LendingClub Personal Loan Review

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APR

6.95%
To
35.89%

Credit Req.

Not Specified

Terms

36 or 60

months

Origination Fee

1.00% - 6.00%

SEE OFFERS Secured

on LendingTree’s secure website

LendingClub is a great tool for borrowers that can offer competitive interest rates and approvals for people with credit scores as low as 0.... Read More

LendingClub personal loan details
 

Fees and penalties

  • Terms: LendingClub offers personal loans for terms of 36 or 60 months.
  • APR range: Loan APRs range from 6.95% to 35.89%.
  • Loan amounts: You can borrow up to $40,000.
  • Time to funding: It usually takes about seven days to have your loan funded.
  • Hard pull/soft pull: Checking rates to see how much a LendingClub loan will cost you only requires a soft pull. The soft pull will not impact your credit history. However, a hard pull is required to complete the full application. The hard inquiry may appear on your credit report and can impact your credit score.
  • Origination fee: 1.00% - 6.00%, which is deducted from the total amount of your loan. For example, let's say LendingClub charges you a 5% origination fee on a loan of $1,000. You may apply for a loan of $1,000 but receive only $950 after that fee is subtracted.
  • Prepayment fee: LendingClub has no prepayment penalty fee.
  • Late payment fee: The LendingClub late fee is 5% of the unpaid amount or $15, whichever is greater.

LendingClub personal loans can be used for many purposes such as consolidating debt, making home improvements, or covering other major expenses.

Debt consolidation is one area specifically where borrowers using a LendingClub loan can save big. Besides lowering your interest rate, consolidating debt with a personal loan can turn many credit card payments due on random dates into one convenient fixed payment with a set pay-off date. That being said, LendingClub is just one of many peer to peer lenders that allow debt consolidation, so you should definitely shop around to be sure you’re getting the best rate available to you.

However, LendingClub may not be the best option for people looking for funds in a hurry. The company says it will take about seven days to fund your loan, but this estimate depends on how long it takes you to turn in requested documentation during the application, such as proof of income. The faster you get in all your information, the faster you can get access to your cash.

Eligibility requirements

  • Minimum credit history: LendingClub doesn’t share what specific aspects of your credit history will make you eligible or ineligible for a loan. However, the lowest interest rates advertised will go to borrowers with a high credit score, low debt-to-income ratio, and a long history of managing credit lines successfully.
  • Maximum debt-to-income ratio: Like most peer to peer lenders, LendingClub recommends a maximum debt-to-income ratio of 40%. This means your total monthly debt obligations are no more than 40% of your monthly gross income.

LendingClub has other basic requirements to note before applying. To qualify, you must:

  • Be at least 18 years old
  • Be a U.S. citizen, permanent resident, or long-term visa holder
  • Have a bank account

LendingClub is not currently accepting applications from Iowa, Guam or Puerto Rico. (As of September 2019, investors cannot purchase LendingClub Notes in New York.)

Applying for a personal loan from LendingClub

The application and funding process for a LendingClub loan is different from a typical loan because of the peer-to-peer lending element. You aren’t getting funding in the traditional way from a financial institution. Instead, your loan is getting funded in portions by many different investors.

Before you apply for a LendingClub loan, we encourage you to check its rates and compare it to other lenders. You can do this by heading to the LendingClub website and filling out a short online form. Checking rates will not impact your credit score because it’s a soft pull.

You’ll get several offers to choose from after doing the initial pre-application. The offers will include the loan amount, loan term, monthly payment and APR. You’ll need to complete a full application after choosing an offer. Part of the full application is providing your Social Security number, your income, and details about your employment. This is where the hard credit inquiry comes into play.

Checking your rate and reviewing loan offers on the LendingClub website will not affect your credit; it will result in a soft credit inquiry which is only visible to you. If you receive a loan through LendingClub, then a hard inquiry that may affect your credit score will appear on your credit report after you receive that loan. Additional reporting will be made to credit reporting agencies during the application process to confirm you continue to meet credit criteria and to prevent potential fraudulent activities.

LendingClub reviews the information you provide to determine your credit risk. If approved, your loan will be deposited into your bank account. You can expect to receive funding within a week or more, depending on how long it takes to verify your financial information.

Pros and cons of a LendingClub personal loan

Pros:

Cons:

  • Long loan term options. If you need to stretch out loan payments, LendingClub may be right up your alley because you can choose from terms of 36 or 60 months.
  • Only a soft pull is required to check rates.There’s no hard inquiry needed to check rates which is ideal when you’re comparing various loan products. This allows you to shop around to secure a loan with the best possible interest rate you can get.
  • Longer funding times. Innovation in the online lending space has made getting access to money in as little as one day at some lenders. That’s not the case with LendingClub; it could take up to seven days to get your funds.
  • The origination fee. LendingClub gives you an origination fee and interest rate after determining your credit risk. This type of fee can take a chunk of money out of your loan.

