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LendingClub Personal Loan Review



Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.

  • LendingClub has loans for everything from vacations to medical expenses. 
  • You can get a LendingClub loan for between $1,000 and $40,000 depending on your needs.
  • You may qualify for a LendingClub loan with a lower credit score, but you might pay a higher APR.
  • See Insider’s picks for the best personal loans »

LendingClubprovides unsecured personal loans through either WebBank (Member FDIC) or LendingClub Bank, N.A. (Member FDIC), depending on where the loan application is submitted from. An unsecured personal loan doesn’t require any collateral, such as a house or car. These personal loans can be used for a variety of purposes.

LendingClub loan amounts range from $1,000 to $40,000. The minimum amount you’re required to borrow varies by state. LendingClub accepts loan applications from residents of all 50 states. Loan terms are either 36 months or 60 months. Some amounts and term lengths might be unavailable in your state. 

You won’t pay a prepayment fee if you pay off your loan early. 

Depending on your credit score and other financial factors, your APR will range from 8.05% to 35.89%, which is higher than some other major competitors’ APR ranges. For example, Best Egg’s APR range is 5.99% to 29.99%, and Marcus by Goldman Sachs’ is 6.99% to 19.99%. 

If LendingClub grants you a loan with a high interest rate, you might consider credit cards for people with bad credit and compare rates between a card and a loan — you may qualify for a lower APR and better terms with a credit card. Weighing the pros and cons of your decision will help you get the best deal possible. 

Most loans from LendingClub are approved within one day, and you will likely receive your funds within two to four business days. 

You can reach LendingClub via a customer support email form, which you can find here. Or you can call 888-596-3157 Monday through Friday, 5:00 a.m. to 5:00 p.m. PT, or on Saturday from 8:00 a.m. to 5:00 p.m. PT.

LendingClub has a Help Center with detailed answers to frequently asked questions, sorted by topic.

You can use personal loans from LendingClub for a variety of purposes, including:

You’ll need to meet the following requirements to apply:

  • You must be at least 18 years old
  • You must have a verifiable bank account
  • You must be a US citizen or permanent resident, or live in the US on a valid, long term visa 

LendingClubhas no official minimum credit score requirement, unlike some comparable personal loan companies. Still, the higher your credit score the more likely you are to get a low rate. 

  • Very poor: 300 to 579
  • Fair: 580 to 669
  • Good: 670 to 739 
  • Very good: 740 to 799 
  • Exceptional: 800 to 850

If you check your loan rates with LendingClub, your credit score will not be impacted because the company only generates a soft credit inquiry.

LendingClub will perform a hard credit inquiry once you receive a loan from the company, which will likely affect your credit score. A hard inquiry offers a lender a complete view of your credit history but might adversely impact your score.

LendingClub might be a good option for you if your credit isn’t in the best shape, because there is no minimum credit requirement. However, it’s important to note that the lower your credit score, the higher your APR could be — and LendingClub rates go up to 35.89%. 

Here are some tips you may consider to improve your credit score before applying for a loan: 

  • Request and review a copy of your credit report. Search for any errors on your report that could be lowering your score. If so, reach out to the credit bureau to talk about rectifying the mistake.
  • Maintain low credit card balances. Having a credit utilization rate — the percentage of your total credit you’re using — of 30% or less will prove to lenders that you can manage your credit well.
  • Create a system for paying bills on time. Your payment history makes up a substantial percentage of your credit score, and lenders would like to see consistent payments in the past. Set up calendar reminders or automatic payments so you don’t find yourself behind on your obligations.

LendingClub is a Better Business Bureau-accredited company, but LendingClub is currently not rated by the BBB in trustworthiness due to a pending government action. The BBB evaluates trustworthiness by judging business’ replies to consumer complaints, honesty in advertising, and clarity about business practices. 

LendingClub does have a recent alleged scandal. In 2018, the Federal Trade Commission filed a complaint against the company for deceptive lending practices, including charging hidden fees, falsely leading customers to believe they’d be approved for a loan, and continuing to charge consumers who canceled their automatic payments or had paid off their loans entirely. LendingClub is also charged with withdrawing double payments from accounts and failing to provide consumers with privacy notices. The case is currently pending. 

Due to LendingClub’s recent history, you might prefer to use a different personal loan company.

