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 6.99% - 35.89%. Conversely, people with excellent credit could qualify for rates at the low end, below 10%. All LendingClub loans are for 36 or 60 months.
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.
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.
LendingClub Personal Loan Terms
|APRs||6.95% - 35.89%|
|Loan Amount||$1,000 - $40,000|
|Loan Term||12, 24, 36, 48 or 60 months|
|Origination Fee||1% - 6 %|
|Credit Score Requirement||Fair*|
|Loan Purpose||Debt Consolidation, Refinance, Home Improvement|
|How long does it take to receive the funds?||N/A|
*According to multiple third-party sources
LendingClub Rates & Fees
LendingClub loan rates can be anywhere from 6.95% to 35.89%. That’s one of the highest upper limits on the market, but there’s still the potential for low rates. 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 (fee for paying your loan off early). But the LendingClub origination fee to process the loan 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 5.2%, which is fairly high. This fee 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.
LendingClub Requirements for Personal Loans
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.
You can check your potential rates with LendingClub 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. 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
LendingClub has a good reputation with both the Better Business Bureau and the Consumer Financial Protection Bureau. There are very few complaints about their personal loans.
- Better Business Bureau: LendingClub has an A rating and has been accredited since 2008.
- Consumer Financial Protection Bureau: The CFPB has catalogued around 400 complaints about LendingClub, of which only 204 are about personal installment loans. Some of the complaints include difficulties making payments and being charged amounts that were higher than expected. The most recent complaint is from March 2019. LendingClub has provided a “timely” response to almost all existing complaints.
- WalletHub: WalletHub’s editors give LendingClub’s personal loans 4/5.
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 Loans vs. Popular Competitors
|APR||6.95% - 35.89%||6.95% - 35.99%||5.99% - 19.99%|
|Loan Amounts||$1,000 - $40,000||$1,000 - $40,000||$2,000 - $35,000|
|Loan Term||12, 24, 36, 48 or 60 months||36 or 60 months||36 or 60 months|
|Credit Score Required||Fair||Fair||Good|
In order to determine a rating for LendingClub personal loans, WalletHub evaluated LendingClub in seven major categories. We used 23 different metrics within those categories, giving the most weight to those with the greatest impact on borrowers. Below, you can find an overview of the factors we considered.
- Requirements: WalletHub considered the credit score and income that LendingClub requires. We also took a look at their citizenship and identification requirements (SSN, etc.).
- Application process: We checked if joint applications are possible and whether LendingClub offers pre-qualification. We also read up on the different ways to apply, as well as how long the decision and funding processes take.
- Loan amounts: We researched the minimum and maximum amounts available to borrow and the number of months available to pay loans off.
- APR: We looked at LendingClub’s interest rates and checked if they are fixed or variable.
- Fees: We looked at the fees on LendingClub personal loans. We were most concerned with origination fees, prepayment penalties and late fees.
- Customer satisfaction: We looked at LendingClub’s BBB rating, WalletHub user reviews and customer complaints filed with the Consumer Financial Protection Bureau.
- Transparency: Our editors considered LendingClub’s level of clarity about the requirements for getting a personal loan and the terms of their loans.
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