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|Personal loan amounts range from $1,000 to $40,000||1% to 6% origination fee|
|Offers the ability to apply for prequalification||Need good credit to be approved for the most competitive rates|
|Allows co-borrowers||Loan process can take a week or more|
What you need to know about a LendingClub personal loan
LendingClub is a peer-to-peer lender that offers personal loans through its online marketplace. With peer-to-peer lending, investors — rather than a financial institution — fund the loans.
Origination and other loan fees
Although LendingClub doesn’t charge an application fee or a prepayment penalty, borrowers do incur other fees. LendingClub charges a loan origination fee of 1% to 6% of the total loan amount, which is based on your credit.
Also, if you’re more than 15 days late on a payment, you’ll be charged a 5% late payment fee on the unpaid payment or $15, whichever is greater.
And if you prefer making your monthly payments with checks, you may want to reconsider that since the company charges a $7 processing fee for each payment made by check.
LendingClub says personal loans approved through its standard loan program must meet certain minimum credit requirements, including a FICO® score of at least 660 and 36 months of credit history.
Ability to apply for prequalification
Want to get an idea of your rate with LendingClub? You can check online — and see estimates of the interest rates you might qualify for — before you apply for a loan. To provide you with estimated rates, LendingClub completes a soft credit inquiry, which won’t affect your credit scores. If you prequalify, you can receive multiple loan offers. If you choose a loan offer, you’ll complete an online application, which will result in a hard credit inquiry.
Personal loan details
Founded in 2007, LendingClub has originated more than $26 billion in loans.
Here are some other details to know.
- To qualify for a loan, applicants must be at least 18 years old; a U.S. citizen, permanent resident or living in the U.S. on a long-term visa; and have a bank account.
- Loans are not available for residents of Iowa, Guam or Puerto Rico.
- Loan term options are limited — you can choose between either a three-year or five-year term.
- Loan amounts range from $1,000 to $40,000.
- LendingClub allows co-borrowers.
- LendingClub offers a wide range of interest rates, from competitive to some of the highest out there. While its best annual percentage rate is relatively low, you’ll likely need good credit to qualify.
- If you plan to use a personal loan to consolidate debt, LendingClub offers a balance transfer loan to help simplify the process. It will pay a portion of your loan directly to your creditors.
Who a LendingClub loan is good for
A LendingClub loan could be a good option if you have good credit and minimal debt — or you have a co-borrower who can help you meet those requirements — and qualify for interest rates on the lower end of the range it offers.
If not, you might want to consider other options, given the origination fees that LendingClub charges. If you need funding quickly, LendingClub may not be the best option either.
How to apply with LendingClub
You can see what rates you might qualify for within minutes on the LendingClub website. You can check if you’re prequalified on its website.
- Enter your desired loan amount and the purpose of the loan on the LendingClub homepage. Then click “Check Your Rate.”
- Indicate whether you’re applying on your own or with a co-applicant.
- Enter your birthdate.
- Enter your annual income.
- Provide your first and last name.
- Enter your address.
- Create an account by providing your email address and password.
- Read the terms and conditions. If you agree, click “Get Your Rate.”
If you prequalify for a loan through LendingClub, you can receive multiple loan offers. If you choose a loan offer, you’ll complete an online application. At this point, you’ll need to provide some additional details:
- Social Security number
- Income and employment verification
- Address verification, with a photo ID or utility bill
From there, LendingClub will work on finding investors to back your loan. If it’s approved, you should receive your money via direct deposit into your bank account within four business days.
If this personal loan isn’t right for you, consider these options
If you’re not sure if a LendingClub personal loan is right for you, you might want to consider these alternatives.
- Citizens One: A Citizens One personal loan could be good for someone who doesn’t want to pay an origination fee.
- Upstart: Upstart could be a good fit for someone seeking a peer-to-peer lender that considers factors beyond your credit.