LendingClub Personal Loans Review

LendingClub is an online lender that offers a variety of personal loan options

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LendingClub

 LendingClub logo

Investopedia’s Rating
4.0

LendingClub is a good choice for borrowers who need to take out more than one personal loan. While you’ll pay origination fees, LendingClub allows co-borrowers, making it a great option.

  • Pros & Cons
  • specifications
Pros & Cons
Pros
  • More than one personal loan is allowed

  • Co-borrowers are allowed

Cons
  • Has origination fees

  • Maximum loan amount is lower than average

  • Funding speed is slower than some lenders

specifications
APR Range
7.04% - 35.89%
Loan Amount
$1,000 - $40,000
Loan Terms
36 Months or 60 Months
Recommended Minimum Credit Score
620
Average Origination Fee
3.00% - 6.00%
Late Fee
$15.00 - 5.00%
Why Trust Us Investopedia collected key data points from several lenders to identify the most important factors to borrowers. We used this data to review each lender for fees, accessibility, repayment terms, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right borrowing decision for their needs. Read our Full Methodology
38 Lenders reviewed
40 Loan features considered
1,520 Data points analyzed
112 Primary data sources used

Pros Explained

  • More than one personal loan is allowed: Unlike most of the competition, LendingClub allows its customer to apply for and potentially receive more than one personal loan, in increments as low as $1,000 each. So, if you decide you need more funding in the future, you may be able to get approved for another loan with the company, even if you’re still repaying your existing loan.
  • Co-borrowers are allowed: If you’re unsure you’ll get approved for a personal loan based on your creditworthiness, LendingClub allows you to apply with a co-borrower. This is a feature that many personal loan providers don’t offer.

Cons Explained

  • Has origination fees: If you get approved for a personal loan from LendingClub, you’ll be required to pay an origination fee ranging from 3% to 6% (average fee is 5%). Many of its competitors don’t charge an origination fee. 
  • Maximum loan amount is lower than average: You can only get a loan of up to $40,000 with LendingClub, which is slightly lower than much of the competition. However, this is somewhat offset because you can apply for more than one LendingClub personal loan, with a combined limit of $50,000.
  • Funding speeder is slower than some lenders: With LendingClub, you can expect it to take a couple of days after your loan is approved, on average, to get funded. Many of its competitors offer next-day funding.

Introduction

LendingClub is one of the largest providers of unsecured personal loans in the United States. While LendingClub has a lower maximum loan amount than many other providers, its APRs and repayment terms are competitive, even when factoring in its origination fee. Plus, J.D. Power recently ranked LendingClub as a personal loan provider with one of the highest customer satisfaction ratings.

Personal loans from LendingClub may be an excellent option for people who need funding for expenses such as moving expenses, wedding costs, home improvements, medical bills, and debt consolidation. However, you’ll likely need a good credit score of at least 670 to qualify for the loan. If you don’t have good credit, you may be better off selecting a different provider.

Company Overview

LendingClub was founded in 2006 and is headquartered in San Francisco, California. The company operates in all 50 U.S. states and is one of the largest providers of unsecured personal loans in the U.S., with average balances of $991 million as of Q3 2021. In addition to offering unsecured personal loans, LendingClub offers a wide variety of other products, including secured consumer loans, business loans, and more.

Types of Personal Loans Offered by LendingClub

LendingClub offers an unsecured personal loan that can be used to fund such things as:

  • Moving or relocation costs: An unsecured personal loan from LendingClub can be used to cover moving costs. This includes paying for moving services, renting a truck, paying for temporary lodging (e.g., hotels while you’re traveling), making security deposits, buying new furniture, and more.
  • Wedding costs: You can use the funds from a LendingClub personal loan to cover wedding costs, including paying for the ceremony, reception, honeymoon, and more.
  • Home improvements: If you need to make improvements or repairs to your home, an unsecured personal loan from LendingClub can allow you to do this without pledging your home as collateral. 
  • Emergencies and funerals: You can use loan funds to cover unexpected expenses (e.g., medical or vet bills, funerals). This may be a better alternative than other high-cost forms of emergency funding, like payday loans or title loans. 
  • Debt consolidation and balance transfers: Your unsecured personal loan can also be used to consolidate balances from multiple credit cards or other high-interest rate debt into a single loan with a fixed rate and repayment term. This type of financing can help you save interest and repay what you owe more quickly.

