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LendingClub

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75 User Reviews

7.0

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LendingClub is a peer-to-peer lending marketplace. Founded in 2006 and headquartered in San Francisco, California, the company's lending platform connects borrowers with people looking to invest. It funds business loans, auto refinancing loans, medical loans, and personal loans for many purposes, including debt consolidation and credit card refinancing. 

How does the LendingClub process work?

Consumers can pre-qualify online, either individually or with a cosigner. This means that you can check which rates you will likely be offered, and whether you qualify to borrow, all without impacting your credit score.

Once you select a loan offer, you fill out the real application. Only once your loan application is approved, a hard pull is done on your credit report, with the traditional credit bureaus. Your funding will be available in about four days. 

LendingClub provides fixed-rate loans to applicants with good to great credit. Loan amounts vary from Most borrowers use the company's loans to as debt consolidation loans, to refinance higher-interest loans or credit card debt. After having a personal loan for three months, some borrowers have been able to raise their FICO score by 21 points.

Approved loans are fully funded by lending partner WebBank, member FDIC. Since January of 2018, all loans issued through the LendingClub platform have been issued with 100% investment backing for the full amount approved (as of March 2019). Most loans are fully invested in and issued within three days of approval. LendingClub is the largest online personal loan lender in the world, having provided over $50 billion in loans since 2008.

Keep reading for pros and cons, plus LendingClub reviews from consumers like you. 

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The Good

  • Few Fees
  • Simple Online Loan Application
  • Investment Opportunities
  • Lender Statistics

Few Fees

A huge money-saving feature of a LendingClub personal loan is the lack of a prepayment penalty — common in the personal industry, but not a feature adopted by everyone.

For example, if you take out a $10,000 personal loan to consolidate multiple high-interest debts with a maximum loan term of 36 months (three years) and are able to pay it off in only a year and a half, you will not have to pay as much interest as you would have otherwise and you will not be assessed a fee for paying the loan off early (a common loan personal loan fee with traditional lenders). 

The opportunity to make early principal payments, without a fee, can be worth thousands of dollars in savings over the lifetime of the loan.

In additon, you'll never have to pay an application or broker fee.

While LendingClub doesn't have excessive fees, it does charge an origination fee ranging between one and six percent of the total loan, depending on what loan grade a borrower has been given. This fee is included in your quoted APR.

Simple Online Loan Application

Applying for a personal loan from LendingClub takes very little time and energy. You can even check your rates without affecting your credit score. 

To apply, first, you will be required to provide basic information (loan amount, purpose of loan, and your credit score). Next, you will be required to provide basic personal information (name, address, date of birth, yearly individual income). 

After providing this information, you will be presented with a number of different personal loan options. These will likely vary in both total dollar amount and maximum term limit. These quotes are provided to you through a soft credit pull that won't affect your credit score.

The process for getting your rates can take as little as five minutes. After doing careful research, you will be able to choose the LendingClub loan that best meets your needs. From there, your loan will be listed and made available to the network of peer-to-peer lenders that LendingClub uses. These lenders review your profile and can choose to fund part or all of your loan. 

Investment Opportunities

Consumers can open a LendingClub account and invest in the marketplace, to earn returns by helping to fund peer-to-peer loans. Historical returns for investing range from 5 to 8 percent. 

Lender Statistics

It's not common practice for a lender to provide easily accessible information about loans issued, and repayment, as well as late and default statuses. LendingClub even provides a full page of statistics about recent loans, payments, and investment returns. Shadier lending sites omit this type of transparent information. 

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The Bad

  • Low-Credit Approval is Difficult
  • Low Debt-to-Income Ratio Required
  • High Interest Rates

Low-Credit Approval is Difficult

The most consistent complaint among LendingClub applicants is the company's potentially challenging approval process. 

The company requires higher than average scores for its minimum credit approval, compared to other traditional and online lenders. While some lenders have a minimum credit score listing of 620 or 640, only applicants with good to excellent credit history are approved for a LendingClub In fact, the average LendingClub borrower has a 699 credit score and roughly 16 years of credit history.

Further, LendingClub does not approve applicants who have had any late payments on their report in the last 12 months. Because of these reasons, it can be a huge challenge for applicants with bad credit to get approved.

