Editor's choice: LendingClub personal loans
- Quick turnaround time
- Coapplicants welcome
- High Trustpilot rating
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
It can be challenging to pay for large projects or unexpected expenses all in cash. Fortunately, if you have a steady job and a solid credit history you may qualify for a personal loan. Most personal loan providers let you borrow for a variety of reasons, including relocating, getting married, buying a used car or even consolidating existing debts. LendingClub and Prosper are two online lenders with the aim of simplifying how borrowers get the money they need.
|Go to site||Go to site|
LendingClub and Prosper operate as online peer-to-peer lenders, both established around the same time: Prosper began operations in 2005, and LendingClub entered the picture a year later, in 2006.
Personal loans are the only financial product available through Prosper. LendingClub, on the other hand, offers a range of lending solutions that include personal loans, auto refinancing, small business loans and patient financing for doctors.
Personal loans from LendingClub come with fixed rates that start at and soar to 35.89%. The APR includes the interest rate and origination fee.
The APR you’ll get through Prosper can vary from to 35.99%. This lender relies on seven risk rating tiers to arrive at your interest rate range. Those in the lowest risk tier — AA — could get personal loans with an interest rate of 5.99% to 15.00%.
The lowest APR offered by both lenders is the same. Although LendingClub’s maximum interest rate is slightly lower than Prosper’s, it’s not enough for them to take the win here.
You’ll pay an origination fee with your LendingClub loan that could vary from 1% to 6% of the loan amount. You’ll also pay a $7 processing fees every time you pay by check. If your payment is more than 15 days late, add $15 or 5% of the amount due, whichever is greater. LendingClub does not charge prepayment fees.
Your loan origination fee can vary from 2.41% to 5% of the borrowed amount, and the fee you’ll pay depends on your Prosper Rating. You’ll pay a slightly lower paper-check processing fee of $5 over LendingClub’s $7. Payments made more than 15 days late will incur a late fee of $15 or 5% of your unpaid amount, whichever is greater, and returned payments cost $15. Like LendingClub, Prosper charges no fees for early repayment.
Your maximum loan origination fee is lower through Prosper, and the lender charges a lower fee for check payments too.
Jack plans to drive across the States, and he needs $8,000 to buy a used car he’d found through a friend. He’s OK with the other expenses that come with such a journey, and he’d like to get a personal loan for the car to pay it off over time.
Looking only for reliable monthly payments, he compares fixed-rate loans with LendingClub and Prosper.
|LendingClub||–35.89%||$80–$480 origination fee on an $8,000 loan||Get your potential rate without a hard credit pull, and apply in minutes. Potentially get your funds within a few business days.|
|Prosper||-35.99%||$80–$400 origination fee on an $8,000 loan||Use the online preapproval system to see the rate you might get without affecting your credit score. Decisions typically take one week.|
There isn’t too much of a difference in origination fees or interest rates between the two lenders. But comparing the turnaround times from each provider, Jack decides to apply for a loan through LendingClub to possibly get the funds a bit faster before hitting the road.
LendingClub doesn’t have many reviews on Trustpilot: Of seven reviews, it garners an average 8.1 out of 10. Six users rate it as an excellent company.
With 49 reviews on Trustpilot, Prosper averages 7.3 out of 10. It’s rated excellent by 65% of its users.
Although LendingClub has fewer online reviews, a better average gives LendingClub the upper hand when it comes to reputation.
LendingClub offers loans from to . You may qualify for different minimum and maximum amounts depending on your application and need.
You can borrow from to with a personal loan through Prosper, depending on your qualifications.
If you need less than $2,000 or more than $35,000, you’ll want to check out LendingClub. But the ranges are just close enough for us to count this one as a tie.
You’ll complete LendingClub’s application in a few minutes, after which it goes through an underwriting process. If you provide the required information and upload your documents correctly, you could receive the funds you need in just a few business days.
Prosper lets you view your preapproved rates in a matter of minutes. From there, you complete a detailed application and upload the required documents. Prosper typically provides final loan contracts within seven days and disburses funds shortly after you accept the contract.
LendingClub is the winner here, mainly because it promises disbursement of funds in as little as a few business days.
Turning to LendingClub could work well for those who need to access funds more quickly or are looking for less than $2,000. Note that both lenders suggest that applicants have good to excellent credit before applying.
You can look into even more reputable online lenders to find the best option before taking out a personal loan.
|SoFi vs. Prosper|
|SoFi vs. Best Egg|
|SoFi vs. LendingClub|
|Prosper vs. LendingClub vs. Upstart|
|Upstart vs. Prosper|
|LendingClub vs. LendingTree|
|Best Egg vs. LendingClub||See comparison|
|Prosper vs. Best Egg||See comparison|
11 experts weigh in on when taking out a personal loan to pay bills makes sense — and when you should explore other options.
We break down costs, accreditation and campus life to help you decide which is right for you.
Our top picks for all types of borrowers.
How we determine the score for our short-term loan reviews.
6 options when you’re struggling to pay your legal fees out of pocket.
Explore other options for borrowers with less-than-perfect credit.
Don’t want to borrow against your investments? You’ve got options elsewhere.
How this hands-off connection service can help you compare personalized offers.
Compare minimum credit requirements with 9+ lenders and who gets the best rates.
How a your loan term can affect the costs and rates on a loan.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.