Loans » Personal Loan Lender Reviews » Lending Club Personal Loan Review 2021
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Lending Club Personal Loan Review 2021

LendingClub has a high standard for their personal loans. Those they approve are borrowers who have well-established and good credit history with very strong cash flows.
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In this Review..

Lending Club is a peer to peer marketplace offering personal loans with a minimum of just $1,000. 

Where Lending Club stands apart from other lenders is that it allows co borrowers on personal loan applications. This can be helpful if you think you may need an additional applicant who has better finances to improve your chances of qualifying. 

Lending Club loans can be used for almost any purpose including debt consolidation, balance transfers and major expenses. However, you cannot use a Lending Club loan for post secondary education, making investments or purchasing securities. 

Loans are available from $1,000 to $40,000. However, your state of residence may impact the minimum loan amounts. The loan repayment terms are either 36 months or 60 months. The fixed rate APR for loans ranges from 10.68% to 35.89% and it includes an origination fee of up to 6%. 

Lending Club also applies a late payment fee of $15 or 5% of your unpaid balance if your monthly payment is more than 15 days overdue. 

LendingClub is the largest peer-to-peer marketplace that matches lenders with borrowers, instead of going through a lending institution such as a bank.

APR

6.16% – 35.89%

Loan Amount

$1,000 -$40,000

Term

36 to 60 months

Min score

600

LendingClub is the largest peer-to-peer marketplace in the world. Established in 2006 out of San Francisco, CA, it has lent over $42 billion in personal loans.
Peer-to-peer lending is a platform that matches lenders with borrowers, instead of going through a lending institution such as a bank. This means you can have common investors or investment groups funding your loan.

The LendingClub platform started out facilitating only personal loans but has expanded into loans for businessauto and medical. The information below is for the personal loan product.

Lending Club Loan Pros & Cons

As we know, each lender has its own pros & cons – here are the relevant things we found for potential borrowers:

Pros

Cons

Loan Details

Here are the basic specifications & requirements of Lending Club Personal Loan :

Loan Amount Range
$1,000 -$40,000
Interest Rate Range
6.16% – 35.89%
Term
36 to 60 months
Origination Fee
1% to 6%
Late Payment Fee
$15 or 5% of the amount due
Returned Payment Fee
$15
Check processing Fee
$7
Prepayment Fee
None
Minimum Credit Score
600
Funding
Up to 7 days

What Can a LendingClub Personal Loan Be Used For?

LendingClub offers personal loans for many different reasons and groups them into 3 categories: to pay off high-interest debt, to pay for something unexpected, and to pay for something planned.

LendingClub loans can be used for a wide range of costs that you expect in the future. For example, loans can be used for home improvement. They can be used for expected medical costs, wedding expenses, vacations, moving, business expenses, and can even be used to help buy a home. The great thing about using a personal loan instead of credit cards for these types of expenses is that the terms will not change over the course of the loan.
LendingClub loans can be used for unexpected costs like medical bills, or the death of loved one. Many times in life unexpected expenses come up and if you do not have emergency savings, a LendingClub loan can help you pay.
LendingClub debt consolidation is paying off one or more prior unsecured loans with the new loan. Instead of multiple payments to multiple lenders you can create one payment to one lender. The advantage of a debt consolidation loan with LendingClub is that the payment and term are fixed so you know exactly when you’ll be out of debt. The idea is that you can take a high revolving interest credit card and save money by replacing it with a low rate fixed installment. LendingClub also has a debt consolidation calculator, so you can get an idea on how much you can save.

Application Process

LendingClub is a peer-to-peer marketplace, so you not only apply but also create a profile for potential investors to evaluate you as a risk and accordingly lend you money for a portion of the loan. You start the process by checking your rate through a soft pull.

Lending Club Personal Loan Lending Club Personal Loan

You will fill out some basic information and they will give you a couple of rates and loan options. You will choose the option you would like to apply for.

