LendingClub Personal Loans Review 2023

LendingClub personal loans can be used for almost any major expense, including:

LendingClub offers fixed-rate personal loans of $1,000 to $40,000. Repayment terms range from three to five years, and the entire application, approval and funding process typically takes seven business days or less. Borrowers receive their loan funds via bank transfer.

LendingClub does not charge an application fee or brokerage fees, so other lenders cannot charge you on LendingClub’s behalf.

LendingClub charges an origination fee of 1% to 6% on personal loans and a late payment fee of $15 or 5% of the unpaid payment amount, whichever is greater. No prepayment penalty applies if you pay off the loan early.

LendingClub requires a minimum FICO credit score of 600, which is lower than many competing companies offering personal loans. LendingClub asks for three years of credit history. The average borrower’s debt-to-income ratio is 40%. Preapproval is available through the lender’s website, and joint applications are accepted.

The loan process begins by using an online tool through LendingClub to check your rate. You’ll find out which loans you qualify for based on your credit score. If your score is on the lower end, you can add a co-borrower to help qualify for a better rate. If you qualify for a LendingClub personal loan, you will receive multiple loan offers so you can choose the one that suits you. That is an advantage to working with a loan marketplace like LendingClub.

To borrow with LendingClub, you must be a U.S. citizen or permanent resident or living in the U.S. on a long term visa, at least 18 years old and have a bank account. LendingClub reviews information from credit bureaus and your history with making on-time payments.

Most people who qualify for LendingClub personal loans receive funds within four days, though the time it takes to get your loan can vary.

LendingClub is not rated by the Better Business Bureau. In 2018, the Federal Trade Commission filed a complaint against LendingClub alleging the company did not keep its “no hidden fees” promise and misled consumers into thinking their loans were approved, among other allegations. The case is still pending. LendingClub addressed the claim by explaining its rates and fees and shared that it uses a government-approved form, the Truth in Lending Act Disclosure, so borrowers know what loans will cost.

In 2019, the Consumer Financial Protection Bureau received 104 personal loan-related complaints about LendingClub, with a timely response to about 75% of complaints. Most complaints were about problems making payments, unexpected fees or interest charges, or incorrect credit reporting.

Borrowers can complete the entire loan process online, including preapproval, application, approval and closing. LendingClub’s customer service team is available by phone or via email. LendingClub also has an app so you can manage your account on your mobile device.

LendingClub allows borrowers to choose their payment due date, as long as it’s within 15 days of the original due date. The lender also offers a direct pay feature that allows borrowers to pay off part of the loan upfront to qualify for a lower interest rate.