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LendingClub Personal Loans: 2018 Review

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Lending Club Personal Loans: 2017 Review

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, helped pioneer the business model of “peer-to-peer” or “marketplace” lending, which matches borrowers with investors willing to fund their loans.

LendingClub may be a good fit for you if:

  • You have a good credit score. The average LendingClub borrower has a score of 699, according to the company. Its minimum credit score is 600.
  • You carry a long credit history. Borrowers average more than 16 years of credit history. The minimum is 3 years.
  • Your income is higher than the national household median of $55,775. The average annual income of a LendingClub borrower is $76,135.
  • You have a low debt-to-income ratio. The average borrower has a ratio of 18.32%, excluding mortgage. The maximum ratio allowed is 40%.
  • You don’t need money immediately. LendingClub takes up to a week to verify applications and match borrowers with investors.

LendingClub at a glance

Typical APR5.99% – 35.89%
Loan amounts$1,000 – $40,000
Time to fundingUp to one week
Origination fee1% - 6%
Soft credit check?Yes

Clicking the button below will take you to a pre-qualification form on NerdWallet. You’ll find out whether you qualify for a LendingClub loan and at what rate.


» MORE: Best loans for debt consolidation

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 productLoan terms and fees may vary by state.

LendingClub is the largest online lender for personal loans in the United States, having facilitated more than $28 billion in loans since it was founded in 2007. As a public company, it is required to report data about its lending process and fees, which means potential borrowers have access to information about the company.

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.

How LendingClub compares

LendingClub’s annual percentage rates start at 5.99%, but it also has a special lower rate of 4.99% for some borrowers with excellent credit.

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.

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. The maximum combined debt-to-income ratio has to be under 35%.

To select 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.

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 until they get back on their feet.

How to apply for a LendingClub loan

You can apply on LendingClub’s website, or you can apply on NerdWallet.

If you want to compare an offer from LendingClub with those from other lenders, click the button below to fill out a pre-qualification form. NerdWallet will check its lender marketplace and display the loans and rates for which you qualify. Pre-qualifying won’t affect your credit score.

Details about LendingClub loans

Minimum requirements 

  • Minimum credit score: 600
  • Minimum gross income: Not provided, but generally high income
  • Minimum credit history: Three years
  • Maximum debt-to-income ratio: 40%

LendingClub terms

  • APR: 5.99% to 35.89% (minimum APR of 4.99% for borrowers with excellent credit)
  • Loan amount: $1,000 to $40,000.
  • Loan duration: Three or five years
  • Time to receive funds: Up to one week

LendingClub fees and penalties

  • Origination fee: 1% to 6% of the loan amount, depending on the borrower’s grade
  • Prepayment fee: None
  • Late fee: Greater of 5% of payment due or $15
  • Personal-check processing fee: $7
  • Unsuccessful payment fee: $15 
Before you shop for a personal loan

Updated Jan. 2, 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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