Loans from LendingClub, the largest peer-to-peer lending platform, may be accessible to borrowers with a range of credit situations. However, they might not be ideal for borrowers with excellent credit, who may be able to find better rates elsewhere. And all borrowers pay origination fees at LendingClub. Still, this lender makes borrowing convenient. With no branches or physical locations, LendingClub is a P2P personal loan lender that works with borrowers entirely online.
- Product Specifications
- Pros and Cons
- Company Overview
- APR Range 8.05% to 35.89%
- Loan Amounts $1,000 to $40,000
- Loan Terms Three to five years
- Recommended Minimum Credit Score 600
Small loans starting at $1,000 available
15-day grace period on late payments
Accessible to borrowers with less-than-perfect credit
Joint loans allowed
Potentially high rates, even with great credit
- Origination fee: 3% to 6% of the total amount borrowed
- Late fee: $15 or 5% of the payment due
LendingClub is a pioneer in online lending that began matching personal loan lenders and borrowers in 2007. Today, it’s the largest peer-to-peer (P2P) lending platform, with over 3 million customers and $12.3 billion in new loans issued in 2019.
Pros of LendingClub Loans
- Small loans starting at $1,000: It’s best to minimize borrowing, and you might not need much more than $1,000. Some lenders require higher minimums, such as $5,000. With those larger loans, you may have origination fees that amount to a higher dollar amount, more interest charges, and bigger monthly payments.
- 15-day grace period on late payments: Sometimes, life throws you a curveball. If you miss your payment date, you can avoid penalty charges by completing the payment within 15 days after your deadline. Still, it’s best to pay on time because interest charges continue to add up, and each payment reduces the balance you’re charged interest on.
- Accessible to borrowers with less-than-perfect credit: LendingClub loans may be available to borrowers with fair credit, though keep in mind that they will probably come with high rates.
- Joint loans allowed: Having two people apply may improve your chances of getting approved. LendingClub considers the income and credit history of both borrowers, so adding another person’s income (or applying with somebody who has a higher credit score) may help you qualify for a lower rate.
Cons of LendingClub Loans
- Origination fees: LendingClub charges 3% to 6% for origination fees. An origination fee comes out of your loan proceeds, reducing the amount you receive. As a result, you need to account for those fees when you calculate how much you need. An origination fee isn’t necessarily bad if you can secure a low rate, but if you pay off your loan quickly, the tradeoff of paying a fee to get a lower rate may not be worth it. Some of LendingClub’s competitors offer loans without origination fees.
- Potentially high rates, even with great credit: Borrowers with high incomes and credit scores may get the lowest rates. But the lowest rate is still 8.05%, and borrowers with high credit scores might be able to borrow for less elsewhere. And those with worse credit, pay dearly—up to 35.89% APR—to borrow. That’s so high that it may be best to explore alternatives to borrowing money.
Like many other banks and lenders, LendingClub starts charging interest as soon as your loan is issued, even if the funds aren’t deposited into your bank account until several days after that. Keep this in mind, especially if you’re borrowing to pay off other debts—you’ll pay interest on both loans until you successfully pay off your existing debt.
LendingClub Personal Loan Rates & Terms
What can you expect when you borrow from LendingClub?
- Interest rates: From 8.05% to 35.89% APR depending on creditworthiness
- Repayment term: 36 or 60 months (3 or 5 years)
- Fixed-rate: Rate does not change, so your payment remains the same
The average rate on a 36-month personal loan at LendingClub as of February 21, 2021 was 13.11% APR, and the average rate on 60-month loans was 12.90% APR. Your rate may be higher or lower, depending on your credit history, income, and other factors. Your rate may be higher or lower, depending on your credit history, income, and other factors.
How Much Can You Borrow With LendingClub?
You can borrow between $1,000 and $40,000 with a single loan. LendingClub may allow you to take out another loan in some cases, but the total amount you borrow from LendingClub must not exceed $40,000. When deciding how much to lend, LendingClub reviews your finances and keeps the loan amount (and monthly payment) at a level designed to be affordable for you.
The minimum loan amount is $3,025 for borrowers in Georgia and $6,001 for borrowers with a rate greater than 12% in Massachusetts.
Remember that origination fees come out of your loan proceeds. You only pay if you get approved and borrow money, and the fee reduces the amount you receive. As a result, you have to apply for more money than you actually need. For example, if you need $1,000 and LendingClub charges an origination fee of 4.0%, you’ll need to borrow $1,041.67 to end up with the full $1,000 after paying that fee (4.0% of $1,041.67 is $41.67, which leaves you with $1,000).
You can use your loan proceeds for almost anything, including debt consolidation, home improvements, major purchases, and more.
LendingClub Personal Loan Fees
- Late payment fee: After a 15-day grace period, 5% of the payment amount or $15, whichever is greater
- Prepayment penalty and fees: None
- Origination fees: A one-time, upfront fee ranging from 3% to 6% of your loan amount
How to Get a Personal Loan From LendingClub
To see if you qualify for a personal loan, visit LendingClub.com and start by checking your rate. Doing so will not affect your credit, and you can get more details on how much a personal loan might cost. You may receive multiple options to choose from, and according to LendingClub, most people get their money within four days of applying.
If you need to get a personal loan—especially a small one—it’s worth including LendingClub in your shopping list. You may be approved to borrow with a credit score of 600 or better, and rates vary depending on your creditworthiness. If your credit is less than stellar, there’s always the option to use a co-borrower, making it easier to get approved and potentially fund large purchases. As with any personal loan, be sure it makes sense to borrow and that you can repay the money.
If you have great credit, it’s worth exploring alternatives to LendingClub for potentially lower costs. For borrowers with low credit scores, LendingClub can be expensive at the highest rate tiers, adding a significant amount to the cost of whatever you’re borrowing for. Unlike with credit cards, there is an end in sight with a 36- or 60-month loan, but there may still be better options. Especially if you have bad credit, check with small, local banks and credit unions for more borrower-friendly terms. Also, if you plan to pay off the debt within one year, a credit card with a 0% balance transfer offer might help you avoid origination fees and pay less in interest.
We look at 40 data points from dozens of financial institutions to evaluate lenders for our personal loan reviews. Because a loan’s APR can dramatically impact the total cost you pay, we weight that feature the heaviest. But since a great APR usually requires at least a good credit score, we also give points to lenders who may have a higher potential APR but offer loans to people with less-than-perfect credit scores.
Along those lines, we favor lenders who allow you to see if you prequalify before applying for a loan, so you won’t harm your credit score just by applying. Origination, prepayment, and late fees all get counted in our assessment. And lastly, we deduct points from the ratings of lenders with restricted access—for instance, those who require you to first have another type of account with them or to join a nonprofit organization.
LendingClub. "LendingClub Reports Fourth Quarter and Full Year 2019 Results." Accessed February 21, 2021.
LendingClub. "Personal Loans." Accessed February 21, 2021.
LendingClub. "Amounts for Personal Loans." Accessed February 21, 2021.