LendingClub Personal Loans: 2023 Review

Pros and Cons of LendingClub

Pros of LendingClub

Pays your creditors directly

No penalty for paying off loans early

Co-borrowers are allowed

Option to take out more than one loan

Cons of LendingClub

Low borrowing limit 

Charges origination fees

Cosigners are not permitted

No discounts for automatic payments

LendingClub Personal Loan Terms, Rates, and Fees

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. The lender charges origination fees up to 6%.
• Borrowers who need a co-signer to qualify. LendingClub does not allow co-signers 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 5% late fee (minimum $15).
• 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

• US status: Citizen, permanent resident, or a U.S. resident with a valid, long-term visa
• Age: At least 18 years old
• Financial account: Have a bank account that can be verified
• Minimum credit score: 600
• Income requirements: Not disclosed
• Maximum debt-to-income ratio: Not disclosed
• Cosigners allowed: No
• Co-borrowers allowed: Yes

Repayment Options for LendingClub Personal Loans

How to Apply for a LendingClub Personal Loan

1. Check your rate. You can go online to see if you’re pre-qualified 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 pre-qualified 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’ll also need to complete a 4506-C form 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 auto-pay 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

• Marcus by Goldman Sachs: This lender offers fixed-rate personal loans of $3,500 to $40,000 with an APR of 6.99% to 24.99%. Borrowers who enroll in auto-pay receive a rate discount. Marcus by Goldman Sachs has zero fees — no application fees, late fees, prepayment fees, or origination fees.
• Prosper: Eligible borrowers can get personal loans ranging from $2,000 to $50,000 with an APR of 6.99% to 35.99% from Prosper. The lender charges origination fees of 1% to 5%.
• Upgrade: Upgrade offers a fixed-rate on personal loans of $1,000 to $50,000, with an APR of 7.96% to 35.97%. There are no prepayment fees, but Upgrade’s origination fees are up to 8.99%.
• Lantern: Looking at multiple personal loan offers by filling out a single form is a convenient approach to shopping for a loan, and Lantern by SoFi makes it easy. In our marketplace, you can see all of your loan options, including LendingClub, and compare personal loans interest rates, terms and repayment options in one sitting. Explore your financing options with Lantern, and apply for a personal loan that fits your needs.