How to Ditch Your Bank and Get a P2P Loan With Lending Club

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Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.

Editorial Note: This content is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the financial institution.

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Lending Club has been shaking up the banking world since 2006. A pioneer in peer-to-peer lending, Lending Club facilitates personal loans by connecting investors directly with borrowers.

Because it removes the middleman of a traditional bank, Lending Club offers competitive interest rates and transparent service. Borrowers can apply for a loan and receive funds in a matter of days.

According to multiple Lending Club reviews, the platform is a fast and easy way to take out a personal loan. To date, Lending Club has originated over $26.6 billion in personal and business loans.

If you’re looking to borrow, read on to find out if Lending Club is right for you.

Check Out Lending Club

Lending Club review: Competitive interest rates for creditworthy borrowers

You might take out a personal loan for a variety of reasons: to consolidate debt, pay for medical expenses, or make a big purchase. Lending Club is a peer-to-peer (P2P) lending platform, meaning it connects people who want to borrow with people or institutions who want to invest. By borrowing from Lending Club, you skip the bank completely. Instead, you rely on peer investors to fund your loan.

Borrowers can take out personal loans for up to $40,000, while investors make money from accrued interest.

This doesn’t mean you have to track down individual investors to fund your loan, though. All you have to do is apply online — just as you would with any other lender. Then, Lending Club reviews your credit report and income before granting approval and disbursing funds into your account.

Lending Club pros and cons

There are a few pros and cons when it comes to P2P lending. Because banks aren’t involved, Lending Club offers competitive interest rates and low origination fees. All its loans have a fixed interest rate, so your monthly payments will always stay the same. Plus, it’s especially transparent in its fee structures.

Some borrowers also enjoy the social element of P2P lending. You can share your reasons for needing the loan and watch as individual investors choose to fund it.

That being said, Lending Club’s eligibility requirements are somewhat strict. Most Lending Club borrowers have relatively high income and strong credit scores.

Part of the reason for these high standards is that all of Lending Club’s personal loans are unsecured. You will never need to put up collateral when you apply, so Lending Club needs to ensure you have the means to pay back the loan.

Lending Club products

Beyond personal loans, Lending Club also offers auto loan refinancing and business loans. Whatever your need, Lending Club provides an easy and secure way to apply for funding online.

Personal loans

Lending Club provides personal loans between $1,000 and $40,000, with APRs ranging from 6.16% to 35.89%. You can choose your repayment term, but they must span at least 36 months. That being said, there’s no penalty fee for paying off your loan early.

You can get a rate quote online in just a few minutes with no impact on your credit score. Lending Club does a soft credit pull to determine your creditworthiness. After assessing your risk as a candidate, Lending Club assigns interest rates.

If you’re satisfied with the terms, you’ll choose an offer and finalize your application. You can also sign into your account and see individuals invest in your loan. According to borrowers’ Lending Club reviews, you’ll receive the loan in just a few days.

Auto loan refinancing

If you owe a lot of money on your car, refinancing your auto loan can lower your monthly payment and help you save. Lending Club offers auto loan refinancing for people with an outstanding balance between $5,000 and $50,000.

Business loans and lines of credit

If you need capital for your new business, you can take out a business loan of $5,000 to $300,000. Loan terms span one to five years and all come with a fixed interest rate and monthly payment.

If you need to increase your cash flow, you can also open a business line of credit. With a credit line, you can access funds at any time and pay them back within 25 months.

Apply for a Lending Club Loan

Using Lending Club online

Applying for a loan with Lending Club is easy. You just need to enter a few pieces of information about yourself and Lending Club will present you with a variety of offers. This initial application won’t hurt your credit score.

You can get started with a personal loan application on Lending Club’s homepage. Simply enter how much you’d like to borrow and the reason you need a loan. Common reasons include:

  • Credit card refinancing
  • Debt consolidation
  • Home improvement
  • Major purchase
  • Home buying
  • Moving and relocation

After supplying your reason, choose a range for your credit score. If you’re not sure, you can check your credit score for free on a site such as CreditKarma.

After clicking on “Check Your Rate,” you’ll be directed to the page below, where you can file an individual or joint application. You’ll provide your name, address, date of birth, email, and yearly income. Plus, you’ll create a password so you can log back into your Lending Club account.

lending club complaints

Image via Lending Club

At this point, Lending Club does a soft credit check to assess your qualifications. If you meet its requirements for credit score and income, you’ll quickly see a variety of offers.