Lending Club Personal Loan Lending Club Personal Loan

Then you fill out the rest of the application. At this point, LendingClub will do a hard pull and check your credit. Then you will need to provide verification information.

Lending Club Personal Loan

 LendingClub will have a list of information for you to provide. They may request documentation to verify your identity, income, or employment.

Lending Club Personal Loan

Your listing will then be posted on LendingClub’s marketplace where investors can look at your profile and decide whether to invest in your loan. Many listings are funded in the first few days. You will sign documents electronically for the loan and then the funds will be sent to your bank.

  

Lending Club Personal Loan  Lending Club Personal Loan

LendingClub is the largest peer-to-peer marketplace that matches lenders with borrowers, instead of going through a lending institution such as a bank.

APR

6.16% – 35.89%

Loan Amount

$1,000 -$40,000

Term

36 to 60 months

Min score

600

Alternatives Lenders For Consideration

Here are our 3 choices of lenders which can use as a great alternative to LendingClub personal loan: 

This company is an online lender that offers very high loan amounts yet at low interest rates. LightStream is part of the Truist Bank group, formerly the SunTrust Bank. You can use the loan for any purpose, including home improvements, debt consolidation, etc.

LightStream does not charge fees. So, there are no late payment fees, processing fees, or pre payment fees. They even offer $100 to customers if they are unsatisfied with their loan processing experience and are willing to beat competitor’s rates by 0.1%.

If you find a lender offering a better rate than LightStream, the company will offer you a 0.1% decrease to highlight that they are a better option.

Most of the loans have a term of two to seven years, but this may be extended to 12 years for solar financing, home improvement loans, or swimming pool loans.

Rocket was founded to offer a rocket fast loan processing system to provide personal loans to eligible borrowers. Rocket is part of the Quicken group, which includes Rocket Mortgage and Rabid Advance.

Qualifying for a Rocket loan is contingent on creditworthiness rather than business type. You can use your loan for any purpose, including starting a business.

However, Rocket only qualifies people with a credit score minimum of 640 and a good credit history. You also need to have a permanent source of income and a low debt to income ratio.

Where Rocket stands apart is that loans are processed very quickly. 85% of borrowers receive loans within a day.

This company mostly caters to people with great credit. They offer fixed rate loans to consolidate debt with a two to five year repayment period. The lowest interest rates are typically reserved for borrowers with the best credit scores.

FreedomPlus is one of the few lenders willing to offer joint or co-signed loans to those with poor credit. Approximately 30% of FreedomPlus borrowers have taken advantage of this, as it helps borrowers to access lower interest rates.

For example, if you qualify for a loan at 15% interest, it may reduce to 10% if you use a co signer with good credit.

LendingClub Personal Loan is Best for..

LendingClub has a high standard for their personal loans. Those they approve are borrowers who have well-established and good credit history with very strong cash flows. LendingClub is best for those with good credit and those who do not mind waiting a few days to receive the funds.

There are faster options available. but LendingClub has competitive rates for those with excellent credit. It is worth the wait to get a good interest rate. Watch out for the origination fee – it can be high and greatly increase the cost of your loan.

Compare Rates

Loan Amount

$0$100,000

Credit Score

Goal

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Loan Reviews Methodology

When it comes to choosing personal, student or car loans, we make sure that we evaluate all of the different products and services that are available for the lender we review. 

The Smart Investor’s selection of loan providers for inclusion here was made based on key areas we evaluated: loan types and loan products offered, fees, and APR. We also considering customer satisfaction and reliable external ratings such as J.D power/Trustpilot.

Cutting fees is now table stakes in the personal and student loans market. In addition, the most valuable loan products tend to offer a deep bench of options that meet a wide array of customer needs. These include a diverse range of loan amounts and terms, as well as loan structures. We also make sure that you’re going to save money by cutting down on the APR that goes along with the loans offered.