Is LendingClub legit?
LendingClub reviews, from its A+ BBB rating and over 2,000 customer reviews with an average rating of 4.5 out of 5 stars, clearly illustrate to us that this is a legitimate and reputable bank, lender, and debt consolidation company. Lending Club’s personal loans are rated “excellent,” with rates starting at as low as 9.57% as of January 2024 for fair credit applicants.
Consumers can quickly and easily apply for a loan and get approved within hours. Unlike most banks that require good to excellent credit to quality for a personal loan, Lending Club lends to consumers with low to fair FICO scores, making this an excellent route for consumers who are looking to consolidate high-interest credit cards and other types of secured or unsecured debt.
Lending Club Personal Loan Reviews
For consumers with fair credit, low-interest personal loans can be obtained and used for just about anything, from paying for large purchases, such as a wedding, to a home improvement project. LendingClub’s loan requirements are less strict than those of most banks. Reviews on Lending Club personal loans illustrate a high ratio of satisfied to dissatisfied customers, which is one of our rating criteria used to rank lenders.
This review of Lending Club’s personal loans will share the most up-to-date information on APRs and loan terms for 2024, giving you a side-by-side comparison of Lending Club vs. Other top-rated personal loans. Our personal loan comparison chart below is automatically updated to ensure we provide accurate rates and information. And it won’t all be positive. You’ll get an unbiased and honest LendingClub review from industry expert Deane Biermeier, author of 2024’s best personal loans list. Details on Lending Club’s complaints, along with pros and cons, will all be provided.
Compare loan rates of companies like LendingClub
Pros
Offers joint loan options
Offers low-interest rate on loans compared to credit cards
Offers direct payment to creditors with debt consolidation loans.
Soft credit check with pre-qualification
Allows borrowers to choose and change payment dates
Cons
No mobile app
Minimum Credit Score of 600 vs.Upstart with No Minimum Credit Score
Only two repayment term options
Charges a loan origination fee of 3-8%
No rate discount for autopayments
Is LendingClub a good bank?
As a leading online lender, LendingClub has surpassed expectations by acquiring Radius Bancorp, a prominent online bank. This strategic move in 2021 injected LendingClub with $2.4 billion in assets and $1.7 billion in deposits, propelling it to the forefront as the nation’s largest and highest-rated online bank. This landmark acquisition marks the first time since the 2008 financial crisis that a national fintech lender has successfully merged with a regulated bank.
This transformation is a game-changer for LendingClub and its customers, paving the way for a more streamlined and secure financial experience. With over $70 billion in loans distributed to over 4 million customers, LendingClub is undoubtedly one of the best personal loan providers.
However, is LendingClub your best option? Let’s find out!
Compare LendingClub Loan Rates vs. Other Top-Rated Lenders:
LendingClub Debt Consolidation Loan Overview
- Loan Amount: $1,000 to $40,000
- Interest Rate: 6.34-35.89%
- Loan terms: 36 or 60 months
- Years in Business: Since 2006
- BBB Rating: A+
Benefits and Features
- Minimum credit score: 600
- Loans funded in one week
- Payment date flexibility
- Get a lower rate with a co-borrower
- Available in all 50 states
- Online application and approval
Next, let’s run through some of the basics.
Credit Score Requirements for LendingClub Loans vs. Other Lenders
| Lender | Fixed (APR) | Loan Amounts |
Minimum Credit Score
|
| Upstart Personal Loan | 6.40% to 35.99% | $1,000 to $50,000 | 620 |
| LightStream Personal Loan | 7.49% to 25.49% | $5,000 to $100,000 | 700 |
| Discover Personal Loan | 7.99% to 24.99% | $2,500 to $40,000 | 660 |
| PenFed Credit Union Loan | 8.49% to 17.99% | $600 to $50,000 | 700 |
| Upgrade Personal Loan | 8.49% to $35.99% | $1,000 to $50,000 | 600 |
| Sofi Personal Loan | 8.99% to 25.81% | $50,000 to $100,000 |
Does Not Disclose
|
| Best Egg Personal Loan | 8.99% to 35.99% | $20,000 to $50,000 | 600 |
| LendingClub Personal Loan | 9.57% to 35.99% | $1,000 to $40,000 | 660 |
| Avant Personal Loan | 9.95% to 35.99% | $20,000 to $35,000 | 550 |
| Universal Credit Personal Loan | 11.69% to 35.99% | $1,000 to $50,000 | 560 |
| OneMain Financial Personal Loan | 18% to 35.99% | $1,500 to $20,000 |
Does Not Disclose
|
| Zable Personal Loans | 8% to 30% | $1,000 to $25,000 | 600 |
| Happy Money Debt Consolidation Loan | 11.72% to 24.67% | $3,000 to $40,000 | 640 |
These lenders’ rates, minimum credit score requirements, and loan terms have been updated and verified to be accurate as of January 2024.
