Lending Club Personal Loan Review 2024
If the name Lending Club sounds familiar, that’s because it should. It is America’s largest lending marketplace, providing over $60 billion in personal loans to over three million customers since 2007.
Whether you’re looking for a personal loan to pay down debt, relocate to another part of the country, improve your home, cover medical expenses, and more, Lending Club probably has an option that works for you.
Read on for our honest review of this well-established company.
Top Features of Lending Club
Pros and Cons of Lending Club
As with all lenders, getting a personal loan with Lending Club has pros and cons. Consider both when deciding if Lending Club is right for your needs.
Pros
- Soft credit check doesn’t mess with your credit
- Loans are available to those who have long-term visas (most companies require you to be a U.S. citizen)
- Offers a resource center and investor education page to help applicants learn more about finances
Cons
- It’s not clear what “other penalties” are added to accounts that are over 15 days late on payments
- Lending Club doesn’t provide information on minimum income or credit score requirements
- No discount for automatic payments
What Is Lending Club?
There are many lenders and banks popping up over the last decade or so, and many of them vanish within a matter of years.
Lending Club has shown staying power in the field by offering a long track record of strong financial offerings.
This is a peer-to-peer lending service, where borrowers connect with investors who are willing to fund their loan requests.
Lending Club offers personal loans up to $40,000, as well as business loans, debt consolidation, auto refinancing, and even solutions for medical debt or financing medical procedures. In addition, checking and savings accounts are available.
Who Is Lending Club For?
Lending Club offers personal loans for a wide variety of needs, from paying down credit card debt to going on vacation. Here are a few of the options:
- Debt consolidation
- Refinancing credit cards
- Home improvements or repairs
- Refinancing a vehicle
- Financing a new home or business
- Moving, relocating, or going on vacation
- Covering medical expenses
Keep in mind that funds from Lending Club cannot be used for post-secondary education or investments, such as securities and cryptocurrency. Like all other lenders, they cannot be used for illegal activities.
For those with excellent credit, the APR can be lower than you might receive with a typical credit card — the APR through Lending Club can be under 10%, while many credit cards have an APR of at least 15%, and in some cases, much higher.
Lending Club may also be a loan provider for those who have bad to fair credit, as a lower credit score won’t immediately disqualify someone from a loan. Still, keep in mind that the worse your credit is, the higher the APR can go. In some cases, it might hit over 35%.
Always read the fine print to determine what your APR will actually be.
Compare Lending Club to Other Lenders
Lending Club offers loans of up to $40,000, which is better than many other lenders on the market.
Some companies, such as SoFi and Best Egg, offer loans of higher amounts of up to $100,000 and $50,000, respectively. They might also offer better APR rates.
However, it can be more difficult for those with not-so-good credit to qualify for the higher amounts or lower APR of other lenders.
Lending Club is among a small group of lenders that allow co-borrowers. Most companies want to see only one person on the account, which can make it tougher to qualify.
Some companies, like LightStream, look for applicants with a relatively high credit score, which means their offerings shut out those who have fair credit.
Lending Club is open to those with fair credit, though borrowers must pay their loan off in a term of three to five years — much shorter than the seven years offered by SoFi or the surprisingly long 12 years offered by LightStream.
What Kinds of Loans Does Lending Club Offer?
Lending Club offers peer-to-peer loans. Those seeking personal loans can get up to $40,000. Since this is a personal loan, no collateral is required, and there is no application or prepayment fee.
The money can be deposited directly into your bank account or sent directly to creditors to pay down your debts. Repayment terms range from three to five years.
Those looking for business loans can get anywhere from $5,000 to $500,000.
The loan term is for one to five years, with no prepayment penalties. A dedicated client advisor will help you choose the loan appropriate for your situation and ensure all the paperwork is complete so you can get your money quickly.
There are some caveats, however. To get a business loan, you must:
- Have been in business for 12 months or longer
- Own at least 20% of the company
- Be based in the U.S.
- Have at least $50,000 in annual sales
Lending Club also offers auto loan refinancing.
You can learn your new APR in minutes through an online “soft” credit pull, which might allow you to lower your monthly payments. There are no origination fees for auto refinancing, as well as no prepayment penalties.
Lending Club offers unique “patient solution” options that allow for installment loans or revolving lines of credit. These options make it easier for patients to receive the care, surgeries, or other medical procedures they need without pulling money from their savings or otherwise going into deep financial debt.
