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LendingClub Personal Loans: 2018 Review

March 8, 2018
Loans, Personal Loans, Personal Loans Reviews
At NerdWallet, we adhere to strict standards of editorial integrity to help you make decisions with confidence. Some of the products we feature are from our partners. Here’s how we make money.
We adhere to strict standards of editorial integrity. Some of the products we feature are from our partners. Here’s how we make money.

4.5 stars out of 5

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 APR6.16% - 35.89%
Origination fee1% - 6%
Time to fundingUp to one week
RepaymentsMonthly 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 forBorrowers with good credit
Click "Check Rates" to apply on LendingClub.

» 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 $33.6 billion in loans since it was founded in 2007.

The company screens potential borrowers and services the loans, but the decision to lend money is made by one or more investors. 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.

LendingClub’s annual percentage rates start at 6.16%. LendingClub also 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.

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



6.16% - 35.89%

Minimum credit score


Origination fee

1.0% - 6.0%

Best for

Good credit borrowers


5.99% - 35.99%

Minimum credit score


Origination fee

1.0% - 5.0%

Best for

Debt consolidation


5.81% to 15.37%

Minimum credit score


Origination fee


Best for

New credit borrowers

Compare rates on NerdWallet. Click to see estimated rates from multiple lenders.

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.

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 debt-to-income ratio must be under 35%.

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. Discover and FreedomPlus also allow this option.

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:

Updated March 8, 2018.

Personal Loans Ratings Methodology

NerdWallet’s ratings for personal loans awards points to lenders that offer consumer-friendly features, including: soft credit checks, no origination fees, payment options, short time to funding, interest rate caps of 36%, and absence of prepayment penalties. Features are considered for their positive impact on consumers’ credit history and financial health. We only review lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews. Read our editorial guidelines.

5 stars out of 5 — Among the very best for consumer-friendly features

4.5 stars out of 5 — Excellent; offers most consumer-friendly features

4 stars out of 5 — Very good; offers many consumer-friendly features

3.5 stars out of 5 — Good; may not offer something important to you

3 stars out of 5 — Fair; missing important consumer-friendly features

2.5 stars out of 5 — Poor; proceed with great caution

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