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LendingClub

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5.8

Overall Score

Author: Kaitlyn Short

LAST UPDATED: March 1st, 2024

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

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4.3

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103 Reviews

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5 grade

60%

4 grade

23%

3 grade

7%

2 grade

3%

1 grade

7%

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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!

9 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!

9 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!

9 years ago

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J MAN Honolulu, HI

I've had 2 loans with LendingClub, the first being in response to a mailer & the second as a special incentive after exceptional payment history following payoff of the first. I would highly recommend for anyone who's financially responsible, in need of financial assistance & will benefit from support to build future credit based an living up to the terms of their personal loan. A+

3 years 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!

9 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.

9 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!!

9 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!

9 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.

9 years 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!

4 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.

9 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!

9 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.

9 years 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

8 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.

8 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.

9 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!

9 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.

9 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.

9 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 !

9 years ago

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Pamela Bittner Arlington, TX

I had a wonderful experience with Lending Club. The application process was easy, the approval was quick and the funds were available quickly also. I paid on the loan the required two years and this month it will be paid off. A wonderful experience and so easy!

2 years ago

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Lisa Cato Lake City, FL

I have had several loans with Lending Club. Even with my fair credit rating the interest rates were still affordable. I was able to renovate my home and still pay the loans off. My credit score has improved because of my relationship with Lending Club

2 years ago

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Cynthia Landing IL

I’m on my third personal loan with LendingClub I must admit I love borrowing money from them with low interest rates, no penalties for early payoffs, affordable payments and you have the option of choosing your date of payments. I have automatic payments, no collateral is required this company meets all my needs their services are amazing

2 years ago

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M. Nielsen South Bend, IN

I have had 2 loans thru lending club, they are very helpful and the website is very user friendly and easy to navigate. Was quick to be approved and terms were fair and payments manageable. I would use them again in the future.

2 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.

4 years ago Edited September 14, 2021

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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.

5 years 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.

5 years ago

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Chad Edgar Wentzville, MO

Very wonderful place to have on your back if you need it's free and easy customer care it's so ready to help you since overtime weather do it they never lose their manners

3 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.

9 years ago

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Noa Ranoa Vista, CA

LendingClub bailed me out in 2018. I consolidated 30k in bills and saw in color again. The application process is Fast and money was in my bank within days. A higher credit score will benefit you.

2 years ago

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Sheila Burns Dickson, TN

I just recently got a personal vacation loan from Lending Club. They always make the process so simple and convenient. Funding was quick as well.

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

9 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!

9 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.

9 years ago

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Tomas Tovias El Paso, TX

Lending tree has been a great company I am very happy the rates are low and the process was fast I knew instantly what my rate was and terms. There is nothing I diskike

2 years ago Edited January 25, 2023

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Linda Howard New Orleans, LA

I applied for a personal loan and the ease of the application process was a breeze. I paid my loan out early and was rewarded with another loan without any difficulties

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.

6 years ago

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Greg Tompkins Charleston, SC

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

8 years ago

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Gary Langsdorf Pittsville, WI

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

8 years ago

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Steve 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

9 years ago

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Robert Graves Buffalo, NY

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

9 years ago

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Tim Opiel Portland, OR

They helped me refinance my car at lower monthly payments. They have communicated promptly concerning issues with the previous lender.

1 year ago

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Christopher Taylor Saint Cloud, MN

I was approved for a loan very quickly and they helped me figure out what I needed to complete the process as well! Very helpful!

2 years ago

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Juan vega Bloomfield, CT

I’m currently using this company matter fact I use them 3 times on 3 different loan interest rate are a little high but good company to work with

2 years ago

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Samarra Miller Sarasota, FL

The first time Igot a loan it was lending club it actually helped me out so much and the pay back was easy no issues that was the best part

2 years ago

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James Moss Newton, IA

The company looked at my application and approved it when others wouldn't. They ask the same questions but found me credit-worthy.

2 years ago

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Jimmy tang Sacramento, CA

I like the company for it fast deposit an quick approval. One that caught me off guard was they charged a fee for the loan .

2 years ago

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Leslie 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.

6 years ago Edited September 14, 2021

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Annie Hickey Ormond Beach, FL

Lending club helped me with paying off debt and getting a better monthly payment.

1 year ago

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Gina Donofrio Lafayette, TN

This is very fair to all credit scores. They are quick in issuing loans and deposits.

2 years ago