Axos vs. LendingClub: Which offers better personal loans?

Personal Loans

2 min read Published February 01, 2024

Written by

Allison Martin

Edited by

Hannah Smith

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Axos Bank and LendingClub offer unsecured personal loans to consumers in all 50 states and Washington, D.C.

Based in San Diego, Axos Bank is an online financial institution offering innovative digital banking solutions. LendingClub also operates online and offers lending, banking and investing solutions.

Both are ideal for borrowers with at least fair credit, but LendingClub affords you more flexibility when applying.

Axos Bank vs. LendingClub at a glance

Axos Bank and LendingClub feature unsecured personal loans with generous loan limits. Still, each comes with variances to remember when deciding which works best for your financial situation.

	Axos Bank	LendingClub
Bankrate Score	4.5	4.3
Better for	Fast funding	Applicants with a co-borrower
Loan amounts	$7,000-$50,000	$1,000-$40,000
APRs	11.79%-20.84%	9.57%-35.99%
Loan term lengths	36-72 months	24-60 months
Fees	Origination fee: 1-2% NSF fee: $25 Late fee: $15 (following the grace period)	Origination fee: 1-8% Late fee: the greater of 5% of the payment amount or $15
Minimum credit score	700	Not specified
Time to funding	As soon as the same day	Within two days

Axos Bank personal loans

4.5

Learn more in our Bankrate review

Pros

Online prequalification with soft inquiry.

Refinancing available.

Same-day funding.
Cons

Origination fee.

Good or excellent credit required.

High minimum rate compared to other lenders.
Axos Bank features flexible unsecured personal loans. They come with an origination fee, but there’s no early repayment penalty should you pay the loan off early. Furthermore, the lender does charge an origination fee, but it’s lower than what you’ll get with LendingClub.

Some loans are funded on the same business day. LendingClub could take up to two days to fund your loan. You can also extend your due date up to 10 days to work better for your budget. Additionally, Axos Bank lets you apply for refinancing to get a better rate after six months. These benefits aren’t common with many other lenders.

LendingClub personal loans

4.3

Learn more in our Bankrate review

Pros

Co-borrowers permitted.

Rapid approvals.

Allows due date adjustment.
Cons

Origination fee.

Minimum credit score not specified.

Steep maximum APR.
LendingClub stands out amongst the competition as it is one of the few borrowers that allow co-borrowers. This benefits those who want to borrow money but can’t qualify for it on their own. There’s also the option to get prequalified online with a co-borrower without impacting your credit score.

Another key benefit of doing business with LendingClub is the fast application process. Approvals are often issued within two hours if you upload the required documentation in a timely manner. You could also get a slightly lower APR than Axos Bank if you have stellar credit and qualify for the lowest rate.

Like Axos Bank, LendingClub lets you adjust your due date permanently or as a one-time courtesy to help make your loan more manageable.

How to choose between Axos Bank and LendingClub

Both lenders prohibit loan proceeds from being used to fund investments or cover higher education expenses or costs associated with illegal activity.

Axos Bank has larger loans

LendingClub limits loans to $40,000, but it could work if you seek a small loan. However, borrowers needing more funding may find Axos Bank is the better choice.

Loan amounts of up to $50,000 are available, and you could receive the proceeds the same day. You could also enjoy lower borrowing costs since the maximum APR is significantly lower than LendingClub. Plus, the repayment periods are lengthier, which helps lower the monthly payments. Be mindful that extending the loan term means you’ll pay more in interest over the life of the loan.

LendingClub allows joint borrowers

Co-signers for personal loans aren’t permitted with either lender. However, you can get a joint personal loan with LendingClub. It allows you to apply with a co-borrower, and the lender evaluates income and credit information for both applicants to make a decision.

However, adding a joint borrower with Axos Bank isn’t an option. You’ll need to qualify on your own with a credit score of 700 and higher and a source of verifiable income.

Compare lenders before applying

Axos Bank and LendingClub are worth considering if you need an unsecured personal loan. You can access more funding with Axos Bank, but LendingClub is the better option if you want to apply with a co-borrower. Axos Bank also features longer loan terms than LendingClub, with lower origination fees.

However, you may want to lean more towards LendingClub if you have a lower credit score. Or, if your score is on the higher end, you could still snag a more competitive interest rate with this lender since its minimum APR is slightly lower.

Get prequalified with both to make the best decision for your finances. And before you fully apply, check your rates with other lenders.