For instance, let’s say you’re looking for a $5,000 personal loan to make a major purchase. If you qualify, you could see a page that looks like this:

lending club contact

Image via Lending Club

Depending on your credit score and income, you could get higher or lower Lending Club rates. If you choose to accept the loan, you’ll provide additional information on the next page. Required fields include your employment status and how much you pay for rent or a mortgage each month.

lending club rates

Image via Lending Club

If everything checks out, you’ll choose your loan terms and provide your bank account information. Within a few days, Lending Club will deposit the loan directly into your account. You can also set up automatic payments to start paying back the loan.

If you’re looking for auto refinancing or a business loan, you’ll fill out a similarly quick online application. These loan types have different eligibility requirements, but the steps to apply are otherwise comparable to the ones above.

Lending Club fees and rates

Before approving you for a loan, Lending Club assesses your application. After looking at factors such as your credit history and loan amount, the company grades your loan between A and G.

Your Lending Club rates depend on this grade. An “A” loan will have the lowest interest rate and origination fee, while a “G” loan will have the highest.

Here are the interest rate and origination fees for personal loans from A to G. The APR includes interest rates and fees on an annual basis so you can more easily compare loans.

lending club rates

Image via Lending Club

Interest rates and fees for Lending Club’s other products also vary. These are the APR ranges for its other types of loans:

  • Refinanced auto loans: 2.24% to 19.99% APR
  • Business loans: 7.77% to 35.11% total annualized rate and origination fees from 0.99% to 6.99%

Lending Club does not charge a fee for prepaying your loans, but it has penalty fees for late payments. Here are the main fees for personal loans you could encounter:

  • Unsuccessful payment fee: $15
  • Late payment fee: 5 percent of the unpaid installment amount or $15, whichever is greater
  • Check processing fee: $7 (no charge for paying via direct debit from your bank account)

Eligibility requirements

Although Lending Club doesn’t set a minimum credit score or income, it does have a few requirements you must meet to take out a personal loan. You must be:

  • A U.S. citizen, permanent resident, or long-term visa holder living in the U.S.
  • 18 years of age or older
  • The holder of a bank account

Lending Club operates in most states except Iowa and West Virginia. When evaluating your application, it will look at your application, credit score, and information from credit bureaus. Plus, it will evaluate any other indicators of your ability to make on-time payments.

Applicants with the strongest qualifications make it into Lending Club’s Flagship Standard Loan Program. The average borrower in this program has a FICO score of 699 and over 16 years of credit history. They also make $77,435 a year, placing them in the top 10 percent of the U.S. population.

Remember that this is an average of all borrowers in the standard loan program, not a minimum requirement. But the stronger your creditworthiness, the lower the rates you’ll get. If you’re not a strong candidate now, you could build up your credit score and apply again in the future.

Requirements for other loan types vary. For a refinanced auto loan, your car can’t be older than 10 years or have more than 120,000 miles. If you want a business loan, you must have made at least $75,000 in sales and been in business for a minimum of two years.

See If You’re Eligible

More about Lending Club

Founded in 2006, Lending Club has grown into the world’s largest online credit marketplace. It has funded over $26.6 billion in loans to date, including almost $2 billion in the first quarter of 2017.

Recognized for its innovation in the consumer lending market, Lending Club has been named a CNBC Disruptor 50 and a World Economic Forum Technology Pioneer. Forbes selected Lending Club as one of America’s Most Promising Companies.

According to Larry Summers, the former Secretary of the Treasury and one of Lending Club’s Board members: “Lending Club’s platform has the potential to profoundly transform traditional banking over the next decade.”

Lending Club contact information

For more information beyond this Lending Club review, call its toll-free number at (844) 858-5336. Lending Club’s support hours are Monday through Friday, 6 a.m. to 5 p.m. PST and Saturday from 8 a.m. to 5 p.m. PST.

You can also email Lending Club complaints or compliments through its website or check out its help page.

To stay up to date on company developments, follow Lending Club’s social media channels:

Interested in a personal loan?