Who’s the best fit for a LendingClub personal loan

LendingClub loans can be a good option for borrowers who are comfortable with a longer repayment term. Borrowers with stellar credit may also qualify for competitive interest rates.

However, the funding timeline may not work for borrowers looking for fast money. But if you’re borrowing money to consolidate debt, pay off credit cards, or fund a planned purchase, the time it takes to get funding may not be such a problem.

LendingClub consumer reviews

LendingClub has excellent consumer reviews and has an A rating from the Better Business Bureau. Consumers on LendingTree, (Disclaimer: MagnifyMoney is owned by LendingTree) consistently said they would recommend LendingClub, citing competitive interest rates, an easy process and excellent customer service.

Latosha from St. Louis, Mo., said, “I’m not sure why I didn’t go with LendingClub the first time but they were able to lower my payments and my interest rate but the time of my loan was cut by two years. I would not go through another company in the future, I’ll continue being a loyal customer of theirs.”

LendingClub FAQ

LendingClub offers flexibility in how you utilize your personal loan. You can spend your loan funds to refinance your credit cards, make home improvements, consolidate debt, refinance a car, pay for moving expenses, pay for a vacation and more.

Yes. You may choose to work with a co-borrower and apply for a joint loan. Once approved, each co-borrower is obligated to pay back the loan.

Once your loan has been approved and selected by investors, the funds you requested will be deposited into your bank account. Interest will begin to accrue that day. Depending on the financial institution you work with, it may take a few days for the payments to appear in your account.

Yes. You can back out of your loan up to five days after your loan has been funded. LendingClub will withdraw the funds from your account within five to seven business days. Keep in mind that if you took out a balance transfer loan and your creditors have already been paid using the loan funds, LendingClub will be unable to recover these funds for you. Contact LendingClub by phone as soon as possible to cancel your loan application or disbursement.

Yes. LendingClub allows borrowers to have a maximum of two concurrent loans active at the same time. LendingClub will not allow you to have more than $50,000 in outstanding loans combined between these two loans.

LendingClub will provide you with the reasons why you have been declined for a personal loan. LendingClub recommends reviewing these reasons and signing up for credit monitoring while you improve your credit, reduce your debt-to-income ratio or address any other concerns listed. You’re then welcome to reapply for another LendingClub loan.

Alternative personal loan options

Marcus by Goldman Sachs®

Marcus by Goldman Sachs®
APR

6.99%
To
28.99%

Credit Req.

Not specified

Terms

36 to 72

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

Marcus by Goldman Sachs® offers personal loans for up to $40,000 for debt consolidation and credit consolidation. ... Read More


Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans).Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. For New York residents, rates range from 6.99% to 24.99% APR.

Marcus by Goldman Sachs® offers a no-fee personal loan. Interest charges are the only costs you’ll have to worry about with this product. You can get funding within five days. You can check rates online with only a soft pull that won’t affect your credit score. Ultimately, the lack of origination fee is what gives Marcus by Goldman Sachs® an edge over LendingClub.

Prosper

APR

6.95%
To
35.99%

Credit Req.

640

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

2.41% - 5.00%

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

Prosper is a peer-to-peer lending platform that offers a quick and convenient way to get personal loans with fixed and low interest rates. ... Read More


For example, a three-year $10,000 loan with a Prosper Rating of AA would have an interest rate of 5.31% and a 2.41% origination fee for an annual percentage rate (APR) of 6.95% APR. You would receive $9,759 and make 36 scheduled monthly payments of $301.10. A five-year $10,000 loan with a Prosper Rating of A would have an interest rate of 8.39% and a 5.00% origination fee with a 10.59% APR. You would receive $9,500 and make 60 scheduled monthly payments of $204.64. Origination fees vary between 2.41%-5%. APRs through Prosper range from 6.95% (AA) to 35.99% (HR) for first-time borrowers, with the lowest rates for the most creditworthy borrowers. Eligibility for loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All loans made by WebBank, member FDIC.

Prosper is another peer-to-peer lender with interest rates and origination fees that are close to what LendingClub offers. Prosper also lets you check rates with a soft inquiry so you can shop with both peer-to-peer lenders to see which one will give you the best deal. According to Prosper, borrowers can get funds as quickly as three days after accepting an offer.

Payoff

APR

5.99%
To
24.99%

Credit Req.

640

Minimum Credit Score

Terms

24 to 60

months

Origination Fee

up to 5.00%

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

Payoff is a financial services firm that offers personal loans mainly to help consolidate credit card debt.... Read More


All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. Currently loans are not offered in: MA, MS, NE, NV, OH, and WV.

A Payoff personal loan can help you consolidate existing credit card debt with a low, fixed interest rate loan. Payoff isn’t an actual financial institution; instead, it works with lenders to originate loans. This loan product has an origination fee but no other fees (late fees, returned check fees, or repayment fees).

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Anne Bouleanu
Anne Bouleanu |

Anne Bouleanu is a writer at MagnifyMoney. You can email Anne here