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Business Insider's personal finance team compared LendingClub to the best personal loans and found it to be a standard offering. It's a particularly solid option for those with lower credit scores and those looking to add a co-borrower to their application.
LendingClub Personal Loans Overview
Company Overview
LendingClub is a solid personal loan provider, especially if you have a lower credit score and want to add a co-borrower to boost your chances of a better rate. However, you could be charged high rates and fees compared to competitors. The best personal loan for you depends on your credit score, which determines your eligibility and can lower your rate.
LendingClub Personal Loan Terms, Rates, and Fees
Loan Terms and Amounts
LendingClub offers personal loans with amounts between $1,000 and $40,000 and loan terms from two to five years. These loans can be used for paying off credit cards, debt consolidation, or tackling emergency expenses. You cannot use a LendingClub Personal Loan for education costs, investments, or funding illegal activities.
Interest Rates
LendingClub Personal Loans have an APR range of 8.98%-35.00%. Your exact rate is determined based on your application and creditworthiness as a borrower.
Fees and Charges
LendingClub charges an origination fee ranging from 3.00% to 8.00% of the loan amount. The cost of your APR and origination fee will be determined when you initially apply for the loan, and is based on your creditworthiness.
LendingClub does not charge application fees, broker fees, or prepayment penalties. However, if you make a payment more than 15 days late, LendingClub may charge a late fee of 5% of the outstanding payment or $15, whichever is greater.
LendingClub Personal Loan Pros and Cons
Advantages
- Ability to add a co-borrower to your loan application. If you have poorer credit and are worried your loan might not be approved as a result of your standing, you can add a co-borrower and may qualify for a better rate.
- No prepayment penalty. You can make additional payments toward your loan, and you won't be charged an extra fee.
Disadvantages
- Multiple types of fees. You'll have to pay an origination fee ranging from 1% to 6% of your total loan amount that will be baked into your loan APR. If your payment is more than 15 days late, you may be charged a late fee and other penalties.
- High maximum APR. Compared to competitors like Best Egg and Lightstream, LendingClub's maximum APR of 36.00% is high. Best Egg's max is 35.99% APR, and Lightstream's is 23.99% APR.
- Slower access to funds. You'll get access to your funds within two to four business days, and while that is relatively fast, you can get funds deposited more quickly from other personal loan companies.
LendingClub Personal Loan User Reviews and Experiences
Positive Reviews
LendingClub has garnered 4.7/5 stars on TrustPilot, with customers praising its quick processing times and attentive customer service. Its long-standing reputation has made it a preference for many borrowers.
Negative Reviews
There are some complaints to consider, though. Across TrustPilot and Better Business Bureau, reviews have highlighted a faulty online application interface, miscommunications regarding their loan terms, and a few hidden fees.
How to Apply for a LendingClub Personal Loan
Step-by-Step Guide
1. Prequalify on LendingClub's website. Choose your loan's purpose and amount and enter your name, Social Security number, and income history. You'll get an estimated monthly payment and APR range. You can also choose if you want to add a co-borrower to your loan.
2. Submit your application and wait for approval. When sending in an application, you'll need to attach proof of income, like a W-2, tax returns, or other financial documents.
3. Make a plan to repay your loan. Work your monthly payments into your budget, and ensure you have enough money to cover your financial responsibilities.
Required Documentation
You'll need to provide the following pieces of documentation when applying for a LendingClub Personal Loan:
- Business Tax returns: LendingClub may ask for copies of your recent tax returns or for tax forms, such as 1099s or Schedule K1s, to verify all of the details.
- IRS Form 4506-T: This form is used to request copies of tax returns, W-2s, and 1099 forms directly from the IRS.
- Proof of personal income: LendingClub may ask for additional documents to verify your income, like bank statements or pay stubs. If applicable, be prepared to provide proof of income for alimony or child support, pension or annuity income, disability insurance, Workers' Compensation benefits, or other types of income.
- Proof of identity and address for you or your business: LendingClub may request a copy of your government-issued ID, utility bills, or other documents to verify your business and personal identity.
LendingClub Personal Loan Alternatives
LendingClub Personal Loan vs. LendingPoint Personal Loan
LendingClub has a minimum credit score of 600 to qualify for its standard loans, while LendingPoint has a minimum of 580. LendingClub's fee range is 3% to 8% of your loan amount, compared with up to 8% at LendingPoint.
Read our LendingPoint personal loan review.
