At a Glance
Rating Breakdown
Performance Overview
Scores out of 5, based on our editorial analysis
About LendingClub
LendingClub launched in 2006 as the first major peer-to-peer lending platform, matching individual investors with borrowers through an online marketplace. After facilitating over $90 billion in loans, the company acquired Radius Bank in February 2021 and converted to a full-service OCC-chartered digital bank. This structural pivot means LendingClub now funds loans directly from depositor capital on its own balance sheet rather than securitizing investor notes, which eliminated the funding-gap delays that plagued the original P2P model and gave the company direct control over pricing. Underwriting uses a proprietary model that weighs traditional FICO data alongside cash-flow analysis from linked bank accounts, allowing approval for borrowers with scores as low as 600. Joint applications let a co-borrower's income and credit strengthen the file, which is uncommon among online lenders. The origination fee of 3.49 percent to 8.00 percent is deducted from loan proceeds before disbursement, so a $20,000 approval at 6 percent origination nets only $18,800 in hand. Borrowers who overlook this frequently report receiving less than expected. LendingClub's sweet spot is borrowers carrying $15,000 to $40,000 in high-interest credit card debt who want a single fixed payment. The direct-pay feature sends funds straight to existing creditors, which removes the temptation to spend the proceeds and may qualify the borrower for a rate discount of 0.50 to 1.00 percentage points. Borrowers with scores above 720 and low DTI ratios can land rates in the 8 to 12 percent range, but those near the 600-score floor should expect APRs above 25 percent plus the maximum origination fee, making the effective cost of borrowing steep.
Key Features
Joint Applications
Add a co-borrower to strengthen your application and potentially qualify for a lower rate.
Direct Creditor Pay
For debt consolidation loans, LendingClub sends funds directly to your existing creditors on your behalf.
Soft Credit Check
Pre-qualify and compare rates without any impact to your credit score.
How It Works
Check Your Rate
Complete a brief online form and receive rate offers within minutes via soft credit pull.
Choose Your Offer
Compare loan amounts, APRs, and monthly payment options to find the right fit.
Complete Verification
Submit proof of income, identity, and employment for final underwriting review.
Receive Funds
Once approved, funds are deposited within one to three business days.
What They Do
- Debt Consolidation Loans
- Home Improvement Loans
- Major Purchase Financing
- Medical Expense Loans
- Auto Refinancing
Debt Types They Take On
- Credit Card Debt
- Medical Bills
- High-Interest Personal Debt
- Retail Store Debt
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
Credit Card Consolidation with Direct Pay
A borrower carried $32,000 across seven credit cards at a weighted average APR of 22.4%, paying $960/month in minimums with $595 going to interest.
Joint Application Home Renovation
A single applicant with a 640 FICO and $52,000 income was quoted 24.9% APR for a $20,000 home improvement loan. They reapplied jointly with a spouse who had a 740 score and $68,000 income.
Pros & Cons
Pros
- Joint applications allow a co-borrower to improve DTI and credit profile, often dropping APR by 5-10 percentage points compared to a solo application
- Direct creditor pay on consolidation loans removes spending temptation and may qualify for a 0.50-1.00% rate discount
- As an OCC-chartered bank, LendingClub holds deposits and funds loans from its own balance sheet, meaning faster and more consistent funding than marketplace lenders
- Soft-pull pre-qualification shows real rates without a hard inquiry, and you can compare multiple term lengths side by side before committing
- No prepayment penalty allows borrowers to pay off early and save on interest, which matters significantly on 60-month terms where 40%+ of payments go to interest in the first year
Cons
- Origination fee of 3.49-8.00% is deducted upfront from loan proceeds, so a $20,000 loan at 8% origination nets only $18,400 in hand while you repay the full $20,000 plus interest
- Maximum APR of 35.99% makes the product extremely expensive for sub-620 borrowers, where effective annual cost including origination can exceed 42%
- Iowa residents are completely ineligible, and some loan purposes like business use or post-secondary education are restricted
- Funding takes 1-3 business days after approval but verification requests for income or employment can add 3-7 additional days, making same-week funding unreliable for urgent needs
User Reviews (20)
EDIT: final update, completely debt free
Took a $32K consolidation loan in early 2024 at 12.49%. Made my payments religiously for 24 months. Threw my tax refund at it both years. Just made my FINAL payment today. I went from $32K across 6 credit cards with minimum payments going nowhere to ZERO consumer debt. The loan was the tool, the discipline was mine, but LendingClub made it possible by giving me one number, one payment, one plan. If you're drowning in credit card debt, this works if YOU work it.