Low Debt-to-Income Ratio Required

Similarly, the debt-to-income ratio required for approval is much lower than some other competing personal loan companies, making it more difficult for applicants to qualify. According to LendingClub, the average debt-to-income ratio of its borrowers is 18.32% (not including a mortgage). This means that an applicant with an income of $40,000 a year and has over $10,000 in debts (a 25% debt-to-income ratio) is going to have a difficult time being approved. 

Many individuals looking to consolidate debt will have a much higher debt-to-income ratio than what is required by LendingClub for approval.

High Interest Rates

LendingClub personal loans have APR rates that are slightly higher compared to others in the industry. The lending site advertises fixed rates ranging from 10.68% to 35.89%* (as of June 2020), which is on the higher side of the personal loan APR range, however those with great credit score should be able to secure a fair interest rate.

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The Bottom Line

LendingClub offers personal loans to good to excellent credit applicants at fair interest rates. These loans are ideal for consolidating high-interest debt. 

How's your credit history?

For applicants with good credit, decent income, and a relatively low debt-to-income ratio, LendingClub is a good option for taking out a personal loan. Conversely, if you have fair to poor credit or a high debt-to-income ratio, you will likely not find success with LendingClub.

*All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage and history. The APR ranges from 10.68% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 9.56% and a 5.00% origination fee of $300 for an APR of 13.11%. In this example, you will receive $5,700 and will make 36 monthly payments of $192.37. The total amount repayable will be $6,925.32. Your APR will be determined based on your credit at time of application. The origination fee ranges from 2% to 6% (average is 4.86% as of 7/1/2019 – 9/30/2019). In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,001 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.

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Star Rating

4.2

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75 Reviews

Review Breakdown

5 grade

56%

4 grade

27%

3 grade

5%

2 grade

4%

1 grade

8%

Sentiment Criteria

Value

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Quality

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Service

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Trustworthiness

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Tachevyman Statesville, NC

LendingClub was easy to get approved seemed to be good no problem, only thing i did not like was when i payed the loan off they did not show to the credit bureau the loan was paid off in full. I had to take care of this myself through Experian

1 week ago

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Andrea Wheaton, IL

I had a great experience with lending club when I needed to consolidate my credit card debt. The best part was I felt connected to the person lending the funds. That connection made me feel like I was being supported for my good financial decisions. The rate was fantastic and I will definitely use them again if I need to!

1 month ago

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H Duncan Columbus, OH

I was looking for a personal loan for credit card consolidation and checked with and applied for a Discover loan. I was approved but instead of giving me the quoted rate that corresponded to my credit score on their website, they offered me a rate of 22%. Then when I turned down the loan they came back with 20%. I applied with the Lending Club and was approved quickly with my full loan being funded within an hour. The whole process from applying to the funds being placed into my account was three days! I was given the APR that was offered through my pre approval. The whole process was simple, quick, and pain free. I would recommend the Lending Club to anyone looking for a personal loan!

5 years ago

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Rich H Dunedin, FL

Couldn't ask for more! I once had stellar credit but after going through a lengthy divorce, losing my high paying job of 26 years due to downsizing my credit went in the hole. I was strapped with high interest debt and couldn't get out. I contemplated chapter 13. Last Sunday morning after a horrible nights sleep I got up and decided to give Lending Club a shot. After filling out a simple application, I was qualified for $19,000 loan. I applied for 15,000. Later that day I received an email saying my loan was funded? I couldn't believe that it could be this easy. I didn't celebrate because I was still skeptical. I had a small checklist which was verifying my email and bank account. Wednesday I received a small deposit and withdrawal in my bank account which allowed me to verify with LC. I received an approval minutes later! Still not believing that this was true I didn't celebrate. Well Friday morning I opened my bank account and the full $15,000 was in my account!! Time to celebrate! 6 days including Columbus day bank holiday! Wow, Thank you Lending Club for believing in me when no one else did. You gave me the chance to turn my financial mess around which I am going to take complete advantage of and get my credit scores back up. I couldn't be happier! Thank you again!