LendingClub Personal Loan vs. Best Egg Personal Loan
Best Egg's credit score floor is 640, compared with 600 for LendingClub. Importantly, the lower your credit score, the higher the APR you will probably have to pay.
Both LendingClub and Best Egg will charge you a late fee of at least $15. Best Egg's origination fee ranges from 0.99% and 9.99%, compared with 3% to 8% with LendingClub.
You may receive your funds slightly faster with Best Egg than with LendingClub. LendingClub says most customers will get their money in two to four business days, and Best Egg states that most customers will receive their money within one to three business days.
Read our Best Egg personal loan review.
LendingClub Personal Loan FAQs
LendingClub is a lending platform that offers personal loans and other types of loans through an easy online application process.
The interest rates for LendingClub Personal Loans vary based on creditworthiness, and typically range from 9% to 36% APR.
Yes, there are origination fees with LendingClub. The lender charges an origination fee between 3% and 8% of the loan amount.
The approval process for a LendingClub loan is fairly quick, and often takes a few days from application to funding.
Getting a personal loan from LendingClub is possible if you have bad credit, but higher interest rates may apply.
9.57% to 36.00%
$1,000 to $40,000
600
- Low minimum loan amount
- Can add co-borrower to loan application
- No prepayment penalties
- Multiple types of fees
- High maximum APR
- Slower access to funds
LendingClub is a solid personal loan provider, especially if you have a lower credit score and want to add a co-borrower to boost your chances of a better rate. However, you could be charged high rates and fees compared to competitors.
- Origination fee between 3% to 8%
- You'll get access to your funds within two to four business days
- Loan amount range between $1,000 to $40,000
- Loan terms are between 24 months and 60 months
- Loans made through either WebBank, Member FDIC or LendingClub Bank, N.A., Member FDIC
Why You Should Trust Us: How We Rated LendingClub Personal Loans
Every personal loan we review gets a rating on a 1-5 scale. The final rating is a weighted average of how the product stacks up across seven categories. The most heavily weighted categories are interest rates and fees, followed by term length and loan amounts, funding speed, and borrower accessibility.
Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan's terms, so they have less of an impact on the overall rating. These categories are:
See more on how we rate personal loans >>
Between January 2023 and March 2023, Personal Loans issued by LendingClub Bank were funded within 44 hours after loan approval, on average. 31% of Personal Loans issued by LendingClub Bank during the same period were funded within 24 hours after loan approval. Loan approval, and the time it takes to issue a credit decision, are not guaranteed and individual results vary based on creditworthiness and other factors, including but not limited to investor demand. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $16,912 for a term of 36 months, with an interest rate of 12.54% and a 5.00% origination fee of $846, for an APR of 16.16%. In this example, the borrower will receive $16,067 and will make 36 monthly payments of $566. Loan amounts range from $1,000 to $40,000 and loan term lengths range from 24 months to 60 months. Some amounts, rates, and term lengths may be unavailable in certain states. For Personal Loans, APR ranges from 9.57% to 35.99% and origination fee ranges from 3.00% to 8.00% of the loan amount. APRs and origination fees are determined at the time of application. Lowest APR is available to borrowers with excellent credit. Advertised rates and fees are valid as of May 19, 2023 and are subject to change without notice. Unless otherwise specified, credit products are provided by LendingClub Bank, N.A., Member FDIC, Equal Housing Lender (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. Only deposit products are FDIC-insured. LendingClub Bank is not an affiliate of Engine and is not responsible for the products and services provided by Engine. Credit products are subject to credit approval and may be subject to sufficient investor commitment. If a credit union is selected to invest in the loan, credit union membership will be required. Certain information that LendingClub Bank subsequently obtains as part of the application process (including but not limited to information in your consumer report, your income, the loan amount that you request, the purpose of your loan, and qualifying debt) will be considered and could affect your ability to obtain a loan. Loan closing is contingent on accepting all required agreements and disclosures at Lendingclub.com. “LendingClub” and the “LC” symbol are trademarks of LendingClub Bank. 2023 LendingClub Bank. All rights reserved.
Best Egg Disclosure: Annual Percentage Rates (APRs) range from 6.99%–35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%–9.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4 years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR. For example: a 5-year $10,000 loan with a 9.99% APR has 60 scheduled monthly payments of $201.81; a 3-year $5,000 loan with 6.99% APR has 36 scheduled monthly payments of $152.83.