customer service is fine but not exceptional
Had to call customer service twice during my loan process. Wait times were about 15 minutes each time. Reps were knowledgeable and helpful once I got through. The online dashboard is clean and shows payment history, remaining balance, and payoff amount clearly. Nothing remarkable but nothing bad either. The app works fine. It's a functional lending experience, not a delightful one. Which is honestly all I need from a loan servicer.
solid lender, not the cheapest for good credit
Got 9.8% APR with a 740 score which is decent but not amazing. SoFi and LightStream were quoting me 7-8% for the same amount. LendingClub's advantage is the direct-pay feature and joint applications, neither of which I needed. If you have good credit (720+), shop around before committing here. If you have fair credit (620-680), LendingClub is actually one of your better options. The sweet spot for this lender is the 640-700 FICO range imo.
paid off early with zero penalty
Took a $20K loan at 11.99% over 48 months. Made extra payments whenever I could. Paid it off in 28 months. No prepayment penalty, no fees, interest just stopped accruing. Saved about $2,800 in interest by paying early. Some lenders penalize you for paying early (looking at you, certain auto lenders). LendingClub doesn't. If you plan to be aggressive with payments, this is a good feature to have.
direct pay feature is the real selling point
Direct pay is the way to go. If that money had hit my checking account I would have been tempted honestly. Having them send it straight to my credit cards removed any chance of me doing something dumb with it. Good rate too.
consolidated 7 credit cards into one payment
Had credit card debt spread across 7 cards. LendingClub consolidated everything into one payment at a way better rate. Used the direct-pay thing so the money went straight to my creditors which honestly removed the temptation to spend it. The origination fee stung a little but still way better than paying credit card interest rates.
the soft pull pre-qualification is actually useful
Pre-qualified with LendingClub, SoFi, Best Egg, and Upstart all on the same day. Zero impact on my credit score because they all use soft pulls for initial quotes. LendingClub offered the best combination of rate (10.5%) and loan amount ($30K) for my profile. Only had one hard pull when I actually accepted. Being able to comparison shop without hurting your score is how lending should work. More lenders need to do this.
life changer for consolidating CC debt
Single mom. Credit card debt from keeping us afloat during a job transition. LendingClub approved me and I went from juggling 5 different payment dates to ONE payment. Used the direct-pay so it went straight to my credit cards. My score jumped like 45 points because my utilization dropped.
funded my kitchen remodel, process was smooth
$35K for a kitchen renovation. 12.49% over 60 months. Application took maybe 10 minutes, got my rate quote immediately via soft pull, then did the hard pull when I accepted. Verification was the slow part -- they wanted 2 months of pay stubs AND bank statements AND a tax return. Took about 5 days for final approval. But once approved, money hit my account the next day. The product is solid, the verification process is just more thorough than some competitors.
needed cash fast for an emergency, delivered in 2 days
Furnace died in February. Needed $8K for a replacement ASAP. Applied to LendingClub on a Monday evening, got my rate quote immediately, accepted Tuesday morning, verified docs by Wednesday, money in my account Thursday. Not quite the next-day funding some lenders advertise but 2 business days is still fast enough for most emergencies. Rate was 14.2% which I'll refinance once things calm down. For now it got heat back in my house.
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Important Lending Disclaimers
- Annual Percentage Rates (APRs), loan amounts, and terms displayed are estimates based on publicly available information and may vary based on your creditworthiness, income, and other factors. Actual rates, terms, and availability may differ from what is shown here.
- Checking your rate or pre-qualifying with a lender typically involves a soft credit inquiry that does not affect your credit score. However, submitting a formal application will result in a hard credit inquiry, which may temporarily lower your score.
- Origination fees, late fees, prepayment penalties, and other charges vary by lender. Review all loan terms, fees, and conditions in the loan agreement before signing.
- Personal loans are not suitable for all financial situations. Failure to repay a personal loan can result in collection activity, negative credit reporting, lawsuits, and wage garnishment. Consider your ability to repay before borrowing.
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