5 years ago

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Greg Lewisville, TX

I received a loan offer from another company and decided to go online and review information about their service. I found more than one link that noted they were "OK" but found Lending Club to be better for a number of reasons. I then researched Lending Club and found some really good information and decided to give them a try. I visited the Lending Club site and reviewed all of their documentation and found it acceptable. I entered my loan request on Thursday afternoon. The request process was simple and I received immediate notice for the tasks that I needed to complete, including verification of my bank acct information. My "to do list" was completed on Friday and I received notice that was loan was accepted and fully funded on Saturday and my funds were deposited into my acct on Tuesday. I have received and reviewed my loan payment information. I highly recommend Lending Club!

5 years ago

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amycray Bangor, ME

Everything went fine with my loan but the website wasn't very easy to use

3 weeks ago

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Craig

great company and they will help you. they are committed

3 weeks ago

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Gregory VA

I couldn't believe how amazing Lending Club is. At first I thought it was too good to be true, but I was wrong! Everything was simple and fast, the one time I had to call in for verification, the gentleman helping me provided excellent customer service. The whole process only took a few business days. Now I am in a better position for a great financial future. Thank you Lending Club!

5 years ago

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Arnell East Orange, NJ

Smooth process that resulted in a great loan. I was able to make some ends meet and meet other obligations so I could keep my good standing--credit wise. At any rate, I did do some checking and read reviews before applying, and I saw people complaining about not getting a loan. Lending Club is legit and has reasonable affordable rates.But there is main requirements you must have a job--that pays over $55k/yr and no Bankruptcy. Overall, I am satisfied with Lending Club and I will pay off this loan and re-apply again.

5 years ago

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Junior Pickett, WI

We are grateful to Lending Club and the lightening fast solution to our credit card situation. In a very short period of time, we were able to pay off $22,000 in credit card debt , which was beginning to seem insurmountable. We now breathe a sigh of relief -- having an affordable payment plan--and the knowledge that we will be completely debt free in 3 short years!! Thank you Lending Club!! I would and have recommended this plan to anyone!!

5 years ago

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Marianne Colorado Springs, CO

After my bank of 20+ years refused us a debt consolidation loan to pay down some credit cards rates ( theirs of course) that had soared to 23%+. I was feeling seriously depressed, and trapped. Lending Tree came through at a rate better and it was easy. They trusted my credit score, my track record and allowed us to save over $6K in interest. I cant wait to change banks..bye bye US Bank!. Thank you Lending Tree for helping those of us that are getting squeezed by big banking!!!! I love Lending Tree!

5 years ago

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Cheryl Glendale, CA

I have had a loan with Lending Club for almost 2 years. The experience has been exactly as expected. I got the loan that I wanted, with a rate far better than the credit cards. I have a phone number to speak to a live person but haven't needed to use it. I am comforted that they have offices that I can find, a phone number with live people and no need to use either of them. They are the real deal. I also enjoy the fact that this is peer to peer lending. Someone real is collecting the interest rather than a faceless conglomerate.

6 years ago

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Paul Moore New Philadelphia, OH

I tried getting a loan from another company and every time I thought they were ready to close, they wanted more information. I read the reviews for this company, applied, sent the necessary documents, and within about three (3) days maximum, the money was in my account. I would definitely recommend Lending Club.

5 years ago

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CG Oak Park, IL

My experience was a very good one! I thought the process would take a lot longer, but it was pretty fast and I was able to apply and receive money in my account less than a week. I have already recommended Lending Club to a friend who has begun their process as well. Great service and experience!

5 years ago

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Dan San Mateo, CA

I was hesitant at first, but decided to give it a try. Process wise, things went well, I regularly checked my application status online and provided requested information. It took about 4 days and so far I feel good about it.

5 years ago

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Gigi Batchelder

Although loan process took a bit longer than I was expecting (just under a month) I was very satisfied with the folks at the Lending Club. mY only recommendation would be a bit more clarity that the 14 days average is actually 14 business days not calendar days - and a bit more clarity of "we're working on it" to say "we're working on it - if you don't hear from us within xx hours than feel free to check in. Otherwise - great, professional experience.

