NerdWallet rating: 4.5 / 5.0
Good for: Good credit
LendingClub, whose name is often synonymous with online personal loans, attracts borrowers with established financial histories and a record of responsible borrowing.
LendingClub may be a good fit for you if:
- You have a good credit score.
- You carry a long credit history. Borrowers average 17 years of credit history.
- Your income is high. The average annual income of a LendingClub borrower is $79,145.
- You have a low debt-to-income ratio. The average borrower has a ratio of 18.29%, excluding mortgages.
LendingClub loan rates and terms
|Loan amounts||$1,000 - $40,000|
|Typical APR||6.16% - 35.89%|
|Fees||Origination fee: 1% - 6%
Late fee: Greater of $15 or 5% of payment after 15-day grace period
Check processing fee: $7
Prepayment fee: None
|Time to funding||Up to one week|
|Repayments||Monthly over 3 to 5 years|
|Soft credit check?||Yes|
|How to qualify||Minimum credit score of 600
Minimum credit history of 3 years
Debt-to-income ratio of less than 40% for single applications, 35% for joint applicants
|Best for||Borrowers with good credit|
» MORE: Best loans for good credit
LendingClub personal loan review
To review LendingClub, NerdWallet collected more than 30 data points from the lender, interviewed company executives, completed the online loan application process with sample data, and compared the lender with others that seek the same customer or offer a similar personal loan product. Loan terms and fees may vary by state.
LendingClub helped pioneer the business model of “peer-to-peer” or “marketplace” lending, which matches borrowers with investors willing to fund their loans. It’s the largest online lender for personal loans in the United States, having facilitated more than $38 billion in loans since it was founded in 2007.
Grades for borrowers: LendingClub assigns a grade to every approved borrower using credit and income data. Your grade determines what range of interest rates you qualify for and helps investors decide whether to fund your loan. Borrowers can’t see their grades; only investors can.
Help with debt consolidation: To certain debt-consolidation borrowers who meet its requirements, the lender offers the option to pay off creditors directly. Under this option, borrowers have to use up to 80% of their loan amount to pay off outstanding debt.
Co-sign option: LendingClub is one of a handful of online lenders that allow joint loan applications. To qualify for the joint loan, one borrower has to have a score of 600 and above, while the other borrower can have a credit score as low as 540. Their maximum combined DTI ratio must be under 35%.
Flexibility: LendingClub allows some borrowers who have trouble making payments to go on a hardship plan; borrowers can make interest-only payments for three months’ time to help them get back on their feet.
Customer service: LendingClub has a customer service number (888-596-3157) and an email address (firstname.lastname@example.org) that borrowers can use to get help with their applications or to address issues while paying back the loan. The company says it tracks average response times and tries to improve them.
Loan example: For a borrower with good credit, a $40,000 personal loan with a repayment term of 48 months at 18.0% APR would carry monthly payments of $1,175, according to NerdWallet’s personal loan calculator.
How LendingClub compares
Prosper, another large lender that connects borrowers with investors, has comparable loan terms and rates and a slightly smaller loan amount window than LendingClub. Read our comparison of LendingClub and Prosper.
For borrowers new to the lending game, SoFi provides valuable career services on top of competitive rates. However, borrowers tend to have strong credit scores and high incomes, so it’s not for those in need of a financial boost. Read our comparison of LendingClub and SoFi.
How to apply for a LendingClub loan
You can apply on LendingClub’s website, or you can compare loans on NerdWallet. NerdWallet recommends comparing loans to find the best rate for you. Click the button below to see estimated rates from multiple lenders.
Before you shop for a personal loan:
- Learn how personal loans work
- 4 steps to pre-qualify for a personal loan
- Read more personal loan reviews
What the stars mean
— Among the very best for consumer-friendly features
— Excellent; offers most consumer-friendly features
— Very good; offers many consumer-friendly features
— Good; may not offer something important to you
— Fair; missing important consumer-friendly features
— Poor; proceed with great caution