- LendingClub's Origin and Transition to a Bank: Founded in 2007 as a peer-to-peer lending platform, LendingClub became a fully licensed bank in 2021 after acquiring Radius Bancorp, allowing it to fund loans from its own balance sheet.
- LendingClub's Financial Strength and Offerings: With over $90 billion in loans to more than 5 million members, LendingClub is a profitable, publicly traded bank that provides a wide range of personal loan options with competitive rates.
- Key Benefits of LendingClub Personal Loans: LendingClub accepts credit scores as low as 600, offers a co-borrower option, a low $1,000 minimum loan amount, and a unique 2% cashback reward on on-time payments through its checking account.
- Drawbacks to Consider: The primary disadvantage is an origination fee of up to 8%, which can significantly increase the total cost of borrowing, along with the absence of same-day funding and a maximum loan cap of $60,000.
- Who Should Consider LendingClub?: LendingClub is ideal for borrowers with fair to good credit (600-700), those needing smaller loans under $5,000, and individuals who benefit from its co-borrower option or the cashback rewards program.
- Check rates with LendingClub.
LendingClub Personal Loans Overview
LendingClub launched in 2007 as the first major peer-to-peer lending platform in the United States, built on a simple premise: cut out the traditional bank middleman and connect borrowers directly with investors willing to fund their loans. The idea worked. By 2014, the company had originated billions in loans and completed what was then the largest technology IPO of the year. In 2021, LendingClub acquired Radius Bancorp and became a nationally chartered, FDIC-insured bank, transforming from a marketplace intermediary into a full-service digital lender that funds loans from its own balance sheet.
Today, LendingClub has originated more than $90 billion in loans to over 5 million members. In full-year 2025, the company reported $998.8 million in revenue (up 27% year over year), $135.7 million in net income, and nearly $10 billion in new loan originations. These are not startup numbers. LendingClub is a profitable, publicly traded bank operating at scale.
What makes LendingClub worth considering in a crowded personal loan market comes down to a few things. It accepts credit scores as low as 600, which opens the door for borrowers that SoFi, LightStream, and most traditional banks turn away. It offers a co-borrower option, which is rare among online lenders. The minimum loan amount is just $1,000, the lowest among major players. And a unique 2% cash-back rewards program on on-time payments (through a LendingClub checking account) turns loan repayment into something that actually pays you back. The tradeoff is an origination fee that can run as high as 8% of the loan amount, a cost that significantly eats into the competitive APR floor.
Pros and Cons of LendingClub Personal Loans
Pros
- Low credit score requirement. LendingClub accepts borrowers with FICO scores as low as 600. That is among the most accessible thresholds in the online lending space. SoFi requires an estimated 680, and LightStream typically asks for 660 or higher.
- Co-borrower option. You can apply jointly with a co-borrower whose income and credit are factored into the application. This is a meaningful advantage for borrowers on the margin who would not qualify alone. Most online lenders, including SoFi, do not allow co-signers or co-borrowers of any kind.
- $1,000 minimum loan amount. Need just a small sum for an emergency or targeted expense? LendingClub starts at $1,000, while SoFi requires a $5,000 minimum, and LightStream starts at $5,000.
- 2% cash back on on-time payments. Open a LendingClub checking account, and you earn 2% cash back every time you make an on-time loan payment. On a $15,000 loan with 36 monthly payments, that is $300 back in your pocket over the life of the loan. No other major personal loan lender offers a comparable rewards program.
- Competitive APR floor. The published minimum APR of 6.53% is one of the lowest available from any online personal loan lender. Borrowers with excellent credit and short loan terms can access very competitive rates.
- Hardship protections. If you hit a rough patch, LendingClub offers a hardship program that can include interest-only payments, payment deferrals of up to two months, or a temporary freeze for up to three months. This is not as robust as SoFi’s 12-month unemployment protection, but it provides real flexibility when you need it.
