good to excellent credit scores may qualify for lower APRs at either of these lenders when compared with LendingClub. Remember to account for any origination fees when considering the cost of borrowing.
Happy Money also offers personal loan prequalification without affecting your credit score.
Upstart vs. LendingClub
Upstart is a unique personal loan lender because it takes a comprehensive approach to lending. Instead of relying solely on your credit score, Upstart uses AI technology to consider other factors that contribute to your loan eligibility. This could make Upstart a good choice for borrowers who don’t have a well-established credit history, but do have a higher education degree or steady employment.
Potential APRs are similar to those offered by LendingClub, and you can prequalify to check your rate without affecting your credit score. Upstart also offers next-day funding, so it could potentially be a much faster alternative than LendingClub when it comes to getting the money you need.