We stack a direct online lender against a peer-to-peer lender.
|Widest lending limits||
An overview of Best Egg and LendingClub
Founded in 2014, Best Egg is one of the fastest-growing direct lenders in the country that offers online personal term loans. It’s the consumer lending branch of Delaware-based Marlette Funding LLC, a company that uses new technologies to streamline the borrowing process.
LendingClub is an online lender that’s partly responsible for introducing peer-to-peer (P2P) lending to the US. Rather than directly funding its loans, it connects borrowers with investors that collect a portion of your loan repayments as a fee. In addition to personal loans, LendingClub also offers business loans, auto refinancing and medical loans. Founded in 2007, it has seven more years of experience under its belt than Best Egg. Today, it’s one of the most recognized names in nontraditional lending.
Am I eligible for a loan from Best Egg and LendingClub?
Best Egg requirements
- Minimum FICO score of 640 or higher
- Low debt-to-income ratio
- Verifiable bank account and email address
- US citizen or permanent resident
- Not available in Iowa, Vermont, West Virginia, Puerto Rico or Guam
- Recommended credit score of 660 or higher
- Verifiable bank account
- Steady source of income
- US citizen or permanent resident
- Not available in Iowa or West Virginia
LendingClub wins with more flexible eligibility requirements than Best Egg and for being available in more states. But remember: You’ll still need good to excellent credit to qualify for the largest loan amounts and most competitive rates for both lenders.
Which offers lower interest rates?
Best Egg’s personal loans come with APRs ranging from 5.99%–29.99%. Loan terms range from 3 to 5 years.
LendingClub’s term loans come with APRs ranging from 6.95% to 35.89%. You can take 3 to 5 years to repay your loan.
Winner: Best Egg
It’s a close one. Both lenders offer nearly identical starting APRs and the same range of loan terms. However, Best Egg’s maximum APR is about five percentage points lower than LendingClub.
Which comes with fewer fees?
A personal loan with Best Egg could come with multiple fees:
- Origination fee — 0.99% to 5.99% of your loan amount
- Late fee — $15
- Returned check fee — $15
- Payment fee — $7 for anything other than an automatic bank transfer
Get a personal loan from LendingClub, and you might have to pay one or more of these fees:
- Origination fee — 1% to 6% of your loan amount
- Late fee — $15 or 5% of the loan amount, whichever is greater
- Returned payment fee — $15
- Check processing fee — $7
Both lenders charge nearly identical fees, but LendingClub wins by a hair because it charges a processing fee for checks rather than Best Egg’s blanket charge on any type of repayment that isn’t an automatic bank transfer.
Case study: Marissa funds her weddingImagine this scenario: Marissa and her partner want a simple wedding, but they quickly discover even simple is expensive where they live. They’ve saved about $30,000 but need $10,000 more to cover the cost of their dream venue.
After some online research, Marissa narrows down her choices to Best Egg and LendingClub. She applies to prequalify for both to see what she’s eligible for.
|Fees||2% origination fee||1.8% origination fee|
|How much she can borrow||$10,000||$15,000|
|Ease of applying||Quick online application with a one- to two-day turnaround||Simple online application with a four-day turnaround|
While the offers are pretty similar, Marissa ends up applying with Best Egg. She needs only $10,000, so LendingClub’s higher offer doesn’t make a difference, and she doesn’t mind a slightly higher origination fee if it means she can get her funds faster. Online customer reviews of Best Egg and LendingClub support her choice.
Which has a better reputation?
As of September 2018, Best Egg earns an A+ from the Better Business Bureau (BBB). More than 80% of its nearly 1,800 customer reviews are positive. It does similarly well on Trustpilot, scoring a 9.5 out of 10 based on more than 1,700 customer reviews.
LendingClub doesn’t do as well as Best Egg online. It earns an A- from the Better Business Bureau (BBB), which has accredited the lender since 2008. Despite being around longer than Best Egg, it garners only 128 reviews on its BBB page, 65% of which are negative. It earns a low 4.7 out of 10 on Trustpilot based on only 13 customer reviews.
On top of this, the Federal Trade Commission filed a complaint against LendingClub in April 2018 for falsely advertising “no hidden fees” and misleading customers into believing they’d been approved for a loan when they hadn’t. Two years earlier, its founder and former CEO Renaud Laplace resigned over conflicts of interest and selling loans to a bank with falsified documents. He later went on to found online lender Upgrade.