- TopUp loans for existing borrowers. After nine months of on-time payments, you can apply for an additional TopUp loan and consolidate it into a single monthly payment at a competitive rate. This is a loyalty perk that rewards good borrowers.
Cons
- Origination fee up to 8%. This is the single biggest drawback. The average LendingClub borrower pays roughly 5% of their loan amount as an origination fee, which is deducted from loan proceeds before disbursement. On a $20,000 loan at 5%, that is $1,000 you never see. SoFi and LightStream charge no origination fee at all.
- No same-day funding. While 55% of approved loans are funded within 24 hours, LendingClub does not guarantee same-day disbursement. SoFi offers same-day funding for applications approved before 7 PM ET, and LightStream matches that speed.
- $60,000 maximum loan amount. If you need to borrow more, LendingClub cannot help. SoFi and LightStream both extend up to $100,000 for qualified borrowers.
- Co-borrower loans are capped at $40,000. While the co-borrower option is a strong feature, it comes with a lower ceiling. Individual loans go to $60,000, but joint applications max out at $40,000.
- Higher DTI requirements for joint applicants. Co-borrower applications face a tighter 35% debt-to-income maximum, compared to 40% for individual applicants. This can limit the advantage of adding a second borrower.
LendingClub Personal Loans Rates and Fees
LendingClub’s published APR range is 6.53% to 35.99% fixed. The rate you receive depends on your credit score, income, debt-to-income ratio, loan amount, and term. That 6.53% floor is among the lowest in online personal lending, but it is available only to borrowers with excellent credit who take short-term loans. The average borrower pays roughly 15.95% APR, according to LendingClub’s disclosures.
The origination fee ranges from 0% to 8% of the loan amount and is deducted from your loan proceeds before disbursement. If you are approved for a $20,000 loan with a 5% fee, you receive $19,000 in your bank account but owe interest on the full $20,000. This is standard practice among lenders that charge origination fees, but it is a high cost that borrowers often overlook when comparing APR alone.
LendingClub does not charge a prepayment penalty, so you can pay off your loan early or make extra payments at any time without additional cost. The late fee is 5% of the amount due or $15, whichever is higher, but only after a 15-day grace period. That grace period is more generous than many competitors, which charge late fees the day after a missed due date.
How the Origination Fee Affects Your Cost
The table below illustrates the real-world impact of the origination fee on a $15,000 loan at 10% APR over 36 months.
LendingClub (5% Fee) | Zero-Fee Lender | |
Loan Amount | $15,000 | $15,000 |
Origination Fee | $750 (deducted) | $0 |
Cash Received | $14,250 | $15,000 |
Monthly Payment (36 mo.) | $484 | $484 |
Total Interest Paid | $2,417 | $2,417 |
Total Cost (Interest + Fee) | $3,167 | $2,417 |
Extra Cost from Fee | $750 | — |
If you need the full $15,000 in hand and are charged a 5% fee, you would need to borrow approximately $15,789 to net $15,000 after the fee is deducted. That increases your monthly payment and total interest cost. This is why comparing APR alone can be misleading. The 2% cash-back program offsets some of this cost (roughly $300 on the $15,000 example above), but the origination fee still represents the biggest drag on LendingClub’s overall value.
LendingClub Loan Terms and Options
LendingClub offers personal loans from $1,000 to $60,000 with repayment terms of two, three, four, five, six, or seven years. The seven-year maximum matches SoFi and is longer than Prosper’s and Best Egg’s five-year cap. Longer terms lower your monthly payment but increase the total interest you pay over the life of the loan.
All LendingClub personal loans carry a fixed interest rate. Your monthly payment stays the same from the first installment to the last, which simplifies budgeting. There is no variable-rate option. You can use a LendingClub personal loan for debt consolidation, home improvement, medical expenses, auto refinancing, vacation, wedding costs, relocation, and other major purchases. LendingClub does not allow personal loan funds to be used for post-secondary education, securities or cryptocurrency investments, or illegal activities.
