Personal Loans
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Advertiser Disclosure

Advertiser Disclosure: Some of the offers that appear on this website are from companies which ValuePenguin receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). The site does not review or include all companies or all available products.

Disclaimer: The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone. For a full list of our advertisers, see our disclosure page.

Opinions, analyses, reviews, or recommendations expressed here are the author’s alone, and have not been reviewed or endorsed by the issuer. We may be compensated through the issuer’s Affiliate Program. For a full list of our advertisers, see our disclosure page.

Lending Club vs. Marcus: Which Personal Loan is Right for You?

If you’re debating between getting a personal loan from Marcus or Lending Club, we’ve compared the two lenders for you. While both offer personal loans with similar interest rates and terms, there are certain situations where you should consider one company over the other.

Lending Club vs. Marcus

For borrowers looking to apply with a cosigner or have their creditors paid directly, we recommend Lending Club as Marcus does not offer these features. We also think Lending Club is a better pick for applicants with “average” credit -- that’s to say credit scores between 650 and 680. While Marcus generally only serves borrowers with better credit, people who qualify would get better terms (lower maximum rates and more flexibility in repaying).

Lending Club (Review)Marcus (Review)
Better For
  • Applying with a cosigner
  • Direct payment to creditors
  • Borrowers with average credit
  • Lower maximum rates
  • More flexible terms
  • Faster funding
Amounts$1,000 - $40,000$3,500 - $40,000
Rates5.99% - 35.89%6.99% - 23.99%
Terms3 or 5 years2 to 6 years
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
  • No origination fee
  • No late payment fee
  • No NSF/returned payment fee
  • No check processing fee
  • No prepayment penalty
Minimum 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%
  • Must have Social Security or Individual Tax I.D. Number
  • At least 18 years old
  • Must have U.S. bank account
Funding Time7+ days2+ days
Apply NowApply at Lending ClubApply at Marcus

How to Choose Between the Two

At the end of the day, both Marcus and Lending Club make very similar personal loans. However, there are some specific situations where you might want to consider one company over the other. We cover some of the main considerations below.

If you need funds quickly, consider Marcus. Lending Club is a marketplace lender, meaning that investors will need to fund your loan offer before you receive money. This process can take seven or more days. Marcus makes loans directly, so funding is much quicker. It takes about two business days to receive funds once you sign your loan documents.

If you want to apply with a cosigner or to pay your creditors directly, consider Lending Club. Marcus doesn't allow joint loan applications, so borrowers applying with a cosigner should look at Lending Club instead. For some borrowers, Lending Club can also pay your creditors directly instead of giving you the money. Marcus does not offer this feature.

If you want more flexible loan terms, consider Marcus. Marcus has a wider range of loan terms than Lending Club, letting borrowers repay their loan over two to six years. Another thing borrowers will find attractive is the lack of fees at Marcus. Marcus also affords its borrowers some payment flexibility as you can defer one payment after making 12 consecutive on-time payments.

If you have a credit score between 650 and 680, consider Lending Club. Generally speaking, most borrowers at Marcus have good credit scores of 680 or higher. Lending Club, on the other hand, only requires a minimum score of 640 to be considered for a personal loan. If you fall into the “average” credit score range, which is 650 to 680, consider checking your rate at Lending Club.

If you have a credit score under 640, you’ll need to look at other lenders. Lending Club’s minimum credit score needed to qualify for a personal loan is 640. Marcus does not disclose its credit requirements, but Marcus borrowers tend to have credit scores of 680 or higher. If you have a credit score under 640, you'll encounter difficulty getting approved at either place. We recommend checking your rate at companies like Peerform, Avant, OneMain Financial or iLoan.

If none of these applies to you, check your rate at both lenders (and maybe other lenders too). Checking your rate won’t affect your credit score, so it pays to shop around to find the best deal possible. Moreover, Lending Club cannot make loans to residents in West Virginia and Iowa, and Marcus cannot lend to residents in Maryland. If you don’t think Marcus or Lending Club is right for you, we recommend checking out lenders like LightStream, SoFi, Upstart and Citizens Bank.

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