LendingClub Personal Loan Review

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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 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.
  • Minimum credit requirement: 600
  • Terms: 36 or 60 months
  • Origination fee: 1.00% - 6.00%
LendingClub Personal Loan Details
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: 600
  • 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.

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
  • 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 600. Even if your credit score isn’t perfect, LendingClub accepts borrowers with scores as low as 600.
  • 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 600, 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

  • APR: 16.05% – 35.99%
  • Credit requirements: 0
  • Terms: 24 to 60 months
  • Origination fee: Varies

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.


  • APR: 5.99% – 29.99%
  • Credit requirements: 600
  • Terms: 36 or 60 months
  • Origination fee: 1.00% - 5.00%

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.


  • APR: 9.95% – 35.99%
  • Credit requirements: Varies
  • Terms: 24 to 60 months
  • Origination fee: Up to 4.75%

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?

Here are the top personal loan lenders of 2019!
LenderAPR RangeLoan Amount 
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Fixed rates from 5.990% APR to 16.240% APR (with AutoPay). Variable rates from 5.75% APR to 14.60% APR (with AutoPay). SoFi rate ranges are current as of March 18, 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 5.75% APR assumes current 1-month LIBOR rate of 2.50% plus 4.28% 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. 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.
  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 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 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.

4 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Personal Loan Rate DisclosureFixed interest rates from 6.79% – 20.89% (6.79% – 20.89% 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 9.99% APR to a high of 35.99% 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 6.95% 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.

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.

5.75% – 16.24%1$5,000 - $100,000

Visit SoFi

7.46% – 35.99%$1,000 - $50,000

Visit Upstart

7.99% – 35.89%*$1,000 - $50,000

Visit Upgrade

5.99% – 24.99%2$5,000 - $35,000

Visit Payoff

5.99% – 29.99%3$7,500 - $40,000

Visit FreedomPlus

6.79% – 20.89%4$5,000 - $50,000

Visit Citizens

9.99% – 35.99%5$2,000 - $25,000

Visit LendingPoint

6.95% – 35.89%6$1,000 - $40,000

Visit LendingClub

6.99% – 18.24%7$5,000 - $75,000

Visit Earnest

9.95% – 35.99%8$2,000 - $35,000

Visit Avant

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.

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