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Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."
Prosper and LendingClub, two of Credible’s approved partner lenders, are both peer-to-peer lenders that offer fixed-rate personal loans with terms ranging from three to five years.
Neither lender has the option of a cosigner, but you do have the option of applying for a joint personal loan with another borrower.
Here’s a side-by-side comparison to help you decide between LendingClub vs. Prosper:
| LendingClub | Prosper | |
|---|---|---|
| Fixed rates | 7.04% - 35.89% APR | 7.95% - 35.99% APR |
| Loan amount | $1,000 to $40,000 | $2,000 to $40,000 |
| Loan terms | 3 to 5 years | 3 to 5 years |
| Min. credit score | 600 | 640 |
| Time to fund | Usually takes about 2 days† | As soon as one business day |
| Fees |
|
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| Cosigners permitted | No | No |
| Income | Debt‐to‐income ratio below 40% (excluding mortgage) | Debt‐to‐income ratio below 50% |
| Residency |
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| Perks |
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| †Between April 2021 and June 2021, personal loans were funded within 48 hours after loan approval, on average. The time it takes for a loan to be funded is not guaranteed and individual results vary based on multiple factors, including but not limited to investor demand. | ||
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LendingClub personal loans
LendingClub was established in 2007 and helped pioneer online personal loans and peer-to-peer lending. You can borrow $1,000 up to $40,000 with a repayment term of either three or five years.
Keep in mind that LendingClub personal loans have an origination fee of 3% to 6% of the loan amount, though you won’t have to worry about any prepayment penalties.
Pros
- Options for poor credit: You might be eligible for a LendingClub personal loan even if you have poor or bad credit. Just keep in mind that having a lower credit score could affect the interest rate you qualify for.
- Can borrow a smaller amount: If you only need to borrow a small amount, LendingClub could be a good choice.
- Widely available: LendingClub loans are available in every state U.S. territories.
Check Out: Personal Loan for Bad Credit
Cons
- More restrictive DTI: With LendingClub, you can only get a loan if your DTI is 40% or lower. If you’re looking for a debt consolidation loan and have a high amount of debt, you might not qualify for a LendingClub personal loan.
- Limited loan terms: LendingClub loans come with a three- or five-year term. If you’re looking for a longer repayment term, you’ll need to consider other lenders, such as LightStream or SoFi.
- No mobile app: Though LendingClub offers a mobile app to its investors, it doesn’t provide an app for borrowers, as of October 2020. This could make it harder to stay on top of your loan while on the go.
Learn More: Personal Loans for Good Credit
Prosper personal loans
Prosper was founded in 2005 and was one of the first peer-to-peer lenders in the U.S. Since then, it has facilitated over $12 billion in personal loans.
With Prosper, you can borrow anywhere from $2,000 up to $40,000. Like LendingClub, Prosper also charges origination fees — 2.41% to 5% of the loan amount.
Pros
- Good for debt consolidation: Your DTI ratio can’t be more than 50% to get a loan with Prosper. This higher DTI limit could be helpful if you need a credit card consolidation loan.
- Can change payment due date: If you need to adjust your payment date, you may be able to with a quick phone call to Prosper, so long as you are in good standing and haven’t changed it within the last year.
- Potential options for those with fair credit: Because Prosper personal loans are backed by investors rather than a bank, borrowers with only fair credit might still qualify for a loan through Prosper.
Check Out: Where to Get a Personal Loan
Cons
- Fewer options for bad credit: You’ll need better credit to qualify for a loan with Prosper compared to LendingClub. While Prosper could be a good choice for personal loans for good credit, borrowers with poor credit might need to consider other lenders.
- Can take longer to get your funds: Prosper’s platform matches potential borrowers with investors, which means you have to wait for an investor to commit to funding your loan. If your loan isn’t funded within 14 days, your listing will be removed — though you can try again with another listing. You might be able to get a personal loan in a much shorter amount of time with another lender.
- Interest could be high: Although you might qualify for a Prosper loan with a short credit history, you might end up with a higher interest rate.
Choosing a lender for a personal loan
Personal loans can be used for a wide variety of reasons, including home improvement, debt consolidation, and more. Keep in mind that rates and terms will depend on the lender you choose.
Or if you want a loan for debt consolidation and have good credit, it can make sense to use a lender that allows for a higher DTI — such as Prosper.
If you decide to take out a personal loan, be sure to compare as many lenders as possible to find the right loan for you. Credible makes this easy — you can see your rates from multiple lenders in two minutes.
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