The following Lending Club review will give you the details you need to consider before applying for a debt consolidation or personal loan. LendingClub customer reviews, ratings, credentials, complaints, loan rates and fees will all be covered. 

LendingClub goes beyond your typical online lender—it’s also a licensed bank that made a significant move in 2021 by acquiring Radius Bancorp, a leading online bank. This strategic acquisition brought LendingClub $2.4 billion in assets and $1.7 billion in deposits, catapulting them to the top spot as the largest and highest-rated online bank in the nation. Remarkably, this marks the first time since the 2008 financial crisis that a national fintech lender has acquired a regulated bank.

Now, you might wonder, why is this a game-changer for both LendingClub and its customers? Let’s find out.

With over $70 billion in loans distributed to over 4 million customers, LendingClub is undoubtedly one of the best personal loan providers.

Benefits and Features

Borrow up to $40,000 with LendingClub debt consolidation and personal loans. These loans are often utilized by consumers looking to streamline their finances by consolidating high-interest credit card debts.

One of the standout advantages of LendingClub personal loans is their lower interest rates compared to the average Annual Percentage Rate (APR) on credit cards. This makes them an attractive option for individuals seeking to consolidate high-interest debts into a more manageable single payment.

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. Moreover, 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.

Additionally, 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 that borrowers have a reasonable amount of disposable income after meeting their financial obligations.

You’ll also be required to provide proof of income during the application process.

It’s worth noting that LendingClub loans come with limited term lengths, allowing borrowers to choose between 36 or 50 months. However, you have the option to include a co-borrower in your application, which can help you qualify for a lower interest rate.

The biggest downside with Lending Club personal loans: 

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 exact amount of the origination fee 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, making it crucial to carefully review and compare the terms and costs associated with their loans before making a decision.

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 credit card balances rising, offering consumers an option to reduce their interest rates and balances and consolidate their debts into one.

LendingClub High Yield Savings Review

LendingClub bank offers CDs and high-yield savings accounts that pay over 4%. In fact, as of September 2023, Lending Club savings accounts pay customers an APR of 4.50%. And all this for no monthly service fees. LendingClub savings accounts are FDIC-insured.

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 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.

In comparing LendingClub to Upstart, both lenders offer streamlined prequalification processes, convenient online applications, and accessible credit score requirements. However, they have distinct features and benefits that cater to different borrower profiles.

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 it’s average customer review rating is 1.23/5, based on 220 reviews.

LendingClub Personal Loans Review

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 compared to the other company. 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.