LendingClub Personal Loans: 2024 Review

LendingClub offers personal loans to good- and fair-credit borrowers, including joint loans, but it charges origination fees.
Ronita Choudhuri-WadeAnnie Millerbernd
By
and
Last updated on August 7, 2023
Edited by
✅ Fact checked and reviewed
Kim Lowe
Edited by
✅ Fact checked and reviewed

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Our Take

4.5

NerdWallet rating
The Nerdy headline:

LendingClub personal loans are a solid option for good-credit borrowers looking to consolidate debt and build their credit.

Jump to:Full Review
Lending Club
LendingClub

Est. APR
9.57-35.99%
Loan amount
$1,000 - $40,000
Min. credit score
600
on NerdWallet

Pros & Cons

Pros

  • Joint loan option.
  • Direct payment to creditors with debt consolidation loans.
  • Option to pre-qualify with a soft credit check.
  • Option to change your payment date.

Cons

  • Origination fee.
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Full Review of LendingClub

LendingClub personal loans are a fit for good- or fair-credit borrowers looking to consolidate debt or finance large purchases. This lender is an especially good choice for debt consolidation because it offers a rate discount and direct payment to creditors on debt consolidation loans.

Though not the lowest-cost lender, LendingClub loans stand out for flexibility, transparency and credit report insights.

» COMPARE: Best debt consolidation loans

Table of Contents

LendingClub personal loans at a glance

Minimum credit score

600.

APR

9.57% - 35.99%.

Fees

Origination: 3% to 8%.

Late fee: The greater of $15 or 5% of the unpaid amount.

Loan amount

$1,000 to $40,000.

Repayment terms

2 to 5 years.

Time to fund after approval

2 business days.

Loan availability

Loans available in all 50 states and Washington, D.C.

  • Between April 1, 2023 and June 30, 2023, Personal Loans issued by LendingClub Bank were funded within 30 hours after loan approval, on average. 46% of Personal Loans issued by LendingClub Bank during the same period were funded within 24 hours after loan approval. Loan approval, and the time it takes to issue a credit decision, are not guaranteed and individual results vary based on creditworthiness and other factors, including but not limited to investor demand. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $19,854 for a term of 36 months, with an interest rate of 10.29% and a 6.00% origination fee of $1,191, for an APR of 14.60%. In this example, the borrower will receive $18,663 and will make 36 monthly payments of $643. Loan amounts range from $1,000 to $40,000 and loan term lengths range from 24 months to 60 months. Some amounts, rates, and term lengths may be unavailable in certain states. For Personal Loans, APR ranges from 9.57% to 35.99% and origination fee ranges from 3.00% to 8.00% of the loan amount. APRs and origination fees are determined at the time of application. Lowest APR is available to borrowers with excellent credit. Advertised rates and fees are valid as of July 11, 2023 and are subject to change without notice. Loans are made by LendingClub Bank, N.A., Member FDIC, Equal Housing Lender (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. LendingClub Bank is not an affiliate of NerdWallet, Inc., which is an unrelated third party (“third party”). LendingClub Bank is not responsible for any products and services provided by this third party and may receive compensation if you visit the third party’s websites or use any of its products or services. Credit eligibility is not guaranteed. Loans are subject to credit approval and may be subject to sufficient investor commitment. Credit union membership may be required. Certain information that LendingClub Bank subsequently obtains as part of the application process (including but not limited to information in your consumer report, your income, the loan amount that your request, the purpose of your loan, and qualifying debt) will be considered and could affect your ability to obtain a loan. Loan closing is contingent on accepting all required agreements and disclosures. “LendingClub” and the “LC” symbol are trademarks of LendingClub Bank.

Where LendingClub personal loans stand out

Help with debt consolidation: LendingClub’s balance transfer loan helps borrowers pay off credit cards and consolidate debt, potentially at a reduced rate. LendingClub will send your loan proceeds to up to 12 creditors, paying off your balances and simplifying the consolidation process. The balance transfer loan’s rate can be up to five percentage points lower than other LendingClub loans, but the terms and qualifications are the same.

Joint loan options: LendingClub allows joint loan applications. Applying for a personal loan with a co-borrower who has strong credit may boost your chances of qualifying and getting a lower rate or larger loan amount. It may be especially helpful if you’re consolidating high-interest credit card debt.

Soft credit pull: You can pre-qualify on LendingClub’s website to check your potential rate, loan amount, repayment term, monthly payment and total interest costs. Applicants may be shown multiple offers. Pre-qualifying generates a soft credit pull, which doesn’t impact your credit score. If you get a loan, the company does a hard credit pull when the funds are sent.

Option to choose and change payment date: Borrowers can choose their repayment date before singing a loan agreement and change the date during repayment. Payment date flexibility can be helpful if you change jobs, for example, and get paid on a different date.

Member Center: LendingClub’s Member Center helps customers manage their money and credit. Many lenders provide a free credit score, but the additional insights in the Member Center, like debt-to-income ratio and credit usage, are rare.

Where LendingClub personal loans fall short

Origination fees: LendingClub charges an origination fee from 3% to 8%. This fee is deducted from the loan before a borrower receives funds, reducing the total loan amount. If you’re consolidating debt, you’ll need to borrow a higher amount than what you owe to pay off all your debts. Origination fees aren’t especially rare among online lenders.

Do you qualify for a LendingClub personal loan?