The co-borrower option is worth highlighting. Joint applications allow LendingClub to consider both applicants’ income and credit, which can result in a lower rate or higher approval odds for the primary borrower. Co-borrower loans are capped at $40,000 (versus $60,000 for individual loans), and both parties share equal responsibility for repayment. This is different from a co-signer arrangement; a co-borrower has full access to the loan funds and appears on the account as an equal partner.
LendingClub Personal Loans Eligibility and Application
LendingClub requires a minimum FICO score of 600 and a credit history of at least 37 months. The maximum debt-to-income ratio is 40% for individual applicants and 35% for joint applications. There is no published minimum income requirement, but the company evaluates your ability to repay based on income, existing obligations, and employment status. The average approved borrower has a credit score of 711 and an annual income of about $112,000, but the 600-score minimum means LendingClub is accessible to fair-credit borrowers that many online lenders reject.
Prequalification uses a soft credit inquiry that does not affect your credit score. You can check your rate and see estimated offers without committing to anything. If you accept an offer and proceed to a full application, LendingClub performs a hard credit pull. You must be a U.S. citizen or permanent resident, at least 18 years old, and have a verifiable bank account.
LendingClub personal loans are available in all 50 states and the District of Columbia. The application is entirely online and can typically be completed in about ten minutes.
LendingClub Personal Loans Funding Speed
LendingClub reports that 55% of approved personal loans are funded within 24 hours, based on data from the first half of 2025. The overall timeline from application to receiving funds is typically one to two business days, though it can take up to seven business days in some cases. Approval decisions are usually returned within one hour.
Funding speed can depend on several factors: how quickly you complete income verification, whether your bank can process incoming transfers same-day, and the day of the week you apply. Loans approved on Friday may not fund until Monday or Tuesday. If you are using the loan for debt consolidation, LendingClub can send direct payments to your creditors, which may add a few additional business days for processing on the creditor’s end.
While this is faster than many traditional bank lenders, LendingClub does not match the same-day funding guarantees offered by SoFi (if approved by 7 PM ET) or LightStream. If speed is your top priority and you have the credit to qualify, those two lenders have an edge.
LendingClub Personal Loans Customer Experience
LendingClub’s mobile app is highly rated, earning 4.8 out of 5 on the Apple App Store and 4.6 on Google Play. The app covers the full relationship, including banking, loan management, and payments, all in a single interface. Customer support is available by phone and through the app, and borrowers can manage their loans, make payments, and view transaction history online at any time.
On Trustpilot, LendingClub holds a 4.6 out of 5 rating based on more than 7,000 reviews. Most positive reviews cite a smooth application process, fast funding, and helpful customer service. Negative reviews tend to focus on origination fee confusion and occasional delays in customer service response during high-volume periods. The Better Business Bureau assigns LendingClub an A+ rating, and the company has been BBB-accredited since 2008, with an average customer review score of 4.44 out of 5 from over 1,800 reviews.
The CFPB received approximately 489 personal loan complaints about LendingClub in its database. The most commonly cited issues include unexpected fees or interest charges and problems with payment processing. For a lender that originated nearly $10 billion in loans in 2025, this complaint volume is moderate. LendingClub does not rank in the top tier of J.D. Power’s 2025 U.S. Consumer Lending Satisfaction Study, where American Express (768), Citi (751), and Discover (734) led the field.
Financial Strength and Reputation of LendingClub Personal Loans
LendingClub Corporation (NYSE: LC) is a publicly traded company with a market capitalization that has risen significantly since its 2020 lows. Full-year 2025 financial results showed $998.8 million in revenue (up 27% from 2024), $135.7 million in net income (up 158%), and diluted earnings per share of $1.16. The company’s Q4 2025 quarter was particularly strong, with $2.6 billion in loan originations (up 40% year over year) and a net charge-off rate of 3.7%, an improvement of 80 basis points from the prior year.
