OneMain Financial vs LendingClub: Which Lender Fits Your Needs?

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Generally speaking, we recommend OneMain Financial for borrowers with poor credit scores under 620 and LendingClub for borrowers with stronger credit scores above 640. Borrowers with good credit will typically obtain lower rates with LendingClub, while borrowers with poor credit will have an easier time qualifying for funding with OneMain Financial.

OneMain Financial vs LendingClub

Both lenders limit loan terms to five years and cap their interest rates at around 36%, however, the similarities end there. Borrowers who need larger loan amounts will be better off with LendingClub, which offers up to $40,000 in financing—about a third more than the limit imposed by OneMain Financial.

Borrowers who need funding quickly may prefer OneMain Financial, as the lender can provide same-day funding for applications approved before noon. Applicants who prefer an online-only process will be better off with LendingClub, as OneMain Financial requires you to visit a branch to complete your application.

OneMain Financial

(Read Review)

LendingClub (Read Review)
Amounts$1,500 - $30,000$1,000 - $40,000
Rates16.05% - 35.99%6.95% - 35.89%
Terms2 to 5 years3 or 5 years
  • Origination fees, late payment fees and NSF/returned payment fees vary by state
  • No check processing fees
  • No prepayment penalties
  • 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
Funding Time1+ days6 days on average or sooner
Apply Now
See Offers

on LendingTree's secure website

See Offers

on LendingTree's secure website

How to Qualify

Borrowers applying for a loan with LendingClub should aim for a credit score of 640 or higher. This is because LendingClub is a marketplace lending partner, and its loans are contingent on the availability and risk appetite of investors. Investors may be less willing to fund riskier loan applications, so approved borrowers with shaky credit can sometimes fail to receive funding or receive less than their requested amount.

We believe OneMain Financial is better suited for borrowers with poor credit scores. OneMain Financial issued almost half of its loans to people with credit scores below 620 in 2016, which indicates a greater likelihood of approval for borrowers with poor credit. The lender exercises greater discretion over its loan-approval process as a direct lender, and borrowers can improve their applications by including co-borrowers, co-signers or collateral.

OneMain FinancialLendingClub
Eligibility Criteria
  • U.S. resident with Social Security Number
  • At least 18 years old
  • 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%

How to Choose Between the Two

While OneMain Financial and LendingClub offer similar loan products, their personal loans differ in terms of application process, loan amounts, interest rates and credit requirements. We take a look at specifics below.

OneMain FinancialLendingClub
Better For
  • Borrowers with poor credit scores under 620.
  • Borrowers who desire more flexibility in loan terms.
  • Borrowers who need quick funding.
  • Borrowers with good credit scores over 640.
  • Borrowing more than $25,000.
  • Those who want an end-to-end online experience.

If you have a poor credit score, consider OneMain Financial. In 2016, almost half of OneMain Financial's personal loans were issued to borrowers with credit scores under 620. OneMain Financial is willing to work with low-credit borrowers and caps its interest rates at 35.99%. Borrowers on the verge of qualifying or who wish to improve the strength of their applications can secure their loans with collateral or a co-signer. In fact, over 40% of the personal loans issued in 2016 were secured by some form of collateral. We recommend OneMain Financial for borrowers with poor credit scores, but prospective applicants can shop around with other lenders that specialize in low-credit lending.

If you have good credit or excellent credit, consider LendingClub. The interest rates on OneMain Financial's personal loans have a lower bound of 17.59%, which is much higher than what most creditworthy borrowers can qualify for. LendingClub offers interest rates as low as 5.99% for qualifying borrowers. If you have good to excellent credit, we recommend getting a free quote from LendingClub or even other low-rate lenders such as SoFi and Earnest.

If you need funding quickly, consider OneMain Financial. One of the shortcomings of LendingClub's marketplace is that it typically requires borrowers to wait seven days or more for funding. By comparison, OneMain Financial is able to issue loans directly and in some cases, can disburse funds on the day of your application.

If you want to borrow more than $25,000, consider LendingClub. OneMain Financial caps its permitted loan amount at $25,000. By contrast, LendingClub allows applicants to apply for loan amounts up to $40,000. Borrowers should be aware that the amount they can qualify for is contingent on their debt-to-income ratio, which is a measure of an individual's outstanding debts relative to their income.

If you need more flexibility in loan terms, consider OneMain Financial. LendingClub only offers two loan terms for borrowers: Its best rate option is for three years and its lowest monthly payment option is five years. Alternatively, OneMain Financial offers loan terms of two, three, four and five years and allows borrowers to strengthen their applications by including a co-borrower or posting collateral.

If you want an end-to-end online application, consider LendingClub. OneMain Financial requires applicants to visit a branch to complete their loan application. This may be an inconvenience for borrowers who live far away from a OneMain Financial branch. LendingClub is an online marketplace lender that requires no in-person visit to apply. Additionally, LendingClub allows you to obtain an online rate quote without requiring a hard credit check.

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