LendingClub Review: Legit Personal Loans for Fair Credit Borrowers
- Max. Loan Amount
- $40,000
- APR
- 8.98% to 35.99%
- Min. credit score
- 600
Our verdict
Loans up to $40,000 for a variety of credit types — but you’ll have to pay an origination fee.
LendingClub is an award-winning lender that offers loans from $1,000 to $40,000. It doesn’t state a minimum credit score requirement, but it appears to consider a range of credit scores and accepts joint applicants. It also has a mobile banking app that allows you to make payments or change your due date, among other features. However, it charges an origination fee between 3% to 8%, which it deducts from your loan amount. Some competitors offer lower rates than LendingClub and don’t charge origination fees.
Best for: Borrowers with fair credit who don’t qualify for loans with lower rates and no origination fees.
Pros
-
Loans up to $40,000
-
Accepts lower credit scores
-
Has a mobile banking app
Cons
-
Charges origination fees
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Higher rates than some competitors
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Has some negative reviews
Is LendingClub legit?
LendingClub is a legitimate company that launched in 2007 and went public in 2014. It is listed on the New York Stock Exchange (NYSE) under the stock symbol LC. It won numerous awards, including Best Online Bank of 2024 by GOBankingRates and one of America’s Most Loved Workplaces in 2022 by Newsweek. It also has an A+ rating on the Better Business Bureau (BBB) and has been accredited since 2008.
LendingClub uses safeguards to protect its customers’ personal and financial information. It follows security measures that comply with federal law and aims to meet or exceed industry standards for financial institutions. Its website is secured and encrypted with Secure Sockets Layer/Transport Layer Security (SSL/TLS). It’s also FDIC-insured and registered with the Securities and Exchange Commission (SEC).
In 2018, the Federal Trade Commission (FTC) filed a complaint against LendingClub over its “no hidden fee” promise, claiming that it had charged hidden upfront fees on several of its loans. LendingClub denied any wrongdoing and maintained that its website stated that loans come with origination fees. However, it still agreed to pay $18 million to settle the charges.
What makes LendingClub shine?
LendingClub is a solid choice for borrowers who struggle to qualify for a personal loan elsewhere due to a lower credit score or a lack of credit history. While it doesn’t specify a minimum credit score requirement, it appears to consider people with lower credit scores. It also offers joint loans, making it easier for all types of borrowers to potentially qualify for a loan.
Additionally, LendingClub offers to pay up to 12 of your creditors directly if you’re taking out a balance transfer loan, which saves you the time and hassle of doing it yourself. There’s also no application fee, and you can move your payment due date at least once — earlier or later by 15 days — making it easier to choose a date that makes more sense.
Borrowers may also appreciate the wide variety of ways that LendingClub accepts loan payments. The easiest and most convenient way to never make a late payment is to set up its automatic payments (autopay) feature. But if that doesn’t work for you — no problem. You can also pay by phone, check, debit card, Google Pay, Apple Pay or wire transfer. You can even pay with cash at participating retail locations.
Where LendingClub falls short
One of the main drawbacks of LendingClub is the practice of charging origination fees, which can add anywhere from 3% to 8% to the loan’s cost. Plus, some competitors don’t charge origination fees, so borrowers — particularly those with good credit — might be better off searching for loans like LendingClub that don’t add these fees.
LendingClub’s interest rates are also a tad high, comparatively speaking — although vastly better than payday loans or other high-interest lending — with current rates ranging from 8.98% to 35.99%. For comparison, Lightstream, another personal loan lender like LendingClub, has rates that start at only 6.99% and cap out at 25.99% — significantly better than LendingClub’s at either end of the spectrum.
LendingClub loan details
| Minimum credit score/credit range | Not stated (600 according to outside sources) |
| APR | 8.98% to 35.99% |
| Loan amounts | $1,000 to $40,000 |
| Terms | 2 to 5 years |
| Approval turnaround | As soon as 24 hours after approval |
| Availability | Available in all states |
| Fees |
|
| Other fees | Not stated |
LendingClub contact info
| Phone number | 888-596-3157 |
| Customer service hours | 5 a.m. to 5 p.m. PT, weekdays 8 a.m. to 5 p.m. PT, Saturday |
| support@lendingclub.com | |
| X (formerlyTwitter) | @LendingClub |
| @LendingClub |
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How to qualify for LendingClub
You’ll need to meet the following requirements to qualify for LendingClub personal loans:
- Be at least 18 years old
- Be a US citizen or current resident
- Have a verifiable bank account
You may also need to provide proof of income and identity. Additional documents may include business tax returns, utility bills, lease agreements or others, depending on your situation.
How to apply
LendingClub offers prequalification with a soft credit check and has no application fee. To apply, you can head to LendingClub’s site to start the process:
- Prequalify online.
- Review your offers if you’re preapproved.
- Select one, then formerlyapply with a hard credit check.
- Finalize the application and accept the loan terms.
- Follow the repayment plan.
Once you receive your finalized loan terms, LendingClub typically deposits the funds into your account within one to two days. It could be longer, depending on how much information needs to be verified.
Overall, the application and funding process could possibly take up to a week or more from start to finish.
