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.  If qualified, you select a loan offer, which includes several things: 

  • Loan amounts
  • Interest rates
  • APR (interest rate + origination fee)
  • Loan terms (36–60 months)
  • Fixed monthly payment amounts

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. 

The Good

  • Competitive Interest Rates
  • No Prepayment Penalty
  • Simple Online Loan Application
  • Investment Opportunities
  • Lender Statistics

Competitive Interest Rates

LendingClub personal loans offer some of the lowest APRs in the industry. The platform's credit marketplace aims to use its borrower screening technology to offer lower rates than the same customers would get at a traditional financial institution. The lending site advertises fixed rates ranging between 6.95 percent and 35.89 percent*, but there is one exception: an incredibly low 4.99 percent APR for applicants with exceptional credit. However, the majority of applicants receive an APR of 7.26 percent to 25.72 percent. These low rates make LendingClub a top choice for consolidating high-interest debt.

No Prepayment Penalty

Another money-saving feature of a LendingClub personal loan is the lack of a prepayment penalty. 

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.

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 5–8 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

  • Only Accepts Good to Excellent Credit
  • Low Debt-to-Income Ratio Required
  • Origination Fees

Only Accepts Good to Excellent Credit

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.

In July 2019, LendingClub removed grade E loans from its platform. 

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 percent* (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 percent 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.

Origination Fees

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. 

The Bottom Line

LendingClub offers personal loans to good to excellent credit applicants at very low 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.

*APRs current as of May 2019.

**All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.95% to 35.89%. 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 will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. 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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User Reviews

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64 Reviews

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Sarah Watters
October 7th, 2019 Quinlan, TX

I started the loan process with them but there were so many hoops to jump through, I cancelled midway through the process. They keep sending me reminders to complete the process, though.

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Barry Henline
October 1st, 2019 Logan, UT DETAILS
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Better than most online companies that I've dealt with. Online applications and documents were easy to understand and submit.

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Ted Johnson
September 23rd, 2019 Pleasant Grove, UT DETAILS
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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.

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Ashley
May 20th, 2019 Pleasant Grove, UT DETAILS
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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.

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Dean
May 14th, 2019 Ogden, UT DETAILS
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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.

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Reese
May 10th, 2019 Pleasant Grove, UT DETAILS
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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.

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Brinley Knowles
January 16th, 2019 Smithfield, UT DETAILS
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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.

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Maya Lewis
October 31st, 2018 Pleasant Grove, UT DETAILS
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Great company. Easy to work with. Quick, efficient loan when we needed last minute funds.

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Amy Leifi
October 23rd, 2018 Orem, UT DETAILS
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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.

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Leslie
August 29th, 2018 West Jordan, UT

I took out a personal loan to consolidate credit card debt. The process was simple and quick and their website is easy to use.

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Thomas Hullinger
August 28th, 2018 Pleasant Grove, UT DETAILS
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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.

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Catherine Taliulu
August 20th, 2018 Salt Lake City, UT

The website is easy and helpful. The convenience and ease of it is a bonus.

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Becky Rasmussen
August 20th, 2018 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.

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Tom
June 12th, 2018 Pleasant Grove, UT DETAILS
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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.

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Harriet Keene
January 15th, 2018 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.

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CYNTHIA LEWIS
December 18th, 2017 DETAILS
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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.

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Valerie Gundersen
December 18th, 2017 American Fork, UT DETAILS
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The process was very easy and my loan was approved right away! I appreciated the friendly representatives that assisted me.

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steve
May 11th, 2016 Sacramento, CA

Easy! Smooth! This was the least encumbering loan process I've ever encountered.

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Greg Tompkins
May 10th, 2016 Charleston, SC

Best experience getting a loan I have ever had. Fast, easy, and all on-line. I highly recommend them!

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Joanna
May 6th, 2016

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

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Gary Langsdorf
April 20th, 2016 Pittsville, WI

Thank you for making our experience an easy and wonderful one. The whole process took about a week.

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Raquel Leal
April 19th, 2016 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.

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Derek Bruss
April 11th, 2016 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.

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Fern
April 5th, 2016

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!

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Fern
March 31st, 2016 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.

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Cheryl
March 29th, 2016 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

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pete sylvester
March 29th, 2016 Itasca, IL

Fast turnaround, final rates were as quoted.

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Steve
March 21st, 2016 Glen Mills, PA

The process is quick and painless?. 100 percent funded and money in the bank in less than five days. Thank you Steve

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Crandall
March 21st, 2016 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!

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cindy Miyamoto
March 21st, 2016 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.

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Ricky
February 25th, 2016 Atlanta, GA

Great experience! ! Super easy, &fast!! Took all of 2days and money was in my account! !

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H Duncan
February 25th, 2016 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!

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Gregory
January 26th, 2016 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!

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Robert Graves
January 7th, 2016 Buffalo, NY

The whole process was quick and easy. Approval was faster than expected and I had my money shortly after that.

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Arnell
December 18th, 2015 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.

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Junior
November 16th, 2015 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!!

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Paul Moore
November 13th, 2015 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.

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Marianne
November 5th, 2015 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!

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F. Miller
November 3rd, 2015 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.

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Yvonne
October 28th, 2015 Charlotte, NC

I was very pleased with the process from beginning to end. Very simple and no hassle.

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Rich H
October 16th, 2015 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!

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Vickie Newton
October 12th, 2015 Baton Rouge, LA

Fast friendly great business.

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Pat
October 9th, 2015 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.

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Brenda
October 5th, 2015 Sun City West, AZ

Fast and easy process. Interest rate was higher than advertised. Got money in just a few days.

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CG
October 1st, 2015 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!

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Sharon
September 30th, 2015 Cobleskill, NY

Excellent service and personalized care to make this the easiest procedure ever!

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Greg
September 28th, 2015 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!

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Dan
September 25th, 2015 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.

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Gigi Batchelder
September 25th, 2015

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.

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Casmuir long
September 21st, 2015 Philadelphia, PA

The process of getting a loan from Lending club was simple , fast which made my experience very good. I'll be sure to definitely tell a friend.