LendingClub review: Personal loans starting at $1,000, with potentially lower rates if you add a co-borrower

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  • LendingClub has loans for everything from vacations to medical expenses. 
  • You can get a LendingClub loan for between $1,000 and $40,000 depending on your needs.
  • You may qualify for a LendingClub loan with a lower credit score, but you might pay a higher APR.
  • See Insider’s picks for the best personal loans »

Should you use LendingClub?

You may like LendingClub if you …  You may not like LendingClub if you … 
  • Have a poor or fair credit score
  • Want to avoid prepayment penalties
  • Need a smaller loan amount (as little as $1,000)
  • Would like to add a co-borrower to your loan application 
  • Don’t have a bank account
  • Want your money faster than two to four business days
  • Have a lower credit score but could get a better APR with a credit card
  • Don’t want to pay an origination fee

The bottom line: 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. 

How LendingClub works

LendingClubprovides unsecured personal loans through either WebBank (Member FDIC) or LendingClub Bank, N.A. (Member FDIC), depending on where the loan application is submitted from. An unsecured personal loan doesn’t require any collateral, such as a house or car. These personal loans can be used for a variety of purposes.

LendingClub loan amounts range from $1,000 to $40,000. The minimum amount you’re required to borrow varies by state. LendingClub accepts loan applications from residents of all 50 states. Loan terms are either 36 months or 60 months. Some amounts and term lengths might be unavailable in your state. 

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You won’t pay a prepayment fee if you pay off your loan early. 

Depending on your credit score and other financial factors, your APR will range from 8.05% to 35.89%, which is higher than some other major competitors’ APR ranges. For example, Best Egg’s APR range is 5.99% to 29.99%, and Marcus by Goldman Sachs’ is 6.99% to 19.99%. 

If LendingClub grants you a loan with a high interest rate, you might consider credit cards for people with bad credit and compare rates between a card and a loan — you may qualify for a lower APR and better terms with a credit card. Weighing the pros and cons of your decision will help you get the best deal possible. 

Most loans from LendingClub are approved within one day, and you will likely receive your funds within two to four business days. 

You can reach LendingClub via a customer support email form, which you can find here. Or you can call 888-596-3157 Monday through Friday, 5:00 a.m. to 5:00 p.m. PT, or on Saturday from 8:00 a.m. to 5:00 p.m. PT.

LendingClub has a Help Center with detailed answers to frequently asked questions, sorted by topic.

You can use personal loans from LendingClub for a variety of purposes, including:

  • Credit card refinancing
  • Debt consolidation
  • Car refinancing
  • Home improvements
  • Homebuying 
  • Special purchases
  • Green loan funding
  • Business financing
  • Moving expenses
  • Vacation
  • Medical expenses

You’ll need to meet the following requirements to apply:

  • You must be at least 18 years old
  • You must have a verifiable bank account
  • You must be a US citizen or permanent resident, or live in the US on a valid, long term visa 

What credit score do you need to qualify for a LendingClub loan?

LendingClubhas no official minimum credit score requirement, unlike some comparable personal loan companies. Still, the higher your credit score the more likely you are to get a low rate. 

  • Very poor: 300 to 579
  • Fair: 580 to 669
  • Good: 670 to 739 
  • Very good: 740 to 799 
  • Exceptional: 800 to 850

If you check your loan rates with LendingClub, your credit score will not be impacted because the company only generates a soft credit inquiry.

LendingClub will perform a hard credit inquiry once you receive a loan from the company, which will likely affect your credit score. A hard inquiry offers a lender a complete view of your credit history but might adversely impact your score.

LendingClub might be a good option for you if your credit isn’t in the best shape, because there is no minimum credit requirement. However, it’s important to note that the lower your credit score, the higher your APR could be — and LendingClub rates go up to 35.89%. 

Here are some tips you may consider to improve your credit score before applying for a loan: 

  • Request and review a copy of your credit report. Search for any errors on your report that could be lowering your score. If so, reach out to the credit bureau to talk about rectifying the mistake.
  • Maintain low credit card balances. Having a credit utilization rate — the percentage of your total credit you’re using — of 30% or less will prove to lenders that you can manage your credit well.
  • Create a system for paying bills on time. Your payment history makes up a substantial percentage of your credit score, and lenders would like to see consistent payments in the past. Set up calendar reminders or automatic payments so you don’t find yourself behind on your obligations.

Is LendingClub trustworthy?

