Lending Club At A Glance

open an accountLending Club is no longer offering P2P Lending (2021)$1,000 minimum investmentAverage returns between 5.06% and 8.74%Personal loans up to $40,000; Business loans up to $300,000; Medical loans up to $50,000Best suited for good-credit borrowers and higher income investors


How to Qualify for a LendingClub Personal Loan

LendingClub requires that all borrowers be at least 18 years old, have a verifiable bank account, and are either a U.S. citizen, a permanent resident, or living in the U.S. on a valid, long-term visa. LendingClub loans are not available to residents of Iowa or the U.S. territories.

Although LendingClub doesn’t list any credit score requirements on their website, a PR representative confirmed that the minimum credit score required to qualify for a personal loan is 600. Keep in mind that even if you qualify for a loan, having a lower credit score will likely mean getting higher interest rates or qualifying for a lower loan amount.

LendingClub doesn’t have any minimum income requirements, although they do require proof of income. Your debt-to-income ratio, along with your credit history and credit score, may affect your loan approval and interest rate. 

If you have trouble qualifying for a loan due to a poor credit score, LendingClub allows you to add a co-borrower, which may help you qualify. Adding a co-borrower to a personal loan has its risks and benefits, so be sure to consider the pros and cons before starting a joint loan application.

LendingClub allows members to have up to two active personal loans through LendingClub at the same time. However, the combined minimum outstanding amount must be less than $40,000, and you’ll need a history of on-time payments on your first loan in order to qualify for a second one. 

Alternatives to Borrowing from Lending Club

If Lending Club denies you a loan, there are some other options you may want to consider.

But before you move on to other lenders, first review your credit report and make sure there are no negative marks that would affect your ability to get a loan. You can request your credit report information for free through annualcreditreport.com. Or you can review your credit score and report through Credit Karma.

If everything checks out ok, consider these alternatives to borrowing from Lending Club. Or check out Fiona, which will allow you to compare interest rates from their trusted lending partners in under a minute.


Founded by ex-Googlers, Upstart prides itself on offering fair and fast personal loans. Loan rates range from 7.74% to 35.99%. According to the site, borrowers save an estimated 23% compared to their credit card rates.

The company originated $2.9 billion in loans in 2017. You can borrow from $1,000 to $50,000. Get an estimate on your rate by filling out a quick questionnaire. This won’t affect your credit score.

To apply for a loan, you must be a U.S. citizen or permanent resident currently living in the U.S. There’s an exception for active-duty personnel. Residents in all states except Iowa and West Virginia can apply for a loan.


Another alternative to borrowing from Lending Club is Prosper. One of the first peer-to-peer lending platforms, Prosper has grown to $14 billion borrowed since 2005.

Loans have fixed three or five-year terms and a single monthly payment with no prepayment penalties. Fixed-rate loans range between $2,000 and $40,000.

The application process is relatively quick, and you can choose the offer with the terms that work best for you. Once you’re approved, the money goes directly to your account via direct deposit.

Personal Loans from Other Lenders

If you need a personal loan but have decided that Lending Club isn’t for you, consider applying for a loan from one of these providers:


Upstart is a personal loan provider that puts a twist on the usual loan approval practices.

Like any lender, Upstart will look at your credit history and debt-to-income ratio when deciding whether to lend money to you.

What makes Upstart unique is that the company takes other factors into account. Upstart looks at your education history, area of study, and job history when making a lending decision.

If you have held a stable job for years or are highly educated in a high-demand field, Upstart’s unique risk assessment protocol may be able to get you a better deal on your loan.

Read Upstart Personal Loans Editor’s Review

Santander Bank

Santander Bank offers personal loans that range from $5,000 to $35,000. You can apply for a loan from Santander to consolidate other debts, fund home improvements, or to pay unexpected bills.

All of Santander Bank’s personal loans have a fixed interest rate.

That means that the interest will stay the same for the life of the loan, even if market interest rates rise.

That way, you’ll know exactly how much you’ll have to pay over the life of the loan and your monthly payment never changes.

If you already bank with Santander, you can take advantage of a loyalty bonus.

By enrolling in autopay from a Santander checking account you’ll reduce your loan’s interest rate by 0.25% automatically. That can result in big savings on a large loan when you take the full term to pay it off.


Discover is best known for its credit cards, but it’s also a bank that offers savings accounts, checking accounts, and personal loans.

You can borrow up to $35,000 from Discover and take as long as seven years to pay the loan back.