Winner: Best Egg
Not only is Best Egg’s reputation free of scandals, but it also earns overwhelmingly positive reviews from a much larger pool of customers. If you care about reputation, picking Best Egg over LendingClub is a no-brainer.
How much can I borrow with each lender?
Best Egg’s personal loans start at $2,000 and can go as high as $35,000.
LendingClub’s personal loans begin at $1,000 and are capped at $40,000.
LendingClub offers a wider range of personal loans than Best Egg. It’s one of the few online lenders extending loans as low as $1,000 — most start at $2,000. If Best Egg just falls short of your funding needs, LendingClub might come through with a loan.
Which lender can get me money faster?
Applying and approval for a Best Egg personal loan can take as little as a few minutes. After you sign your loan documents, you can get your funds as fast as the next business day.
LendingClub’s personal loans tend to take longer than Best Egg’s. You could wait three days to complete the application and four more to get your funds after you’re approved.
Winner: Best Egg
Not only does it take less time to complete Best Egg’s application, but getting your funds after you’re approved takes a fraction of the time you’ll find by going through LendingClub.
How do Best Egg and LendingClub compare to Prosper?
For the most part, Prosper fares worse than both LendingClub and Best Egg. It tends to have a less favorable reputation and slower funding speed than its competitors. However, it’s equal to LendingClub when it comes to the interest you’ll be charged and the amount you can borrow. Although you can borrow more than Best Egg with both options, you’ll face higher potential interest rates.
The only area Prosper truly holds its own is the fees you’ll be charged. With an origination fee of 1% to 5%, it’s almost a full percent lower than Best Egg and a full percent lower than LendingClub.
Take the time to compare each lender before you go. Weigh each category differently, and be careful with your decision: A loan stays with you for multiple years, so choosing between these three lenders can make a difference in your financial future.
Best Egg might win out over LendingClub on interest rates, reputation and turnaround. In the end, the differences between Best Egg and LendingClub aren’t huge.
If reputation and funding times are top priorities for you, Best Egg might be a better choice. But if you need to borrow more than $35,000, LendingClub can help where Best Egg can’t.
Compare more lenders in our guide to personal loans while learning more about funding you might be eligible for. And if you’re interested in peer-to-peer lending, then our guide to P2P loans can help.
See how other top lenders compare
|SoFi vs. Prosper|
|SoFi vs. Best Egg|
|SoFi vs. LendingClub|
|Prosper vs. LendingClub vs. Upstart|
|Upstart vs. Prosper|
|LendingClub vs. Prosper|
Frequently asked questions
Best Egg Disclaimer: *The Annual Percentage Rate (APR) is the cost of credit as a yearly rate and ranges from 5.99%–29.99%, which may include an origination fee from 0.99%–5.99%. Any origination fee on a 5-year loan will be at least 4.99% and is deducted from loan proceeds. The APR offered will depend on your credit score, income, debt payment obligations, loan amount, loan term, credit usage history and other factors, and therefore may be higher than the lowest advertised rate. Requests for the highest loan amount may resulting an APR higher than the lowest advertised rate. You need a minimum FICO® score of 640+ to qualify.
Best Egg loans are unsecured personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC. Equal Housing Lender. “Best Egg” is a trademark of Marlette Funding LLC. All uses of “Best Egg” on this site mean and shall refer to “the Best Egg personal loan” and/or “Best Egg on behalf of Cross River Bank, as originator of the Best Egg personal loan,” as applicable. Loan amounts generally range from $2,000–$35,000. Offers up to $50,000 may be available for qualified customers who receive offer codes in the mail. Borrowers may hold no more than two open Best Egg loans at any given time. In order to be eligible for a second Best Egg loan, your existing Best Egg loan must have been open for at least six months. Total existing Best Egg loan balances must not exceed $50,000. All loans in MA must exceed $6,000; in NM, OH must exceed $5,000; in GA must exceed $3,000.
Borrowers should refer to their loan agreement for specific terms and conditions. A loan example: a 5–year $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81, and a 3–year $5,000 loan with 5.99% APR has 36 scheduled monthly payments of $150.57. Your verifiable income must support your ability to repay your loan. Upon loan funding, the timing of available funds may vary depending upon your bank’s policies.
To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you.