Lending Club Personal Loan Review 2017: Low APRs for Qualified Borrowers

Lending Club is a good option for borrowers with strong credit profiles who can afford to wait at least a week for money. You can borrow between $1,000 to $40,000 for a personal loan, and pay back the loan over three or five years.

Editor's Rating

4.0

Good for

  • Borrowers with fair or better credit
  • Joint applications

Bad for

  • Borrowers with limited credit history
  • Borrowers in IA, WV, Guam or PR
  • Borrowers who can't wait 7+ days for funds

Lending Club Personal Loan Review 2017: Low APRs for Qualified Borrowers

Lending Club is a good option for borrowers with strong credit profiles who can afford to wait at least a week for money. You can borrow between $1,000 to $40,000 for a personal loan, and pay back the loan over three or five years.

Good for

  • Borrowers with fair or better credit
  • Joint applications

Bad for

  • Borrowers with limited credit history
  • Borrowers in IA, WV, Guam or PR
  • Borrowers who can't wait 7+ days for funds

Editor's Rating

4.0

Lending Club Personal Loan Review 2017: Low APRs for Qualified Borrowers

Editor's Rating

4.0

Good for

  • Borrowers with fair or better credit
  • Joint applications

Bad for

  • Borrowers with limited credit history
  • Borrowers in IA, WV, Guam or PR
  • Borrowers who can't wait 7+ days for funds

If you have a strong credit history, Lending Club is a great choice for a personal loan. Through the lender, you can borrow up to $40,000 and qualify for an APR as low as 6%. Even if your credit history isn’t strong, Lending Club only requires a minimum credit score of 600 to apply. One area where the lender doesn’t shine is funding time. On average, it takes at least 7 days to fund your loan offer. This is because Lending Club is a marketplace lender, meaning there will be multiple investors who will contribute to your loan.

Lending Club Review: Should You Apply?

Lending Club is a good option for borrowers with strong credit profiles who can afford to wait at least a week for money. You can borrow between $1,000 to $40,000 for a personal loan, and pay back the loan over three or five years. APRs start low at 6% and max out at 36%. Since Lending Club is a marketplace lender, it does take longer on average to fund your loan -- at least seven days (many other lenders can fund personal loans within one or two days).

Good for...Bad for...
  • Borrowers with fair or better credit
  • Joint applications
  • Borrowers with limited credit history
  • Borrowers in IA, WV, Guam or PR
  • Borrowers who can't wait 7+ days for funds

While the main requirement to qualify is a minimum credit score of 600, we took a look at the stats of an average borrower at Lending Club. On average, borrowers have an annual income of $76,000 and a credit score of 700. Their debt-to-income ratio is 18% (excluding mortgages), and they have a credit history of 17 years. And while Lending Club offers APRs as low as 6%, only borrowers with excellent credit profiles with qualify for those rates. On average, the APR for a Lending Club loan is approximately 14%.

When you take out a personal loan through Lending Club, you will be able to pay the loan early and save on interest as there are no prepayment penalties. And in the event that you’re late to make a payment, Lending Club gives you a 15 day grace period before charging any fees or penalties. When making payments, it’s better to allow Lending Club to automatically deduct payments from your bank account as there are fees for paying by check ($7 for each payment by check).

One great thing about Lending Club is that you can check your rate without affecting your credit score. However, when you sign the loan contract, the lender will do a hard credit pull (which can affect your score). Lending Club will also report account experiences to all three credit reporting agencies. This means that if you pay your loan on-time, you can likely improve your credit score. Beware that Lending Club will report negative experiences too. Late payments, missed payments or defaults will be reported and will adversely affect your score.

Currently, Lending Club cannot lend to individuals who live in Iowa, West Virginia, Guam or Puerto Rico.

