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With a low minimum loan amount of $1,000 and funding as little as 24 hours after approval, LendingClub personal loans are a decent option for covering unexpected expenses. But this lender offers higher rates than some competitors, so it may be wise to shop around.
- Pros & Cons
- Key Takeaways
- Company Overview
Can pay creditors directly
More than one personal loan is allowed
Excellent customer satisfaction
Has origination fees
Credit score requirement not disclosed
Relatively short maximum repayment term
- LendingClub is an online-only company offering banking products and unsecured personal loans.
- Borrowers can check their rates before applying with no impact on their credit scores.
- LendingClub offers loans of $1,000 to $40,000 with repayment terms of 2 to 5 years.
- You can apply for a LendingClub personal loan with a co-borrower if you choose.
Founded in 2006 and headquartered in Lehi, Utah, LendingClub has grown to serve over four million customers and has funded over $75 billion in loans. Overall customer feedback is excellent, with LendingClub garnering high ratings and positive reviews across multiple third-party sites.
LendingClub is available to borrowers in 49 U.S. states and Washington D.C.; it’s unavailable in Iowa at this time. Its accessibility, range of loan amounts, and positive customer feedback make it worth considering if you’re looking for a personal loan.
- Can pay creditors directly: If you’re interested in consolidating debt with a personal loan, LendingClub can pay your creditors directly, which saves time and hassle for you.
- More than one personal loan is allowed: While some lenders don’t let you take out multiple loans, qualifying borrowers can do so with LendingClub. The total of all your loans can’t exceed $50,000, though.
- Excellent customer satisfaction: LendingClub’s customers have great things to say about it, which is fairly unusual for a financial services company.
- Has origination fees: Certain online lenders don’t charge origination fees at all, but LendingClub origination fees range from 2% to 6%.
- Credit score requirement not disclosed: LendingClub doesn’t disclose its minimum credit score requirement, so it’s unclear if it will work with fair-credit borrowers.
- Relatively short maximum repayment term: Its maximum repayment term is 60 months, which is fairly short compared to what certain competitors offer.
Types of Personal Loans Offered by LendingClub
LendingClub offers unsecured personal loans, meaning its personal loans don’t require collateral like your house or vehicle. It also offers auto refinancing loans, which use your car as collateral. As with personal loans from other lenders, LendingClub loans can be used for several purposes, including:
- Debt consolidation: You can use your personal loan to consolidate high-interest debt into one convenient monthly payment, and LendingClub can pay your creditors directly.
- Home improvements: Whether you’re renovating your kitchen or repairing your water heater, a personal loan can help cover this cost.
- Medical expenses: A personal loan can help you pay for expensive and unexpected medical bills.
- Moving costs: If you’re planning a move, financing it with a personal loan can help you avoid draining your savings.
- Large purchases: Other big purchases can also be financed using a personal loan.
There are some restrictions on loan use to be aware of. LendingClub’s loans can’t be used to finance higher education costs, invest, buy cryptocurrency, or partake in illegal activities.
Time to Receive Funds
Applying for a LendingClub personal loan takes just a few minutes once you’ve gathered all the necessary documents, and LendingClub indicates many borrowers receive approval in a few short hours. If you’re approved for a loan, you could receive your funds in as little as one day. This is a relatively fast funding time compared to what certain competitors offer.
LendingClub doesn’t disclose its minimum recommended credit score, but it does share other borrower requirements. To apply for a LendingClub loan, you’ll need to be at least 18 and have a verifiable bank account. You’ll also need to be a citizen, permanent resident, or long-term visa holder in the U.S. Like many other financial services companies, LendingClub will consider your credit history, ability to repay, and other factors in its lending decisions.
LendingClub Personal Loan Features
- Can take out more than one loan: Unlike many competitors, LendingClub lets eligible borrowers take out as many loans as they’d like, though the total amount borrowed can’t exceed $50,000.
- Option to pay creditors directly: If you’d like to use your loan for debt consolidation, LendingClub can disburse funds directly to your creditors—a useful option that can save you time.
- Ability to change due date: As long as you’re up to date on payments, LendingClub allows you to change your payment due date to a day that’s convenient for you.
- Payment support: LendingClub indicates that it’s willing to work with you if you’re struggling to make payments, though it’s unclear how or if your loan terms or repayment amounts might change.
While LendingClub does offer a mobile app, it’s only for deposit account customers, not loan customers.
Co-Signers and Co-Applicants
You can apply for a LendingClub personal loan with a co-applicant if you’d like (in this case it would be a joint loan). Co-applicants are different from co-signers, in that they share equal responsibility for repaying the loan. If you apply with a co-applicant, LendingClub will consider their credit history and financial information as part of the approval process.
Can You Refinance a Personal Loan With LendingClub?
You cannot refinance an existing LendingClub loan with a new loan from this company. If you’re interested in refinancing, you’d need to do so with a personal loan from a new lender.
For questions about personal loans, you can contact LendingClub’s customer service team over the phone:
- Phone: (888) 596-3157
Customer service representatives are available Monday to Friday from 5 a.m. to 5 p.m. Pacific Time and Saturday from 8 a.m. to 5 p.m. PT. There’s no option to contact customer service by email.
Many lenders offer borrowers the option to connect over email, live chat, or other channels. LendingClub only offers one option: customer service via phone.
While LendingClub scored slightly below the industry average on J.D. Power’s 2022 U.S. Consumer Lending Satisfaction Study, its customers seem happy with its offerings. On Trustpilot, the fintech has an average rating of 4.8 out of 5 stars across over 4,200 reviews. Customers praise its service, simple application process, and fast approval decisions.
But not all reviews are positive. Certain reviewers mentioned issues with delayed direct payments to creditors and unresponsive customer representatives.
LendingClub has received some fairly impressive customer feedback, which isn’t the norm for many financial services companies.
Applying for a LendingClub Personal Loan
The process of applying for a LendingClub personal loan is pretty straightforward and quick, assuming you have all your financial and income documentation handy. Here’s how it works:
- Pre-qualification: You’ll submit some basic personal information to pre-qualify for a loan through the LendingClub website.
- Choose a loan: Once you’ve pre-qualified, you’ll see your available loan offers. If you find an option you like, you can select it.
- Apply: You’ll then complete a full application, providing additional personal and financial information which will be used to evaluate your loan request.
- Await a decision: LendingClub indicates many applicants receive loan approvals within hours.
- Get funded: If approved, you could receive loan funds in as little as one day.
Alternative Personal Loan Lenders
|Loan Terms||2–5 years||2–12 years||36–60 months|
|Recommended Minimum Credit Score||Not Disclosed||660||Not disclosed|
|Time to Receive Funds||1 business day||Same day||Same day|
LendingClub offers a competitive personal loan product with a low minimum loan amount and quick funding. But it charges origination fees and its APRs are higher than certain competitors. That said, this financial company does offer helpful perks like the option to pre-qualify for its loans and direct payment to creditors, making it worth researching if you’re in the market for a personal loan.
Shopping around for personal loans is usually pretty quick and painless. Find the best rate you can get with our picks for the best personal loan lenders.
Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of personal loan lenders. To rate providers, we collected hundreds of data points across more than 40 lenders, including interest rates, fees, loan amounts, and repayment terms, to ensure that our reviews help users make informed decisions for their borrowing needs.