LendingClub Personal Loan Review: Low APRs for Qualified Borrowers

  • on LendingTree's secure website
{"align":"center","buttonColor":"primary","buttonIcon":"lock","buttonText":"See Offers","category":"personal_loans","className":"","cloudinaryImageName":"referral_logos\/us\/small_business\/lendingclub-3","cssNamespace":"AffiliateBannerV2","context":" in context: Review Header","disclaimers":["on LendingTree's secure website"],"isButtonSquare":null,"isUnavailable":false,"link":"https:\/\/www.valuepenguin.com\/personal-loans\/redirect?lender=33829657","name":"LendingClub"}

LendingClub Personal Loan Review: Low APRs for Qualified Borrowers

LendingClub 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 who can't wait 6 days for funds

Editor's Rating


Get Personal Loan Rates

on LendingTree's secure website

By clicking "See Offers" you'll be directed to our ultimate parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

If you have a strong credit history, LendingClub is a great choice for a personal loan. Through LendingClub, you can borrow up to $40,000 and qualify for an APR as low as 6.95%. Even if your credit history isn’t strong, LendingClub only requires a minimum credit score of 600 to apply. One area where LendingClub doesn’t shine is funding time. On average, it takes at least 7 days to fund your loan offer. This is because LendingClub operates through a marketplace, meaning there will be multiple investors who will contribute to your loan.

LendingClub Review: Should You Apply?

  • on LendingTree's secure website
{"align":"left","buttonColor":"primary","buttonIcon":"lock","buttonText":"See Offers","category":"personal_loans","className":"","cloudinaryImageName":"referral_logos\/us\/small_business\/lendingclub-3","cssNamespace":"AffiliateBannerV2","context":"","disclaimers":["on LendingTree's secure website"],"isButtonSquare":null,"isUnavailable":false,"link":"https:\/\/www.valuepenguin.com\/personal-loans\/redirect?lender=33829657","name":"LendingClub"}

LendingClub is a good option for borrowers with strong credit profiles who can afford to wait 6 days on average for funding. 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 6.95% and max out at 35.89%. However, LendingClub does take longer to fund your loan -- around 6 days on average (many other companies 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 who can't wait 6 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 LendingClub. 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 LendingClub offers APRs as low as 6.95%, only borrowers with excellent credit profiles with qualify for those rates.

When you take out a personal loan through LendingClub, 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, LendingClub gives you a 15 day grace period before charging any fees or penalties. When making payments, it’s better to allow LendingClub 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 LendingClub is that you can check your rate without affecting your credit score. However, when you sign the loan contract, the company will do a hard credit pull (which can affect your score). LendingClub 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 LendingClub will report negative experiences too. Late payments, missed payments or defaults will be reported and will adversely affect your score.

Eligibility Criteria

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

  • U.S. citizen or permanent resident or on an eligible visa
  • At least 18 years old
  • Credit score of 600 or higher
  • Debt-to-income ratio under 31%

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

LendingClub Personal Loan Terms and Requirements

LendingClub specializes in personal loans, but the company also offers auto refinancing, medical debt loans and small business loans.

Loan Amount Range$1,000 - $40,000
APR Range6.95% - 35.89%
  • 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

LendingClub 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 + Mobile
Time to Get Funds6 days on average or sooner
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, LendingClub 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 LendingClub Application Process
LendingClub Application Process

How Does LendingClub Compare to its Competition?

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 LendingClub stacks up against its competitors.

LendingClub vs. Prosper

  • on LendingTree's secure website
{"align":"left","buttonColor":"primary","buttonIcon":"lock","buttonText":"See Offers","category":"personal_loans","className":"","cloudinaryImageName":"referral_logos\/us\/personal_loans\/prosper-1","cssNamespace":"AffiliateBannerV2","context":"","disclaimers":["on LendingTree's secure website"],"isButtonSquare":null,"isUnavailable":false,"link":"https:\/\/www.valuepenguin.com\/personal-loans\/redirect?lender=41744435","name":"Prosper"}

If you need money more quickly, you should consider a loan from Prosper, as you can get funds within three days. Prosper and LendingClub offer similar rates and terms for their personal loans. APRs at Prosper range from around 6.95% to 35.99% with terms of three or five years. However, you can only borrow up to $40,000 with Prosper and you must have a minimum credit score of 640 to qualify, making LendingClub a better option for borrowers with lower credit scores.

LendingClub vs. SoFi

  • on LendingTree's secure website
{"align":"left","buttonColor":"primary","buttonIcon":"lock","buttonText":"See Offers","category":"personal_loans","className":"","cloudinaryImageName":"referral_logos\/us\/loans\/sofi-3","cssNamespace":"AffiliateBannerV2","context":"","disclaimers":["on LendingTree's secure website"],"isButtonSquare":null,"isUnavailable":false,"link":"https:\/\/www.valuepenguin.com\/personal-loans\/redirect?lender=55033316","name":"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 starting at 5.99%. 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 LendingClub. However, you will need a minimum credit score of 660 to qualify (for comparison, LendingClub requires 600 as a minimum).

LendingClub vs. Best Egg

  • on LendingTree's secure website
{"align":"left","buttonColor":"primary","buttonIcon":"lock","buttonText":"See Offers","category":"personal_loans","className":"","cloudinaryImageName":"referral_logos\/us\/personal_loans\/bestegg-1","cssNamespace":"AffiliateBannerV2","context":"","disclaimers":["on LendingTree's secure website"],"isButtonSquare":null,"isUnavailable":false,"link":"https:\/\/www.valuepenguin.com\/personal-loans\/redirect?lender=55751583","name":"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 LendingClub. The main difference between the two is that you can receive funds within one business day from Best Egg. APRs at Best Egg range from 5.99% to 29.99% 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.

LendingClub vs. Avant

  • on LendingTree's secure website
{"align":"left","buttonColor":"primary","buttonIcon":"lock","buttonText":"See Offers","category":"personal_loans","className":"","cloudinaryImageName":"referral_logos\/us\/personal_loans\/avant-1","cssNamespace":"AffiliateBannerV2","context":"","disclaimers":["on LendingTree's secure website"],"isButtonSquare":null,"isUnavailable":false,"link":"https:\/\/www.valuepenguin.com\/personal-loans\/redirect?lender=47719317","name":"Avant"}

If you can’t qualify for a LendingClub 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 9.95% and go up to 35.99%. 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.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.