FEATURED PARTNER
Best for Flexible Spending Needs
3.7
Best for Flexible Spending Needs
3.7
Fast Facts
- Minimum credit score: 600
- Loan amounts: $1,000 to $40,000
- Loan terms: Up to 5 years
- Rates: 7.99% – 35.99%
Pros & Cons
Pros
- No prepayment penalties
- Get your rate without impacting your credit score
- Borrow up to $40,000 for nearly any purpose
Cons
- Origination fees up to 8%
- Longest loan term is only 5 years
- Funding takes two business days
Usage Rules
You cannot use a LendingClub personal loan for the following:
- College/university costs
- Investments
- Cryptocurrency
Our Thoughts on LendingClub Personal Loans
MarketWatch Guides Rating: 3.7 out of 5 stars
For the typical borrower, the most important factors to examine when considering a personal loan are the cost and repayment terms. LendingClub stands out for offering a lower minimum borrowing amount than many competitors, starting at $1,000. It’s a top pick among lenders for fair credit. A fair credit score is usually between 580 and 669.
Depending on your credit history, you may find LendingClub a well-priced offering. Some users with good to excellent credit may find a better deal elsewhere, but the average borrower will likely see interest rates roughly on par with other major lenders.
LendingClub charges origination fees of 3% to 8%, which is deducted from your loan proceeds. That’s a huge drawback compared to other lenders with no origination fees. Due to its mix of loan terms, high origination fees and relatively slow funding timeline, we don’t recommend LendingClub. Instead, you may be better served by one of our best personal loan companies.
Pros and Cons of LendingClub Personal Loans
You’ll find a mix of good and bad features with most personal loans. Here’s a snapshot of the pros and cons of LendingClub personal loans.
Pros
Borrow $1,000 to $40,000 for nearly any purpose
Get your rate and review loan terms without impacting your credit score
No prepayment penalties
Pay off other loans directly with loan proceeds
Cons
Origination fees of up to 8% apply to all loans
Loan funding takes two business days
Longest loan term is 5 years
Some borrowers get very high interest rates (APR range is 7.99% to 35.99%)
Who Are LendingClub Personal Loans Best For?
LendingClub likely won’t be best for borrowers with excellent credit who can often find lower rates and better terms elsewhere. But borrowers with fair credit could find a good deal from LendingClub. Getting your rate and viewing loan terms without a hard pull on your credit report allows borrowers to determine if they’re approved and what they’ll pay risk-free.
Because you can get loan terms with a soft pull on your credit, considering LendingClub when shopping around for a personal loan could be reasonable for borrowers with diverse credit profiles. But because lenders such as LightStream and PenFed offer personal loans with no origination fees, you might find a better deal elsewhere if approved.
How To Get a LendingClub Personal Loan
Getting a personal loan from LendingClub is straightforward. You’ll need to enter personal information, pass a credit check and review options for loan disbursem*nt.
Application Process
Start by completing the LendingClub personal loan application at the LendingClub website. To apply, complete the following steps:
- Check your rate: Visit the application page for LendingClub personal loans. With a soft inquiry on your credit report, you can get your rate and loan offer in just a few minutes.
- Compare and pick your offer: After a few moments, you should see your options to borrow with LendingClub. Pay close attention to interest rate, origination fee, payoff term and monthly payment to best understand your options.
- Complete the application: After selecting your loan, complete the full LendingClub personal loan application. The full application includes more personal information, including your full contact details and Social Security number. You may also need to provide proof of income, proof of address, a government-issued ID and past tax returns.
Approval and Funding
Depending on your credit profile and documentation, you may be approved as soon as the same day. Many loans are approved within a few hours, but it may take longer. If you get a request for additional information or documentation, upload it as quickly as possible to help expedite your approval.
Once approved, receiving funds can take about two business days. Double-check your bank account and routing number to ensure your funds go to the correct place.
