About Bankrate Score
Bankrate’s take: LendingClub’s low credit score requirement, joint loan option, range of loan amounts and flexible repayment terms make it a good option for borrowers with fair credit.
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About Bankrate Score
Bankrate’s take: LendingClub’s low credit score requirement, joint loan option, range of loan amounts and flexible repayment terms make it a good option for borrowers with fair credit.
Bankrate users taking out personal loans from LendingClub have followed the below trends and stats:
Many personal loan lenders require borrowers to have credit scores in the mid-600s and over to qualify for their loans. LendingClub, on the other hand, accepts borrowers with credit scores as low as 600, which falls within the fair credit range.
The lender is also one of the few that offers joint applications. This feature may improve the approval odds for those with less-than-perfect credit. It can also help borrowers secure better rates.
Though LendingClub’s starting APR is higher than average, it’s still much lower than the average credit card interest rate. This, along with its range of loan amounts and option to send direct payments to creditors, can make it a good option to consolidate high-interest credit card debt. In fact, most LendingClub borrowers on Bankrate take out loans specifically for debt consolidation.
LendingClub’s loans feature a range of repayment terms, amounts of up to $40,000, a co-borrowing option and direct payment to creditors. This combination makes its loans ideal for many purposes, including debt consolidation, financing a midsize home improvement project or making a large purchase.
The lender doesn't allow loan proceeds to be used to cover post-secondary education-related expenses, investing, buying cryptocurrency or for illegal activities. Because of its funding timeline, LendingClub’s loans may also not be a good option for urgent expenses that may require same- or next-day funding.
Borrowers can reach customer support over the phone at 888-596-3157. Representatives are available from 5 a.m to 5 p.m. PT, Monday through Friday, and from 8 a.m. to 5 p.m. PT on Saturday.
LendingClub’s application process can be completed online from start to finish. Prequalification is also available on the lender’s website, so borrowers can check their eligibility, without affecting their credit.
Loan accounts can be managed online or through the company’s mobile app, which is available for both iOS and Android devices.
LendingClub borrowers have rated it 4.83 out of 5 on its website, with over 68,600 reviews as of March 21, 2024. The reviews posted on the LendingClub website are collected and authenticated by Bazaarvoice. The lender also has a 4.7 out of 5 rating on Trustpilot with over 5,400 reviews.
Ease of application and quick approval are the main points of satisfaction among most customers across the customer reviews the Bankrate team evaluated. Problems with customer support and funding timelines are some of the most common issues in negative customer reviews. LendingClub also has not replied to any negative Trustpilot reviews at time of writing.
Just like LendingClub, Prosper offers joint loan applications, repayment terms between two and five years and a minimum credit score requirement of 600. That said, Prosper offers personal loan amounts up to $50,000 — a higher cap than LendingClub — and interest rates start slightly lower. This may make it a better lender if you’re looking to finance a bigger expense.
In terms of special features, both are fairly standard, though Prosper may offer a faster funding timeline. The lender states that borrowers can get the funds as soon as the next day following approval. This can make it a more suitable option for emergencies than LendingClub.
Avant offers similar APRs to LendingClub and similar repayment terms. However, Avant’s loans are limited to $35,000, which is a lower limit than LendingClub’s.
That said, Avant has an even lower credit score requirement, offering loans to qualified applicants with a score of 550 and above. Avant also offers a wider range of repayment terms, ranging from 12 to 60 months. You may also be able to get your funds in one business day with Avant.
Like other lenders, LendingClub requires borrowers to be at least 18 years old, reside in one of the 50 states or Washington, D.C. and be U.S. citizens or permanent residents to qualify. Additionally, borrowers must:
LendingClub’s application process can be done entirely online or over the phone with the help of a representative. That said, applying online is often the more expedient way.
Borrowers taking out a consolidation loan can opt for direct payment to creditors. Though LendingClub doesn’t guarantee a specific funding timeline, the average LendingClub borrower on Bankrate gets their funds in about four days.
Overall Score | 4.5 | Explanation |
---|---|---|
Availability | 4.8 | Same-day approval and low credit score requirement, but funding can take a few days. |
Affordability | 4.2 | Higher-than-average starting APR and origination fees. |
Customer Experience | 4.7 | Online application, mobile app and a range of customer support hours. |
Transparency | 4.2 | All rates and fees are listed, however, credit requirements are undisclosed. |
57
years in business
30
lenders reviewed
20
loan features weighed
665
data points collected
Bankrate considers 20 factors when reviewing lenders. Credit requirements, APR ranges, fees, loan amounts and flexibility are all taken into account so that ratings are representative of how competitive lenders are for a wide range of credit profiles and budgets. The Bankrate Score for personal loans consists of four categories:
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.