LendingClub Personal Loan Review for 2021

Key points:

  • LendingClub is a peer-to-peer (P2P) lending marketplace, so other people will fund your loan rather than a bank or financial institution.
  • LendingClub charges a loan origination fee (since most of the interest goes to investors), but you can still get a competitive rate on your loan.
  • LendingClub is best for borrowers with bad and fair credit. If you have good credit, other options may be better.

on the secure LendingClub site

What we like:

Credit Score Educational Resources

Tariffs (APR) 6.95% – 35.89%
Loan conditions 35 years
Loan amounts Until $ 40,000
Fresh Original costs: 1% – 6%

Penalty for early repayment: Nothing

Late charge: Greater of $ 15 or 5% of payment after 15 day grace period

LendingClub was founded in 2006 and is now headquartered in San Francisco, California.

It was started as part of a trend of tech companies starting to offer loans through an online interface instead of local bank branches, a trend that has become a staple in the peer-to-peer lending market. today.

Since then, LendingClub has grown into a leader in the peer-to-peer lending industry, raising over $ 1 billion in 2014 and securing its place as the largest personal loan market in the country. This LendingClub review will help you decide if this is the right option for you.

In this review:

Presentation of LendingClub personal loans

LendingClub Personal loans
Minimum credit score 600
Loan amounts $ 1,000$ 40,000
Term of office 36 or 60 months
Rates 10.68% – 35.89%
Original fees 2% – 6%
Late payment fees $ 15 or 5%
Prepayment charge $ 0
See prices

LendingClub is a peer-to-peer lending platform, which means that other people will fund your loan rather than LendingClub itself.

LendingClub offers a comprehensive list of different personal loans, which can be used to cover all kinds of purposes, ranging from debt consolidation and home renovations at medical fees and more.

Here is a list of what a potential borrower can receive from LendingClub:

  • Credit card refinancing
  • Debt consolidation
  • Home improvement
  • Major purchases
  • Buying a house
  • Automatic purchase
  • Start a business
  • To go on holiday
  • Move
  • Medical fees

This list is not exhaustive, of course. One of the biggest advantages of peer-to-peer loans is that if you can justify to investors why you need the funds and they choose to accept your loan, you can do whatever you want with the money.

Based on our research, LendingClub personal loans tend to work best for fair credit borrowers and some bad credit borrowers, depending on how low your score is. If you have good credit there is more solid options out there.

Pros and Cons of LendingClub Personal Loans

  • Quick and easy loan application process. The home page has three simple questions with drop-down bars that lead to the projected interest rates. The whole process only takes a few minutes. In addition, the accepted applications often lead to the loan being disbursed in just a few days, which is a fairly quick turnaround in the personal loan industry.
  • Prepayment authorized. If a borrower decides to prepay their personal loan, there is no need to worry about prepayment penalties at LendingClub. Some companies charge these fees to earn money on lost interest.
  • Educational resources. LendingClub also provides several resources to help the average borrower learn more about personal loans as well as credit scores. For example, an entire page of the LendingClub website is devoted to credit score education.
  • Good customer reviews. Trustpilot gives LendingClub a 4.3 rating, with most customer reviews providing positive testimonials about their experiences as borrowers and investors.
  • P2P loan. Some borrowers like paying interest to another person rather than a big bank that already has billions in its coffers.

  • Original fees. The origination fees charged by LendingClub are a big part of how it makes money, as P2P investors get most of the interest you will pay on your loan. The fact that LendingClub charges an origination fee, however, puts it a little behind other online lenders and may reduce your loan proceeds.
  • Late payment fees. There is a penalty of $ 15 or 5% for late or unsuccessful payment, although this is only applied after a grace period of 15 days.
  • Self-employed people can have problems. LendingClub is known for its flexibility and easy application process, but if you have irregular annual income, such as through freelance work, you might find that LendingClub is not as easy to work with.
  • Paper check fees. For those who do not sign up for online or automated payments from your bank account, there is a $ 7 fee for processing paper checks.

Apply for a LendingClub personal loan

You can apply on the LendingClub website in minutes by providing basic information, such as your name, address, how much you need and how you plan to use the money.

Applying online triggers a gentle credit check, so it doesn’t affect your credit report. After that, you will be given a number of loan offers to choose from. Each will list the loan amount, term, APR, and how much you can expect to pay each month.

You choose the loan package that best meets your needs, then you will complete the entire application and provide any additional required documents, such as bank account information. At this point, LendingClub will perform a full credit check.

Once your loan is placed in the LendingClub marketplace, one or more investors may choose to support your loan application with funds. From start to finish, the entire LendingClub loan process typically takes around seven business days.

Where to find alternatives to LendingClub

If you have a stable job, fair credit (at least), and easily documented financials, then LendingClub is a great option for a personal loan. You will get your money’s worth fast and enjoy solid customer service.

If, however, your financial situation is a bit more complex or you prefer to speak to a banker in person during the lending process, you may want to consult a more traditional lender. Our guide to the best personal loans can help you compare your options.

You can also see how LendingClub compares to others personal credit fair credit here or bad credit personal loans here.

Want to see how LendingClub stacks up against other lenders? Check out these other guides:

How we rated LendingClub’s personal loans

LendingClub’s personal loans received an editorial rating of 4.5 / 5. LendEDU rates personal loans based on various data points including rates, terms, fees, time to finance, availability of flexible credit checks, and more. You can find out more about our rating methodology here.

Ready to apply for a LendingClub personal loan? Check your rate without impacting your credit score with a gentle credit check.

Tariffs (APR)


Loan amounts

$ 1,000$ 40,000

All loans made by WebBank, FDIC member. Your actual rate depends on credit score, loan amount, loan term, and credit usage and history. The APR varies from 6.95% to 35.89% *. The set-up costs vary from 1% to 6% of the initial principal balance and are deducted from the proceeds of your loan. For example, you could receive a loan of $ 6,000 with an interest rate of 7.99% and a 5.00% origination fee of $ 300 for an APR of 11.51%. In this example, you will receive $ 5,700 and make 36 monthly payments of $ 187.99. The total reimbursable amount will be $ 6,767.64. Your APR will be determined based on your credit at the time of the request. The average set-up charge is 5.49% in the first quarter of 2017. In Georgia, the minimum loan amount is $ 3,025. In Massachusetts, the minimum loan amount is $ 6,025 if your APR is over 12%. There is no deposit and there is never a prepayment penalty. Closing your loan is subject to your agreement to all required agreements and information on the website www.lendingclub.com. All loans through LendingClub have a minimum repayment term of 36 months. The borrower must be a U.S. citizen, permanent resident, or be in the United States on a valid long-term visa and be at least 18 years of age. A valid bank account and social security number are required. Equal housing lender. All loans are subject to credit approval. LendingClub’s physical address is: LendingClub, 71 Stevenson Street, Suite 1000, San Francisco, CA 94105.

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