5 years ago

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GTRacer

You would think that being an online company, they would be more flexible in their services. While the loan process and funding went great, I am trying to make my July 2nd payment on June 15th and I can't. Well, I can but I have to change my payment date. Why can't they just have a way online like banks and credit card companies to allow a customer to make the payment when they choose? This is actually very inconvenient for me whose pay periods vary.

5 years ago

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Steve Ashby Portland, OR

Giving LendingTree my info has been the worst thing I did in the last year...and this has been a bad year. They have given out my information to the refinance world and they won't leave me alone!

3 months ago

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Deborah Bastien Guyton, GA

I was approved but very high-interest rate. I paid them off as soon as I could.

1 month ago

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Joanna

Wasn't for sure that I would get a loan with my low credit score. But they did give more then what the loan was for on paper. These people are the best they will work with you to help you out. Thank you. Joanna

5 years ago

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Raquel Leal Los Angeles, CA

I am truly grateful for taking the chance to apply for a loan and approved. My experience has been great with lending club and my credit score for sure went up after paying my credit cards. Thank you Lending Club.

5 years ago

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Derek Bruss Virginia Beach, VA

Very skeptical and looked at getting help with with credit cards for some time. Took a chance and without a doubt one of the best experiences I have had. If your thinking about it just do it.

5 years ago

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Fern

The whole application process took a few minutes and loan approval a couple of days. The loan funds were deposited in my checking account in four days. My first experience with Lending Club has been fantastic!

5 years ago

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Fern CA

The application process was super easy. I was able to use the funds from the loan within a week. I was given a great low interest rate without having to beg or negotiate. I highly recommend Lendind Club.

5 years ago

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cindy Miyamoto North Hollywood, CA

This process was quick and easy. No unforeseen questions or documentation needed from me. Follow up questions were answered within a timely manner. I would definitely recommend this website to all my friends.

5 years ago

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Glenda Glenview, IL

I finished paying my 3 year loan and had no issues whatsoever. I even paid 6 months early. Everything went smoothly. My only complain is that, when I tried to get a second loan, they gave me a worst APR than Prosper loan. Makes no sense to me. Of course I'm using Prosper now.

5 years ago

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Anthony Castellano Denver, CO

Lending club does not waste anyone's time as they ask questions that can be answered to provide a sensible response to those seeking a loan. Others don't seem very authentic ! Honest !

5 years ago

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Keenan wimbley Garland, TX

Very customer friendly and helpful to people. I can call anytime for questions. To my knowledge, loans are deducted from your bank only. Don't like the Apr rate.Think since I haven't used a lot of lenders, this a fair rating.

5 years ago

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Breyanna Odenton, MD

Applying for LendingClub was quick and easy. Since you are automatically signed up for the automatic payments I never have to worry about my monthly bill. I used their services for my credit card debt consolidation. If I ever need a personal loan again I will be sure to use this company.

1 year ago

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Ted Johnson Pleasant Grove, UT

I have had loans with Lending Club and they are easy to apply and get approved for. They are easy to pay and keep track of payment and interest. They are quick to get you the money you need and the interest rate doesn't kill you.

1 year ago

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Ashley Pleasant Grove, UT

We took out a personnel load through Lending Club for just 2 days when we knew we could pay it back right away. It was easy to do showing our work history, and showing our previous pay stubs. It was a very high interest rate but for just 2 days it saved us and it was worth it. If you get in a bind and need money quick I suggest going to Lending Club for your needs.

1 year ago

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Reese Pleasant Grove, UT

Lending Club is a great option to borrow money. They match you with the right terms and person who lends you the money and the rate matches the situation and everyone agrees and then they have easy tracking and I can see online exactly what I need to do to pay if off as soon as possible.

2 years ago

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Amy Leifi Orem, UT

I was in a really difficult spot, and Lending Club approved me for a loan. I almost thought it couldn't be real because of how easy it was. Everything on their site was simple to understand and follow to fill out, the approval was instant and I had the money within 2 days. I could hardly believe it. I would definitely recommend Lending Club to anyone else.

2 years ago

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tulips7 Woodside, NY

I never give bad reviews but it's been one horrible experience after another within a month. Their customer service is horrible. I scheduled a payment that didn't go through on time, then when I called to complain and ask for information about discrepancy with interest rates they cannot give me a decent answer. On top of that they proceeded with an unauthorized payment charge on my checking causing me to overdraft. They like to give you the run around without really resolving issues and blames it on "the new system". Horrible!

