LendingClub was one of the best-known peer-to-peer (P2P) platforms out there. But it stopped offering peer-funded loans when it became a bank. As it stands, LendingClub may not be the best option for an online loan, especially one that requires a 600 credit score.
Its APRs range is slightly higher than average, ranging from 8.98% to 35.99%, and it charges an origination fee from 3% to 8%. Its track record isn’t squeaky clean either — LendingClub has run into trouble with regulators in the past. If you’re not sold, consider these sites like LendingClub instead.
Founded just after LendingClub, Prosper is a peer-to-peer platform that offers personal loans. Unlike LendingClub, it's still a P2P marketplace, which has historically charged slightly lower interest rates and origination fees than you'll find at LendingClub. But it could take a day longer to get your funds. It also doesn't offer loans under $2,000.
Not available in: Iowa, North Dakota, West Virginia
Pros
P2P lender
Lower starting APR than LendingClub
Accepts fair credit
Works with DTI as high as 50%
Cons
Turnaround as long as five business days
Higher starting origination fee than direct providers
Upstart is a direct lender that got its start as peer-to-peer platform. Aside from offering lower interest rates than LendingClub, it also may be easier to qualify for if you've just started building your credit. This lender looks at your education and career in addition to your credit score. But its origination fees can be some of the highest out there.
Not available in: Connecticut, Iowa, Maine, Maryland, Nevada, New York, Oklahoma, Oregon, West Virginia
This direct lender also started as a P2P platform — and is now in the process of becoming a bank. In addition to offering low-cost loans, it offers a wide range of perks for borrowers, like free financial advice and networking events. But skip this one if you struggled to meet LendingClub's requirements — it's even harder to qualify.
Fixed rates from 8.99% APR to 29.99% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 3/06/23 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
Upgrade is an online direct lender that prioritizes your cash flow over your credit score. It offers slightly higher loans than LendingClub, with a slightly lower starting interest rate — 9.99%. But its origination fees are higher than even some P2P lenders charge. And it can take as long as five days to get your funds.
Not available in: Colorado, Iowa, Maryland, Vermont, West Virginia
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 9.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's bank partners. Information on Upgrade's bank partners can be found at https://www.upgrade.com/bank-partners/.
LightStream offers some of the lowest rates on personal loans available online. There are also no required fees, including late fees and prepayment penalties. However, it's one of the most difficult loans to qualify for — and you can't check your rate without affecting your credit. Save this one for when you've already prequalified for other similar options, like SoFi, and have excellent credit.
OneMain Financial may have higher fees than LendingClub, but it may be a good alternative if your credit score is getting in the way of your borrowing opportunities. OneMain Financial's credit score requirement varies, though it generally accepts poor credit. It also offers both secured and unsecured loans, so you can back your loan with collateral for a lower rate. While it has more flexibility in credit score requirements, APRs are between 18% to 35.99% and an origination fee of up to 10%.
If you can't qualify for a loan elsewhere, OneMain Financial could be the solution, but check other lenders first because the fees and interest can be steep.
Not available in: Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, Vermont
Not all applicants will be approved. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Loan approval and actual loan terms depend on your state of residence and your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Visit omf.com/loanfees for more information. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.
Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600.
Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: North Carolina: $7,500. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.
Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.
Time to Fund Loans: Funding within one hour after closing through SpeedFunds must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after loan closing.
Select your credit score range and state to see more lenders you might qualify with. Narrow down top personal loans by rates, credit score requirements and loan amounts to find the best for your budget and financial goals. Select Compare for up to four products to see their benefits side by side.
LendingClub may be best suited for a borrower with a less-than-perfect credit history — its minimum credit score requirement is 600. It offers a minimum loan amount of $1,000 and caps out at $40,000. The origination fee can be from 3% to 8%, which isn’t the highest or the lowest we’ve seen.
LendingClub is available in all 50 states — a major plus — but the Federal Trade Commission (FTC) sued LendingClub in 2018 for false promises. Overall, you may be better off with one of the alternatives we’ve listed for reputation, rates and fees. You can read our LendingClub review to learn more about how it works or weigh the main pros and cons.
Pros
No prepayment penalties
Recently became a federally-regulated bank
Simple application
Available in all 50 states
Cons
Higher rates and fees than other online banks
Origination fee for all borrowers
FTC sued LendingClub in 2018
See how other top providers compare to different lenders by checking out our A-to-Z directory.
Anna Serio was a lead editor at Finder, specializing in consumer and business financing. A trusted lending expert and former certified commercial loan officer, Anna's written and edited more than 1,000 articles on Finder to help Americans strengthen their financial literacy. Her expertise and analysis on personal, student, business and car loans has been featured in publications like Business Insider, CNBC and Nasdaq, and has appeared on NBC and KADN. Anna holds an MA in Middle Eastern studies from the American University of Beirut and a BA in Creative Writing from Macaulay Honors College at Hunter College, CUNY. See full bio
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