How LendingClub compares to other lenders
LendingClub reviews and complaints
| BBB accredited | Yes |
|---|---|
| BBB rating | A+ |
| BBB customer reviews | 4.43 out of 5 stars, based on 1701 customer reviews |
| Trustpilot Score | 4.7 out of 5 stars, based on 5,806 customer reviews. |
| Customer reviews verified as of | 27 August 2024 |
LendingClub has high marks on Trustpilot. Satisfied customers praise the easy application process, quick response time and speed of funding. But some borrowers said the process wasn’t as fast as they’d hoped, and in some cases, it took weeks to receive their loan proceeds. Others expressed dismay that LendingClub charged an origination fee, which was deducted from their loan amount.
Many reviewers on the BBB commended the fast approval, quick funding and friendly and helpful customer service representatives. However, LendingClub’s negative reviews included quite a few billing issues and complaints about unhelpful customer service reps over hardship needs.
There were also quite a few “complaints” about LendingClub that turned out to be the result of various scams, where imposters pretended to be LendingClub and asked potential customers for sensitive details or upfront fees. LendingClub responded to each of these reviewers to inform them they were victims of a scam, with detailed information about what their next steps should be and how to avoid this type of fraud going forward.
What are people saying on Reddit?
People on Reddit give almost all positive reviews of the loan process, although a few complain about the origination fees and interest rates that can sometimes be as high as credit cards.
Some Redditors had been drawn in by a “LendingClub scam,” which was actually fraudsters pretending to be LendingClub and asking for upfront fees — something LendingClub doesn’t do but has issued warnings to potential borrowers to watch for.
LendingClub business loans
LendingClub is also a preferred Small Business Administration (SBA) lender offering SBA 7(a) and 504 loans and SBA Express lines of credit. SBA loans start at $400,000 and can be used to cover almost any business expense, such as commercial real estate purchases, equipment financing or working capital loans.
In addition, LendingClub offers small business loans through its funding partner, Accion Opportunity Fund. Loans range from $5,000 to $250,000 with terms of one to five years.
Frequently asked questions
How can I keep track of the status of my loan?
You can check on your loan’s status at any time by logging in to your Member Center. You’ll also want to regularly check in with your “to-do list,” which is where you’ll be notified if LendingClub needs any additional information or documentation to process your loan application.
Does LendingClub have any negative reviews?
Like virtually every lender out there, some borrowers have complaints against it. Some of the most common LendingClub negative reviews include criticisms about customer service, origination fees and slower-than-expected funding times.
What credit score do you need for LendingClub?
LendingClub doesn’t specify a minimum credit score requirement, although outside sources say it accepts scores as low as 600. Plus, it offers joint loans, so people with lower scores can add a co-applicant to improve their chances of approval.
What are the downsides of LendingClub?
Probably the largest downside to LendingClub personal loans is that it charges origination fees of up to 8%. This is a fairly common practice among lenders, but some lenders don’t charge origination fees.
LendingClub vs competitors
See how LendingClub stacks up against the competition in these head-to-head comparisons.
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Your reviews
Bethany Finder
Editor, Banking
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Jhezelyn Finder
November 14, 2018
Hello Lori,
Thank you for your comment.
If you want to refinance your current loan with LendingClub, you may need to reach them directly so they can let you know if you’re eligible to refinance. They’ll also update your income details.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
Regards,
Jhezelyn
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Elvariste
April 10, 2018
Hi, there! As I’m a nonresident student, by the way, I’m living outside of US, after all I don’t work right now, for I don’t find job. can I find loans or grants to come study abroad and pay after? I’m looking forward to hearing you,soon. thanks!
Joshua Finder
April 10, 2018
Hi Elvariste,
Thanks for getting in touch with finder.
The first thing you need to do is find the school you want to enroll in. After that, you can then ask the school whether they know any student loan or financial institution that can help with your situation.
Moreover, it is worth noting that if you are going to apply for a student loan and you are a non-US resident, generally, a co-signer is required for most international student loan programs.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
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Mildred
December 19, 2017
You asked for a birthday, is there an age limit in applying for a personal loan?
Harold Finder
December 20, 2017
Hi Mildred,
Thank you for your inquiry.
Generally, for LendingClub personal loan they require that the applicant must be at least 18 years old. Should you need to know more about the requirements and eligibility criteria for this loan. You may need to review the details provided above.
I hope this information has helped.
Cheers,
Harold
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Delene
August 28, 2017
How do I apply with my husband
Danielle
August 29, 2017
Hi Delene,
Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.
To apply for a personal loan with Lending Club, you’ll need to meet general eligibility requirements.
– You must be a US citizen, a permanent resident or in the US on a valid long-term visa.
– You must be at least 18 years old.
– You must have a valid bank account.
You’ll need to gather the following information before applying:
– Your name, contact information and date of birth.
– How much you want to borrow and the purpose of the loan.
– Your credit score range.
– Your annual individual income.
If you are offered a loan, you can watch as investors offer you loans with varying APRs and repayment terms. Once approved, you’ll typically receive the funds directly into your account within seven days. You may proceed by clicking the green “Go to Site” button for more details.
I hope this helps.
Cheers,
Danielle
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Lori
November 13, 2018
I have a personal loan with Lending Club, would like to borrow an additional loan and add my income.