LendingClub Personal Loans Reviews
LendingClub generally earns positive reviews. On Trustpilot, it currently holds a 4.6-star average rating out of five stars based on more than 4,800 reviews. It’s accredited with the Better Business Bureau (BBB) and has an A+ rating. BBB reviewers give it an average 4.55-star rating with more than 2,300 reviews.
“LendingClub has always been there for me. They took a chance on me over 5 years ago with a small loan that allowed me to rebuild my life after some challenging circ*mstances. So when I needed a consolidation and home improvement loan I immediately returned to Lending Club and they once again hit a home run in processing my loan. Great job, and many thanks to the Lending Club Team!”
— Kevin M., Oct. 1, 2023, Trustpilot
“It take a few days longer than expected for final approval and additional days after that to observe transfers completing. It would have been nice to receive emails every day on the status until everything closed. Otherwise great.”
— Ross Y., Sept. 25, 2023, Trustpilot
“This is not my first time using your service. I have been pleased every time. The service is great when I’ve called in its easy to speak with someone and I will definitely recommend you again and again.”
— Dolores V., Oct. 9, 2023, BBB
LendingClub pointed to the positive reviews when asked to respond. A representative also pointed out that the lender has a mobile app with full loan servicing capability.
LendingClub hasn’t always fared well on the regulatory front. In 2021, the FTC charged LendingClub with imposing hidden fees against borrowers and having deceptive application approvals. The company subsequently sent over $18 million in refunds to current and past customers to settle the charges. When announcing the settlement, LendingClub said it did not agree with the FTC’s allegations.
Eligibility Requirements for LendingClub Personal Loans
If you believe LendingClub could be a good fit for your needs, you’ll need to understand what it looks for when approving personal loans.
Credit Score and Financial History
One of the first areas LendingClub looks at is your credit score, which is a quick method of determining someone’s likelihood of repaying the loan as agreed. On the LendingClub blog, the company shares that most lenders look for a score of 670 or above but may approve borrowers with lower credit scores at a higher interest rate. Several sources share a minimum 600 credit score for LendingClub personal loans.
In addition to your credit score, most lenders review your credit report. Your credit report shows your loan balances and payment history for current and closed loans from the last seven to 10 years. A history of late or missed payments, bankruptcy, judgments and other negative information may lead to higher rates or even a declined application.
Income and Employment
LendingClub also wants to know if you can repay your loan. To do so, the lender will look at your income and financial obligations. In addition to verifying your income, LendingClub will compare your minimum required debt payments to your income using your debt-to-income (DTI) ratio. This measures your monthly earnings against all of your loan payments, such as on a car loan or student loan.
A higher income compared to your monthly loan payments, including credit cards, student loans, mortgage payments and any other debt, can improve your odds of approval.
LendingClub Personal Loans Usage Rules
You can use your LendingClub personal loan proceeds for nearly any purpose. Typical uses include debt consolidation, home improvements and large purchases.
You’re specifically not allowed to use a LendingClub personal loan for secondary education (college/university costs), investments, cryptocurrency purchases or anything illegal.
LendingClub Personal Loans Fees and Penalties
When taking out any loan, looking closely at fees and penalties is essential to avoid unpleasant surprises.
Loan Origination Fees
Depending on your credit and other loan factors, LendingClub personal loans require an origination fee of 3% to 8%. The fee is deducted from your loan proceeds, so you will receive less funds than your loan amount.
Some competitors charge no origination fees. If you have to pay 8% immediately, you’re paying a hefty amount in addition to interest — even if you pay off the loan early. For a $40,000 loan, an 8% origination fee costs $3,200.
Early Repayment Penalties
LendingClub doesn’t charge any early payoff penalties or fees. You can pay off your loan any time before the final payment date without paying any extra. Prepayment penalties are a deterrent to getting out of debt sooner.
How LendingClub Compares to Other Lenders
If you have a good to excellent credit history, you’ll very likely find better rates and terms than those offered by LendingClub. Those with fair credit, however, may find LendingClub to be a competitive choice.
