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LendingClub Personal Loans: 2024 Review

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Jennifer Calonia
Jennifer CaloniaUpdated January 2, 2024

Overview of LendingClub

LendingClub is a digital marketplace bank that offers personal loans ranging from $1,000 to $40,000, with an APR of 9.57% to 36%. There are no application or prepayment penalty fees, but LendingClub may charge an origination fee on funded loans.The Takeaway: LendingClub may be a good option for borrowers looking for a small personal loan. There is no prepayment penalty if you choose to pay off your loan early. But be aware that LendingClub charges loan origination fees.

Pros and Cons of LendingClub

ProsCons
• Direct creditor payoff available• No prepayment penalty• Permits co-borrowers• Allows multiple loans• Borrowing limit might be restrictive • Origination fees• No cosigners allowed• No autopay discounts

Pros of LendingClub

Pays your creditors directly

If you’re using a personal loan to consolidate your existing consumer debt, LendingClub makes the process easy. Approved loan applicants can add their creditors to their LendingClub account for direct payoff. However, creditors must be in LendingClub’s payment network for direct payoff. You may need to manually pay off any creditor that isn’t.

No penalty for paying off loans early

LendingClub doesn’t charge borrowers for paying off their personal loan before the repayment term ends. If you can pay off your loan early, you’ll save on interest.

Co-borrowers are allowed

You can apply for a joint personal loan through LendingClub. Eligibility criteria and information from both applicants will be evaluated. This option can be helpful in securing a higher loan amount or a lower interest rate compared to applying on your own.

Option to take out more than one loan

Certain borrowers might qualify for additional loans through LendingClub. The bank doesn’t limit the number of active loans you can have. However, it does cap your total borrowing amount across all loans at $50,000.

Cons of LendingClub

Low borrowing limit 

LendingClub’s maximum personal loan limit is $40,000. Some other lenders offer personal loans up to $100K, which might be better for those with large expenses.

Charges origination fees

LendingClub charges origination fees ranging from 3% to 8% of the loan amount, based on the borrower’s application and loan details.

Cosigners are not permitted

LendingClub does not allow cosigned personal loans. This can be problematic for borrowers who may have a difficult time qualifying for a LendingClub personal loan on their own. 

No discounts for automatic payments

Unlike some other lenders that give interest rate discounts for enrolling in autopay, LendingClub does not offer this perk.

LendingClub Personal Loan Terms, Rates, and Fees

Loan amounts: $1,000 to $40,000APR range: 9.57% to 36%Loan terms: Generally 24 months to 60 monthsPrepayment penalty: NoneApplication fee: None. However, there is an origination fee ranging from 3% to 8% of the loan amount.Co-borrowers allowed: YesApproval speed: Within hours Information accurate as of Jan. 2, 2024.

Who May a LendingClub Personal Loan Be Right For?

  • Borrowers who are consolidating debt. The company makes debt consolidation easier by letting you choose to use loan funds to directly pay off your creditors.
  • Borrowers who need a small loan amount. You can get a personal loan for as little as $1,000 so you don’t have to borrow more than you need.
  • Borrowers who need a joint personal loan. If you can’t qualify for a loan on your own, or you want to apply for a joint personal loan, LendingClub allows co-borrowers.

Who LendingClub May Not Be Right For

  • Borrowers who need a high loan amount. Some expenses, like financing an addition to your home, for instance, might require more money than LendingClub’s maximum loan limit of $40,000.
  • Borrowers who want to avoid fees. This lender charges origination fees on fixed-rate personal loans.
  • Borrowers who need a cosigner to qualify. LendingClub does not allow cosigners on personal loans.

What to Watch Out for With LendingClub Personal Loans

  • Late fees. The lender offers borrowers a 15-day grace period after their due date at no penalty. However, if no payment is received, you’ll be charged a late fee.
  • Creditors must be in the payment network for direct payoff. If you’re consolidating debt and you want LendingClub to directly pay off your creditors, the creditors must be in the lender’s payment network.
  • Funding timeline varies. Although LendingClub personal loans can be funded in just 24 hours after approval, that’s not necessarily the case if they need more information from you. You’ll need to upload any requested documents and complete any necessary paperwork in a timely manner to minimize delays.