Additionally, LendingClub informed the BBB that the company’s name is being used in an online loan scam. Some consumers are applying for loans on sites other than LendingClub and are being contacted by representatives who claim to be from the company. Those representatives ask for a fee before claiming to deposit loan funds, and oftentimes those funds are never received. To avoid any potential issues, make sure to double-check that you are on the correct website and understand that LendingClub does not charge an upfront application fee.

The pros and cons of LendingClub personal loans 

The application is available online and can be completed in a couple of minutes. You can also add a co-borrower to your application to potentially qualify for a better rate. You’ll need basic information for the initial application, including:

  • Name
  • Contact information including your address, phone number, and email
  • Date of birth
  • Social Security number 
  • Individual income
  • Reason for applying for a personal loan and how much you want to take out

You’ll likely be able to see your interest rate range and offers within a few minutes. LendingClub may also ask you to submit verification of specific income and employment documents and has a to-do list of verifications you need to complete located in your online account dashboard. You can check the status of your application at any point by logging into your account. 

After the verification process is complete, your funds will be sent to your bank account typically within two to four business days. 

Although rates depend on each borrower’s unique situation, LendingClub’s interest rates are higher than those offered by other comparable lenders. Here’s how LendingClub stacks up to the competition.

LendingClub review vs. Marcus by Goldman Sachs review

You’ll pay an origination fee between 1% to 6% of your total loan amount with LendingClub, and this fee will be included in your overall loan APR. LendingClub may also charge you late fees or penalties if your payment is more than 15 days past due. 

Marcus won’t charge you any fees, including late fees. Instead, you’ll pay additional interest if you don’t pay on time, and your final payment will be more expensive.

Marcus offers an “on-time payment reward.” If you pay your loan on time and in full each month for one year, you are allowed to skip a month of payments, and interest will not accrue during that period. Marcus will then extend your loan by one month.

Both Marcus and LendingClub have no official minimum credit score requirements, but Marcus recommends a minimum credit score of 660 in an informational post on its website. Importantly, the lower your credit score, the higher an APR you will probably have to pay. 

LendingClub vs. Best Egg personal loans

Both LendingClub and Best Egg will charge you a late fee of at least $15. The companies have nearly identical origination fees — LendingClub’s fee range is 1% to 6% of your loan amount, while Best Egg’s range is 0.99% to 5.99%.

LendingClub has no official minimum credit score requirements, while Best Egg’s credit score floor is 640. That said, both companies may be a good fit for those with a credit standing in “fair” shape.

You’ll receive your funds slightly faster with Best Egg. LendingClub says most customers will get their funds between two to four business days, and Best Egg states that the majority of customers will receive their money within one to three business days.

Ryan Wangman is a reviews fellow at Personal Finance Insider reporting on mortgages, refinancing, bank accounts, and bank reviews. In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership.

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‘There is no new normal’: Worcester small business owner pivoted during COVID-19 and expects only more change after pandemic



It took about eight minutes for the bank to reject Natalie Rodriguez’s application for a loan through the Small Business Administration.

Rodriguez opened Nuestra, a Puerto Rican inspired restaurant in Worcester, in January of 2020. When COVID-19 arrived months later she discovered Nuestra wasn’t eligible for the federal or state funding that thousands of other establishments received.

To qualify, restaurants were required to show payroll and salary for years before 2020. Those figures didn’t exist for a restaurant that weren’t open in 2019.

“[I was] determined and knew that ‘no’ is not an OK answer,” Rodriguez said. “A door may close but you may need to kick down another door.”

Rodriguez then applied for conventional loans only to be led to more closed doors. Less than 10 minutes after applying for an Economic Injury Disaster Loan, she received notice that her poor credit score resulted in her application being denied.

Rodriguez used the dead end with the SBA to create a new path for herself and Nuestra.

She not only learned how to improve her credit but wanted to ensure others didn’t have to follow her journey as an entrepreneur.

Rodriguez extended the “Nuestra” brand to include financial advising. She started Nuestra Financial in April of 2020.

“Now I’m helping others. I’ve been able to restore my credit,” Rodriguez said. “I’ve been able to help others restore their credit and be able to help them make a business themselves if they so choose. I’ve been able to survive.”

