Business Insider's personal finance team compared LendingClub personal loans 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 coborrower to their application.
LendingClub Personal Loans Pros & Cons
LendingClub Personal Loan Pros
- 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.
LendingClub Personal Loan Cons
- Multiple types of fees. You'll have to pay an origination fee ranging from 3% to 8% 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 some competitors like LightStream, LendingClub's maximum APR (the range is 9.57% to 36.00%) is high. In comparison, LightStream's APRs range from 6.49% to 25.29% (with AutoPay discount, rates vary by loan purpose).
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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
Compare LendingClub Personal Loans
8.99% - 29.99% fixed (with all discounts)
$5,000 to $100,000
680
- High maximum loan limit
- No fees required
- Competitive APR
- High minimum credit score requirement
- High minimum loan amount
- No in-person support
SoFi is a strong personal loan lender for those with high credit scores — you'll get perks like no fees required. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
SoFi- Loan amounts range from $5,000 to $100,000
- Loan term lengths range from 2 to 7 years
- Usually receive your money in a few business days after your application is approved
- Loans are made by SoFi Lending Corp.
6.49% to 25.29% (with AutoPay discount, rates vary by loan purpose)
$5,000 to $100,000
660
- Competitive APR
- Approval decisions should come shortly after applying
- Loans can be funded the same day
- Wide range of borrowing amounts and terms
- No fees
- Only available to people with good credit
- No pre-approval option
LightStream offers some of the lowest rates on personal loans out there, provided you have a great credit score. The lender also has loans of up to $100,000 and can supply you with funding on the same day you apply and are approved.
LightStream Personal Loan- Loan amounts range from $5,000 to $100,000
- Loan term lengths range from 2 to 12 years
- Apply online and you'll receive a response shortly during business hours.
- Receive your funds as soon as the same day
- Loans are made by Truist Bank, member FDIC
9.99% to 35.99%
$1,000 to $50,000
580
- Small minimum loan amount
- Quick access to funds
- Low minimum credit score
- Origination and late fees
Upgrade is a solid lender if you can qualify for its lowest interest rate. But if your credit isn't in great shape, you may be able to find a better deal elsewhere.
Upgrade Personal Loan- Loan amounts range from $1,000 to $50,000
- Loan term lengths range between 2 to 7 years
- You can get your money within one business day after your loan is reviewed and approved
- Loans made by Upgrade's lending partners
LendingClub Personal Loan Overview
LendingClub is a solid personal loan provider, especially if you have a lower credit score and want to add a coborrower to boost your chances of a better rate. However, you could be charged higher rates and fees than your competitors. The best personal loan for you depends on your credit score, which determines your eligibility and can lower your rate.
LendingClub Personal Loan Features and Benefits
LendingClub offers some of the best small personal loans, with loan amounts ranging from $1,000 to $40,000. Borrowers can receive their funds in as little as 24 hours after they've been approved by LendingClub. The lender supports this claim, with an average of 57% of personal loans being funded within one day of approval.
Additionally, LendingClub does not charge any prepayment penalties for paying off your loan ahead of schedule.
How to Apply for LendingClub Personal Loans
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 Rates and Fees
Loan Terms and Amounts
LendingClub offers personal loans with amounts between $1,000 to $40,000 and loan terms from two to six 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 rates range from 9.57% to 36.00%. Your exact interest rate is determined based on your application and creditworthiness as a borrower.
Fees and Charges
LendingClub charges an origination fee ranging from 3% to 8% 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 and other penalties.
LendingClub Personal Loan Customer Experience
LendingClub has garnered 4.6 out of 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.
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.
Is LendingClub Trustworthy?
The Better Business Bureau (BBB) gives LendingClub an A+ rating. LendingClub is also accredited by the BBB. This suggests that this lender responds to customer complaints in a reasonable manner.
In 2018, LendingClub was sued by the Federal Trade Commission (FTC) for deceiving consumers about hidden fees. The lender later agreed to an $18 million settlement in 2021. While this doesn't necessarily mean you'll have a bad experience with this lender, it is something to consider.
LendingClub Personal Loan Alternatives
LendingClub Personal Loans vs. LendingPoint Personal Loans
LendingClub has a minimum credit score of 600 to qualify for its standard loans, while LendingPoint doesn't disclose its minimum credit score requirements. LendingClub's origination 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 Loans vs. Best Egg Personal Loans
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. Best Egg's origination fee ranges between 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 a few 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 Loans vs. SoFi Personal Loans
SoFi offers personal loans for $5,000 to $100,000, which is much higher than LendingClub's maximum loan amount of $40,000. LendingClub rates also have a higher maximum interest rate (9.57% to 36.00%) when compared to SoFi's personal loan rates, which range from 8.99% - 29.99% fixed (with all discounts).
SoFi personal loans come with more flexible repayment terms, including terms that extend up to seven years. Alternatively, LendingClub's terms range from two to six years. So, if you're looking for a large personal loan with longer terms and more competitive rates, SoFi may be the better option.
Read our SoFi personal loan review
Why You Should Trust Us: How We Rated LendingClub Personal Loans
Business Insider rates each personal loan we review on a 1 to 5 scale. The overall rating is a weighted average of seven different categories, some of which are judged more heavily than others. The categories are:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category is assigned a weighting based on its importance to the personal loan borrower's experience. Rates and fees have the most direct impact on the overall cost of a personal loan, so those are weighed most heavily.
Read our full ratings methodology for personal loans for more details.
FAQs
What is LendingClub and how does it work?
LendingClub is a lending platform that offers personal loans and other types of loans through an easy online application process.
What are the interest rates for LendingClub personal loans?
The LendingClub rates vary from case to case based on creditworthiness and currently range from 9.57% to 36.00%.
Are there any fees associated with LendingClub personal loans?
Yes, there are origination fees with LendingClub. The lender charges an origination fee between 3% to 8% of the loan amount.
How long does it take to get approved for a LendingClub loan?
The approval process for a LendingClub loan is fairly quick and often takes a few days from application to funding.
Can I get a loan with bad credit from LendingClub?
Getting a personal loan from LendingClub is possible if you have bad credit, but higher interest rates may apply.
Is LendingClub legit?
Yes, LendingClub is a legitimate lender with an A+ rating from the BBB. That said, it's best to do your own research to find a lender that meets your specific needs.
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.
