- Credit card debt consolidation
- Borrowers with a strong credit score and low debt-to-income ratio
LendingClub helped pioneer online personal loans and peer-to-peer lending. The company matches borrowers to investors who have money to lend, which could mean a lower interest rate for borrowers with good credit.
Here’s what you need to know about borrowing through LendingClub.
In this post:
- LendingClub interest rates and loan details
- LendingClub personal loans review
- How LendingClub compares to other lenders
- How to take out a personal loan with LendingClub
- What to consider before applying for a LendingClub personal loan
LendingClub interest rates and loan details
LendingClub offers fixed-rate loans from $1,000 to $40,000, with either a three- or five-year repayment term. LendingClub also charges an origination fee of 3% to 6% of your loan amount, depending on your credit history.
Unlike some lenders, LendingClub lets you take out a loan with a co-borrower. If you’re using the loan to pay debt, LendingClub can pay your creditors directly.
Here are some more details about LendingClub personal loans:
|Fixed rates||8.3% - 36.0% APR|
|Loan size||$1,000 to $40,000|
|Loan terms||3 or 5 years|
|Minimum credit score||600|
|Time to get funds||Usually takes about 2 days†|
|Income||Verifiable income must support ability to repay|
|Residency||Not available in U.S. territories|
|Loan use||Debt consolidation and credit card refinancing|
|Key benefits||Being turned down does not hurt your credit score|
|Best if you:||
|Loan servicer||LendingClub Bank|
|†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 review
LendingClub was, at one time, a peer-to-peer lender. As such, it allowed investors to fund loans on a fractional basis and earn interest on their funds. Today, all LendingClub loans are made by LendingClub Bank, an FDIC-insured financial institution.
LendingClub is transparent on how it evaluates borrowers and sets interest rates on loans.
Interest rates are determined by the letter grade — A, B, C, D, E, F, or G — that’s assigned to every loan application. The letter grade is calculated using a formula that takes into account not only your credit score, but other “indicators of credit risk” from your credit report and loan application. These include your debt-to-income ratio, credit history, and recent credit activity.
Within each letter grade are five sub-grades, numbered 1 through 5. The sub-grades serve as adjustments to the letter grades. For example, an A1 rate is lower than a A5 rate, and an A5 rate is lower than a B1 rate. Applications graded below D5 are unlikely to be approved.
LendingClub further modifies its rates according to your requested loan amount and loan term. Your chance of being approved for a low rate is best with a 36-month loan for less than $25,000.
The average LendingClub loan amount is $15,800, according to the lender’s website. The average borrower pays an APR of 15.95% and an origination fee of 5%.
Learn More: How Do Personal Loans Affect Your Credit Score?
Balance transfer loan
If you’re taking out a LendingClub personal loan to pay off credit cards or other debt, you may get a lower rate if you let LendingClub pay your creditors directly. The LendingClub balance transfer loan lets you pay off up to 12 different creditors, with any money left over deposited to your bank account.
More than two-thirds of LendingClub borrowers use their loans to refinance existing debt or to pay off their credit cards — a strategy that can boost your credit score.
The low rates available to borrowers with good credit can also make LendingClub personal loans a good choice for home improvement projects. Unlike a home equity loan, you don’t have to put your home up as collateral.
Learn More: What You Can Use a Personal Loan For
How to qualify
LendingClub makes loans for residents in all 50 states. To qualify, you must be at least 18 years old and either a U.S. citizen, a permanent resident, or an individual in the U.S. on a long-term visa. You’ll also need a verifiable bank account.
LendingClub considers your whole credit profile in evaluating your application, but the lender does require a minimum credit score of 600. However, you’ll get the best rate with a score of at least 670.
Here are some other factors LendingClub considers when evaluating your loan application:
- Debt-to-income ratio, or the percentage of your gross monthly income that goes toward debt payments
- Credit history, or how long you’ve had your oldest open account and the average age of all your open accounts
- Number of open accounts
- Usage and payment history on open accounts
- Recent credit activity, including new inquiries made within the past six months
Strength in one factor can offset weakness in other factors as long as your letter grade is at least a D5. Applying with a joint applicant who has good credit can improve your chance of being approved.
You can choose to repay LendingClub personal loans over three years (36 monthly payments) or five years (60 monthly payments). As is the case with most lenders, you’ll be offered a lower rate on loans with a repayment term of three years. Spreading your payments out over five years will make your monthly payments more manageable, but you’ll pay more interest charges.
LendingClub accepts automatic payments or payment by check or phone. Borrowers are granted a 15-day grace period to make payments with no penalty.
Learn More: How Do Personal Loans Work?
How LendingClub compares to other lenders
Here’s how LendingClub compares to other similar Credible partner lenders:
|Fixed rates||8.3% - 36.0% APR||7.99% - 29.99% APR||7.46% - 35.97% APR11|
|Loan amounts||$1,000 to $40,000||$5,000 to $40,000||$1,000 to 50,000|
|Loan terms||3, 5 years||2, 3, 4, 5 years||2, 3, 4, 5, 6, 7 years|
|Time to fund||Usually takes about 2 days†||As soon as 2 to 5 business days after verification||You should receive your funds within a day of clearing verifications†|
|Minimum credit score||600||600||560|
How to take out a personal loan with LendingClub
LendingClub can be a good match for borrowers with good credit who are interested in shopping around for the best rate.
You’ll need to have the following information and documentation handy when you apply:
- Name and contact information
- Social Security number
- Bank account information
- Proof of income and employment
What to consider before applying for a LendingClub personal loan
While LendingClub continues to be a major player in financial technology, you’ll want to consider the following before you apply for one of its loans:
- Funding can take a couple days: Many online lenders can now deliver loan funds as soon as the same or next business day. It usually takes LendingClub about two days to fund a loan.
- No loyalty discounts: Now that LendingClub is a bank, it could offer rate discounts to borrowers with a LendingClub checking or savings account. Many banks and credit unions offer discounts for being an existing customer.
- Charges an origination fee: Many lenders charge origination fees for processing a loan, but it’s possible to find lenders that don’t charge this fee.
LendingClub is a reputable lender backed by an FDIC-insured bank. But different borrowers have different needs, so it’s a good idea to request rates from several lenders to get a more complete picture of your options.
You can use Credible to request personalized rates from the best personal loan companies, including LendingClub. Credible’s process uses a soft credit inquiry that doesn’t affect your credit score when checking to see what rates you prequalify for, and you can see your rates in just minutes.
Learn More: Personal Loans for Fair Credit
The company above is one of Credible’s approved partner lenders. Because they compete for your business through Credible, you can request prequalified rates from them by filling out a single form. Then, you can compare your available options side-by-side. Requesting prequalified rates is free and doesn’t affect your credit score. Credible receives compensation if you close a loan with one of our partner lenders. The rates you receive and the fees you pay (if any) are not impacted by this compensation.
About Rates and Terms: Rates for personal loans provided by lenders on the Credible platform range between 5.24%-35.99% APR with terms from 12 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 10%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 12, 2019, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.