1 year ago

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CYNTHIA LEWIS

I have just received notice that you closed my account and you did not State My Account was in Good Standing and that my Loan had been paid in full and it took me M, A, M, J, J, A, S, O, to pay my 6000.00 dollar loan off at a 39.99% rate. Which is so creeping high, but I did it and now you want make this known on my Credit Report, I am looking forward to you resolving this in a positive manner. PEOPLE READ MY COMMENT AND LEARN,,,,I PAID THIS OFF EARLY AND THEY STILL TOOK FUNDS OUT AND REFUND ME THE AMOUNT THEY TOOK AND IF YOU PAID IF OFF EARLY YOU GET NOTHING BUT CHANGE BACK 8 months NEVER LATE AND PAID IF OFF BEFORE 5 YEARS.

3 years ago

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F. Miller El Dorado Hills, CA

I would recommend the lending club to anyone who has a need for a loan and has 7 - 10 calendar days of time available before they actually need the cash. They are efficient and professional. I would use them again.

5 years ago

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Saskia Brooklyn, NY

My experience was very good. The best part was how quick and efficient the process was. Also you receive reminders so you won't be late with payments.

5 years ago

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Heidi Lieb Miami, FL

Overall I like how they operate, but I did not like they slapped on a $800 fee for the loan. So if you ask for a 10,000 loan you will only get 9,200. and they don't tell you that. I also don't like I have to change my payment date if I want to pay sooner.

5 years ago

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Andrew Reynolds Lake Zurich, IL

Just closed on a $15,000 personal loan. The terms & conditions were good. Good customer service with loan management. Hopefully, after a couple of months of payments, I can draw some more money out.

6 years ago

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Damien kore Venus, TX

Please do not borrow from lending club. It is a very dishonest company. I took out a $ 14 000.00 loan with them back in 2017. I Made payment for almost three years to bring balance down to $ 8700 . On october of 2019. I refinanced my house and sent them a $ 9000 checque thru my mortgage company to pay off the remaining balance (8700) of my loan. Basically i overpaid my loan, and i have been trying to get back my $ 300 . they have been giving me the round around. .

1 year ago

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Brinley Knowles Smithfield, UT

Lending Clubs customer service was amazing, they were so helpful answer all my questions and concerns. I definitely will be using Lending Club in the future.

2 years ago

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Thomas Hullinger Pleasant Grove, UT

The Lending Club gave me a good rate on the money that I needed and have been great to work with. It is easy to track my loan and make payments on line.

2 years ago

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Cheryl Summit, NJ

From start to finish I was truly amazed how great the website was to apply and the progression to finish was so easy. Would recommend to everyone

5 years ago

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Crandall King Of Prussia, PA

Very smooth process and I received funds in 4 days. Definitely not the usual "get a loan" intrusive headache. Great service!

5 years ago

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Pat Santa Ana, CA

Quick and easy with good rates. I had to call customer service for my mistake and they fixed it over the phone with great courtesy and respect.

5 years ago

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Dean Ogden, UT

My experience with Lending Club wasn't a great one but I also know that when getting a personal loan outside of a bank or credit union it can be quite pricey. The fees were high and interest as well. The did however help me out of the jam that I found myself in so for that I am grateful.

2 years ago

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Becky Rasmussen American Fork, UT

Competitive financing rates with well trained staff that is knowledgeable on a creative solutions and loans to fit a variety of circumstances with quick closing turn around.

2 years ago

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Tom Pleasant Grove, UT

They are easy to do and they have great customer service, but they are very pricey and not good to do for a long period of time.

2 years ago

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Harriet Keene Kent, WA

I was denied a loan by Lending Club. No problem. I have a problem with them following with an email encouraging me to apply at One Main. I did. Denied instantly. I did not need the extra report effecting my credit score. Why they sent me that email encouraging me to apply elsewhere was unnecessary and unappreciated.

3 years ago

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Valerie Gundersen American Fork, UT

The process was very easy and my loan was approved right away! I appreciated the friendly representatives that assisted me.

3 years ago

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