LendingClub Personal Loans full review
Take a look at our full review of LendingClub, which offers personal loans, including joint loans, to borrowers with good and fair credit.
Discover one of the top-rated lenders for customer satisfaction.
LendingClub, headquartered in San Francisco, California, is a leading digital fintech marketplace that provides personal loans ranging from $1,000 to $40,000.
Established in 2006, LendingClub is one of the largest suppliers of unsecured personal loans in the United States, with average balances of $991 million as of Q3 2021. The company operates in all 50 states, making it a reliable source of unsecured personal loans.
Despite having a lower maximum loan amount compared to other lenders, LendingClub offers competitive APRs and repayment terms. The company recently received one of the highest customer satisfaction ratings among personal loan providers from J.D. Power, further demonstrating its commitment to customer service.
In addition to unsecured personal loans, LendingClub provides a wide range of other products such as secured consumer loans, business loans, and more.
Working with a network of investors, LendingClub connects prospective borrowers with suitable loan options. The company is particularly suitable for individuals with decent to excellent credit.
While there are some restrictions, LendingClub’s personal loans can be used for various purposes, including home improvement, medical costs, vehicle financing, debt consolidation, and more.
One of the advantages of LendingClub loans is the option to prepay without incurring any fees. However, late payments of more than 15 days may result in late fees and an origination fee, which vary based on individual credit history.
If you want to learn more about LendingClub and see if it’s the right lender for you, keep reading for additional details.
How do LendingClub Personal Loans work?
LendingClub offers unsecured personal loans that can be used for various expenses, including:
Moving or relocation expenses
You can use a LendingClub personal loan to cover costs related to moving, such as moving assistance, truck rentals, interim housing, security deposits, and purchasing new furniture.
Wedding expenses
LendingClub loans can help finance wedding-related expenses, including the ceremony, reception, honeymoon, and other associated costs.
Home upgrades
Whether it’s necessary repairs or home improvements, LendingClub’s unsecured personal loans provide the funds you need without requiring your house as collateral.
Funerals and emergencies
LendingClub loans can be used to cover unforeseen costs such as medical or veterinary bills, funeral expenses, and other emergencies. This option is often more advantageous than resorting to expensive emergency finance options like payday loans or title loans.
Balance transfers and debt consolidation
If you have multiple high-interest debts, a LendingClub personal loan can help you consolidate them into a single loan with a fixed rate and repayment term. This allows you to reduce interest costs and pay off your debt more efficiently.
To be eligible for a personal loan from LendingClub, you must be at least 18 years old and a citizen, permanent resident, or long-term visa holder in the United States. Additionally, you need to have a verified bank account. LendingClub evaluates your application, credit score, and credit history to determine your creditworthiness, requiring a minimum credit score of 670.
Main Benefits of LendingClub Personal Loans:
Debt consolidation assistance
LendingClub’s balance transfer loan helps borrowers pay off credit cards and consolidate debt. The loan proceeds are distributed to up to 12 creditors, simplifying the debt consolidation process. The balance transfer loan offers similar terms and requirements as other LendingClub loans but may come with an interest rate up to five percentage points lower.
Joint loan programs
LendingClub accepts applications for joint loans, allowing two borrowers to apply together. The combined debt-to-income ratio (DTI) of the borrowers must be lower than 40%. Applying for a personal loan with a co-borrower who has good credit can increase your chances of approval and potentially qualify for a better interest rate or larger loan amount.
Soft credit pull
With LendingClub, you can pre-qualify on their website to see your rate. The pre-qualification process involves a soft credit pull that does not impact your credit score. If you meet the requirements, LendingClub will conduct a hard credit pull as part of the official application process.
How to Apply for LendingClub Personal Loans?
For more details on how to apply for LendingClub personal loans, check out our comprehensive guide.
