LendingClub personal loans review

Our verdict

Our verdict

LendingClub is an award-winning lender that accepts credit scores as low as 600, but its rates are higher than some competitors — starting at 8.05% APR. Loan amounts start at $1,000, which is lower than some competitors. You can prequalify with a soft credit pull, and joint loans are also an option. Approval times are speedy, as fast as 24 hours and a quick two-day funding time. However, it's had a rocky history with regulators, such as a dispute with the FTC in 2018 regarding hidden fees, and you'll find many complaints with the BBB.

Best for: Fair-credit borrowers in need of a small loan.

Pros

• Speedy approval and funding times
• Low 600 minimum credit score
• Available in 49 states and DC

Cons

• More than 1,000 BBB complaints
• Origination fee of 3% to 6%
• Higher rates than some competitors

3.6

★★★★★

Finder rating

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Max. Loan Amount

$40,000

APR

8.05% to 36%

Min. credit score

600

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LendingClub personal loans

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What makes LendingClub shine

One of the largest lending marketplaces, LendingClub was one of the first peer-to-peer lending platforms ever. However, it’s no longer a P2P lending platform and is now only a financial marketplace bank.

LendingClub is a solid choice for borrowers that may struggle to qualify for a personal loan elsewhere due to a lower credit score or lacking credit history. It has a low minimum credit score requirement of 600, accepts coborrowers and offers loans up to $40,000.

Additionally, LendingClub offers to pay up to 12 of your creditors directly if you’re taking on a personal loan for debt consolidation. There’s also no application fee, and you can move your due date at least once, based on its loan FAQs.

It also boasts quick turnaround times. LendingClub reports as of October 2022 that on average, personal loans are funded within 42 hours after approval, and about 37% of personal loans are funded within 24 hours after approval.

Where LendingClub falls short

In terms of features, borrower perks or even discounts, there’s nothing spectacular to point out about LendingClub. There’s also no mention of an autopay discount — that’s pretty standard among competitors, even ones that cater to fair-credit borrowers.

Also, LendingClubs rates aren’t the lowest we’ve seen. Rates start at 8.05% and can reach up to 36%. This max is high, considering it’s the highest possible rate charged on a personal loan.

Other lenders like Lightstream offer rates from 7.99% to 25.49%, and Wells Fargo offers 7.49% to 23.24%. So if you have excellent credit, it may be wise to explore other options before settling with LendingClub.

Origination fee unclear

We contacted LendingClub for clarification on its origination fee, as the site had conflicting information — it’s either 2% to 6% or 3% to 6%. The representative could not offer a range of the fee or even give us a maximum percentage — they just stated that the fee depends on creditworthiness and loan amount. Not very helpful or transparent.

All that aside, origination fees aren’t unheard of with personal loans. But there are many lenders that don’t charge it at all, such as SoFi and Lightstream. If you have great credit, going to another lender with lower interest rates and fewer fees could mean savings.

LendingClub loan details

See the hard and fast details of LendingClub’s personal loans.

How to qualify for LendingClub

LendingClub requires the following:

• Be at least 18 years old
• Have a government-issued ID
• Be a US citizen, permanent resident or live in the US on a long-term visa
• Have a verifiable bank account
• Credit score of 600+

You may also need to provide proof of income, identity and address documents such as pay stubs. Additional documents may include business tax returns, utility bills and lease agreements.

How to apply

LendingClub offers prequalification with a soft credit check and has no application fee. To apply, you can head to LendingClub’s site to start the process:

1. Prequalify online.
2. Review your offers if you’re preapproved. Select one, then formally apply with a hard credit check.
3. Finalize application and accept loan terms.
4. Follow repayment plan.

Once you receive your finalized loan terms, you’ll typically get your loan funds directly into your account within one to two days, though it could be longer depending on how much information needs to be verified. Overall, the application and funding process can take a week from start to finish.

How LendingClub compares to other lenders

Compare other personal loan providers by APR, loan amounts and more.

LendingClub personal loans

★★★★★

Finder rating 3.6 / 5

Go to site

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APR

8.05% to 36%

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Loan term

3 to 5 years

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Loan amount

$1,000 to $40,000

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Min. credit score

600

Best Egg personal loans

★★★★★

Finder rating 3.8 / 5

Go to site

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APR

8.99% to 35.99%

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Loan term

3 to 5 years

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Loan amount

$2,000 to $50,000

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Min. credit score

640

Upstart personal loans

★★★★★

Finder rating 4.15 / 5

Go to site

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APR

5.20% to 35.99%

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Loan term

3 or 5 years

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Loan amount

$1,000 to $50,000

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Min. credit score

300

LendingClub reviews and complaints

Overall, customer reviews and ratings for LendingClub are very high on both the Better Business Bureau and Trustpilot. Most customers cite a great experience, fast service and simple application. It’s worth noting that loan providers tend to have more negative reviews, so LendingClub’s reviews are stellar.

However, two major controversies have surrounded the company in the past few years. The issues were resolved, but its reputation has been damaged.

In April 2018, the Federal Trade Commission (FTC) filed a complaint against LendingClub over its “no hidden fee” promise, claiming that it had charged hidden upfront fees on several of its loans. LendingClub’s response pointed out that it clearly states its loans come with origination fees in several places on its website and when borrowers apply for a loan. It agreed to pay $18 million to settle the charges, although it didn’t admit any wrongdoing.

And in May 2016, LendingClub’s founder and former CEO Renaud Laplanche stepped down after internal reports found that there had been about $22 million in loans sold to a single investor and failure to disclose possible conflicts of interest.

Although these issues had a major impact on LendingClub’s credibility, the company took appropriate measures to prevent fraud and account for false revenue, and worked to handle these issues quickly. And based on recent customer reviews, it looks like LendingClub’s reputation is on the uptick.

Is LendingClub legit?

Yes, LendingClub is a legitimate lender. Founded in 2005, LendingClub was one of the country’s first peer-to-peer (P2P) lending platforms. But in December 2020, the company retired its P2P lending services, aka “Notes.” It now operates as a fintech marketplace bank, offering a full range of consumer and commercial loan products.

LendingClub has safeguards to protect its customers personal and financial information. It’s FDIC-insured, registered with the SEC and has standard SSL encryption.

It’s also won several awards and, as recently as October 2022, placed in Newsweek’s “Top 100 Most Loved Workplaces” in the Best Banks category.