Without grants and other funding, Rodriguez managed to keep her restaurant open through funds generated from Nuestra Financial.

“I was very quiet about it in the beginning. I didn’t want people to be like, ‘Oh look at this girl, she just opened a restaurant in the middle of a pandemic,’ and talk smack,” Rodriguez said. “About a month or two later, a light bulb hit and I was like, nobody pays my bills but me. I needed to mind my own business and not worry about what other people thought.”

In creating Nuestra Financial, Rodriguez said she’s helped Worcester residents restore their credit and purchase new vehicles and homes.

Rodriguez said financial literacy is rarely taught to children in school and wasn’t something she learned. When a situation arises like a rejection notice for an economic disaster loan, many don’t know how to respond or where to find answers.

Rodriguez said she’s helped young and old people, along with those who have bad credit or no credit.

“We lack the confidence, including myself, because we weren’t taught,” Rodriguez said. “So if you don’t know something, you weren’t taught, you’re not going to be confident about it.”

Coming out of the pandemic, Rodriguez remains confident about both her businesses. Nuestra, the restaurant, while closed for daily service continues to provide catering services. Rodriguez is still preparing what the future holds for the restaurant but plans to announce an update soon.

As masks start to become less a part of daily routines, Rodriguez, as a small business owner, doesn’t envision many differences from this year to last.

So many aspects of life remain uncertain from rising food costs to a potential third booster for vaccines and whether the country will ever reach herd immunity for COVID-19.

The pandemic arrived with Rodriguez immediately pivoting. As it approaches its potential end, Rodriguez will continue to do what helped her to navigate it.

“I feel like there is no new normal just yet,” Rodriguez said. “I think we’re all just trying to adjust and pivot at the same time and getting creative. I think it’s where we all are.”

Related Content:

Owner of Worcester’s Nuestra restaurant, closing due to COVID impact, has something she’d like to say to Gov. Baker

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Columbus Mattress Wholesale moves to newer, larger Gahanna store



More than four years back, Cathryn Clark’s boyfriend, Christopher Robbins, was on the hunt for a new mattress. He just couldn’t find one at an affordable  price. 

Clark, 29, and Robbins, 34, who are now engaged, were living in Franklinton, where they still live today.

They had no experience owning or operating a small business; Robbins worked as a retail assistant for SAS Retail Services while Clark worked as the communications director for two Methodist churches. 

But in 2017, Robbins, with Clark at his side, took the leap and opened Columbus Mattress Wholesale on the West Side, with the goal of  helping low-income consumers secure mattresses and other bedtime products.  

“We really wanted to bring a store to people that, you know, they weren’t paying an arm and leg, but they still could get a good night’s sleep,” Clark said.

Customers at Columbus Mattress Wholesale can pay cash or credit, for example, but the business also works with financing companies that serve people without credit scores, with bad credit or who are lower income. 

Last month, the business made a big move. It expanded from its original location on Harrisburg Pike to a store double the size at 435 Agler Road in Gahanna.

Clark said she and Robbins saw a need in the broader area, with many of their customers coming from outside the Hilltop, such as Linden.

Nestled between Dollar Tree and the Ohio BMV in Gahanna, the new storefront opened Memorial Day weekend and sells mattresses, bed bases, bed frames and pillows. Mattress prices range from under $100 to more than $1,000, depending on the size and brand, which includes some well-known names such as Serta, Beautyrest and Casper.

Clark said while she and Robbins originally sold solely Ohio-based brands, they’ve branched out to national brands as business has grown.

Columbus Mattress Wholesale also offers free same-day delivery on most orders from customers living in Columbus. 

Clark does a little bit of everything for the business, from running communications, to working on the sales floor, to managing the sales team, to ordering what they sell. 

She said a big mission for herself and Robbins, beyond doing business, is aiding the community.

“We’ve seen a lot of people struggle,” Clark said.

Clark said she and Robbins work to mentor other people who are hoping to open or currently own a small business. She added that the store starts employees at $17 per hour.

She and Robbins haven’t decided yet what they will do with the original location — which is currently closed — but said they might shift it into an accessory store.

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A Guide to Getting Mobile Deals with Bad Credit History



You’re interested in a new mobile deal but there’s only one thing that’s stopping; you’ve got a bad credit history. Does that mean that your hopes of getting a new phone contract are crushed? Well, not exactly. In this article, you will learn how to get a mobile phone with no credit check required and how you can navigate the issue to get a great deal even with bad credit history.