LendingClub’s minimum borrower requirements are typical for a fair- or good-credit lender, but borrower averages are slightly higher. A high credit score and strong income will give you the best chance of qualifying.

To apply for a LendingClub personal loan, you must be:

  • A U.S. citizen, permanent resident or living in the U.S. on a valid visa.

  • At least 18 years old in most states.

  • Able to provide a verifiable bank account.

Here are the lender’s minimum requirements to qualify for a loan. (Meeting these requirements doesn’t guarantee approval.)

  • Minimum credit score: 600. LendingClub uses FICO 8 and VantageScore 2.0, in addition to a proprietary scoring system.

  • Minimum credit history: 36 months and two accounts.

  • Maximum debt-to-income ratio: 40% for individual and joint applications.

  • Minimum annual income: None, but borrowers must show proof of income.

Here are details about LendingClub’s average borrower, according to the lender:

  • Average credit score: 700.

  • Average annual income: $100,000.

  • Average loan amount: $16,000.

  • Average debt-to-income ratio: 18%

  • Average loan term: Three years.

  • Most common loan purpose: Debt consolidation.

Before you apply

  • Check your credit. You can get your free credit report on NerdWallet or at AnnualCreditReport.com. Doing so will help you spot and fix any errors before you apply.

  • Calculate your monthly payments. Use a personal loan calculator to determine what APR and repayment term you’d need to get a loan with affordable monthly payments.

  • Make a plan to repay the loan. Review your budget to see how the loan’s monthly payments impact your cash flow. If you have to cut other expenses in order to repay the loan, it’s better to know that before you borrow.

  • Gather your documents. LendingClub requires proof of income, which can be a W-2, tax documents or pay stubs, as well as proof of address and a Social Security number. Having these documents handy can speed the application process.

How to apply for a LendingClub personal loan

Here are the steps to apply for a LendingClub loan.

  1. Pre-qualify on LendingClub’s website. You’ll be asked how much you want to borrow and what the funds are for, as well as some personal information like your name, birthday and address. The lender may ask for your Social Security number, but there’s no hard credit pull at this stage.

  2. Preview loan offers and accept the one that fits your budget. Once you accept a loan offer, you’ll submit a formal personal loan application. This could require more documents to confirm the information you gave during pre-qualification. If you get a loan, LendingClub will do a hard credit check when the loan funds are sent, so your credit score may temporarily dip.

  3. Stay on top of your loan payments. LendingClub reports loan payments to all three major credit bureaus, so on-time payments will help build your credit score, but missed payments will hurt it. Setting up automatic payments and keeping an eye on your budget are two ways to manage your loan payments.

Check rates on NerdWallet

Compare LendingClub to other lenders

Personal loan lenders offer different rates, loan amounts and special features, so it pays to weigh your options. The best personal loan is usually the one with the lowest APR.

Like LendingClub, SoFi and Upgrade are strong options for debt consolidation but can be used for other expenses.

LendingClub vs. SoFi

SoFi is a good- to excellent-credit lender. SoFi’s rates tend to be lower than LendingClub’s, and SoFi doesn’t charge any fees while LendingClub charges origination and late fees. SoFi’s minimum loan amount is higher than LendingClub’s, though, so it’s not an ideal option for smaller expenses. SoFi’s perks include career advising and unemployment protection, while LendingClub’s Member Center is focused on improving credit and finances.

LendingClub vs. Upgrade

Upgrade provides personal loans to borrowers in all credit bands. Like LendingClub, Upgrade offers direct payment to creditors and rate discounts on debt consolidation loans, but Upgrade’s minimum credit score is slightly lower than LendingClub’s. Unlike LendingClub, Upgrade offers a secured loan option.

How we rate LendingClub personal loans

NerdWallet writers rate lenders against a rubric that changes each year based on how personal loan products evolve. Here’s what we prioritized this year:

Category

Star rating

Affordability

Underwriting

Loan flexibility

Transparency

Customer experience

Overall

  • Affordability (30%) An affordable loan has low rates and fees compared to other similar loans and may offer rate discounts.

    Underwriting and eligibility (25%) The lender reviews borrowers credit reports and credit history, and tries to understand their ability to repay a loan, before making a final application decision.

    Loan flexibility (20%) A flexible loan is one that lets users customize terms and payments. That means offering a wide range of repayment term options, allowing the borrower to change their payment date, offering loans in most states and funding it quickly.

    Customer experience (15%) A good customer experience can include a fully online application process, financial education on the lender’s website and a customer service team that’s available most of the time and can be reached multiple ways.

    Transparency (10%) A transparent lender makes information about the loan easy to find on its website, including rates, terms and loan amounts. Transparency also means allowing users to pre-qualify online to preview potential loan offers and reporting payment information with the major credit bureaus.

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Methodology

NerdWallet’s review process evaluates and rates personal loan products from more than 35 technology companies and financial institutions. We collect over 50 data points from each lender and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.

Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.

NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.

Frequently asked questions

  • The minimum credit score needed for a LendingClub loan is 600, the company says. However, the average qualified borrower's credit score is 700.

  • LendingClub is a legitimate online lender. It offers personal loans with annual percentage rates that don't exceed 36%, which is a rate cap that most consumer advocates recommend.

  • LendingClub says that personal loan approval can take a few hours. It takes one or two days for the lender to send funds after approval.

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