LendingClub Personal Loan Review 2024: Pros, Cons, Approval Odds

LendingClub is an online lender, bank, and investment company. While it no longer operates a peer-to-peer lending marketplace, borrowers can still come to LendingClub for personal, business, auto, and medical loans. Here’s a closer look at LendingClub personal loans to help you understand if this online lender may be a good fit for your financial needs.

LendingClub

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LendingClub

APR

8.98% to 35.99%

Loan amount

$1,000 to $40,000

Repayment terms

3 to 5 years

Review summary: pros & cons

Before getting into the details, here’s a look at the most important pros and cons of LendingClub personal loans.

Benefits of LendingClub personal loans

Fast online borrowing experience

The application process at LendingClub is quick and easy to navigate. Applicants need only enter a desired borrowing amount, the reason for the loan, personal contact information, and details about their income to get a personalized offer based on their income and credit history.

The initial application uses a soft inquiry on your credit report, which doesn’t impact your credit score. If you choose to move forward with a loan, LendingClub will conduct a hard inquiry, which does have a small negative impact on your credit score for the short term. If you have your information handy, you can apply and get your loan options in just a few minutes.

Personalized loan term offers

After completing the initial application, LendingClub evaluates your credit score, current outstanding debt, income, and other factors to determine your loan eligibility and prospective loan terms.

You can choose among several payback period options ranging from three to five years. Different terms may lead to different interest rates and monthly payments, so it’s important to spend the time to pick the best offer for your needs if you decide to move forward. If you don’t accept any loan terms, you can stop the application process without any cost or impact on your credit score.

Wide range of interest rates

Interest rates currently range from 9.57% to 35.99% APR. While a rate below 10% may be competitive for some borrowers, those who qualify for rates of 30% or higher might find a better deal using a credit card than a LendingClub personal loan.

With an interest rate of 33%, for example, you would be paying for nearly the entire loan amount over again in three years. If you qualify for one of the lower rates, it could offer savings compared to other options. Shopping around can help you find the best possible rate based on your financial situation.

If you want to consolidate credit card balances, it’s financially unwise to consolidate to a loan with a higher interest rate. Loan consolidation could make sense if you can get a lower rate from LendingClub.

No prepayment penalties

Borrowers who have extra funds can prepay their loans with no penalties. Early payments lower your outstanding balance ahead of schedule, leading to interest savings. While some competitors may charge a fee if you pay off your loan early, LendingClub enables you to prepay your loan fee-free.

Joint loans supported

If you have bad credit or no credit, you may qualify for a loan or better terms by bringing on a joint borrower. Many online lenders don’t support joint borrowing, so LendingClub’s option to bring on a cosigner is somewhat unique.

Remember that joint borrowers or cosigners have equal responsibility to repay the loan. If you make a late payment, it harms both of your credit histories and if you stop paying, the cosigner is legally liable to repay the loan with the same level of responsibility as you.

How LendingClub stacks up

Here’s a look at top LendingClub competitors and how their loans work for various types of loans. Rates, amounts, and repayment terms are for the loan described in the ‘best for’ column below.

*Loan interest rates current as of November 2023

TIME Stamp: Lending Club is a great option for personal loans

While everyone won’t get the best terms, you can determine whether you qualify and find out your terms without risk or cost. LendingClub also enables you to bring on a cosigner, potentially helping you qualify for better terms.

If you find out LendingClub is too expensive or doesn’t fit your needs based on your personalized offer, there’s no harm to your credit score. You can keep shopping around and find the best personal loan for your needs.

Frequently asked questions (FAQs)

Can I refinance a loan through LendingClub?

You can use the proceeds of a personal loan in any way you choose with few limitations. You can refinance many loan types through LendingClub.

LendingClub vs. Upstart

For personal loans, Upstart and LendingClub feature similar available terms. You can check your rate at both lenders without harming your credit score, giving you more information to pick the right loan for your goals.

LendingClub vs. Upgrade

Upgrade personal loans and LendingClub personal loans are listed with similar loan minimum amounts. However, Upgrade’s maximum is $10,000 higher than LendingClub’s, and it provides additional options when choosing your rate and repayment term. Like LendingClub, Upgrade allows you to check your interest rate and loan terms without impacting your credit score.

How is your credit score affected when applying for a LendingClub loan?

Your initial application uses a soft credit inquiry, which doesn’t hurt your credit score and isn’t viewable by other lenders. If you move forward and take out a loan, LendingClub will conduct a hard credit inquiry, which does have a slight negative impact on your credit score for up to two years.