LendingClub and Prosper personal loans are ideal for those looking for a smaller loan and are wanting to use a cosigner. Both companies charge similar APR maximums, although Prosper’s minimum APR is lower than LendingClub’s.

While the two lenders boast several similarities, they both come with a unique set of pros and cons and benefit borrowers in different credit and financial situations.

LendingClub vs. Prosper at a glance

LendingClub Prosper
Bankrate Score 4.1 4.2
Better for • Borrowers with a cosigner • Those with fair credit
• Small loan amounts
Loan amounts$1,000-$40,000$2,000-$50,000
APRs 9.57%-36.00% 6.99%-35.99%
Loan term lengths 24-60 months 24-84 months
Fees • Origination fee: 3% to 6%
• Late fee: not specified
• Origination fee: 1% to 5%
• Returned payment: $15
• Late fee: The greater of $15 or 5%
• Check payment fee: The greater of $15 or 5%
Minimum credit score Not specified 600
Requirements • U.S. citizen, permanent resident or long-term visa holder
• At least 18 years old
• Have a verifiable bank account
• Reside within one of the 50 states (or Washington D.C.)
• U.S. citizen or resident of a qualifying state.
• At least 18 years old
• Have a verifiable bank account
• Have a valid Social Security Number
• No reported bankruptcies in the past 12 months
Time to funding Within four days (on average) As soon as one business day
Cosigners permitted Yes No (joint applications allowed)

Prosper personal loans

Prosper operates differently than the average run-of-the-mill online lender. Rather than offering a Prosper personal loan, the peer-to-peer company is a marketplace, acting as a broker that exists to match investors with borrowers who meet the eligibility criteria.

Along with offering joint applications, which can increase your chances of approval and scoring a more competitive rate, the company also offers prequalification, making it easier to compare offers from multiple lenders.


  • Can change payment due date
  • Low minimum loan amount
  • Low credit score requirements


  • Origination fees
  • High maximum APR
  • Longer funding time than most lenders

LendingClub Personal loans

LendingClub originally began as a peer-to-peer lending platform but has transitioned to a traditional bank and lender in 2021. Its lower credit score requirements and smaller loan amount of $5,000 make this a stand-out leader.

However, its fees — including higher rates and an origination fee between 3 to 6 percent — can add significant costs to the loan and detract from the overall value of the loan.


  • Lower credit minimums
  • No prepayment penalties
  • Prequalification offered


  • Inflexible repayment periods
  • High maximum APR
  • Multiple fees

How to choose between LendingClub and Prosper

Both LendingClub and Prosper have unique benefits that will be advantageous to borrowers in different situations. Here’s how to be sure you’re picking the right lender for your needs.

Choose LendingClub for smaller loans with few fees

Borrowers who are in need of a smaller loan and have the help of a creditworthy cosigner will best benefit from a LendingClub personal loan. While the company does charge an origination fee and a late fee, with a Prosper loan, you may be subject to four fees, including a returned payment and a check payment fee.

LendingClub also charges a higher maximum rate than most lenders, so only those who have an excellent credit score — or a cosigner who does — will benefit from a LendingClub personal loan.

Choose Prosper for accessible eligibility requirements

Prosper’s credit minimum of 600 is fairly low when compared to most personal loan lenders and its eligibility requirements are much less stringent than lenders, especially for first-time borrowers.

For example, it only requires that you have a stated income greater than $0 and a debt-to-income ratio of no more than 50 percent, which is much lower than the ideal lender limit of 36 percent.

If you don’t meet these requirements, Prosper does allow for joint applicants and cosigners. This can increase your chances of approval and scoring a lower interest rate.

Compare more lenders before applying

Both Prosper and LendingClub are strong lenders that both allow for cosigners; however, Prosper may be easier to qualify for, even with the help of a cosigner. LendingClub, on the other hand, may be the more affordable option for those with a stellar credit score, repayment history and high annual income — or those with a cosigner who meets these requirements.

If you’re having trouble deciding between these two lenders, prequalify for both to see which one offers the best rates and charges the fewest fees.