To qualify for a LendingClub personal loan, you need to be at least 18 years old, be a U.S. citizen, permanent resident, or live in the U.S. on a long-term visa, and have a bank account the company can verify. 

You’ll also need an acceptable level of creditworthiness based on LendingClub’s review of your application, credit score, and credit history. You’ll likely need a minimum credit score of at least 670 to qualify for a LendingClub personal loan. If you’re concerned you won’t get approved on your own or are looking to get a better rate, you can apply with a co-borrower.

 You’ll get the best rates from LendingClub if you have a high credit score, a low debt-to-income ratio, and good credit history.

Time to Receive Funds

It takes about 24 hours for LendingClub to decide on most personal loans. If approved, you’ll generally receive your loan funds within 48 hours. You can expedite this process by making sure you fill out your application accurately and completely and respond to any questions from the lender as quickly as possible.

Borrowers can choose how to receive the loan funds from LendingClub. The options include having LendingClub send the funds to your creditors to consolidate debt or depositing the funds into your bank account.

LendingClub Personal Loan Features

LendingClub personal loans have a couple of standout features, including the options to apply with a co-borrower (many lenders don’t offer this option) and to use the loan to consolidate non-LendingClub debt.

Co-Borrowers

Unlike many personal loan providers, if you can’t qualify for a LendingClub personal loan on your own, you can apply with a co-borrower. Having a co-borrower can be a great way to get approved and start building a good credit history.

Using a co-borrower can be a risky relationship move, especially if you don’t repay the loan as agreed. If you decide to use a co-borrower, ensure that you make your loan payments on time.

Debt Consolidation

LendingClub personal loans can be used to consolidate existing high-rate debt from lenders other than LendingClub into a single, fixed-rate loan. Debt consolidation loans are especially beneficial if you have several credit cards with variable interest rates and other unsecured debt with high-interest rates.

You can’t use this personal loan to consolidate or refinance other loans with LendingClub. Loan funds can only be used to consolidate debt from other lenders or credit card companies.

Apply for a LendingClub Personal Loan

You can apply for a personal loan from LendingClub online by completing the following steps: 

  1. See if you qualify and check your rate: Before you officially apply, you’ll submit a form online with basic information. After completing this step, you’ll know if you meet the company’s basic eligibility requirements, if you’re likely to qualify based on a soft credit check (no credit score impact), and the estimated loan rate you’ll receive.
  2. Finish the loan application online and submit required documentation: Next, you’ll finish your loan application and submit any documentation required to verify your identity and income. Gather information like pay stubs, photo identification, recent utility bills, and bank statements before you apply.
  3. Check your application status online and wait for approval: Once you’ve submitted your application and all required documentation, the next step is to wait for the company to make a loan decision. This process usually takes LendingClub about 24 hours to complete. You can check the status of your application online by logging into your account.
  4. Review and accept your offer: If your loan is approved, review the loan offer in detail to make sure you understand the loan terms and rate you’ll receive. After you’ve thoroughly reviewed the loan details, you can accept the offer online.
  5. Receive your loan funds: Depending on the disbursement method you’ve chosen, your funds will either be deposited directly into your bank account or sent to your creditors. This usually occurs within 48 hours of accepting the loan offer, although the timing could vary.

Can You Refinance a Personal Loan with LendingClub?

You cannot refinance or consolidate an existing LendingClub loan with a new loan from the company. However, if you qualify, you’ll be able to get as many loans as you want from LendingClub in increments of $1,000, up to a combined limit on all loans of $50,000. Notably, the combined limit of $50,000 is more than LendingClub’s per loan limit of $40,000. So, even if your first loan is for $40,000, you may be able to get more funding.

Before deciding to approve you for additional personal loans, LendingClub will evaluate the balance and repayment terms on your existing loans, your payment history, and the status of your LendingClub account.

Even though you can’t refinance your loan with LendingClub, the option to apply and potentially get approved for more than one personal loan sets it apart from the competition.

Customer Service

If you need assistance, you can reach LendingClub’s customer service team by calling 1-888-596-3157 from 5 a.m. to 5 p.m. (PT) Monday through Friday or from 8 a.m. to 5 p.m. (PT) on Saturdays. The customer service team is unavailable on Sundays.

