2020 LendingClub Review: Good for Personal Loans?
Quick Review: LendingClub personal loans can be a good option for people with bad-to-fair credit, as there are reports of applicants being approved with credit scores between 600 and 640. However, people with subpar credit will likely find themselves at the upper end of the LendingClub interest rate range, which is 10.68% - 35.89%. People with excellent credit could qualify for rates at the low end, but they can probably find better deals with other lenders, too.
Unfortunately, LendingClub loans aren’t fee-free. The LendingClub origination fee is 1% - 6%, and it will be deducted from the original amount you receive. The fee depends on your credit, income and other factors. All LendingClub loans are for 36 or 60 months.
Below, you can find more information about the major pros and cons of LendingClub personal loans and see how they compare to offers from other lenders. You can also see exactly how we rate LendingClub loans across three major dimensions: terms, requirements and reputation.
LendingClub Personal Loan Terms
|APRs||10.68% - 35.89%|
|Loan Amount||$1,000 - $40,000|
|Loan Terms||36 or 60 months|
|Origination Fee||1% - 6%|
|Late Fee||5% of payment (min. $15)|
|Minimum Credit Score||Fair*|
|Minimum Income||Not disclosed|
|Loan Purpose||Debt Consolidation, Refinance, Home Improvement|
|Time to Receive Loan Money||4 - 11 business days|
LendingClub Rates, Fees & Other terms
Category Rating: 3.1/5
LendingClub loan rates can be anywhere from 10.68% to 35.89%. While those aren’t the cheapest personal loan rates you can get, LendingClub still scores well with WalletHub because even their maximum APR is reasonable compared to most options available to people with below-average credit. The APR you get is determined by many different factors, including your credit score, income and other debts. LendingClub interest rates are fixed, which means they won’t go up or down for the life of the loan.
LendingClub does not charge a prepayment fee (for paying your loan off early). But they lose points for charging an origination fee to process the loan. This fee is 1% - 6% of the loan amount. The fee depends on the same factors that set your interest rate – credit score, income and more. According to LendingClub, the average origination fee is 4.86%, which is fairly high. It is deducted from the amount of money you receive at the beginning. There is also a late payment fee of 5% of your payment or $15, whichever is greater. You will only be charged the late fee if you are more than 15 days past-due.
In addition, LendingClub scores well for their loan sizes and payoff periods, offering a maximum of $40,000 for 36 or 60 months.
LendingClub Requirements for Personal Loans
Category Rating: 4/5
LendingClub’s credit score requirements aren’t disclosed, but multiple third-party sources place the minimum score to qualify between 600 and 640. The LendingClub income requirements are also not disclosed.
There are some other basic Lending Club requirements, too. You must be at least 18 years old. You must also be one of the following: a U.S. citizen, permanent resident, or person living in the U.S. with a long-term visa. In all cases, LendingClub will ask for a Social Security number. LendingClub requires that you have a bank account, too. Unfortunately, they do not accept applicants from Iowa, Guam or Puerto Rico.
One positive of LendingClub is that you can check your potential rates online. This will have no effect on your credit score (though actually submitting an application will). The only way to apply for a personal loan from LendingClub is by filling out an application online. LendingClub allows you to apply with a co-applicant, which is something many other lenders don’t offer. That means you can apply with someone who has a better credit score and income to improve your chances.
You can check the status of a LendingClub loan application any time by logging in to your online account.
LendingClub Reviews & Transparency
Category Rating: 4.4/5
- Better Business Bureau: LendingClub is currently not rated by the BBB due to a “pending government action,” but it has been accredited since 2008. Unrelated to the government action, the BBB site also advises that LendingClub has made the claim that “their company’s name is being used fraudulently in an online scam,” where people pretend to be from LendingClub.
- Consumer Financial Protection Bureau: The CFPB has catalogued around 300 complaints about LendingClub personal installment loans. Some of the complaints include difficulties making payments and being charged amounts that were higher than expected. LendingClub has provided a “timely” response to almost all existing complaints.
- WalletHub: LendingClub has a user score of 4.3/5.
- Transparency: LendingClub is transparent about their personal loan terms, which can be found on their website. They could stand to be more open about minimum credit and income requirements, though.
LendingClub scores well for their high level of clarity about their terms and requirements, as well as their overwhelmingly positive user ratings. However, they do have a fair amount of complaints, too.
LendingClub Loans vs. Popular Competitors
|APRs||10.68% - 35.89%||6.95% - 35.99%||5.99% - 29.99%|
|Loan Amounts||$1,000 - $40,000||$2,000 - $40,000||$2,000 - $35,000|
|Loan Terms||36 or 60 months||36 or 60 months||Up to 60 months|
|Minimum Credit Score||Fair*||Fair*||Fair*|
In order to provide the most accurate LendingClub personal loan review, WalletHub used 17 key metrics grouped into three overall sections: Terms, Requirements & Application, and Reviews & Transparency. We rated each section on a scale of 0 to 5, with 5 being the best, and then averaged the scores of the three sections to produce an overall rating for the loan.
- The “Terms” section includes information about how expensive the loan is, including rates and fees. It also takes into consideration how much consumers can borrow and how quickly they must pay it back.
For companies where APR and fee ranges differ greatly by state, we used data from the most populous state serviced by the company. LendingClub terms do not fluctuate significantly by state, however.
- The “Requirements & Application” section examines how easy it is to apply for a loan and how long it takes to receive the money. It also looks at exactly who is eligible to apply.
- The “Reviews & Transparency” section measures the loan provider’s reputation as well as how clearly the lender discloses its terms and requirements. This takes into account user reviews and information from watchdog organizations.
The average of these three scores reflects how close a loan offer is to WalletHub’s definition of a 5-star loan. For more information, please read WalletHub’s full methodology.
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