Eligibility Criteria

To qualify for a Lending Club personal loan, we recommend that borrowers meet the following criteria:

Minimum CriteriaRecommended Criteria
  • U.S. citizen or permanent resident or on an eligible visa
  • At least 18 years old
  • Credit score of 640 or higher
  • Debt-to-income ratio under 31%
  • Credit score of 700 or higher
  • Annual income of at least $50,000
  • Debt-to-income ratio under 20% (excluding mortgage debt)
  • At least three to five years of credit history

Lending Club will evaluate your credit history, your application information, planned use of funds and your ability to repay when approving you for a loan offer.

Lending Club Personal Loan Terms and Requirements

Lending Club specializes in personal loans, but the lender also offers auto refinancing, medical debt loans and small business loans.

Loan Amount Range$1,000 - $40,000
APR Range5.99% - 35.89%
Fees
  • Origination fee: 1% - 6%
  • Late payment fee: Greater of 5% of monthly past due or $15
  • NSF/returned payment fee: $15
  • Check processing fee: $7
  • No prepayment penalty
Loan Terms3 or 5 years
Repayment OptionsMonthly
Direct Payment to CreditorsYes (only some borrowers)

Application Process

Lending Club allows you to check your rate online without affecting your credit score. To check your rate, you’ll need to put in your personal information, including your name, address, year of birth, email address and yearly income. Once you provide this information, you will be presented with a few different loan offers. These offers will show the loan amount, monthly payment amount, the loan maturity, interest rate and APR.

Application ProcessOnline
Time to Get Funds7+ days
Credit Check
  • Soft credit check to get rate
  • Hard credit check when you apply
Credit ReportingYes
Cosigners/Co-borrowers Allowed?Yes

Once you select a loan offer, you’ll need to provide your Social Security Number, phone number, employment status and bank account information. Once you agree to the loan terms of the offer you selected, Lending Club will conduct a hard pull on your credit report. This can affect your credit score. The whole application process takes at least one week to complete, and money will appear directly in your bank account once your loan is funded.

Image of Lending Club Application Process
Lending Club Application Process

How Does Lending Club Compare to Other Lenders?

If you’re looking for a personal loan, it’s a good idea to shop around to get the best rates. Below, we took a look at how Lending Club stacks up against its competitors.

Lending Club vs. Prosper

If you need money more quickly, you should consider a loan from Prosper, as you can get funds within three days. Prosper and Lending Club offer similar rates and terms for their personal loans. Like Lending Club, APRs at Prosper range from 6% to 36% with terms of three or five years. However, you can only borrow up to $35,000 with Prosper and you must have a minimum credit score of 640 to qualify, making Lending Club a better option for borrowers with lower credit scores.

Lending Club vs. SoFi

SoFi is a good option for qualified borrowers who want to borrow more than $40,000. With SoFi, you can borrow up to $100,000 with APRs averaging 8.5% (APRs offered at SoFi are 5.7% to 14.2%). You can also pay off your loan over a longer period, with maturities up to seven years. Another benefit to using SoFi is the reduced fees. There are no origination fees, and the late fee is less than at Lending Club. However, you will need a minimum credit score of 660 to qualify (for comparison, Lending Club requires 600 as a minimum).

Lending Club vs. Best Egg

Best Egg is another better option for those borrowers who need their funds immediately. Similar to Prosper, Best Egg offers comparable rates, fees and terms as Lending Club. The main difference between the two lenders is that you can receive funds within one business day from Best Egg. APRs at Best Egg range from 6% to 30% with loans up to $35,000 and terms of three or five years. Best Egg does have a higher credit minimum, requiring a credit score of 640 or more to qualify.

Lending Club vs. Avant

If you can’t qualify for a Lending Club loan, you may want to consider Avant, as you only need a minimum credit score of 580 to be eligible. However, these relaxed credit requirements do translate to higher starting rates: APRs at Avant start at 10% and go up to 36%. If you decide to take a loan out with Avant, you will benefit from speedier processing times (borrowers get their funds in two days on average) and more loan maturity options from two to five years.

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