- Installment loans for medical financing carry an APR of between 3.99 and 30.99%.
- Borrowing ranges from $1,000 to $65,000. Fixed-rate repayment periods begin at 24 months and extend to 96 months. This loan is limited to a single purchase.
- Lines of credit for medical financing allow for multiple purchases and offer an APR between zero and 26.99%. Borrowers can obtain between $499 to $32,000.
Lending Club offers more than personal loans. You can also get a checking or savings account, which includes cash-back and ATM rebate options.
In fact, Lending Club was named one of the prestigious America’s Best Banks of 2022 by Newsweek for offering the best cash-back checking account.
The variety of banking options includes 0.65% APY on savings account balances of $2,500 or more and up to 0.80% on 1-year CDs. The accounts can be opened with a $100 minimum, and there are no service fees.
How to Get Started
Getting started on a personal loan request with Lending Club is easy and straightforward. Preapproval (or rejection) happens immediately after following these steps:
- On the home page of the website, enter how much money you need, choose what it’s for from the drop-down menu, and hit “Check Your Rate.”
- Choose whether it’s a loan for just you or with a co-applicant.
- Enter your date of birth.
- Enter your total annual income. (There is an option that allows you to include additional income as well.)
- Enter your name, then your home address. (P.O. boxes are not accepted.)
- Enter your phone number and email address.
- Create an account by adding a password.
- Choose your loan from a variety of Lending Club offers.
Once you see your rates, you can adjust your loan amount to reflect a lower monthly payment or different payment terms.
Once you’ve chosen what you really need, follow the instructions to continue the loan application process. You must be 18 years of age, have an active bank account, and have a social security number.
Which Lenders Have the Best Personal Loan Rates?
See how Lending Club stacks up against other personal loan lenders below:
Rating the Features
How does Lending Club perform in specific areas? See how it does when it comes to user experience, fees and rates, and other important aspects.
User experience
The application process begins online and is very straightforward, with no surprises. The searchable “help” page allows you to find answers to questions by either clicking on the overall topic or searching via keywords.
Lending Club provides a to-do list for all applicants that tells them what they need to provide for verification and keeps them updated on the status of their application.
Fees and rates
Lending Club requires an origination fee of between 3% and 6% of the loan amount. This percentage is based on your credit history.
There are no application fees, and that origination fee is taken out of the loan itself before it gets to you.
Late fees and potential other penalties are assessed on payments that are over 15 days late. The APR for Lending Club personal loans ranges from 7.04% to 35.89%.
Transparency
The site is very clear about the rates and fees an applicant can expect.
The help page on the Lending Club website provides a wealth of information on applying, the nuts and bolts of the offer, how to manage your account and payments, what you need to know if your application is declined, how to handle your to-do List, and even what to expect from the company’s COVID-19 response.
There are also comprehensive help pages for auto refinancing, small business, and patient solution loans or lines of credit.
Flexibility
Members of Lending Club usually have numerous loan options, including different amounts of monthly payments or interest rates to choose from.
A balance transfer loan will have lower rates than a personal loan paid out into your bank account. You can change your monthly due date, make early or extra payments, and pay no penalties for early payoff.
Customer support
Currently, the Lending Club app is only available for banking products. All loans must be managed online. However, that website is optimized for mobile use, so it’s not as difficult as it might seem to use your phone to manage the loan.
Customer service is available via phone Monday through Friday, from 5 AM to 5 PM PST, and on Saturdays from 8 AM to 5 PM PST. You can also contact the company via email.
Bottom Line
Lending Club is a good option for those with fair credit who need up to $40,000 for anything from home renovations to vacations to paying down debt. There are also options that go beyond personal loans, such as medical financing.
Though the APR might be high for those with less-than-stellar credit, the short payoff terms of up to five years can help ensure a customer isn’t mired in debt for a long period of time.
Checking your rates online is very easy and doesn’t affect your credit score.
Frequently Asked Questions (FAQs)
Borrowers in good standing can temporarily or permanently change their monthly loan payment due date. This update can be made online or via telephone. The change must be made at least three days before the current due date.
The first payment on your loan is due the month after the loan is issued.
No. Lending Club is a legitimate company. However, the Lending Club name has been used by scammers to offer fraudulent loans. To avoid this, make sure everything you do with Lending Club is done through AmONE and the company’s official website.
