Lending Club Personal Loans Review

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Lending Club Personal Loans

Overall Rating


Bottom Line

LendingClub personal loans come with fixed interest rates and terms of either 36 months or 60 months. You can fund almost anything through a personal loan with LendingClub.


  • You Can Pay Creditors Directly with Debt Consolidation Loans
  • Option for Joint Applicant
  • Lower Credit Score Approval


  • Origination Fees
  • Longer Wait Time for Funds

Joint Application Option


Ease of Use




Loan Proceeds Processing Time


At the start of a new year, many people set financial resolutions for themselves.

Whether it’s paying off your credit card debt or starting a side hustle, we all have money goals for the year. A great way to fund your financial goal is through a personal loan.

As the largest online lender for personal loans in the US, Lending Club is a leading option for many people looking for a personal loan.

But is it the best option for you?

About Lending Club Personal Loans

When it comes to peer-to-peer lending sites, Lending Club is one of the early developers.

Founded in 2007, Lending Club has helped facilitate over $40 billion in personal loans, small-business loans, medical refinancing, and auto refinancing. Their system pairs borrowers with investors who are willing to take on their loan.

Lending Club offers loans with fixed interest rates and terms of either 36 months or 60 months. You can fund almost anything through a personal loan except gambling, investing, or higher education.

Lending Club matches borrowers with lenders through their grading system. They assign a grade to each borrower based on credit and income data. Your grade determines the kinds of interest rates you qualify for and helps lenders decide if you are a good investment.

Only investors can see the assigned grade, so you won’t know what your grade is if you apply for a personal loan.

Lending Club Personal Loan Fees and APRs

Before applying for a loan, it’s important to understand where the lender stands on fees, APR’s, and loan amounts.

  • Loan Amounts: $1,000 to $40,000
  • APR: 6.95% – 35.89%
  • Origination Fee: 1% – 6% of the overall loan amount
  • Late Fee: After a 15 day grace period, you will be charged anywhere from $15 to 5% of the overall payment

Lending Club Personal Loan Qualifications

In order to qualify for a personal loan with LendingClub, you need:

  • to be a U.S. citizen or permanent resident
  • at least 18 years old
  • a valid bank account
  • Social Security number or FEIN
  • Your credit score should be at least 600
  • minimum credit history of three years
  • DTI ratio of less than 40% for a single applicant
  • For joint applicants, the combined DTI must be less than 35%

Applying for a loan through Lending Club’s system is far less intimidating than their requirements make it seem.


Many companies have a privacy policy that is full of legal jargon and confusing to the everyday person. This makes it much more difficult to understand how a company is protecting your data.

Luckily, Lending Club understands this, and their privacy policy is in an organized, easy-to-read format. They specifically answer what is and is not done with your information. They also go further to define various legal terms, such as ‘nonaffiliates’ and ‘joint marketing.’

Because Lending Club acts as a marketplace for lenders and borrowers, they want to make sure that you are not getting scammed by someone using their platform. They have a resource page that gives various helpful tips and red flag signals to help you avoid online scams.

Customer Support

Compared to other lending platforms, Lending Club has pretty great customer service and support options.

Lending Club has a comprehensive FAQ page that can help you answer questions like how to apply for a loan and how to make your payments. If you find your question is not answered there, their customer service team is available by phone or email.

They also have an A rating with the Better Business Bureau. In 2018, the Consumer Financial Protection Bureau received 58 complaints related to Lending Club’s personal loan platform. Lending Club responded to every complaint in a timely and professional manner.

Pros and Cons

It’s important to note what an online lender has working for and against them. Check out some of the pros and cons of using Lending Club below:


  • May pay creditors directly for debt consolidation loans: Debt consolidation is one of the major reasons that people take out a personal loan. Lending Club’s feature to pay your creditors directly can take a weight off of your back. You can focus on making your Lending Club payments, and they can deal with paying off your creditors.
  • Option for joint loans: Many lenders don’t offer options for joint loan applications. While co-signing a loan is risky, it’s a great option for people who need a loan but cannot qualify on their own.
  • Low credit score: 600 is a relatively low credit requirement for most online lenders. You will have a hefty interest rate to match, but it’s still an option for people who are having trouble qualifying for a personal loan altogether.


  • Charges origination and late fee: You are unlikely to find a lender that does not have a penalty in place for late payments, but there are many personal lenders out there that do not charge an origination fee. Origination fees effectively increase the overall interest rate of the loan, making it unideal for borrowers with good to excellent credit. If you are interested in paying off your debt as quickly as possible, check out some other lenders that do not charge origination fees.
  • Longer wait: If you are in need of money quickly, Lending Club is not your best option. It takes an average of four days to receive your loan proceeds and can take up to seven days. This is a longer wait than is available with other online lenders.
  • Not available to all U.S. states or territories: If you live in Iowa, Puerto Rico, or Guam, you will not qualify for a loan through Lending Club. They do not operate in these territories.

Alternatives to Lending Club Personal Loans

If you aren’t sure that Lending Club is your best option, that is alright. There are plenty of other online lenders out there that may be able to meet your needs.

Here are some alternative online lenders if you’re looking for a personal loan.

  1. Prosper
  2. SoFi
  3. Upstart

Is a Lending Club Personal Loan for You?

Lending Club Personal Loans is best for borrowers with okay credit who are having trouble finding good rates elsewhere. Borrowers with good to excellent credit will likely find better rates elsewhere.

Origination fees are a big downside when it comes to loan financing because they raise the overall interest rate of your loan. If you are looking to pay off your debt as quickly as possible, you are better off looking for other lenders that do not charge origination fees.

That being said, Lending Club is a big name in the lending space, and they are a solid option if you have fair credit or want to apply for a joint loan.

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