Types of Personal Loans Offered by LendingClub
Lending Club has several categories of loans however when making their loan request borrowers are asked to provide the use case of their loan request. Use cases could include paying for vacation, paying off medical debt or moving and relocation expenses.
| Common Loan Uses |
Prohibited Uses |
| Home Improvement |
Investing in securities |
| Credit Card Refinance |
Cryptocurrency purchases |
| Big purchases (appliances, etc.) |
Illegal activities |
| Car Financing |
Post high school educational expenses |
| Green Loan |
|
| Business |
|
| Vacation Expenses |
|
| Moving and Relocation Costs |
|
| Medical Expenses |
|
| Medical Expenses |
|
LendingClub Features
Lending Club allows borrowers to apply for loans that have different use cases as mentioned previously. While customers are able to make multiple loan requests that fulfill specific use cases.
Though borrowers can make several use case loan requests, customers are capped at a maximum of $50,000 in borrowed funds across loan products.
Lending Club repayment terms are flexible and range from 36 months but cap out at 60 months or a maximum of 5 years.
| Loan terms |
36-60 Months |
| Loan amount |
$1,000-$40,000 |
| Loan Use Limitations |
Borrowers can make multiple loan requests totalling no more than $50,000 |
LendingClub Interest Rates and Fees
In looking at Lending Club’s 2021 annual report, there are some important pieces of information to consider before moving forward with a Lending Club loan product. Lending Club’s ideal borrower has a FICO score of 700 or more and income range between $90,000-$100,000. Those borrowers will likely end up with the most favorable lending terms listed below.
For potential borrowers who don’t meet this criteria, if they have co-signers who meet Lending Club’s preferred lending standards, it’s likely that they will enjoy favorable rates as well.
| Borrowing/Origination Fees |
3-6% of loan amount |
| Prepayment Fees |
No prepayment fees |
| Late Payment Fees |
N/A |
| Other fees |
N/A |
| Interest Rates |
7.04%-35.89% |
LendingClub Qualification Requirements
Lending Club has a streamlined process that makes applying for one of their loans a simple and straightforward process that applies to all loans. Borrowers aren’t required to become members of Lending Club in order to request a loan. For those interested in applying for a loan it is possible to use the “Check Your Rate” option that uses a soft-pull of the applicant’s credit.
The “Check Your Rate” process gives future loan applicants some insight into whether or not their application will be approved or if they will need a co-signer.
| Membership Requirement |
Not required |
|
| Minimum Credit Score |
N/A |
|
| Income Requirements |
High Income (according to the 2021 Lending Club Annual Report) the average customer income range is between $90,000-$100,000) Lending Club’s website does not list a preferred income range at this point in time |
|
| Co-signer/Joint Application Requirements |
Low debt, over 700 credit score (2021 Lending Club’s Annual Report noted that the average customer had a credit score of 700 or more) |
|
LendingClub Application Process
The Lending Club application process is simple. Applicants should collect the following pieces of information prior to making their actual loan request:
- Previous years tax returns
- Credit Score details
- Pay stubs
- Legal I.D. for identify verification
Lending Club allows applicants to use the “Check Your Rate” option as mentioned before. This option gives borrowers the opportunity to check their application with a soft-pull method on their credit score. A soft-pull won’t impact their credit score and is a preferred way to check if the applicant will be approved for a loan.
At this point an applicant can apply for their loan. Lending Club states that for qualified applicants, a lending decision may be rendered within 24 hours from the time that they’ve submitted their application. Funds may be distributed to the borrower within 48 hours.
LendingClub Customer Support
Customer support is a key part of making a borrowing decision. Sometimes questions come up and the ability to easily communicate and connect with a lender is an important factor to consider. Lending Club’s Resource Center is a useful tool that customers can refer to on the company’s main website. The Resource Center helps customers answer easy questions that may come up before or after receiving a loan.
In addition to communicating via the member portal once approved for a loan, members can also speak with a support rep Monday-Friday from 5:00 am-5:00 pm PT (Pacific time) and Saturdays from 8:00 am-5:00 pm (PT)
Users on Trustpilot reported being happy working with Lending Club representatives and that the customer service they received was “the best.”
LendingClub Online Reviews
Customers of Lending Club reported an exceptional rate of satisfaction giving the company 4.8 out 5.00 stars in their reviews of the company. Users were incredibly satisfied with the application and approval experience noting that the application process was easy to work through and that they received their requested funds within days of their application approval.
Customers also appreciated the simplicity of the Lending Club’s website and the overall user experience on the platform.
Some areas of concern reported on Trustpilot related to lack of clarity related to applicants whose initial loan approvals were rescinded. One other issue that was brought up was the perception that different loan departments weren’t able to communicate with one another easily. This is of concern for borrowers who’ve requested and been approved for different types of loans with Lending Club.
| The positive reviews are related to |
The negative reviews are related to |
| Quick and easy loan approval process |
Unexpected retraction of approved loan decision |
| Great Customer Service |
Customers reported that it seemed like different loan departments weren’t in communication. |
| Easy to Navigate Website |
|
LendingClub Perks and Bonuses
Ease of use and a customer forward experience helps Lending Club stand out in the online lender space. Here are some additional aspects to the Lending Club experience to be aware of.
LendingClub Perks and Bonuses
Ease of use and a customer forward experience helps Lending Club stand out in the online lender space. Here are some additional aspects to the Lending Club experience to be aware of.
Flexibility:
- Lending Club doesn’t offer additional perks or bonuses to its borrowers. Previously there was an affiliate referral program but it is no longer being offered.
- Borrowers can prepay their loans, but there is a distinct lack of flexibility around modification of loan terms. Borrowers can make a one time permanent change to their payment date
Transparency:
- Lending Club’s website is easy to use
- One area that does lack some transparency is the actual lending criteria. Lending Club’s annual report does state who their preferred borrower is, but there’s room to add that information more explicitly on Lending Club’s website
Technology:
- Customers can make payments on their loans via their Lending Club borrower portal and manage some aspects of their loans via their member portal.
- Autopay is available to clients.
- Lending Club does offer an app feature as well as platform mobile accessibility
LendingClub Compared to Other Lenders
Compare LendingClub to Best Egg, OneMain Financial, and Lightstream personal loans.Fill in the information in the table for each lender.
|
Lending Club |
Best Egg |
OneMain Financial |
Lightstream |
| Loan Terms |
36-60 months |
36-60 months |
24-60 months |
24-240 months (depending on minimum borrowed |
| Loan Amount |
$1,000-$40,000 |
$2,000-$50,00 |
$1,500-$20,000 |
$5,000-$100,000 |
| Interest Rates |
7.04%-35.89% |
5.99%-35.99% |
18.00%-35.99% |
Depends on loan product and borrower finances
|
| Min Credit Score |
N/A |
N/A |
N/A |
N/A |
| Co-Signer Requirement |
Co-signer option is available |
No |
Yes |
No |
Final Thoughts
With so many financial institutions offering personal loans the personal loan market can feel overwhelming. Lending Club with its easy to use website, high levels of customer satisfaction and clarity of terms makes borrowing from Lending Club a straightforward process for customers.
