LendingClub stands out as one of the most experienced non-bank personal lenders globally. Since 2007, the platform has facilitated over $44 billion in loans, serving more than 2.5 million customers worldwide.
This lending club review focuses on LendingClub’s personal loans to help determine if they align with your needs. LendingClub provides personal loans of up to $40,000 for a variety of purposes.
However, their rates may be higher compared to some alternatives. Evaluating multiple loan options is essential to find the most suitable solution. Make sure to assess your financial circumstances carefully before proceeding with any loan.
LendingClub Personal Loans: A Focused Review
LendingClub provides personal loans starting at a minimum of $1,000, making it accessible to borrowers worldwide.
This low threshold sets it apart from many competitors and appeals to individuals with fair credit, typically between 580 and 669.
While lending club interest rates are competitive among major lenders, borrowers with good to excellent credit might secure better offers from other providers. For average credit holders, however, LendingClub remains a practical choice.
- Loan Amounts: Start at $1,000
- Origination Fees: 3% to 8%, deducted upfront
- MarketWatch Rating: 3.7/5
Origination fees are one of LendingClub’s drawbacks, as many global competitors charge no such fees.
Additionally, the funding process can be slower compared to other lenders. While LendingClub meets the needs of borrowers with fair credit, those seeking faster processing or lower costs may explore other loan providers.
LendingClub offers a viable option for personal loans worldwide but is best suited for borrowers prioritizing smaller loan amounts and accessible qualification standards.
LendingClub Personal Loans: Pros and Cons
LendingClub provides personal loans designed to suit a variety of financial needs. These loans offer clear benefits but also come with some limitations that borrowers worldwide should be aware of.
Pros:
- Borrow amounts ranging between $1,000 and $40,000 for various financial needs.
- Rates can be checked and terms reviewed without impacting credit scores.
- No early repayment penalties, allowing faster loan payoff.
- Loan proceeds can be used to directly pay off existing debts.
Cons:
- Origination fees may reach up to 8%, impacting the total loan cost.
- Loan funding requires up to two business days.
- The maximum repayment term is limited to 5 years.
- APR ranges from 7.99% to 35.99%, which can result in higher costs for some borrowers.
Is LendingClub the Right Personal Loan Option?
LendingClub works well for borrowers with strong credit, stable employment, and a low DTI ratio. Competitive terms are available, but the best rates require excellent credit.
Loans max out at $40,000, so those needing larger amounts may prefer lenders offering up to $100,000.
LendingClub allows cosigners and joint accounts, making it a good option for spouses or others wanting shared loan responsibility. This feature is less common among competitors and benefits borrowers worldwide.
What Should You Know When Applying for a LendingClub Personal Loan?
LendingClub starts the process with pre-qualification, allowing you to see potential loan approval amounts. This step involves a soft credit check, which does not affect your credit score.
LendingClub does not charge application or broker fees. However, an origination fee ranges between 3% and 8%. The APR on Lendingclub loans falls between 8.91% and 35.99%, depending on your credit profile (as of 12/04/24).
To secure the best rates with LendingClub, focus on:
- Maintaining a high credit score
- Reducing your debt-to-income ratio
- Building a solid credit history
How to Get Started with LendingClub Personal Loans
Getting a personal loan through LendingClub is simple and efficient. The process requires minimal time, and there is no cost to apply for a lending club. Here’s how to get started:
1. Pre-Qualification
Start by providing basic personal information to pre-qualify for a loan. This step allows LendingClub to present potential rates and terms tailored to your profile. Details required include:
- Full name
- Email address
- Residential address
- Date of birth
- Phone number
- Total annual income
- Desired loan amount
- Purpose of the loan (e.g., debt consolidation, home improvements)
2. Choosing a Loan Offer
If you qualify, LendingClub presents loan options with details such as interest rates, APR, and repayment terms ranging between 24 and 60 months.
You can receive funds directly into your bank account or opt for direct balance transfers to creditors, which may include a discount. The quote will also highlight the origination fee applicable to your loan.
3. Addressing Denials
If your application is denied, it may be due to factors like a low credit score or a high debt-to-income ratio. In such cases, LendingClub may recommend adding a co-borrower to strengthen your application.
4. Finalizing the Loan Offer
Upon deciding to proceed, LendingClub performs a hard credit check.
Additional documentation may be requested, such as your Social Security number or proof of income. Lending club approval is not guaranteed at this stage, but if successful, funds will be deposited into your bank account or sent directly to your creditors.
5. Repaying the Loan
Repayments can be made through automatic bank transfers, phone payments, or checks. LendingClub also allows early repayments without fees or penalties.
Fees and Penalties for LendingClub Personal Loans
When considering a LendingClub personal loan, understanding the associated fees and penalties is key to managing costs.
Origination Fees
LendingClub applies an origination fee ranging between 3% and 8%, depending on factors like your credit score and loan terms. This fee is deducted from the loan amount before disbursement, meaning the total funds you receive will be reduced.
For instance, if you borrow $40,000 and the fee is 8%, LendingClub deducts $3,200, leaving you with $36,800. While some lenders worldwide waive origination fees, LendingClub provides transparency, helping borrowers worldwide understand upfront costs.
Early Repayment Policy
LendingClub allows borrowers to repay loans early without penalties. This flexibility appeals to those aiming to reduce debt faster without worrying about additional charges.
LendingClub Business Loans
LendingClub supports small businesses globally by offering loans ranging from $5,000 to $500,000. These loans are provided through a partnership with Accion Opportunity Fund.
While LendingClub no longer originates its business loans directly, this partnership ensures businesses have access to financing options with repayment terms of one to five years.
These loans can be used for capital investments, inventory management, and business expansion. Borrowers benefit from no prepayment penalties and receive a dedicated client advisor to streamline the application process.
Eligibility Requirements:
- Operated for at least 12 months
- Annual sales of $50,000 or more
- Located within the United States
- At least 20% ownership of the company
LendingClub Auto Refinancing Loans
LendingClub offers auto refinancing loans to help borrowers reduce their monthly car payments. Members report saving an average of $80 per month through lower interest rates. LendingClub ensures that no origination fees or prepayment penalties apply.
Eligibility Requirements:
- A vehicle used only for personal purposes
- The car must be 10 years old or newer and have less than 120,000 miles
- Existing auto loans must be held for at least one month
- At least 24 months of payments remaining
- Loan balance between $4,000 and $55,000
Contact for Inquiries
Contact LendingClub directly at support@lendingclub.com or (888) 596-3157 for assistance. You can also reply with the keyword HELP to receive further support. This ensures borrowers worldwide can access the help they need efficiently.
Conclusion
LendingClub Personal Loans can be a good option for borrowers with less-than-perfect credit.
However, its high origination fees and slower loan funding may make it less competitive than other lenders. To decide if LendingClub is suitable, carefully review its loan terms, fees, and overall costs.
