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LendingClub Personal Loans Review: Top Pick for Joint Loans, Low APRs

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LendingClub is one of the most experienced non-bank personal lenders in the market. In fact, LendingClub has lent more than $44 billion to over 2.5 million customers since 2007. In this LendingClub personal loans review, we’ll see if they make sense for you.

LendingClub

Logo for LendingClub
Rating image, 4.0 out of 5 stars.
4.0/5

Minimum Credit Score

600

Loan Amounts

$1,000- $40,000†

APR Range

8.05% - 35.89%

Term Length

36 or 60 months
  • Lending Club is ideal for borrowers who want to consolidate high-interest debt. Say a person has five credit cards, each charging 17% interest. By consolidating their high-interest debt into a single peer-to-peer loan, a borrower can save hundreds of dollars in interest. As an added benefit, Lending Club will directly pay off third-party debt, taking that task off the plate of the borrower.

    • Wide range of loan amounts, ranging from $1,000 to $40,000
    • No prepayment penalty
    • Allows for joint applicants, as long as one borrower meets credit standards
    • Funding time takes a minimum of seven days
    • Origination fees

Full LendingClub review

Top perks

Soft credit pull: LendingClub allows potential borrowers to check their interest rate and loan terms without a hard credit pull, so it won’t affect your credit score to pre-qualify.

Loan amounts: LendingClub makes personal loans in amounts ranging from $1,000 to $40,000. This isn’t the widest range in the industry, especially on the top end, but a $1,000 personal loan can be difficult to find elsewhere.

Rates for borrowers with strong credit: With APRs starting at 6.95%, LendingClub could be a relatively inexpensive borrowing option for people with strong credit, especially if the loan is being used to consolidate high-interest credit card debt.

No prepayment penalty: LendingClub doesn’t charge prepayment penalties or application fees.

Loan terms: LendingClub offers personal loans with terms ranging from three to five years.

Transparent credit standards: Unlike many other personal lenders, LendingClub is quite transparent about its minimum credit qualifications, which we’ll discuss in detail later on.

Joint applicants: Most personal lenders don’t allow for joint applications, but LendingClub does, as long as one borrower meets its credit standards. The other applicant must meet other, more relaxed, standards, but this makes LendingClub a good choice for borrowers who need to apply with a cosigner.

What could be improved

Funding time: It takes a minimum of seven days to receive your loan proceeds. Because your loan comes from investors, and not the lender’s capital, LendingClub needs to find backers to fund your loan. While this isn’t necessarily a deal-breaker, it’s considerably longer than many other personal lenders take.

APR range: LendingClub’s personal loan APRs range from 6.95%-35.89%. While the low end is quite competitive, the high end of this range is among the highest in the industry.

Origination fees: LendingClub charges an origination fee ranging from 1%-6% of the loan amount, based on the borrower’s credit rating. To be clear, this is reflected in the APRs mentioned above. In contrast, many of LendingClub’s competitors don’t charge origination fees at all.

How to qualify for a LendingClub loan

As I mentioned, LendingClub has specific minimum credit standards, including a minimum credit score of 600, at least three years of credit history, and a debt-to-income ratio of 40% or lower. In addition, LendingClub allows for joint applications, as long as one borrower meets the minimum standards.

While LendingClub has some of the looser credit standards in the industry, it’s important to realize that only borrowers with excellent credit will qualify for the best loan terms.

LendingClub personal loan amounts

LendingClub makes personal loans ranging from $1,000 to $40,000. However, it’s important to realize that your qualifications need to justify the loan amount you request. In other words, even if you have excellent credit, you aren’t going to qualify for a certain loan amount unless your income and other debt obligations justify it.

How to apply for a LendingClub personal loan

You can apply for LendingClub’s personal loans directly on their website. As I mentioned earlier, you can check your interest rate and loan term options without affecting your credit score. If you decide to move forward, you’ll then choose the loan offer that suits you best and formally apply. (Note: Once you actually apply, a hard credit inquiry will be conducted.)

The application process is rather quick, but because of the nature of LendingClub’s business model, it can take some time before the money shows up in your bank account. LendingClub advertises that you can “get your money in as little as 7 days,” while several other lenders fund loans considerably faster.

Alternatives to consider

As of Jun. 10, 2022
Lender
SoFi
Marcus
Rating
Rating image, 5.0 out of 5 stars.
Rating image, 5.0 out of 5 stars.
Min. Credit Score
680
660 FICO score
Loan Amounts $5,000 - $100,000 $3,500 - $40,000
APR Range Fixed: 6.99-22.23%. APR (with all discounts) 6.99% - 19.99%
Next Steps
Disclaimers

*SoFi Personal Loan Disclaimer

Fixed rates from 6.99% APR to 22.23% APR APR reflect the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi rate ranges are current as of 6/15/22 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account

*Marcus by Goldman Sachs Disclaimer

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose, our evaluation of your creditworthiness, your credit history, if we have recently declined your loan application and the number of loans you already have with us. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. You may be required to have some of your funds sent directly to creditors to pay down certain types of unsecured debt. Receive a 0.25% APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.

This personal loan is right for you if:

In a nutshell, LendingClub personal loans make sense for borrowers with strong credit histories, stable employment, and a relatively low debt-to-income (DTI) ratio. LendingClub’s loan terms are quite competitive -- on the low end of its APR and origination fee ranges -- but in order to get the best terms, you’ll need top-notch credit and a low DTI.

It’s also worth pointing out that if you need to borrow more than $40,000, there are other lenders who could be better options. Some of our favorite personal lenders will make loans for as much as $100,000, so if you need a large loan, be sure to explore all of your options.

Finally, LendingClub can be an excellent option for borrowers who need to apply with a cosigner, or who want a joint account. For example, if you and your spouse both want to be responsible for the loan, that’s possible with a LendingClub personal loan, but isn’t available through many competitors.

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