This LendingClub Review walks you through everything you need to know about LendingClub’s personal loans and debt consolidation options. We provide detailed insights into LendingClub’s loan requirements, rates, and customer feedback to help you make an informed decision. Additionally, we offer a side-by-side comparison with other top-rated lenders, including SoFi, Lightstream, Upstart, and Discover, illustrating loan terms, APRs, and FICO score requirements.
The quoted loan APRs below reflect the most up-to-date information, including the recent rate reductions following the Federal Reserve’s 50 basis point (0.50%) rate cut—as highlighted in this recent press release. This review was updated on September 30th, 2024, by Deane Biermeier, who has conducted extensive research on the leading personal loan companies.
LendingClub Personal Loan Overview
| Loan Amount: | $1,000 to $40,000 |
| Interest Rate (APR): | 6.34% to 35.89% |
| Loan Terms: 36 or 60 months | 36 or 60 months |
| Minimum Credit Score: | 600 |
| Loan Origination Fee: | 3% to 8% |
| Approval Time: | Typically within 24 hours |
| Funding Time: | 1 week (on average) |
Benefits and Features
- Offers joint loan options for higher loan amounts or better rates
- Fixed interest rates for stability
- Allows payment date flexibility and no prepayment penalties
- Available in all 50 states
- Soft credit check for pre-qualification
Compare LendingClub Rates Vs. Other Lenders
Pros
A+ BBB Rated and Accredited: High trust factor with over 2,000 positive customer reviews.
Joint Loan Options: Allows for co-applicants, helping you secure better terms.
Low Credit Score Requirements: Approves loans for consumers with 600+ credit scores.
Direct Payment to Creditors: A helpful feature for those consolidating debt.
No Credit Effect to Prequalify: Soft credit check with pre-qualification
Cons
Origination Fees: A fee of 3% to 8% is charged upfront, which can impact the loan amount.
No Mobile App: Unlike competitors, LendingClub does not currently offer a dedicated app for loan management.
Limited Repayment Terms: Only two repayment term options (36 or 60 months).
No Rate Discount for AutoPay: Unlike some competitors, LendingClub does not offer interest rate discounts for setting up automatic payments.
Is LendingClub a legitimate lender?
Yes, LendingClub is a legitimate and reputable lender with an A+ rating from the Better Business Bureau (BBB).
With over 4 million customers and $70 billion in loans funded, LendingClub has established itself as a reliable option for personal loans and debt consolidation.
In addition to its high customer ratings and long-standing reputation, LendingClub stands out due to several other key trust factors that differentiate it from smaller or less established financial institutions.
Additional Trust Factors to Consider:
- Publicly Listed Company: LendingClub is a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol LC. As a publicly listed company, LendingClub is subject to strict financial reporting and regulatory oversight, ensuring transparency in its operations. Additionally, the company has over $1 billion in assets, which speaks to its financial stability.
- Registered Bank: Since acquiring Radius Bank in 2021, LendingClub is now a fully registered bank. This acquisition allows LendingClub to offer its customers banking services along with its lending products, making it more competitive and secure than many fintech-only lenders. Being a registered bank means LendingClub is regulated by the Office of the Comptroller of the Currency (OCC), providing an extra layer of oversight and trust.
- FDIC-Insured Accounts: As a bank, LendingClub offers FDIC-insured accounts, ensuring that customers’ deposits are protected up to the legal limit. This is another significant benefit for those using LendingClub’s banking products alongside their loan services.
- Established History: Founded in 2006, LendingClub has been in operation for over 15 years, with more than $70 billion in loans funded. Its longevity and the scale of its operations further underscore its legitimacy and trustworthiness.
When considering whether LendingClub is legit, these factors—being a publicly listed company, a registered bank, and offering FDIC-insured accounts—underscore its credibility and make it a reliable choice for consumers seeking personal loans or banking services.
Compare SoFi vs. LendingClub: BBB Ratings and Reviews
As of September 30th, 2024, LendingClub holds an average customer rating of 4.4 out of 5 stars based on over 1,550 customer reviews on the BBB website, demonstrating strong customer satisfaction.
Additionally, LendingClub has an A+ BBB rating and is BBB accredited, which is an impressive credential for a personal loan company. For comparison, SoFi’s BBB rating is “A”, with a 1.4 out of 5-star rating based on over 2,000 customer reviews.
LendingClub also stands out for its ability to approve loans for borrowers with fair credit (600+ FICO), unlike many traditional banks that typically require good to excellent credit. SoFi is also not a BBB-accredited business.
