LendingClub Personal Loans Review December 2024

If you need cash, you might be considering a LendingClub personal loan. These loans can help you cover up to $40,000 in expenses, from consolidating your debt to paying unexpected medical bills. However, LendingClub isn’t for everyone. To get the most out of LendingClub personal loans, you’ll need to have a high credit score, among other requirements. 

Who are LendingClub personal loans best for?

Best online experience 

LendingClub was, at one time, a peer-to-peer lender. As such, it allowed investors to fund loans on a fractional basis and earn interest on their funds. Today, all LendingClub loans are made by LendingClub Bank, an FDIC-insured financial institution, and are no longer available to individual investors.

Perhaps as a result of its original business model, the online experience with LendingClub is easy. Prequalification doesn't require a Social Security number. And, according to internal Credible data, LendingClub has a good track record of approving applicants who prequalify for a loan. LendingClub also lets you take out a loan with a co-borrower. If you’re using the loan to pay debt, LendingClub can pay your creditors directly.

However, to qualify you'll need a credit score of at least 660, which means many fair-credit and all bad-credit applicants won't be approved. LendingClub also charges an origination fee of 3% to 8% of your loan amount, depending on your credit history.

Great for debt consolidation

If you’re taking out a LendingClub personal loan to pay off credit cards or other debt, you may get a lower rate if you let LendingClub pay your creditors directly. The LendingClub balance transfer loan lets you pay off up to 12 different creditors, with any money left over deposited to your bank account. However, it does not offer a rate discount for sending money directly to your creditors.

Plus, if you use the loan to pay off one or more credit cards, you could boost your credit score within a month (as long as you keep the cards open). This is because you’ll reduce your credit utilization, which contributes up to 30% to your FICO credit score, and most credit cards report monthly to the bureaus. 

Pros and cons of LendingClub personal loans

LendingClub personal loans have many benefits and drawbacks, which should all be weighed before you apply. Here are the pros and cons that you should keep in mind: 

Pros

• Mobile app: Many personal loan providers do not offer a mobile app for easy loan management. LendingClub does.
• Low minimum income requirement: LendingClub does not have a minimum income requirement, other than that you earn some income annually. But you’ll need to have enough to afford loan payments. 
• High close rate on loans made through Credible: Per proprietary Credible data, LendingClub has a very good track record of approving applicants who prequalified first. While prequalification can give you an idea of the rate you’ll get if you qualify, it’s not a guarantee that you’ll be approved for a loan. 
• Available in all states: LendingClub accepts applications from all 50 states and the District of Columbia.

Cons

• Origination fee: Origination fees can range from 3.00% to 8.00% and are deducted from the initial loan amount, meaning you’ll receive less than the amount you borrowed. 
• No discounts: Some lenders offer discounts for paying your creditors directly and/or autopay. LendingClub does not.
• Funding not as fast as some competitors: A LendingClub loan can take 2 or more days to fund. Some competitors offer same-day personal loans.

How to qualify for a LendingClub personal loan

To qualify for a LendingClub personal loan, you’ll need to start by meeting some basic requirements:

• Be at least 18 years old
• Be a U.S. citizen or legal resident
• Live in a U.S. state or Washington D.C. (those living in U.S. territories do not qualify)
• Have a verifiable bank account

If you meet these basic requirements, you’ll then need to meet LendingClub’s standards for the following: 

Credit score and financial history

You’ll need a FICO score of at least 660 to get approved for a LendingClub personal loan through Credible — which is at the very top end of the fair credit range. But you’ll have a better chance of approval and may qualify for a lower rate if you have at least good credit (a FICO score of 670 or higher). 

Income and employment status

Your income and employment status give LendingClub an idea of whether you can afford to pay back your loan. Although it doesn’t have a set minimum income amount, LendingClub will expect you to have an income that covers the cost of your basic expenses plus monthly loan payments. Ideally, you can show a record of stable employment as well.

LendingClub personal loan purposes

LendingClub allows the following loan purposes:

• Debt consolidation
• Credit card refinancing
• Home improvement loans

However, there are a few things LendingClub prohibits you from using your loan for:

• Secondary education expenses 
• Investing
• Purchasing cryptocurrency
• Unlawful activity

LendingClub personal loan fees and penalties

Here’s a breakdown of the fees and penalties charged by LendingClub: 

Loan origination fees

LendingClub may charge an origination fee of 3.00% to 8.00% of the loan amount. Your origination fee will vary depending on your credit score and history. 

No early repayment penalties

Like most lenders, LendingClub doesn’t charge a prepayment penalty fee if you repay your loan early. 

Late fees

If you can’t make your monthly loan payment on time, LendingClub will charge you 5% of your late payment or $15 (whichever is greater). However, it will give you a 15-day grace period before doing so. 

How LendingClub compares to other lenders

How to contact LendingClub

The best way to contact LendingClub is by calling (888) 596-3157. Its representatives are available to talk to you:

• Monday to Friday: 5 a.m. - 5 p.m. (PT)
• Saturday: 8 a.m. - 5 p.m. (PT)

If you already have a LendingClub personal loan, you can make payments by check by mailing them to:

USPS: 

LendingClub Bank 

Lockbox Services - 134268

P.O. Box 884268

Los Angeles, CA 90088-4268

FedEx or UPS:

Lockbox #0134268

LendingClub Bank

3440 Flair Dr. 

El Monte, CA 91731

If you’re having trouble making payments, you can call 877-227-5011 or email LendingClub at [email protected]. 

About LendingClub personal loans

LendingClub helped pioneer online personal loans and peer-to-peer lending. The company matched borrowers to investors, which often meant a lower interest rate for borrowers of all credit types. Now, LendingClub operates like a traditional lender but still offers reasonable rates and loan amounts to borrowers with fair, good, and excellent credit.