That gives you the flexibility to pay back the loan on your terms since there’s no early payment penalty.

Discover offers a 30-day return policy, which allows you to return the loan in full with no penalties or interest.

It also employs a 100% U.S.-based customer support staff. That makes it easy to get help when you need.

2. How Long Does LendingClub Take to Deposit Money?

Sep 11, 2020 — In most cases, you shouldn’t have to wait too long for LendingClub’s review to finish. A typical loan takes 7 business days or fewer from the 1 answer  ·  Top answer: LendingClub says it can take up to “a few days” to deposit money after they approve an application, depending on the bank the borrower uses. The funds (4)

Jul 20, 2021 — You can get loans ranging from $1,000 to $40,000, and get your money in as little as seven days. In some cases, this may take a little longer, (5)

May 1, 2020 — How long does it take to get approved? The whole application, approval, and funding process takes on average 7 business days.(6)

Pros and Cons of LendingClub Personal Loans


  • No application fees prepayment penalty

  • You can check your rate with LendingClub without impacting your credit score

  • Available in every state except Iowa

  • Ranks highly in customer reviews with the Better Business Bureau (BBB)

  • Loans funded within a few days

  • You have the option to add a co-borrower

Cons LendingClub charges origination fees costing 1%-6% of the loan amount Fees for late payments after a 15-day grace period Not available in Iowa or the U.S. territories LendingClub has higher APRs than many competitors Other lenders offer same or next-day funding

Lending terms

LendingClub offers personal loans of $1,000 to $40,000, with fixed annual percentage rates ranging from 7.04 to 35.89 percent.

The company considers multiple factors:

  • Credit score and history.
  • Debt-to-income ratio.
  • Loan amount.
  • Repayment term (36 or 60 months).
  • Any amount owed to other creditors.

To qualify, you must:

  • Be at least 18 years old.
  • Be a U.S. citizen, permanent resident or long-term visa holder.
  • Have a bank account.

How It Works for Borrowers

Here’s a look at how the borrowing process works for individuals and business owners. See the Key Features section for details on Lending Club’s two niche products.

Loan Characteristics and Restrictions

If Lending Club chooses to approve your application, it assigns a loan grade – measuring the likelihood that you’ll default on the loan – and interest rate to your loan. Loan grades include a letter (A – G) and number (1 – 5).

Individual borrowers rated A1, the highest-quality grade, can expect interest rates of around 5.99% on the 36-month loan. Those rated G5 – the lowest rating – can expect rates of 35.89% on the 36-month loan. Generally, borrowers with good or excellent credit can expect rates below 15%, while borrowers with mediocre credit can expect rates between 15% and the upper rate limit. Grading and interest rates are similar for business borrowers. These rates are subject to change with prevailing market conditions.


If you qualify for a loan with Lending Club, you’ll receive multiple offers. Once you choose the best-looking offer, complete the online application, and verify your identity, Lending Club will start looking for investors to fund the loan. From start to finish, the entire process can take as little as a week if your financial profile is attractive to investors and the underwriting process produces no hiccups.

Lending Club works with a mix of individual and institutional investors, so it’s impossible to predict in advance exactly who will fund your loan. Once your loan is funded, the principal is deposited into your verified bank account within one to four business days, depending on your bank.

The personal loan origination fee ranges from 1% and 6%, depending on your loan grade and loan term. It’s automatically added to your principal and begins accruing interest immediately.

Origination fees on business loans range from 1% to 6%, depending on your grade (term doesn’t matter). These fees are deducted from the total amount of your loan, so the actual amount you receive may be up to 6% lower than your requested amount.


Lending Club requires monthly repayments of a fixed amount. It automatically debits your bank account on the same day of the month, emailing a reminder a few days before to ensure sufficient funds in the account. If you’re more than 15 days late due to insufficient funds, you’ll be charged the greater of $15 or 5% of the total loan payment as a late payment fee, which doesn’t reduce your principal balance.

Loans more than 30 days past due may be reported to a collection agency. You can manually make additional payments or pay off your loan in full at any time with no prepayment penalties.


Personal Loans Though Lending Club doesn’t release all the details of its proprietary application and screening process, borrowers with credit scores below 640 generally aren’t eligible. Additionally, borrowers must be at least 18 years old, have U.S. citizenship or long-term residency, reside in one of the states where Lending Club operates, and have a verified bank account. To verify your bank account, Lending Club makes two small trial deposits and asks you to confirm their amounts in your Lending Club account.