LendingClub Bank, N.A. is a nationally chartered bank regulated by the Office of the Comptroller of the Currency, with FDIC insurance on deposits. The bank holds $11.6 billion in total assets and $9.8 billion in deposits. Capital ratios are strong: the consolidated Tier 1 leverage ratio stands at 12.0% and the CET1 ratio at 17.4%, both well above regulatory minimums. This is a well-capitalized institution.
LendingClub’s history is not without controversy. Founder and original CEO Renaud Laplanche resigned in May 2016 after an internal review found irregularities in the sale of $22 million in loans to a single investor. The company overhauled its governance and brought in Scott Sanborn as CEO, who has led the company through its bank charter acquisition and back to profitability. Since 2021, the company has operated under full bank regulatory oversight, which provides an additional layer of consumer protection and institutional credibility.
Who Is LendingClub Best For?
Ideal Borrowers
- Fair-to-good credit borrowers (600-700 FICO). LendingClub’s 600-score minimum makes it one of the most accessible online lenders for borrowers in the fair credit range. If SoFi and LightStream turn you down, LendingClub is a strong next option.
- Borrowers who need a co-borrower. If your individual credit or income is not strong enough to qualify on your own, the co-borrower option allows a second applicant to strengthen the application. This is a rare feature among online lenders.
- Small loan needs under $5,000. With a $1,000 minimum, LendingClub is one of the few quality lenders for small personal loans. SoFi and LightStream both require $5,000.
- Existing LendingClub banking customers. The 2% cash-back program on on-time payments turns loan repayment into a rewards opportunity. Over a three-year loan, the cash back meaningfully offsets the origination fee.
- Debt consolidators. LendingClub can pay your creditors directly, simplifying the consolidation process. Combined with the co-borrower option, this makes LendingClub particularly practical for borrowers managing multiple high-interest debts.
Not Ideal For
- Fee-sensitive borrowers. If minimizing total borrowing cost is your top priority and you qualify for SoFi or LightStream, the origination fee is a meaningful disadvantage. A 5% fee on a $20,000 loan is $1,000 you will never see.
- Borrowers who need more than $60,000. SoFi and LightStream both offer up to $100,000. If you need a large unsecured loan, LendingClub’s ceiling may not be high enough.
- Borrowers who need same-day funding. LendingClub is fast but does not guarantee same-day disbursement. If timing is critical, SoFi or LightStream may be better fits.
- Borrowers with excellent credit shop purely on rate. While LendingClub’s APR floor is competitive, the origination fee raises the effective cost. A borrower with a 780 FICO will almost always get a better total deal from a zero-fee lender.
How to Apply With LendingClub Personal Loans
- Check your rate. Visit LendingClub’s website and enter your desired loan amount, loan purpose, and basic personal information. LendingClub runs a soft credit pull and returns prequalified offers, typically within a few minutes. This does not affect your credit score.
- Review your offers. Compare APR, monthly payment, term length, and origination fee for each option. Pay attention to the fee, as it varies by offer and directly reduces the cash you receive.
- Complete the full application. If you choose an offer, submit your full application with income and employment information. LendingClub performs a hard credit pull at this stage.
- Verify your identity and income. Upload requested documentation (pay stubs, tax returns, or bank statements) and verify your bank account for funding.
- Accept your final loan terms. Review the loan agreement, confirm the repayment schedule, and sign electronically. Note the origination fee amount and the net proceeds you will receive.
- Receive your funds. Most borrowers receive funds within one to two business days. If you opted for direct creditor payment for debt consolidation, those payments may take a few additional business days to post.
