Hot take

Best for: borrowers with fair to good credit or those looking for smaller loan amounts

Lower credit score requirements
Check your rate with no impact to credit score
Allows optional co-borrower

Higher APRs (starting at 10.68%)
Origination fee of up to 5%
Less customizable loan terms

In-depth Review of Lending Club Personal Loans

Lending Club is often considered the original “peer to peer” lender – where they match borrowers looking for a personal loan with savers who are looking to invest (and earn a higher interest rate than a savings account.) In practice, most of the lenders on the Lending Club platform are “institutional” (banks, assets managers, etc.) – not mom and pop investors.

How is a “peer to peer” loan different?

At first glance, a loan from a peer to peer lender, like Lending Club, looks like a personal loan from a traditional bank. However, because a peer to peer lender is actually selling your loan to investors (rather than “balance sheeting” it, or holding the loan itself as an asset) there are some important differences. Differences include:

Charging an origination fee. Because Lending Club passes on interest to the investors who own your loan, Lending Club itself makes money by charging you an origination fee. This fee is included in the APR (annual percentage rate), which is the “price” of your loan.

Less customizable loan terms. Because the loans are being sold, Lending Club has less flexibility in the structure of your loan. As a result, Lending Club only offers 36 or 60 month loan terms.

May be less flexible. Again, because Lending Club itself doesn’t own the loan, there is likely less flexibility to modify the terms of your loan (like deferment, forbearance, etc.) in the event of an emergency like coronavirus.

Lending Club Personal Loan Details

Loan amount range$1,000-$40,000 (higher minimum loan amounts in some states)
Loan lengths36 or 60 months
Interest rate typeFixed interest rate
APR range10.68% - 35.89%
FeesOrigination fee: 2-6%
Late fee: if more than 15 days late, 5.00% of unpaid payment OR $15, whichever is greater
Prepayment fee: None
Can check rate with no impact to score?Yes
Loan usesPretty much any reason: refinance credit cards; consolidate debt; major purchase; home improvement; vacation; moving/relocation; medical expenses; etc.
Time to fundFor most applicants, funds were received in as little as 4 days.
Joint application (co-borrower) optionYes
Minimum qualificationsMinimum credit score: 600, but average is significantly higher
Can send loan proceeds directly to creditors (for debt consolidation loans)Yes

Representative Loan Example

Borrow $6,000 for 36 months
Receive $5,700 (after origination fee)
13.11% fixed APR
Pay back $192.37 per month for 36 months
Total repaid $6,925.32
Cost of financing $1,225.32

What People Are Saying

CFPB complaint data: 604 complaints in last 24 months

Trustpilot rating: Excellent (4.8/5) from 1,075 reviews

Better Business Bureau: Accredited, No Rating

A note on reviews

When looking at reviews or complaints, we urge you to think about them in context and take them with a grain of salt. For instance, companies that have more customers are likely to generate more complaints to the CFPB — so the raw number of complaints on its own doesn’t paint the full picture.

Similarly, it’s possible for companies to attempt to game ratings on services like TrustPilot, by timing when they ask borrowers for a review to encourage positive comments and by challenging negative reviews on the platform.

Most of all, borrowers should be cautious in how they interpret a firm being Better Business Bureau (BBB) “Accredited” or having an A+ rating. BBB “Accreditation” means merely that a business makes a commitment to make a good faith effort to resolve customer complaints and follow the BBB’s Code of Business Practices. It’s not clear how closely adherence to these practices is followed or how non-compliance is enforced.

Also note customer reviews are not included in the BBB rating, and it’s possible to have an “A+” rating despite having a poor customer rating.

Contact Information

Physical Address
595 Market Street, Suite 200
San Francisco, California 94105

(888) 596-3157


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