LendingClub Personal Loans: 2024 Review - NerdWallet (2024)

Pros

• Joint loan option.
• Direct payment to creditors with debt consolidation loans.
• Option to pre-qualify with a soft credit check.
• Option to change your payment date.

Cons

• Origination fee.

LendingClub loans at a glance

Where LendingClub personal loans stand out and fall short

How to use LendingClub personal loans

LendingClub personal loan customer reviews

Do you qualify for a LendingClub personal loan?

How to apply for a LendingClub personal loan

Compare LendingClub to other lenders

How we rate LendingClub personal loans

• Disclosure from LendingClub

  Between January 1, 2024 to March 31, 2024, Personal Loans issued by LendingClub Bank were funded within 26 hours after loan approval, on average. 47% of Personal Loans issued by LendingClub Bank during the same period were funded within 24 hours after loan approval. Loan approval, and the time it takes to issue a credit decision, are not guaranteed and individual results vary based on creditworthiness and other factors, including but not limited to investor demand.A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $19,562 for a term of 36 months, with an interest rate of 10.87% and a 6.50% origination fee of $1,272 for an APR of 15.58%. In this example, the borrower will receive $18,290 and will make 36 monthly payments of $639. Loan amounts range from $1,000 to $40,000 and loan term lengths range from 24 months to 60 months. Some amounts, rates, and term lengths may be unavailable in certain states.For Personal Loans, APR ranges from 8.98% to 35.99% and origination fee ranges from 3.00% to 8.00% of the loan amount. APRs and origination fees are determined at the time of application. Lowest APR is available to borrowers with excellent credit. Advertised rates and fees are valid as of April 11, 2024 and are subject to change without notice.Unless otherwise specified, loans are made by LendingClub Bank, N.A., Member FDIC (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. LendingClub Bank is not an affiliate of NerdWallet and is not responsible for the products and services provided by NerdWallet.Loans are subject to credit approval and sufficient investor commitment. If a credit union is selected to invest in the loan, credit union membership will be required. Certain information that LendingClub Bank subsequently obtains as part of the application process (including but not limited to information in your consumer report, your income, the loan amount that you request, the purpose of your loan, and qualifying debt) will be considered and could affect your ability to obtain a loan. Loan closing is contingent on accepting all required agreements and disclosures at Lendingclub.com.“LendingClub” is a trademark of LendingClub Bank.

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» MORE: Personal loans for co-signers and co-borrowers

» MORE: Best loans with no origination fee

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• A U.S. citizen, permanent resident or living in the U.S. on a valid visa.

• At least 18 years old in most states.

• Able to provide a verifiable bank account.

• Minimum credit score: 600. LendingClub uses FICO 8 and VantageScore 2.0, in addition to a proprietary scoring system.

• Minimum credit history: 36 months and two accounts.

• Maximum debt-to-income ratio: 40% for individual and joint applications.

• Minimum annual income: None, but borrowers must show proof of income.

• LendingClub's average borrower snapshot

  • Average credit score: 700.

  • Average annual income: $100,000.

  • Average loan amount: $18,000.

  • Average debt-to-income ratio: 19.1%

  • Average loan term: Three years.

  • Most common loan purpose: Debt consolidation.

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1. Pre-qualify on LendingClub’s website. You’ll be asked how much you want to borrow and what the funds are for, as well as some personal information like your name, birthdate and address. The lender may ask for your Social Security number, but there’s no hard credit pull at this stage.

2. Preview loan offers and accept the one that fits your budget. Once you accept a loan offer, you’ll submit a formal personal loan application. This could require more documents to confirm the information you gave during pre-qualification. If you get a loan, LendingClub will do a hard credit check when the loan funds are sent, so your credit score may temporarily dip.

3. Stay on top of your loan payments. LendingClub reports loan payments to all three major credit bureaus, so on-time payments will help build your credit score, but missed payments will hurt it. Setting up automatic payments and keeping an eye on your budget are two ways to manage your loan payments.

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» MORE: Read our review of SoFi

» MORE: Read our review of Upgrade

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• Category definitions

  Affordability (25%)

  An affordable loan has low rates and fees compared to other similar loans and may offer rate discounts.

  Customer experience (20%)

  A good customer experience includes allowing borrowers to choose and change their repayment date, a fully online application process, a mobile app to manage the loan and a customer service team with wide availability.

  Underwriting and eligibility (20%)

  The lender reviews borrowers’ credit reports and credit history and tries to understand their ability to repay a loan. It offers loans in most states and doesn’t restrict eligibility by requiring a pre-existing relationship.

  Application process (20%)

  Borrowers can pre-qualify to check their potential rate, loan amount, repayment term and APR without affecting their credit score. They can easily find answers to questions about the personal loan on the lender’s website. The application process is fast enough to allow funding within a couple of days or less.

  Loan flexibility (15%)

  A flexible loan is one that offers a wide range of loan amounts and repayment term options. It includes common features like additional loan types and direct payment to creditors on debt consolidation loans.

  Discretionary

  A lender’s star rating can be reduced if the lender is sued by a state or federal regulator for unfair consumer practices or has been accused by a reputable source of suspicious business practices.

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