Fair credit? Click here to get pre-approved Credible personal loan offers now.
How much can a person borrow with LendingClub loans?
Borrow up to $40,000 with LendingClub debt consolidation and personal loans.
What can LendingClub loans be used for?
Consumers often use these loans to streamline their finances by consolidating high-interest credit card debts.
Why use LendingClub for credit card consolidation?
The average Annual Percentage Rate (APR) on LendingClub personal loans is less than the average APR on credit cards. This makes them attractive for individuals seeking to consolidate high-interest debts into a more manageable single payment.
How to consolidate debt with LendingClub?
The application process with LendingClub is both quick and straightforward. Once approved for a personal loan, LendingClub quickly disburses the funds directly into your account.
Do LendingClub loans come with a variable or fixed rate?
LendingClub personal loans come with a fixed interest rate and monthly payment, offering borrowers stability and peace of mind. You won’t need to worry about the Federal Reserve raising interest rates, causing your LendingClub monthly payments to spike unexpectedly.
Can I pay my loan off early if I come across extra money?
LendingClub does not impose any pre-payment penalties. This means that if you have the means to pay off your loan ahead of schedule, you can do so without incurring any extra fees.
Qualifying for LendingClub Personal Loans
- To be eligible for a LendingClub personal loan, you’ll need a minimum credit score of 600. LendingClub uses both FICO 8 and VantageScore 2.0 to assess applicants’ creditworthiness.
- The maximum allowable debt-to-income ratio for LendingClub debt consolidation loans is 40%. The maximum allowable debt-to-income ratio of 40% means that your total monthly debt payments, including the new loan you’re applying for with LendingClub, cannot exceed 40% of your monthly gross income. This ensures borrowers have a reasonable disposable income after meeting their financial obligations.
- You’ll also be required to provide proof of income during the application process.
Review LendingClub Payment Terms
It’s worth noting that LendingClub loans come with limited-term lengths, allowing borrowers to choose between 36 or 50 months.
However, you can include a co-borrower in your application, which can help you qualify for a lower interest rate.
Don’t forget to review LendingClub loan origination fees!
The most significant downside to LendingClub loans is the loan origination fee. This fee, which is typically charged upfront when the loan is approved, can vary among lenders and significantly impact the cost of borrowing.
For instance, if you were to take out a $10,000 loan through LendingClub, the origination fee could range from 3% to 6% of the loan amount, translating to a fee of $300 to $600 for a $10,000 loan. It’s important to note that the origination fee amount depends on various factors, including your creditworthiness and the specific terms of your loan.
While some lenders may charge borrowers as much as 10% in origination fees, LendingClub Bank generally offers a more competitive range for this fee. Be sure to carefully review and compare the terms and costs of LendingClub loans versus those of other top-rated lenders.
LendingClub (LC) Bank Reviews
There are a lot of benefits that come with being a bank, including the ability to offer low-rate debt consolidation loans. LendingClub doesn’t have to pay bank fees like other fintech lenders because they originate their own loans, being the bank.
In 2022, LendingClub was awarded “Best Cash Back Checking Account” by Newsweek. In 2023, LendingClub was awarded “Best Online Bank” by GOBankingRates. Lending Club checking accounts charge no monthly fees, and customers get a debit card that pays 1% cash-back for all online purchases.
APR on Credit Cards vs. LendingClub Personal Loans
- Let’s compare the average APR on credit cards versus a LendingClub personal loan.
- The average APR on LendingClub’s personal loans is 15.95% (with a one-time loan origination fee of 5.00%)
According to the Federal Reserve, the average APR for new credit card offers in the United States as of 2023 is 24.37%.
Credit card debt rose by $45 billion to a new high of $1.03 trillion in the second quarter of 2023. LendingClub loans will likely become more popular with the news of rising credit card balances, offering consumers an option to reduce their interest rates and balances and consolidate their debts into one.
LendingClub High Yield Savings Review
Here are the rates you can earn on LendingClub checking and savings accounts as of November 29, 2023:
High-Yield Savings
- 4.65% APY on all balances
Rewards Checking
- 0.10% APY on balances of $2,500–$99,999.99
- 0.15% APY on balances of $100,000 & up
Member Rewards Checking
1.00% APY on balances of up to $5,000 if you meet all of the following requirements each month:
- Make at least 15 qualifying transactions
- Maintain an average daily balance of $100
- Enroll in paperless statements
LendingClub High Yield Bank CD Rates
LendingClub BBB Reviews
If you’re searching for customer reviews, LendingClub has lots of them around the internet for you to read. The Better Business Bureau (BBB) rates LendingClub with an “A+” rating. However, what’s even more impressive is LendingClub’s 2,415 customer reviews at the BBB, with an average rating of 4.56/5.