LendingClub is a Better Business Bureau-accredited company, but LendingClub is currently not rated by the BBB in trustworthiness due to a pending government action. The BBB evaluates trustworthiness by judging business’ replies to consumer complaints, honesty in advertising, and clarity about business practices. 

LendingClub does have a recent alleged scandal. In 2018, the Federal Trade Commission filed a complaint against the company for deceptive lending practices, including charging hidden fees, falsely leading customers to believe they’d be approved for a loan, and continuing to charge consumers who canceled their automatic payments or had paid off their loans entirely. LendingClub is also charged with withdrawing double payments from accounts and failing to provide consumers with privacy notices. The case is currently pending. 

Due to LendingClub’s recent history, you might prefer to use a different personal loan company.

Additionally, LendingClub informed the BBB that the company’s name is being used in an online loan scam. Some consumers are applying for loans on sites other than LendingClub and are being contacted by representatives who claim to be from the company. Those representatives ask for a fee before claiming to deposit loan funds, and oftentimes those funds are never received. To avoid any potential issues, make sure to double-check that you are on the correct website and understand that LendingClub does not charge an upfront application fee.

The pros and cons of LendingClub personal loans 

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.

Cons

  • Multiple types of fees. You’ll have to pay an origination fee between 1% to 6% of your total loan amount, and that fee 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 competitors like Best Egg, Marcus, and Lightstream, LendingClub’s maximum APR of 35.89% is high. Best Egg’s max is 29.99% APR, and Marcus’ and Lightstream’s are 19.99% APR.
  • Slower access to funds. You’ll get access to your funds within two to four business days, and while that is relatively fast, you can get funds more quickly deposited from other personal loan companies. 

How to get a LendingClub personal loan

The application is available online and can be completed in a couple of minutes. You can also add a co-borrower to your application to potentially qualify for a better rate. You’ll need basic information for the initial application, including:

  • Name
  • Contact information including your address, phone number, and email
  • Date of birth
  • Social Security number 
  • Individual income
  • Reason for applying for a personal loan and how much you want to take out

You’ll likely be able to see your interest rate range and offers within a few minutes. LendingClub may also ask you to submit verification of specific income and employment documents and has a to-do list of verifications you need to complete located in your online account dashboard. You can check the status of your application at any point by logging into your account. 

After the verification process is complete, your funds will be sent to your bank account typically within two to four business days. 

How does LendingClub compare to other personal loan lenders? 

Although rates depend on each borrower’s unique situation, LendingClub’s interest rates are higher than those offered by other comparable lenders. Here’s how LendingClub stacks up to the competition.

LendingClub LogoLendingClub
Marcus High Yield Savings
Best Egg

Min. credit score

Unspecified

Min. credit score

Unspecified

Min. credit score

640

APR

8.05% to 35.89%

APR

6.99% to 19.99%

APR

5.99% to 29.99%

Origination fee?

Yes

Origination fee?

No

Origination fee?

Yes

LendingClub

Apply for a loan

Apply for a loan

LendingClub review vs. Marcus by Goldman Sachs review

You’ll pay an origination fee between 1% to 6% of your total loan amount with LendingClub, and this fee will be included in your overall loan APR. LendingClub may also charge you late fees or penalties if your payment is more than 15 days past due. 

Marcus won’t charge you any fees, including late fees. Instead, you’ll pay additional interest if you don’t pay on time, and your final payment will be more expensive.

Marcus offers an “on-time payment reward.” If you pay your loan on time and in full each month for one year, you are allowed to skip a month of payments, and interest will not accrue during that period. Marcus will then extend your loan by one month.

Both Marcus and LendingClub have no official minimum credit score requirements, but Marcus recommends a minimum credit score of 660 in an informational post on its website. Importantly, the lower your credit score, the higher an APR you will probably have to pay. 

LendingClub vs. Best Egg personal loans

Both LendingClub and Best Egg will charge you a late fee of at least $15. The companies have nearly identical origination fees — LendingClub’s fee range is 1% to 6% of your loan amount, while Best Egg’s range is 0.99% to 5.99%.

LendingClub has no official minimum credit score requirements, while Best Egg’s credit score floor is 640. That said, both companies may be a good fit for those with a credit standing in “fair” shape.

You’ll receive your funds slightly faster with Best Egg. LendingClub says most customers will get their funds between two to four business days, and Best Egg states that the majority of customers will receive their money within one to three business days.

Ryan Wangman is a reviews fellow at Personal Finance Insider reporting on mortgages, refinancing, bank accounts, and bank reviews. In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership.

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