
About Bankrate Score
LendingClub started as a peer-to-peer company, and has since evolved into a loan marketplace. You can take out personal and business loans and take advantage of auto and medical financing.
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About Bankrate Score
LendingClub started as a peer-to-peer company, and has since evolved into a loan marketplace. You can take out personal and business loans and take advantage of auto and medical financing.
If you’re struggling to find a lender that will let you borrow, you might need to enlist the help of a co-borrower. Not every lender offers the option to do this, but LendingClub lets you submit a joint application to help you qualify for a loan or get a better interest rate.
Fast approval.
Offers joint applications.
Can change your due date.
Origination fees.
Limited term options.
High maximum APR.
LendingClub’s unsecured personal loans range from $1,000 to $40,000 with decent annual percentage rates (APRs), but not the lowest available. LendingClub charges origination fees and requires fair to excellent credit to qualify. If you have bad credit and are approved for a loan with a high interest rate along with a steep origination fee, you may be better off with a different lender.
To qualify, you must:
Just like LendingClub was, Prosper is a peer-to-peer lender that offers joint loan applications. However, Prosper offers personal loan amounts up to $50,000 — a higher cap than LendingClub, which 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 doesn't offer the grace period that LendingClub does.
Avant offers similar personal loan amounts and APRs as LendingClub, however, its personal loans may be costlier. Avant’s loans feature a higher starting APR than LendingClub and Avant doesn't allow joint applications.
That said, Avant does have a pretty low credit score requirement, offering loans to applicants with a score of 580 and above. Avant also offers a wider range of repayment options than LendingClub, with terms from 12 to 60 months.
LendingClub can be a great option if you need to borrow money for a small or midsize expense. However, there are some drawbacks you must consider to determine if this is the right lender for you.
Customers can call LendingClub customer service at 833-536-3639. Representatives are available Monday through Friday from 5 a.m. to 5 p.m. PT and Saturday from 8 a.m. to 5 p.m. PT.
To apply for a loan, follow these steps:
One of the perks of applying for a loan with LendingClub is that if you have less-than-stellar credit, you can still qualify for an affordable rate by adding a co-borrower — something not all lenders offer. Besides that, the company allows borrowers to check their rate with a soft credit pull, which doesn’t impact your credit. Borrowers also have access to a one-time change in their payment due date and a 15-day grace period before the lender assesses a late payment fee on their account.
LendingClub connects investors with potential borrowers and charges an origination fee of 3.00 percent to 8.00 percent for the service. The fee is taken out of the loan proceeds up front. For example, if you borrow $10,000 with a 3.5 percent origination fee, you’ll only receive $9,650. Keep in mind, though, that you’ll be making payments on the entire $10,000. You should factor in the origination fee when calculating the total amount you’re looking to borrow.
LendingClub doesn’t charge a prepayment penalty, but it does charge a late fee if your payment is over 15 days late.
Overall Score | 4.3 | Explanation |
---|---|---|
Availability | 4.2 | LendingClub doesn't have as fast funding time as other lenders |
Affordability | 4.6 | While it’s not unreasonable, LendingClub’s minimum APR is higher than that of competitors. |
Customer Experience | 4.7 | LendingClub has a good online platform but slightly limited customer service hours. |
Transparency | 3.8 | While it has prequalification, LendingClub doesn't list its credit requirements. |
To select the best personal loans, Bankrate’s team of experts evaluated over 30 lenders. Each lender was ranked using a meticulous 20-point system, focusing on four main 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.