While LendingClub’s average customer review rating is 4.56 out of 5, based on 2,415 reviews, we must also consider recent complaints lodged against the company. TrustedCompanyReviews.com offers unbiased evaluations that present both the good and the bad.
LendingClub Complaints
LendingClub has received 1,165 complaints filed with the BBB within the last three years. While this might initially appear to be a substantial figure, it’s important to remember that LendingClub serves over 4 million customers. Therefore, when we calculate the proportion of complaints relative to their extensive customer base, it amounts to just 0.029125%.
Furthermore, upon closer examination, many of these complaints appear to revolve around disputes related to account information on individuals’ credit reports or issues related to debt collection efforts by LendingClub. Our diligent team at TrustedCompanyReviews.com found that none of these issues raised any substantial concerns.
Upstart vs. Lending Club
LendingClub and Upstart both provide straightforward prequalification processes with quick and user-friendly online applications. However, they offer distinct features and advantages that suit different borrower needs.
Upstart Personal Loans
Upstart utilizes artificial intelligence (AI) to assess borrowers for personal loans ranging from $1,000 to $50,000.
- Their approval criteria include non-traditional factors like education, employment, and residence, making it easier for less-qualified borrowers to secure a loan.
- Although Upstart offers a prequalification process with a soft credit check, their repayment terms are limited to three or five years.
- Interest rates can range from 7% to 36%, and there are no discounts for automatic payments.
- Additionally, Upstart may charge an origination fee ranging from 0% to 10% of the loan amount.
- Upstart has an A+ BBB rating. However, its average customer review rating is 1.23/5, based on 220 reviews.
LendingClub Personal Loans Compared to Upstart
LendingClub, on the other hand, provides personal loans with amounts up to $40,000, with a minimum loan amount of $1,000.
- Repayment terms are more flexible, ranging from 30 to 60 months.
- The APR on LendingClub bank loans ranges from 6.34 to 35.89.
- LendingClub charges origination fees between 3% and 6% of the loan amount but doesn’t impose prepayment fees.
- Unlike Upstart, LendingClub allows co-applicants, making it easier to qualify for competitive rates with a creditworthy co-borrower.
- LendingClub’s BBB rating is A+, as discussed above, and its average customer review rating is 4.56/5, based on 2,415 reviews. LendingClub’s BBB review profile is undoubtedly more attractive.
So, when should you consider each lender?
Upstart is an excellent choice for borrowers with fair credit, as it has more accessible qualification requirements.
LendingClub is a better option for borrowers needing smaller loans and flexible repayment terms. Their lending limits may suit those with smaller expenses, and the absence of a prepayment fee allows borrowers to pay off the loan more quickly.
LendingClub boasts a higher average customer review rating and holds a more extensive regulatory framework than the other companies. This is because LendingClub functions as a bank, overseen by the Office of the Comptroller of the Currency (OCC).
Reviews on Lending Club Debt Consolidation Loan Alternatives
Are you still unsure about LendingClub? You have other options. At Credible, a free online loan marketplace, compare LendingClub rates versus other top-rated lenders for free.
Lending for Bad Credit Reviews
If you’re interested in finding a company that offers lending for bad credit, customer reviews on LendingClub rate the company highly, with over a 4.5 out of 5-star rating at BBB. Forbes recently rated LendingClub on its “Best Bad Credit Loans Of October 2023” list.
At TrustedCompanyReviews.com, LendingClub is one of the highest-rated lenders for consumers with low credit scores. However, Upstart is an even better option for consumers with bad credit or even no credit history because Upstart uses more than your credit history to determine if you’re a creditworthy individual.
However, before you apply for a LendingClub loan with a credit score of 650 or lower, we recommend reading about Upstart personal loan reviews. News reporters Trina Paul and Megan Dematteo co-authored a CNBC Select article – “Best Bad Credit Loans” – highlighting Upstart as the best debt consolidation lender for applicants without credit history. In their article, they explain that a person’s education, employment, and work experience are all considered by Upstart’s underwriting team to help determine if a consumer with a low credit score qualifies for an Upstart loan.
Frequently Asked Questions
What is the LendingClub scandal?
How does LendingClub compare to other debt consolidation lenders like Upstart and Credible?
How do I choose the best debt consolidation loan for my needs?
Conclusion
Our Editorial Review and Rating on LendingClub: 7.8 out of 10
Source
Image Sources: lendingclub.com – bbb.org
Deane Biermeier