When evaluating an application, Lending Club looks at factors like credit score, credit history (length and activity), debt-to-income ratio, employment status, income, and homeownership status. Having a higher credit score, lower debt to income ratio, steady employment, and solid income increases your chances of approval and reduces your loan’s interest rate.

Business Loans Business borrowers are subject to the same geographical, age, and citizenship requirements as individual borrowers. Additionally, business loan applicants must own at least 20% of a business with $50,000 or more in annual sales, have been a 20%-plus owner for at least two years, and be authorized to borrow on behalf of the business. These criteria are subject to change, so check with Lending Club before you apply.

When evaluating an application, Lending Club considers factors such as the business’s credit utilization, past payment history, credit history (length and activity), and cash flow. Businesses with longer credit histories, more robust cash flows, and timely past payment histories are more likely to be approved and enjoy a lower rate.

Application and Approval

To apply for a Lending Club loan, you need to provide basic contact information, bank account information, and your Social Security number. You also need to specify the desired amount, term (36 or 60 months), and purpose (such as debt consolidation, home improvement, and medical expenses) of your loan.

Lending Club verifies your bank account by making trial deposits, which can take one to three business days. It then conducts a thorough credit check, including a thorough evaluation of your personal or business credit history, using one or more credit scores and reports from the major credit reporting bureaus.

If you’re an individual borrower, Lending Club also verifies your employment status and income by requesting pay stubs or income tax statements and contacting your employer. This process can take up to 14 business days, though Lending Club says most applications are either approved or denied within seven business days (not including funding time). If you’re self-employed, Lending Club may request more documentation around your income and finances, lengthening the process.

How Lending Club Loans Work

As was mentioned previously, Lending Club is a peer-to-peer lending website, not a bank.

That means that Lending Club isn’t putting up the funds for your loan. Rather, other people are investing in your loan.

When you apply for a loan through Lending Club, they post the (anonymous) details of your application for investors to look at.

Information such as the size of the loan, reason for applying, and Lending Club’s rating of your loan (A1-G5) are listed. Investors can then decide if they want to help fund your loan.

The community funds your loan, not a bank

If an investor wants to fund your loan, they can provide as little as $25, or as much as they want.

That means that your loan is likely to be backed by a large number of investors.

When you send a payment to Lending Club, it automatically gets divided and sent to each investor based on how much they contributed to your loan.

Anyone can become an investor on Lending Club so long as they live in an approved state and make a $1,000 minimum deposit.

That means that your loan payments go to everyday people who want to help others out by offering loans.


LendingClub is a remarkable platform for borrowers and investors. While investing with LendingClub takes some learning and effort to achieve the best results, the borrower experience is very easy to understand and enact. While some people are disappointed that their credit score or history disqualifies them for a LendingClub loan, qualified borrowers find the platform to be very efficient. All payment terms are communicated clearly, before any commitments are made, and the loan itself is often very affordable.

Recent upheaval at LendingClub corporate has some worried about the company. But with a new CEO and solid fundamentals, we believe that the borrower’s experience of Lending Club shouldn’t be any different than before. That leaves potential users with the final question: Is LendingClub for me? Only you can ultimately answer that question…but here’s how Modest Money makes these considerations.

LendingClub is a very strong lender option for customers with one or more of these characteristics (the more you have, the better LendingClub may be for you):

  • Need a loan fast
  • Have been denied a loan from a traditional lender
  • Have good to great credit
  • Love the idea of borrowing from an easy, online platform
  • Need to consolidate credit card or other high-interest debt
  • Need to infuse a business with cash
  • Need a loan for any life improvement goal, but don’t have the support of an American bank, for whatever reason

If you can relate to any of the above, LendingClub may offer real value to you. LendingClub is just one of several loan options available to people today. What’s more, the stronger your credit score and credit history, the more options will be available to you. But no one should overlook LendingClub, simply because P2P lending is unfamiliar. It’s a great option that takes enormous financial institutions out of the equation. In most cases, it’s ultimately much better for borrower and lender/investor. Get the money you need while taking part in the next generation of American lending, with LendingClub.


All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage and history. The APR ranges from 6.95% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. *The origination fee ranges from 1% to 6%; the average origination fee is 5.2% (as of 12/5/18 YTD).* There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.

†Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis.

Claim: “Funding in as few as 3 days”

Disclaimer: Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20,2018.  The time it will take to fund your loan may vary.

Click for LendingClub Pricing and Details.

Rating: 4.4 / 5


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