LendingClub Loan Rates vs. Top Competitors
| Lender | APR Range | Loan Amounts | Minimum Credit Score |
| SoFi | 8.99% – 25.81% | $5,000 – $100,000 | Does not disclose |
| LendingClub | 6.34% – 35.89% | $1,000 – $40,000 | 600 |
| Upstart | 6.40% – 35.99% | $1,000 – $50,000 | 620 |
| LightStream | 7.49% – 25.49% | $5,000 – $100,000 | 700 |
| Discover | 7.99% – 24.99% | $2,500 – $40,000 | 660 |
LendingClub Debt Consolidation Loan Overview
LendingClub offers debt consolidation loans that can simplify your financial life by combining high-interest debt, like credit cards, into a single loan with a fixed monthly payment.
Why Use LendingClub for Debt Consolidation?
- Lower interest rates compared to most credit cards, making it easier to pay down debt faster.
- Direct payment to creditors is available, saving you time and ensuring your debts are paid off promptly.
- Pre-qualification doesn’t impact your credit score, so you can shop around for the best rate.
Compare LendingClub vs. 2024’s top-rated debt consolidation companies.
LendingClub Loan Requirements:
- Minimum credit score of 600
- Debt-to-income ratio (DTI) under 40%, meaning your total monthly debt payments should not exceed 40% of your monthly income.
- Proof of income to ensure you can repay the loan.
Pro Tip: Including a co-borrower can increase your chances of approval and reduce your interest rate.
How to apply for a LendingClub loan?
Rather than applying for a LendingClub loan directly on its website, we recommend using Credible. Credible allows you to compare LendingClub with SoFi, Upstart, and about twenty other highly rated personal loan companies.
This way, you can choose the best loan rates and options, rather than being limited to a single lender. There’s really no downside to using Credible instead of applying directly through LendingClub, which is why we recommend going this route.
Learn more about Credible to apply for loans.
LendingClub Payment Terms and Origination Fees
LendingClub offers two repayment terms:
- 36 months (3 years)
- 60 months (5 years)
While the term length provides flexibility, it’s essential to note that LendingClub does charge an origination fee between 3% and 8%.
This fee is deducted upfront from the loan amount.
For example, on a $10,000 loan with a 5% origination fee, $500 would be deducted, and you’d receive $9,500.
Frequently Asked Questions
What is the LendingClub scandal?
How Does LendingClub Compare to Upstart and Credible?
What Can LendingClub Loans Be Used For?
What is LendingClub’s Origination Fee?
Can I pay off my LendingClub loan early?
Conclusion
LendingClub Review/Rating Breakdown
| Scoring Criteria | Credible | LendingTree | LendingClub | Upstart |
| Cost: (rates and fees) | 10 | 8 | 6 | 6 |
| average APR (as of August/ September 2024) | 6.99% – 35.99% | 9.99%-35.99% | 8.98-35.99% | 7.80-35.99% |
| average origination fee / up-front fees | will vary with different lenders available | will vary with different lenders available | 3.00% to 8.00% of the loan amount. | 1.00% to 8.00% of loan amount |
| TrustPilot customer reviews | 10 | 8 | 9 | 9 |
| BBB Rating | 10 | 10 | 10 | 10 |
| BBB Accreditation | 10 | 10 | 10 | 10 |
| Customer Reviews | 7 | 6 | 8 | 3 |
| Average review rating at BBB | 1/5 based on 5-10 reviews | 1/5 based on 115+ reviews | 4.43/5 based on 1,715+ reviews | 1.23/5 based on 230+ reviews |
| Customer Service | 8 | 8 | 7 | 6 |
| Time in Business | 10 | 10 | 10 | 10 |
| Transparency | 10 | 8 | 7 | 7 |
| Eligibility Requirements | 10 | 9 | 6 | 8 |
| Expert opinion rating | 7 | 7 | 5 | 5 |
| Total Score | 92 | 84 | 78 | 74 |
| (Rating on a 1-10) | 9.2 | 8.4 | 7.8 | 7.4 |
Our LendingClub Rating: 7.8/10
LendingClub offers competitive loan products for those with fair credit, particularly for debt consolidation purposes. Their recent evolution into a bank has strengthened their offerings, providing a sense of security for borrowers. However, origination fees and limited repayment terms are factors to consider.
If you’re looking for a trustworthy lender with a transparent approval process, LendingClub could be a good option, especially for debt consolidation.
Source
Sources:
- LendingClub.com
- BBB.org
- CNBC Select
- Federal Reserve Data
Deane Biermeier
