LendingClub Personal Loan Review

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. 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 to help you understand what you are buying. Be sure to consult with 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.

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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What is LendingClub?

If you’ve ever looked for a loan on the internet, there’s a good chance you’ve heard of LendingClub. It is the largest online marketplace for loans. Since its launch in 2007, it has served over 2.5 million customers and helped them borrow over $42 billion. It offers personal loans, business loans, auto refinancing and financing for elective medical procedures.

LendingClub is based out of San Francisco. But it does not have any physical locations and handles everything online. What’s different about LendingClub is that it does not actually lend the money itself. Instead, it connects potential borrowers with others looking to make loans as an investment. This is known as peer-to-peer lending.

It’s type of lending has several advantages, but it’s not a great fit for everyone. Student Loan Hero chances are you my get a better offer through has created this LendingClub loan review so that you can see the pros and cons of using its system.

LendingClub personal loan highlights

  • Generates multiple lenders: If you qualify for a loan through LendingClub’s peer-to-peer platform, it will come up with multiple offers and the conditions: loan amount, term, APR, etc. You can pick your favorite one.
  • Lower APRs from competition: The APRs for LendingClub loans range from 6.95% to 35.89%, which are decent APRs for personal loans. LendingClub claims that borrowers reduce their APR by 30% through using its platform over other lenders.
  • Marketplace takes time to generate loans: It usually takes seven days to close a loan through the LendingClub platform, possibly longer if it needs to verify your documents. This is slower than companies that fund loans directly.
  • No application or prepayment fees: LendingClub does not charge an application fee, so you can check offers without paying anything. If you pay off your LendingClub loan early, there is also no fee.

 

 

LENDER
APR
Credit Req.
Terms
Origination Fee
APR 6.95%
To
35.89%
Credit Req.Not Specified
Terms36 or 60Months
Origination Fee1% - 6%

See Offerson Lendingtree's secure websiteAdvertiser Disclosure

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 6.95% to 35.89%*. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. 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 the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. 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. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: LendingClub, 71 Stevenson Street, Suite 1000, San Francisco, CA 94105.

†Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis. All reviews can be reviewed at reviews.lendingclub.com

**Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20,2018. The time it will take to fund your loan may vary.

LendingClub Personal Loan Details
Terms
Fees and Penalties
  • Term lengths: 36 or 60 months
  • APR range: 6.95% – 35.89%
  • Loan amounts: $1,000 – $40,000
  • Time to funding: Typically 7 days to complete the process and fund your loan
  • Credit check: Soft Pull to check whether you qualify and at what rates; hard pull to complete the application process and set up a loan
  • Origination fee: 1.00% - 6.00% of the amount borrowed
  • Prepayment fee: None
  • Application fee: None
  • Late payment fee: If your loan payment is more than 15 days late, LendingClub charges $15 or 5% of your missed payment, whichever is greater

LendingClub product details

LendingClub personal loans can be used for nearly every purpose. Some of its recommendations include for covering medical bills, home repairs, debt consolidation, paying for special events and making major purchases. For debt consolidation loans, LendingClub can pay off your existing debts. If there is any money left over, it’ll send the remainder to you.

There are only a few situations where it does not allow loans:

  • Making an investment with the loan proceeds.
  • Paying any type of educational expenses for after high school.
  • Any type of illegal spending.

If you are worried about being able to qualify for LendingClub loans, it allows joint applications where another person agrees to co-borrow the amount. When you first apply, you need to pick a joint loan and enter the personal information of the other borrower.

Military service members and reservists who are called up to active duty could qualify for a reduced loan rate under the Servicemembers Civil Relief Act. If you took out a LendingClub personal loan and are called up to active duty, LendingClub will cap your loan APR at a maximum of 6%.

LendingClub’s strength is that it lets you compare multiple loans quickly and with no charge. But it is not the only way to shop around. Student Loan Hero also offers a personal loan marketplace. By comparing its quotes against LendingClub, you can make sure you get the best offer.

Eligibility requirements

  • Minimum credit score: 0
  • Minimum credit history: Not listed. LendingClub states that to qualify for its best rates, applicants should have “a long history of credit with significant successful credit lines.”
  • Maximum debt-to-income ratio: Ideally lower than 40%. This means less than 40% of your pretax income is going toward paying off other debts when you apply.

Besides credit history and debt-to-income ratio, LendingClub has a few more requirements for potential borrowers. First, it does not accept applicants who live in Iowa, Puerto Rico or Guam. You can apply from anywhere else in the United States.

You must be at least 18 to apply and have a verifiable bank account. Finally, you must be a U.S. citizen, a U.S. permanent resident or be living in the U.S. on a long-term visa.

While you do not have to be employed to qualify, LendingClub reviews your debt-to-income ratio to make a decision. You must have some type of income to meet this requirement.

For potential investors, it’s worth noting that LendingClub Notes cannot be purchased in New York, as of September 2019.

