Editorial Review

LendingClub Personal Loans: 2019 Review

LendingClub attracts borrowers with good credit, long credit histories and high incomes. Accepts co-sign loan applications.

Amrita JayakumarAugust 15, 2019

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Our Take

4.0

NerdWallet rating 

The Bottom Line: The pioneer of peer-to-peer lending, LendingClub is a good option if you want to consolidate your debt.

Lending Club

on Lending Club's website

on Lending Club's website

Min. Credit Score

600

Est. APR

6.95-35.89%

Loan Amount

$1,000-$40,000

Pros & Cons

Pros
  • May directly pay off some creditors.

  • Co-sign option.

  • Offers hardship plan.

Cons
  • Charges origination and late fees.

  • No rate discount for autopayments.

Compare to Other Lenders

Lending Club
Prosper
SoFi
Est. APR

6.95-35.89%

Est. APR

6.95-35.99%

Est. APR

5.99-16.79%

Loan Term

3 to 5 years

Loan Term

3 to 5 years

Loan Term

2 to 7 years

Loan Amount

$1,000-$40,000

Loan Amount

$2,000-$40,000

Loan Amount

$5,000-$100,000

Min. Credit Score

600

Min. Credit Score

640

Min. Credit Score

680

Compare estimated rates from multiple lenders

Compare Rates

Full Review

To review LendingClub, NerdWallet collected more than 30 data points from the lender, interviewed company executives 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 $45 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: In June 2019, LendingClub introduced a balance transfer loan to help borrowers pay off credit cards and consolidate debt. LendingClub will send your loan proceeds to up to 12 creditors, paying off your balances and simplifying the debt consolidation process. The loan carries the same rates, terms and qualifications as other loans.

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.

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.

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.

Compare LendingClub with other loan companies:

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.

Before you shop for a personal loan

Pre-qualify with NerdWallet

NerdWallet recommends comparing loans to find the best rate for you. Click the button below to pre-qualify on NerdWallet. You may receive personalized rates from multiple lenders that partner with us, including LendingClub. Pre-qualifying will not impact your credit.

How to apply with LendingClub

You can apply for a personal loan on LendingClub’s website and choose the loan amount you prefer.

on Lending Club's website

Personal Loans Rating Methodology

NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including: soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus, and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to 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.