How LendingClub Compares
Feature | LendingClub | SoFi | Upstart |
APR Range | 6.53-35.99% | 7.74-35.49% | 6.70-35.99% |
Loan Amounts | $1K-$60K | $5K-$100K | $1K-$75K |
Terms | 2-7 years | 2-7 years | 3-5 years |
Origination Fee | 0-8% | None | 0-12% |
Min. Credit Score | ~600 | ~680 | ~300 |
Co-Borrower Option | Yes | No | No |
Same-Day Funding | No | Yes | No (1 biz day) |
Cash-Back Rewards | 2% (w/ checking) | No | No |
Unemployment Protection | Hardship plan | Yes (12 mo.) | Hardship plan |
App Rating (iOS) | 4.8 | 4.8 | 4.8 |
LendingClub occupies a middle ground between SoFi’s premium zero-fee model and Upstart’s broad-access AI underwriting. Compared to SoFi, LendingClub trades the origination fee for wider credit eligibility (600 vs. 680 minimum) and a co-borrower option. Compared to Upstart, LendingClub offers longer terms (up to seven years vs. five), a loyalty rewards program, and co-borrower loans, but charges a lower maximum origination fee (8% vs. 12%). Upstart accepts borrowers with scores as low as 300, making it the most accessible of the three, though its terms are the most limited.
Final Verdict
LendingClub earns a 4.0 out of 5, reflecting a well-rounded personal loan product that trades the clean simplicity of a zero-fee lender for wider accessibility and meaningful flexibility features. The 600-minimum credit score, co-borrower option, $1,000 minimum loan, and 2% cash-back program make LendingClub one of the most accommodating major online lenders for a wide range of borrowers.
The origination fee is the primary drag on an otherwise strong product. A fee of up to 8% (average around 5%) adds real cost that SoFi and LightStream borrowers avoid entirely. If you have a FICO of 680 or higher and no need for a co-borrower, one of those zero-fee lenders will probably save you money. But if your credit is in the 600 to 670 range, or you need a co-borrower to qualify, or you want a loan under $5,000, LendingClub is one of the strongest options available, backed by the credibility and consumer protections of a nationally chartered FDIC-insured bank.
Methodology
This review is part of a series evaluating 16 personal loan lenders across six weighted categories: Rates & Fees (25%), Loan Terms & Flexibility (20%), Eligibility & Accessibility (20%), Speed & Application Process (15%), Customer Experience (10%), and Transparency & Reputation (10%). Scores are based on data collected directly from lender websites, SEC filings, the CFPB Consumer Complaint Database, J.D. Power’s 2025 U.S. Consumer Lending Satisfaction Study, and app store ratings.
Frequently Asked Questions
Answers to your questions about LendingClub Personal Loans.
LendingClub requires a minimum FICO score of 600 and a credit history of at least 37 months. The average approved borrower has a score of about 711.
No. LendingClub uses a soft credit inquiry for prequalification, which does not impact your credit score. A hard pull occurs only after you accept an offer and submit a full application.
The origination fee ranges from 0% to 8% of your loan amount. The exact fee depends on your credit profile, loan amount, and term. The fee is deducted from your loan proceeds before disbursement, so you receive less than the approved loan amount.
Yes. LendingClub allows joint applications with a co-borrower. Both applicants’ income and credit are considered, which can improve approval odds and potentially lower your rate. Co-borrower loans are capped at $40,000 (individual loans go up to $60,000), and both parties share equal responsibility for repayment.
Most borrowers receive funds within one to two business days after approval. LendingClub reports that 55% of approved loans are funded within 24 hours. The full process from application to funding can take up to seven business days in some cases.
No. LendingClub does not charge a prepayment penalty. You can pay off your loan in full or make extra payments at any time without additional cost.
If you hold a LendingClub checking account and make on-time loan payments, you earn 2% cash back on each payment. This is deducted from neither the payment nor the balance; it is a separate reward deposited into your checking account. Over the life of a multi-year loan, the cash back meaningfully offsets part of the origination fee.
Yes. LendingClub Bank, N.A. is a nationally chartered, FDIC-insured bank that acquired its charter through the purchase of Radius Bancorp in February 2021. Deposits are insured by the FDIC up to the standard $250,000 limit.