Applying for a personal loan from LendingClub

Before officially applying for a personal loan from LendingClub, you can get a rate estimate online. You need to enter how much you’d like to borrow, the purpose of your loan, your income, your name and your date of birth. LendingClub will use this information to make a soft pull of your credit history, which will not impact your credit score.

With this information, LendingClub can determine whether you may qualify. If so, it will give you several offers from which to choose. If you accept one of the offers, LendingClub will then ask you to submit a loan application, with your Social Security number, work and contact information.

LendingClub will give you a to-do list to prepare for the loan, including asking for your email address and having you send documents to verify your identity, employment and/or income. It will also make a hard pull on your credit report, which can lower your score.

From there, LendingClub will search for investors to fill your loan offer. This can take time, which is why LendingClub typically takes seven days to fund a personal loan. After it finds the investors and completes the deal, LendingClub will transfer the funds to your bank account by direct deposit.

It will deduct the loan origination fee from your offer and you will receive whatever is left. For example, if you qualified for $10,000 and the origination fee is 2%, you will receive $9,800, and $200 will cover the fee.

Your first loan payment will be due within 30 days of you receiving the money. You can choose to make automatic payments from your bank account, send checks to LendingClub or make payments by phone after providing your bank account information.

Pros and Cons of a LendingClub Personal Loan
Pros
Cons
  • Excellent rates for borrowers with strong credit. If you have the credit and income to qualify for the top offers, LendingClub’s APRs are extremely competitive.
  • An option for credit scores as low as 0. Even if your credit score isn’t perfect, LendingClub accepts borrowers with scores as low as 0.
  • No fee or credit hit to check offers. You can see if you qualify for offers without hurting your credit score as LendingClub only does a hard pull when you actually apply. It also does not charge an application fee.
  • Generates multiple offers. When you request a quote, LendingClub creates multiple offers with different terms, APRs and loan amounts. You can pick the one you like best.
  • No prepayment penalties. If you pay off your loan early, LendingClub doesn’t charge a fee.
  • Funding loans takes time. It takes roughly 7 days from start to finish to fund a loan through LendingClub. It needs time to find investors to finance your loan.
  • Charges an origination fee. LendingClub deducts between 1.00% - 6.00% from your loan as an origination fee.
  • Only two loan terms available. You can only take out personal loans with either 36 or 60 months terms. While you can pay off your loan early, there is no way to get a personal loan longer than 60 months.
  • Can’t be used for any postsecondary education spending. LendingClub specifically prohibits using its loans for any type of educational spending after high school. This includes tuition, supplies and room and board.

Who’s the best fit for a LendingClub personal loan?

If you are not in a rush to get your loan, LendingClub can help you track down a low rate. After you request a quote from LendingClub, it will give you several choices and you can pick the best one. Since LendingClub is completely online, it has lower costs than companies with physical branches. It claims to pass these savings onto customers and that borrowers can receive rates up to 30% lower than if they went elsewhere.

As you can imagine, the better your financial situation, the better your results will be with LendingClub. Its rates and fees are very competitive for borrowers with excellent credit as investors are eager to fund these high-quality loans. You can still qualify with a weaker score, as low as 0, though your APR and origination fee could be higher.

Now, this whole process takes time. LendingClub says it typically takes about seven days to finish everything, including funding. If you need money urgently, waiting for LendingClub to track down investors might take too long. Some companies that lend money directly can fund a loan within one to two business days.

If you have some time to spare though, it never hurts to get a quote through the LendingClub website. There’s no fee and no impact on your credit score, so why not see if it comes up with a good offer?

Alternative personal loan options

OneMain Financial

LENDER
APR
Credit Req.
Terms
Origination Fee
APR 18.00%
To
35.99%
Credit Req.Not specified
Terms24-60Months
Origination FeeVaries

See Offers Secureon Lendingtree's secure websiteAdvertiser Disclosure

OneMain Financial Disclosures

All loans subject to OneMain’s normal credit policies. Loan approval and actual loan terms depend on your ability to meet OneMain’s standard credit criteria (including credit history, income and debts) and the availability of collateral. Collateral requirements would include a first lien on a motor vehicle that meets our value requirements, titled in your name with valid insurance. Collateral offered must meet our criteria. The lowest annual percentage rate (APR) shown represents APRs for top 10% of loans closed. Maximum APR is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes. Residents in the following states are subject to the following loan size restrictions: Alabama residents: $2,100 minimum loan amount. California residents: $3,000 minimum loan amount. Florida residents: Unless you are a present customer, $8,000 maximum loan amount for unsecured loans. Georgia residents: Unless you are a present customer, $3,100 minimum loan amount. Iowa residents: Unless you are a present customer, $8,500 maximum loan amount for unsecured loans. Maine residents: Unless you are a present customer, $7,000 maximum loan amount for unsecured loans. Mississippi residents: Unless you are a present customer, $7,500 maximum loan amount for unsecured loans. North Carolina residents: Unless you are a present customer, $7,500 maximum loan amount for unsecured loans. New York residents: Unless you are a present customer, $20,000 maximum loan amount for unsecured loans. Ohio residents: $2,000 minimum loan amount. Texas residents: Unless you are a present customer, $8,000 maximum loan amount for unsecured loans. Virginia residents: $2,600 minimum loan amount. West Virginia residents: Unless you are a present customer, $7,500 maximum loan amount for unsecured loans. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

If you can’t qualify through LendingClub because of your credit score, you could try applying with OneMain Financial. It accepts applicants with lower credit scores and approves loans quickly. It can make a decision in 10 minutes and fund your loan by the next business day. But chances are you’ll pay a higher APR by borrowing with OneMain Financial. You also need to visit one of its branches in person to close the loan.