Why is a bad credit history a big deal?

When taking a new phone contract, it means you’re entering into a financial agreement that requires you to make payments in monthly installments. As such, many providers of the service will want to ensure that they’re entering into an agreement with someone who will pay the agreed amount without violating the terms.

The best way for them to have that assurance is by looking into the credit history of the client. But does it necessarily mean that if you’ve got a bad credit history you can’t honor your side of the bargain in a phone contract? Of course not; which is why this article gives you the options you can pursue to end up landing a pretty impressive deal.

Although you might not find a deal that includes the latest devices in the market, you’ll not lack a relatively cheaper but functional option. For instance, if you’re a great fan of the iPhone, you might end up landing the iPhone XR instead of the latest release of iPhone 12. When the deal is cheaper, you stand higher chances of success as opposed to one that just dropped in the market and so it’s in high demand.

Another alternative is to find a contract that comes with a used handset as such tend to be less strict in terms of credit history requirements. That means you’re likely to pass the test of a contract with an already used gadget as opposed to that of a brand new phone.

Another alternative could be to go for SIM only deals especially if you already have an alternative source for a handset. Most of the providers won’t require you to sign any contract and so they’ll not look into your previous credit history. SIM only deals tend to be intensive on minutes, texts and data offers.

Networks that favor people with bad credit

There are networks that are more lenient to people with bad credit history than others. Major networks including Vodafone, O2 and EE usually come with strict requirements that might only frustrate you. The following are the alternatives you could consider looking into:

Smarty:The company offers SIM only plans that don’t require you to sign any contract. If you have an alternative handset, this could be a great alternative to consider as they won’t do a credit check on you. Their services and offers run on a monthly rolling basis which means you can walk away at any time in case you’re dissatisfied with the quality of service you’re getting. Their deals start at 2GB of data and unlimited texts and calls at a cost of £5 to unlimited calls, texts and data for £16.

Giffgaff:You won’t be subjected to a credit test here as well during sign up for one of the packages that the network offers. You’ll be required to sign up for a monthly bundle of your choice that’s inclusive of calls, data and texts. You can proceed with the same plan or switch to a new one after the month is gone. Most of their deals start at £8 a month.

VOXI:The network has numerous offers that operate on a 30-day rolling basis. They also won’t bother performing a credit check on you as it has no use in the first place. A bonus with this network is that they won’t include the social sites you frequent in their data charges.

Mobile phone to go with a SIM only deal

The SIM only deals we’ve highlighted above means that you’ll need to have a separate handset. In case you don’t have one already, you can take a separate mobile phone contract to go with your preferred SIM only deal. The other alternative is to buy one outright. But in case you don’t have money to make the purchase, you can always save up and buy when you’ve accumulated enough.

Some great smartphones that are classic and yet won’t put a huge wall in your pocket. Coveted brands such as iPhone and Samsung have great devices such as the Samsung Galaxy A52 5G that goes for £349 and the iPhone SE valued at £399. As you can see, with some savings, you should be able to get your hands on these gadgets and many others out there. And if you feel that these cost on the higher side, you can opt for refurbished phones. Refurbished phones refer to those handsets that have been used but have undergone intensive testing to ensure they still have got higher functionality.

When do credit checks apply?

Credit history is required by providers that have a mobile phone that requires a payment plan spanning several months or years. In most cases, the major network providers including EE, O2 and Vodafone will do a background check on your credit check before allowing you to sign up for their deals. Some factors that might make you have a poor credit rating is when you’ve missed several months’ payments, made late payments or placed too many credit applications concurrently.

Want to improve your credit rating?

The following are several steps you could consider to help you improve your credit rating. Most of these revolve around efficient management of your money, bills and other forms of payments.

  • Have a proper and functional bank account
  • Pay all your outgoing bills on or before the due dates
  • Ensure you’re registered on the electoral roll
  • Don’t share your account with a person with poor credit rating

That’s how you can work out things to get mobile deals even if your credit history isn’t a good one. But going forward, the best action plan would be to work towards improving your credit rating so that you can take advantage of the opportunities that come up in future.

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