Find out if you’re eligible for a personal loan with LendingClub, where you can apply for up to $40,000.
LendingClub is San Francisco-based peer-to-peer lender that offers online personal loans. Fill out a quick online form to check your potential rate without affecting your credit score. If you qualify, you can apply for up to $40,000. A personal loan from LendingClub can help you with a range of issues, from consolidating credit card debt to making a large purchase.
|Product Name||LendingClub Personal Loan|
|Min Loan Amount||$1,000|
|Max. Loan Amount||$40,000|
|Interest Rate Type||Fixed|
|Minimum Loan Term||3 years|
|Maximum Loan Term||5 years|
|Requirements||You must be over 18 years of age, a permanent resident of the US or an American citizen, have a verifiable bank account and have a steady source of income.|
- No prepayment penalties
- Flexible loan terms
- Fast and easy application
- Unavailable to Iowa residents
- Higher rates for poor credit borrowers
- Check processing fee of $7 per payment
- A United States citizen or permanent resident, or living in the U.S. on a valid, long-term visa.
- At least 18 years old.
- The holder of a verifiable bank account.
First, do I qualify?
You should have good to excellent credit when applying for a loan through LendingClub. Other requirements include: being a US citizen, permanent resident or on a valid long-term US visa, being 18 years old or older, having a working bank account and not residing in Iowa or West Virginia.
How does a personal loan through LendingClub work?
LendingClub is an online peer-to-peer lender that connects borrowers to investors, rather than funding the loan itself. Investors can range from individuals to corporations and other types of businesses. It offers a risk-free way of checking your rate and eligibility before submitting a full application that won’t affect your credit score. If approved, all you need to do is wait for investors to provide you with funds. Once your loan is funded, LendingClub transfers the money to your bank account. The process usually takes around seven days.
You can use the money for almost anything — the only restrictions are that you can’t use it for anything related to education after high school or for anything illegal. Repayments are automatically deducted from your bank account monthly, but you can also pay by check. Keep in mind there is a $7 fee for the check option. You can partially or fully prepay your loan at any time without penalty.
What are the benefits of a LendingClub personal loan?
LendingClub’s personal loan offer competitive features that include:
- Rate quotes before applying. Before submitting your application, you can request an interest rate quote that won’t affect your credit score.
- Fixed payments. LendingClub personal loans come with a fixed rate, which means you pay a consistent monthly payment for the term of the loan.
- Flexible uses for funds. Use the loan for a range of needs, from consolidating your credit cards to going on vacation or even renovating your home.
- Cosigners welcome. Not sure you can qualify for a competitive rate on your own? LendingClub is one of the few personal loan providers that allows you to apply with a creditworthy cosigner to strengthen your application.
- No prepayment penalties. You can partly or fully pay off your loan before the scheduled due date without paying a prepayment penalty.
- Rebuild your credit. LendingClub reports your payments to the major credit reporting bureaus, so you can build up your credit history by making your payments on time.
What to watch out for
- Relatively long turnaround. It can take some time to get connected with investors: Up to 7 days. In comparison, some direct online lenders providing funds in as little as one business day.
- Not available in all states. You can’t qualify for a LendingClub personal loan if you live in Iowa or West Virginia.
- Not a student loan alternative. Most personal loan providers don’t allow you to use your funds for college or grad school. LendingClub is no exception. You might want to check out private student loans instead.
- Origination fee. LendingClub personal loans come with an origination fee from 1–6% of the loan amount. This amount is deducted from your loan amount before it’s disbursed into your bank account.
How much will I pay for a personal loan through LendingClub?
Before signing any contract, confirm the APR — the interest rate plus any fees you pay — you are offered to get an idea of the true cost of your loan. When calculating your interest rate, LendingClub considers your “Loan Grade,” which is based on the information you supply in your application.
LendingClub Loan Grades range from A to G. Depending on this grade, you will pay a loan origination fee ranging from 1–6% of the loan amount and an APR ranging from 5.98%–35.89%.
Other fees to watch out for include a $15 returned payment fee and a late payment fee of 5% or $15. If you’re paying my check, you will also pay a $7 check processing fee for this payment method.
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What do I need to apply?
To apply for a personal loan with LendingClub, you’ll need to meet general eligibility requirements.
- You must be a US citizen, a permanent resident or in the US on a valid long-term visa.
- You must be at least 18 years old.
- You must have a valid bank account.
Personal loans are not available to residents of Iowa or West Virginia.
You’ll need to gather the following information before applying:
- Your name, contact information and date of birth.
- How much you want to borrow and the purpose of the loan.
- Your credit score range.
- Your annual individual income.
What are the steps to apply?
Before using LendingClub’s service, first make sure that you meet its basic requirements. To begin the process click the green Go to site button on this page.
- Enter your loan amount, your loan’s purpose and your estimated credit score before clicking Check Your Rate.
- Select whether you are choosing to apply alone of with someone else, then click Next.
- Fill out the required fields with your home address and annual income, clicking Next after each.
- If you’re preapproved, LendingClub will give you multiple loan offers. Select the offer that best fits your needs to apply for that loan.
- Follow the directions to fill out the rest of your application and submit any required documents. At this point, LendingClub will do a hard credit inquiry that will cause your credit score to drop a few points.
- Review, sign and submit your application.
- Wait for investors to fund your loan.
Once your loan is funded, you’ll typically receive the money directly into your account within four days. Overall, the whole process can take a week from start to finish.
I got a preapproval letter from LendingClub. What does it mean?
It’s not uncommon for lenders to send out promotional letters to customers they think might qualify. These include potential rates and terms, based on a soft credit pull that has no effect on your credit score. You might have gotten a letter from LendingClub that looks like this:
While it’s likely legit, there are also preapproval scams out there. Before you hand over your personal information, reach out to LendingClub to make sure it’s real. Didn’t get a letter? Follow steps below to get an estimate of your rates.
How to get preapproved step-by-step
I got a personal loan from LendingClub. Now what?
Now it’s time to keep up on repayments. Luckily, LendingClub offers automatic prepayments on a fixed monthly schedule. This service eliminates the need worry about making the due date each month, just be sure you have money in your account. If your payment is not successfully completed, there is a $15 fee.
While you can pay by check, there is an additional fee of $7 per payment. If you would like to pay via your bank account, but not automatically, you can do so without incurring extra charges.
You have a 15-day grace period if you need to get your payment in a little late, but LendingClub encourages you to call or email as soon as you know you’re going to have trouble making a payment. If you do not complete a payment within the 15-day grace period, a fee of $15 or 5.00% of the installment amount will be assessed (whichever is greater).
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