Peerform

LENDER
APR
Credit Req.
Terms
Origination Fee
APR 5.99%
To
29.99%
Credit Req.600Minimum Credit Score
Terms3 to 5Years
Origination Fee1% - 5%

Visit Peerform Secureon Peerform's secure website

Peerform is another peer-to-peer lending platform, which connects you to investors looking to lend money. It can offer better rates than LendingClub for applicants with weaker credit scores. It can also fund loans as quickly as within a day. But if you have excellent credit, chances are you my get a better offer through LendingClub.

Avant

LENDER
APR
Credit Req.
Terms
Origination Fee
APR 9.95%
To
35.99%
*
Credit Req.600Minimum Credit Score
Terms24 to 60 **Months
Origination FeeUp to 4.75% **

See Offers Secureon Lendingtree's secure websiteAdvertiser Disclosure

Avant Disclosures

*If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.

**Example: A $5,900 loan with an administration fee of 4.75% and an amount financed of $5,619.75, repayable in 36 monthly installments, with an APR of 29.95% would have monthly payments of $250.30.

Based on the responses from 11,574 customers in a survey of 210,584 newly funded customers, conducted from 1 Feb 2018 – 1 Aug 2019 95.05% of customers stated that they were either extremely satisfied or satisfied with Avant. 4/5 Customers would recommend us. Avant branded credit products are issued by WebBank, member FDIC.

If you are in a hurry to get your loan funded, Avant could be a better option than LendingClub. Your loan proceeds can be sent out within a business day of your application. Avant’s personal loans go up to $35,000. It accepts borrowers with average credit, between 600 and 700. But its APRs can be higher than LendingClub, especially for borrowers with excellent credit scores. Avant branded credit products are issued by WebBank, member FDIC.

Interested in a personal loan?

LendingTree allows you to compare rates from multiple lenders by filling out one easy form. Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. 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 to help you understand what you are buying. Be sure to consult with 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.

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. 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 to help you understand what you are buying. Be sure to consult with 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.

RATES (APR)loan amount
5.99% – 17.88%1 $5,000 to $100,000
5.69% – 35.99% $1,000 to $50,000
6.98% – 35.89%* $1,000 to $50,000
99.00% – 199.00%2 $500 to $4,000
5.99% – 24.99%3 $5,000 to $35,000
5.99% – 29.99%4 $7,500 to $40,000
compare rates on Lendingtree now
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Fixed rates from 5.99% APR to 17.88% APR (with AutoPay). Variable rates from 6.49% APR to 14.70% APR (with AutoPay). SoFi rate ranges are current as of November 4, 2019 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 6.49% APR assumes current 1-month LIBOR rate of 1.81% plus 3.08% 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.
  2. 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.
  3. 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.
  4. If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions.
  5. 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 Opploans.

Opploans Disclosures

Direct Deposit required for payroll.

Opploans currently operates in these states: . *Approval may take longer if additional verification documents are requested. Not all loan requests are approved. Approval and loan terms vary based on credit determination and state law. Applications processed and approved before 7:30 p.m. ET Monday-Friday are typically funded the next business day.

  1. To qualify, a borrower must (i) be a U.S. citizen or permanent resident; (ii) reside in a state where OppLoans operates; (iii) have direct deposit; (iv) meet income requirements; (v) be 18 years of age (19 in Alabama); and, (vi) meet verification standards.
  2. NV Residents: The use of high-interest loans services should be used for short-term financial needs only and not as a long-term financial solution. Customers with credit difficulties should seek credit counseling before entering into any loan transaction.

  3. OppLoans performs no credit checks through the three major credit bureaus Experian, Equifax, or TransUnion. Applicants’ credit scores are provided by Clarity Services, Inc., a credit reporting agency.

  4. Based on customer service ratings on Google and Facebook. Testimonials reflect the individual’s opinion and may not be illustrative of all individual experiences with OppLoans. Check loan reviews.

  5.  

    Rates and terms vary by state.

3 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.
4 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 5.99% 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 5.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $12,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you also qualify for the lowest rate available.
* Important Disclosures for Upgrade Bank.

Upgrade Bank Disclosures

* Personal loans made through Upgrade feature APRs of 6.98%-35.89%. All personal loans have a 1.5% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by WebBank, Member FDIC.

** 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.

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You are being redirected to LendingTree.com where you’ll be able to fill out an online form. Based on your creditworthiness, you may be matched with up to five different personal loan lenders in our partner network.