The bottom line: LendingClub is a good option if you want to consolidate your debt with a personal loan.
Min. Credit Score
10.68 - 35.89%
$1,000 - $40,000
Pros & Cons
Offers direct payment to creditors with debt consolidation loans.
Joint loan option.
Soft credit check with pre-qualification.
Charges origination and late fees.
Doesn't offer a mobile app to manage your loan.
Compare to Other Lenders
Compare estimated rates from multiple lenders
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To review LendingClub, NerdWallet collected more than 30 data points from the lending platform, interviewed company executives and compared the platform 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 lending platform for personal loans in the U.S., having facilitated more than $55 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 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.
» MORE: Compare debt consolidation loans
Joint loan option: LendingClub is among the lenders that allow joint loan applications. The two borrowers' maximum combined debt-to-income ratio, or DTI, must be under 35%.
Soft credit pull: LendingClub lets you check your rate through its website. Getting your rates generates a soft credit pull, which doesn’t impact your credit score. The company does a hard credit pull once a loan is issued.
Member Center: Amid the economic fallout caused by the COVID-19 crisis, LendingClub launched a tool, called Member Center, that helps customers manage their money and credit. Members can use the Credit Profile tool within the Member Center to see information like their debt-to-income ratio, credit utilization and credit score.
LendingClub rates, terms and fees
Terms: Borrowers can choose a 36-month or a 60-month repayment term on a LendingClub loan.
Rates: LendingClub’s rates are comparable with other lenders that accept fair-credit borrowers. Those with higher credit scores and less debt are poised to get the company’s lowest annual percentage rates.
» MORE: See our picks for online loans
Fees: This lender charges a late fee after a 15-day grace period and an origination fee.
Origination fee: 2% - 6%.
Late fee: Greater of $15 or 5% of payment.
Prepayment fee: None.
How to qualify with LendingClub
LendingClub considers information beyond traditional credit data on a loan application. The company says it reviews things like the reason you’re getting a loan and your bank transactions in addition to your income, credit score and DTI ratio.
LendingClub’s requirements for borrowers are:
Minimum credit score of 600. LendingClub uses the FICO 8 credit scoring model.
Minimum credit history of three years.
Debt-to-income ratio of less than 40% for single applications, 35% for joint applicants.
LendingClub average borrower profile
LendingClub categorizes its borrowers into prime (660 or higher FICO) and near-prime (600 - 659 FICO) borrowers. The averages for the two borrowers differ. Here’s a snapshot from the company of each type of borrower.
LendingClub prime borrower averages:
Credit score: 705.
Average loan size: $15,364.
Interest rate range: 8.46% - 20.74%.
Common uses: credit card refinancing, new large purchases, debt consolidation.
LendingClub near-prime borrower averages:
Credit score: 640.
Average loan size: $8,412.
Interest rate range: 15.54% - 30.99%.
Common uses: credit card refinancing, debt consolidation.
Compare LendingClub with other loan companies:
Loan example: For a borrower with good credit, a $15,000 personal loan with a repayment term of 36 months at 18.0% APR would carry monthly payments of $542, according to NerdWallet’s personal loan calculator.
Before you shop for a personal loan
How to apply through LendingClub
You can apply for a personal loan on LendingClub’s website. You’ll be given several loan options to choose the one you prefer.
Pre-qualify with NerdWallet
NerdWallet recommends comparing loans to find the best rate for you. Pre-qualifying may get you personalized rates from multiple lenders that partner with us. Pre-qualifying will not impact your credit.
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.
Frequently asked questions
The minimum credit score needed for a LendingClub loan is 600, the company says. However, the average prime borrower (660 or higher FICO) has a 705 credit score and the average near-prime borrower (600-659 FICO) has a 640 credit score.
The company also considers your income, debts and the reason you're getting a loan on an application.
Annual percentage rates on LendingClub loans don't exceed 36%, which is what most consumer advocates recommend. The company also uses information like credit history and income to evaluate a borrower's ability to repay, which many payday and other predatory lenders do not.
LendingClub is transparent about its fees and answers questions about its loans on a frequently asked questions page.