LightStream offers loans without origination fees, prepayment penalties or late payment fees. In comparison, LendingClub charges origination and late fees. LightStream’s interest rates are also a little better than those offered by LendingClub.
A downside of LightStream is that there’s no prequalification without impacting your credit score. You can check your rate at LendingClub without a hard inquiry, but LightStream uses a hard inquiry for all applications. If approved for a lower rate elsewhere, LightStream offers a Rate Beat Program, which guarantees you’ll pay the lowest rate upon approval.
Like LendingClub, SoFi offers a more robust set of banking products in addition to personal loans. But unlike LendingClub, SoFi personal loans don’t require origination or late fees. Sometimes, you can get same-day funding, whereas LendingClub takes two business days after approval.
Another benefit of SoFi is unemployment protection and job placement assistance. If you lose your job while you have an active loan from SoFi, your payments may be temporarily paused, and SoFi’s career services team can help you find new employment.
PenFed is a credit union that specializes in working with households connected to the U.S. military or Department of Defense. However, anyone can join, even without a family member in the armed forces.
PenFed personal loans are available with no origination fee, and you can borrow up to $50,000 if approved. You can get funds one to two days after approval.
Rating LendingClub Personal Loans
Our team put together a comprehensive 100-point rating system to evaluate personal loan companies based on factors that mean the most to you, the potential borrower. We then gathered scores of data points from across the industry, analyzing disclosures, licensing documents, sample loan agreements, marketing materials and websites for more than two dozen of the most prominent personal loan companies in the U.S.
Our rating system takes into account four broad categories. Here’s a brief breakdown of each one.
- Affordability (35%): We gauge how expensive each company’s loans are to pay back, taking into account both interest rates and fees. The highest-scoring lenders will have low minimum and maximum annual percentage rates (APRs) and low or no origination fees.
- Loan features (35%): This category measures the breadth of loan terms available to prospective customers. The most points go to lenders with a wide range of loan lengths, small minimum loans, large maximum loans, and fast funding.
- Customer experience (20%): We review each company’s application, prequalification and customer service policies and procedures to create this category score. The best companies will have simple online applications and multiple ways for customers to get their problems solved.
- Company reputation (10%): Our team analyzes each company’s BBB file, customer reviews and any outstanding regulatory actions. The most points will go to companies with an A+ rating with the BBB, a track record of addressing customer complaints and no active regulatory orders.
| Affordability | 22/35 |
|---|---|
| Loan features | 22/35 |
| Customer experience | 17/20 |
| Company reputation | 5/10 |
| Total | 66/100 |
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This rating system is intended to give readers a comprehensive overview of each personal loan company. However, our top-rated lenders may not be the best fit for all borrowers. To learn more, you can read our full personal loans methodology.
The Bottom Line
LendingClub can be a good choice for some borrowers, but it’s not our top pick due to a high origination fee, slower loan funding and some questionable past behavior. However, if you have less than good credit, LendingClub may fit your needs. No personal loan is perfect for everyone, so shop around and consider your unique financial needs when reviewing any loan offers.
Learn More About LendingClub
See how LendingClub stands out in our roundups of the best personal loan lenders today:
- #4 on Best Lenders for a $1,000 Personal Loan
- #7 on Best Personal Loans With a Co-Signer or Co-Borrower
- #7 on Best Joint Personal Loans
Frequently Asked Questions About LendingClub Personal Loans
The minimum credit score for a LendingClub personal loan is 600, according to data reported by the company. That said, a score of 670 or above can improve your approval odds.
The most significant drawback of a LendingClub loan is origination fees. No matter how much you borrow and regardless of your credit score, you’ll pay 3% to 8% in origination fees.
LendingClub is suitable for borrowers with fair credit. Every application is reviewed individually and takes into account your income, existing debt and other financial factors.
With all personal loans, a hard inquiry triggers a temporary negative impact to your credit score. New loans temporarily lower your credit score. If you make on-time payments every month, your credit score should eventually improve as you build a positive payment history.
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someoneyou trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.
