Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders, all opinions are our own.
- Credit card debt consolidation
- Home improvement loans
- 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.
In this post:
- LendingClub personal loans: Interest rates and loan details
- LendingClub personal loans review
- How LendingClub compares to other lenders
- How to take out a personal loan with LendingClub
LendingClub personal loans: Interest rates and loan details
LendingClub offers fixed-rate loans from $1,000 to $40,000, with either a 3-year or 5-year repayment term. Origination fees range from 1% to 6%.
|Fixed rates||6.95% - 35.89% APR|
|Loan size||$1,000 to $40,000|
|Loan terms||3 or 5 years|
|Minimum credit score||580|
|Time to get funds||Usually takes about 3 days†|
|Income||Verifiable income must support ability to repay|
|Residency||Not available in Iowa or U.S. territories|
|Loan use||Pay off credit cards, consolidate debt, pay for special events, make major purchases, funding for unexpected home repairs or medical bills|
|Key benefits||Being turned down does not hurt your credit score|
|Best if you:||
|†Based on a majority of borrowers from LendingClub's marketing partners who were issued loans between 1/1/19-12/13/19. The time it takes for your loan to be funded may vary.|
LendingClub personal loans review
As a peer-to-peer lender, 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, or D — that’s assigned to every eligible loan. 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.
During the first three months of 2019, interest rates for personal loans funded by LendingClub averaged:
- Grade A: 7.7%
- Grade B: 11.59%
- Grade C: 15.23%
- Grade D: 20.26%
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.
Learn More: How Do Personal Loans Affect 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
In an effort to reduce investors’ exposure to riskier loans, in May 2019 LendingClub stopped approving loan requests graded as “E.” As a result, the minimum credit score needed to get approved for a LendingClub personal loan increased to 660 (up from 600).
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
|Fixed rates||6.95% - 35.89% APR||5.99% - 24.99% APR||7.99% - 35.97% APR|
|Loan Amounts||$1,000 up to $40,000||$5,000 up to $40,000||$1,000 up to $35,000|
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. But it’s also a good idea to request rates from other types of lenders who offer personal loans to get a more complete picture of your options.
LendingClub isn’t currently offering loans through Credible. But you can still use Credible to request personalized rates from other personal loan companies. 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 rates in just minutes.
|Lender||Fixed rates||Loan amount|
|9.95% - 35.99% APR||$2,000 to $35,000**|
|6.49% - 29.99% APR||$5,000 to $35,000|
|5.99% - 29.99% APR||$2,000 to $35,000|
|6.99% - 24.99% APR||$2,500 to $35,000|
|15.49% - 35.99% APR||$2,000 to $25,000|
|3.49% - 19.99% APR||$5,000 to $100,000|
|6.99% - 19.99% APR1||$3,500 to $40,0002|
|5.99% - 24.99% APR||$5,000 to $40,000|
|6.49% - 17.99% APR||$600 to $20,000
(depending on loan term)
|6.95% - 35.99% APR||$2,000 to $40,000|
|5.99% - 18.83% APR||$5,000 to $100,000|
|7.99% - 35.97% APR||$1,000 to $35,000
($3,005 minimum in GA; $6,005 minimum in MA)
|8.13% - 35.99% APR4||$1,000 to $50,0005|
*If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.
**Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33.
1Rate reduction available for AutoPay.
2You may be required to have some of your funds sent directly to pay off outstanding unsecured debt.
3After making 12 or more consecutive monthly payments, you can defer one payment as long as you have made all your prior payments in full and on time. Marcus will waive any interest incurred during the deferral and extend your loan by one month (you will pay interest during this extra month). Your payments resume as usual after your deferral. Advance notice is required. See loan agreement for details.
4The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 15% and 36 monthly payments of $33 per $1,000 borrowed. There is no down payment and no prepayment penalty. Average APR is calculated based on 3-year rates offered in the last 1 month. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
5This offer is conditioned on final approval based on our consideration and verification of financial and non-financial information. Rate and loan amount are subject to change based upon information received in your full application. This offer may be accepted only by the person identified in this offer, who is old enough to legally enter into contract for the extension of credit, a US citizen or permanent resident, and a current resident of the US. Duplicate offers received are void. Closing your loan is contingent on your meeting our eligibility requirements, our verification of your information, and your agreement to the terms and conditions on the www.upstart.com website.
6If you accept your loan by 5pm EST (not including weekends or holidays), loan funds will be sent to your designated bank account on the next business day, provided that such funds are not being used to directly pay off credit cards. Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law.
How LendingClub can improve
While LendingClub has been a pioneer in online, peer-to-peer lending, it could improve in the following areas:
- Faster funding of loans: Many online lenders can now deliver funds on the same day or overnight.
- Provide personal loans for fair credit borrowers: Rather than rejecting borrowers with fair credit, LendingClub could charge them higher rates to manage risk
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 4.99-35.99% 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 8%. 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.