Here are the top personal loan lenders of 2018!
LenderAPR RangeLoan Amount 
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Personal Loans: Fixed rates from 6.990% APR to 14.865% APR (with AutoPay). Variable rates from 6.255% APR to 12.555% APR (with AutoPay). SoFi rate ranges are current as of September 1, 2018 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.255% APR assumes current index rate derived from the 1-month LIBOR of 2.08% plus 4.425% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

    To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.See Consumer Licenses.
  2. Minimum Credit Score: Not all applicants who meet SoFi’s minimum credit score requirements are approved for a personal loan. In addition to meeting SoFi’s minimum eligibility criteria, applicants must also meet other credit and underwriting requirements to qualify.
  3. SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, VA, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, TX, VA, WY, or for residents of IL for loans greater than $40,000.
  4. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

2 Includes AutoPay discount. Important Disclosures for Payoff.

Payoff Disclosures

  1. All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. Currently loans are not offered in: MA, MS, NE, NV, OH, and WV.

3 Important Disclosures for FreedomPlus.

FreedomPlus Disclosures

  1. All loans available through FreedomPlus.com are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details. The following limitations, in addition to others, shall apply: FreedomPlus does not arrange loans in: (i) Arizona under $10,500; (ii) Massachusetts under $6,500, (iii) Ohio under $5,500, and (iv) Georgia under $3,500. Repayment periods range from 24 to 60 months. The range of APRs on loans made available through FreedomPlus is 4.99% to a maximum of 29.99%. APR. The APR calculation includes all applicable fees, including the loan origination fee. For Example, a four year $20,000 loan with an interest rate of 15.49% and corresponding APR of 18.34% would have an estimated monthly payment of $561.60 and a total cost payable of $7,948.13. To qualify for a 4.99% APR loan, a borrower will need excellent credit on a loan of $15,000 with a term of 24 months, and qualify for at least two of the following discounts: (1) add a co-borrower who has sufficient income; (2) use at least fifty percent of the loan proceeds to directly pay off existing debt; or (3) show proof of having at least forty-thousand dollars in retirement savings – contact FreedomPlus for further details.

4 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Personal Loan Rate DisclosureFixed interest rates from 6.49% – 19.49% (6.49% – 19.49% APR) based on applicable terms. Lowest rates range from 5.99%-18.99% (5.99%-18.99% APR), are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment Discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  2. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with us at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  3. Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Personal Loan during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12-month period, the borrower will no longer be eligible for this discount.

5 Important Disclosures for LendingPoint.

LendingPoint Disclosures

  • Loan approval is not guaranteed. Actual loan offers and loan amounts, terms and annual percentage rates (“APR”) may vary based upon LendingPoint’s proprietary scoring and underwriting system’s review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees from 0% to 6% may apply depending upon your state of residence. Upon LendingPoint’s final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. LendingPoint makes loan offers from $2,000 to $25,000, at rates ranging from a low of 15.49% APR to a high of 34.49% APR, with terms from 24 to 48 months. The loan offer(s) shown reflect a 28 day payment cycle which is being offered as a courtesy as many of our customers are paid on a biweekly schedule and thus this may better align the loan payment dates with your actual income receipt schedule.

6 Important Disclosures for LendingClub.

LendingClub Disclosures

All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.16% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.


7 Important Disclosures for Earnest.

Earnest Disclosures

  1. Earnest does not lend in Alabama, Delaware, Kentucky, Nevada, or Rhode Island.

8 Important Disclosures for Avant.

Avant Disclosures

* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.

** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33


* Important Disclosures for Upgrade Bank.

Upgrade Bank Disclosures

* Your loan terms are not guaranteed and are subject to our verification and review process. You may be asked to provide additional documents to enable us to verify your income and your identity. This rate includes an Autopay APR reduction of 0.5%. By enrolling in Autopay your payments will be automatically deducted from you bank account. Selecting Autopay is optional. Annual Percentage Rate is inclusive of a loan origination fee, which is deducted from the loan proceeds. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. All loans made by WebBank, member FDIC. Please refer to Upgrade’s Terms of Use and Borrower Agreement for all terms, conditions and requirements.

** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.

7.73% – 29.99%$1,000 - $50,000Visit Upstart
6.26% – 14.87%1$5,000 - $100,000Visit SoFi
6.99% – 35.97%*$1,000 - $50,000Visit Upgrade
8.00% – 25.00%2$5,000 - $35,000Visit Payoff
4.99% – 29.99%3$10,000 - $35,000Visit FreedomPlus
5.99% – 18.99%4$5,000 - $50,000Visit Citizens
15.49% – 34.49%5$2,000 - $25,000Visit LendingPoint
6.16% – 35.89%6$1,000 - $40,000Visit LendingClub
6.99% – 18.24%7$5,000 - $75,000Visit Earnest
9.95% – 35.99%8$2,000 - $35,000Visit Avant
Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.

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