In addition to getting service by phone, LendingClub has a robust online library of quick answers to commonly asked questions. Before reaching out to the customer service team, it may be possible to get answers to your questions on the website.

Customer Satisfaction

A review of multiple sources shows that LendingClub’s customers are generally satisfied with the level of service it provides and the products it offers. However, LendingClub earned a below-average spot on the J.D. Power 2021 U.S. Consumer Lending Satisfaction Study. 

The J.D. Power study findings are especially relevant since they measure personal loan customer satisfaction performance based on lenders’ offerings and terms, how loans are managed, and the application and approval process.

Account Management

Borrowers can review and manage their loan accounts online through the LendingClub website. LendingClub also offers a robust online help center to answer frequently asked questions about getting and managing a personal loan. This lender’s account management tools and resources are standard compared to the competition.

How LendingClub Compares to Other Personal Loan Companies

LendingClub personal loans are available in all 50 states. Plus, you can apply for a LendingClub loan with a co-borrower and may be able to get approved for more than one personal loan in amounts as low as $1,000 each. These features make it stand out from the competition.

However, one drawback is that you can only get up to $40,000 in funding from LendingClub, an amount that’s slightly less than some competitors offer. Plus, you’ll need to pay an origination fee. Even so, LendingClub’s starting APR of 7.04% is reasonable compared to the competition.

LendingClub vs. Upstart

One of LendingClub’s key competitors is Upstart. Both offer personal loans that are unsecured and can be used for various purposes, including consolidating debt and funding personal expenditures. Plus, you can get repayment terms ranging from 36 to 60 months with both lenders.

Some of the key differences between personal loans with LendingClub vs. Upstart are:

  • Origination fees with Upstart range from 0% to 8% (average of 3.5%), versus a range of 3% to 6% (average of 5%) for LendingClub.
  • While you can get a personal loan for as little as $1,000 from both companies, the maximum loan amount for Upstart is $50,000. You can only borrow up to $40,000 on a single personal loan with LendingClub.
  • It takes a couple of days to get funding from LendingClub, but you might be able to get funding in as little one day with Upstart.
  • You’ll likely need a credit score of 670 or better to get approved for a LendingClub personal loan. Upstart might approve you even if you don’t have a credit score or with a score as low as 300. Notably, with both lenders, you’ll need to demonstrate that you’re willing and able to repay the loan. 
  • If you can’t get approved for a personal loan on your own, or you want to qualify for a better rate, LendingClub allows you to apply for a loan with a co-borrower. You can’t use a co-borrower if you apply for a personal loan with Upstart.

If you have bad credit, Upstart may be a better option for you. Upstart is also the better choice if you need a personal loan of $50,000 or if you need fast next-day funding. However, if you have good credit and can wait a couple of days to get funding, or you want to apply with a co-borrower, then LendingClub is also a good option.

Read our full review of Upstart personal loans here.

  LendingClub Upstart 
APR Range 7.04% to 35.89% 3.22% to 35.99%
Average Origination Fee  5%  3.5% 
Loan Amounts  $1,000 to $40,000  $1,000 to $50,000 
Loan Terms  36 or 60 months  36 to 60 months 
Average Funding Speed  2 days  1 day 
Recommended Credit Score  At least 670  At least 300 (or credit score can’t be generated) 
Co-Borrowers  Allowed  Not allowed 
Final Verdict

If you need to take out more than one personal loan or need a small personal loan, LendingClub is a good choice. Not only are its rates and terms reasonable, but overall, the company offers a solid personal loan option available to people in all 50 U.S. states.

Methodology

Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of personal loan lenders. To rate providers, we collected over 25 data points across more than 50 lenders, including interest rates, fees, loan amounts, and repayment terms to ensure that our reviews help users make informed decisions for their borrowing needs.

Our full personal loans methodology, including our data collection process and weighted data points, is available for review.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. LendingClub. "Personal Loans Rates and Fees." Accessed Jan. 24, 2022. 

  2. LendingClub. "Can I Apply for Additional Loans?" Accessed Jan. 24, 2022.

  3. J.D. Power. "Pandemic Puts Lenders to 'Digital Test,' J.D. Power Finds." Accessed Jan. 24, 2022.

  4. Upstart. "Personal Loans." Accessed Jan. 24, 2022.

  5. Upstart. "What Fees Am I Charged?" Accessed Jan. 24, 2022.