LendingClub Personal Loan Eligibility Requirements

  • U.S. status: Citizen or current resident of any state or Washington, D.C.
  • Age: At least 18 years old
  • Financial account: Have a bank account that can be verified
  • Minimum credit score: 600 for debt consolidation loan
  • Income requirements: Not disclosed
  • Maximum debt-to-income ratio: Not disclosed
  • Cosigners allowed: No
  • Co-borrowers allowed: Yes

Repayment Options for LendingClub Personal Loans

LendingClub offers personal loans of up to $40,000 with repayment terms ranging from two to five years. In addition, you can pay off your loan early with no prepayment penalty. You can do so through your LendingClub Member Center account, with a check, or make early or extra payments by phone.If you’re struggling with your personal loan payment, contact LendingClub via email or telephone to discuss your repayment options.

How to Apply for a LendingClub Personal Loan

  1. Check your rate. You can go online to see whether you’re prequalified for a LendingClub personal loan. You’ll need to provide your personal information, annual income, the loan amount you need, and the reason for the loan. This step involves a soft credit inquiry that doesn’t affect your credit.
  2. Choose your preferred offer. LendingClub will provide the personal loan offers that you’re prequalified for, which details their rates, terms, and repayment options. If you decide to proceed with the loan application, select the loan option you want.
  3. Complete the application. After making your selection, you’ll need to finish the online application, and verify your email address. You’ll receive updates about your personal loan status via email.
  4. Upload and/or complete documents. You may be asked to upload supporting documents for your loan application. This might include proof of income and a copy of a government-issued photo ID and proof of address. You may also need to complete IRS Form 4506-T, which gives LendingClub permission to request your latest tax return from the IRS.
  5. Link your bank account. To receive your personal loan funds, you’ll link a bank account to your LendingClub account. Borrowers who enroll in autopay will have their payments drawn from this account.
  6. Add creditors, if applicable. If you’d like to have loan funds sent directly to your creditors for debt payoff, you can add these credit accounts. You’ll need the creditor’s name, your account number with them, and the amount to be paid.

Alternatives to LendingClub Personal Loans to Consider

LendingClub personal loans have pros and cons, as discussed, so it can be smart to compare lenders when searching for online personal loans:
LenderLoan amountsAPR rangeMaximum term
Achieve (formerly FreedomPlus)$10,000 to $50,0008.99% to 35.99%60 months
Avant$2,000 to $35,0009.95% to 35.99%60 months
Best Egg$2,000 to $50,0007.99% to 35.99%60 months
LendingClub$1,000 to $40,0009.57% to 36%60 months
LendingPoint$[LDC_PL_lendingpoint_minAmount] to $[LDC_PL_lendingpoint_maxAmount][LDC_PL_lendingpoint_minApr]% to [LDC_PL_lendingpoint_maxApr]%[LDC_PL_lendingpoint_term]
OneMain Financial$1,500 to $20,00018% to 35.99%60 months
Prosper$2,000 to $40,0007.95% to 35.99%60 months
Universal Credit$1,000 to $50,00011.69% to 35.99%60 months
Upgrade$1,000 to $50,0008.49% to 35.99%60 months
(The above information on APR range, loan amounts, and maximum term lengths will be updated weekly, every Monday.)Some other options you might want to consider include:With Lantern by SoFi, you can quickly and easily compare personal loan offers from multiple lenders, including LendingClub, all in one place. Just fill out one simple form, explore your financing options, and apply for a personal loan that fits your needs.

Frequently Asked Questions

Is LendingClub legit?
Does LendingClub hurt your credit?
Is it hard to get approved by LendingClub?
Does LendingClub contact your employer?

About the Author

Jennifer Calonia
Jennifer CaloniaJennifer Calonia is a Los Angeles-based finance writer who has covered the gamut, including student loans, credit card rewards, consumer loans, and debt. Her work has been featured in outlets like Bankrate, NerdWallet, Business Insider, Yahoo Finance, and U.S. News.
Brand namesNo brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
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