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Lending Club is the world's largest lending marketplace for personal loans. It was launched in 2007 by Renaud Laplanche, who got the idea of starting a lending marketplace when he noticed the huge spread between the interest rate his credit card was charging on unpaid balances and the returns on his savings account.

Lending Club started as a Facebook application, which generated the buzz and investors Laplanche needed to take the concept to the next level. As of March 2016, Lending Club has funded over $16 billion in loans and helped over a million borrowers achieve their goals. On average, borrowers who refinance their debt through Lending Club lower their interest rates by 35%.

How Does Lending Club Work?

As with other peer-to-peer lending platforms, Lending Club cuts out the middle man, banks, by giving investors the chance to lend money directly to borrowers for a higher return. The actual loans are initially made by WebBank, a Utah-chartered industrial bank, but Lending Club uses the capital of individual investors to purchases the loans. Investors then receive the payments of borrowers plus interest. However, there is risk involved. If borrowers don't pay their loans, investors could lose their money. Lending Club makes money from charging borrowers and investors fees for its services.

What Are Lending Club's Interest Rates?

Lending Club assigns borrowers a score based on a 25-grade system, which will determine what interest rate they qualify for. Rates range from 5.99% to 35.96%. The average interest rate is 14.09%.

What are Lending Club's Fees

Lending Club does not charge an application fee; however, an origination fee will be taken from the proceeds of your loan before they are deposited into your bank account. The percentage of this fee ranges from 1.11% to 5% of the total loan amount and depends on the grade of your loan — which is, in turn, based on your credit rating. It is good to keep this in mind when deciding what amount to request, because you will need to factor in the origination fee to be sure the amount you actually receive will cover whatever it is you need to pay for.

Payments on your loan are withdrawn automatically from your bank account starting the following month. Alternatively, you can pay by check but an additional $7 processing fee is tacked on to each payment if you choose this route. You are free to repay the full loan amount at any time or make larger payments without risk of penalties or fees, but you must notify customer support in order to do so. If there is an issue with your payment, such as an error with your bank account or a bounced check, Lending Club will charge a $15 unsuccessful payment fee. There is a 15-day grace period before late fees are charged. Your late fee will be either 5.00% of the late payment or $15, whichever is greater. Significant lateness will be reported to the credit bureaus and, in extreme cases, sent to collection agencies.

How Much Money Can I Borrow from Lending Club?

Borrowers can apply for loans ranging from $1,000 to $40,000. Lending Club offers 36-month and 60-month loan terms, but you can always pay the loan off early with no prepayment penalty to worry about.

What Is Lending Club's Application Process Like?

Lending Club's loan application is processed online. Your first step is to check what rate you qualify by filling a short questionnaire. This will not affect your credit score. If you qualify, you will receive several loan offers from individual investors. Choose the loan you like the most and complete an online application form and data verification process. You will get a response within minutes and the money should be deposited in your bank account in as few as five days.

How Is Lending Club Better Than Other Lenders?

Lending Club provides better returns for investors and lower interest rates for borrowers than most traditional financial institutions.

According to a survey performed on 20,913 Lending Club customers, borrowers who used Lending Club to consolidate their debt reduced their rates by an average of 31%. Investors receive an average return of 9-10%, which isn't bad when you consider savings banks rarely give more than 1% on savings accounts.

The application process is simple and you can expect a quick response to your application. The catch is Lending Club rejects 90% of applicants, so don't feel bad if you're not immediately successful. Your credit score must be higher than 600 and your debt-to-income ratio must be below 25% to be even considered.

  • Credit bureau reporting
  • Interest APR
    5.99% - 35.96%
  • Joint loans available
  • Loan Amount
    $5000 - $40000
  • No late fees
  • Max Loan Term (Months)
    60
  • Lend to military?
  • Origination Fee
    1% - %
  • Institution Type
    Peer to Peer Lending
  • Approval Speed (Hours)
    120
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0 votes

I applied for a loan on May 12 and completed the to do list the same day, and am still waiting to hear back. I called and was told that I was approved but it can take up to 30 days for funding to go through. From all the other post I read it seems like everyone is getting their funds within a week. I have a credit score of 788, never late on anything and nothing negative on my credit report. I was approved for 30k but don't understand ... what is taking so long and why no one can give a better answer as to the status when I call. More Less


0 votes

The process was clear and worked well. A better interest rate and payment than others offered.


0 votes

I had good credit rating and they turned me down. Something is not right.


0 votes

I applied on a Friday night. Approved Saturday morning. Funds in my bank Tuesday morning. I have not had any experience with customer as I have not had to use them. I was able to clear of my to do list quickly and easily.


0 votes

Aplied on Thursday night and after filling the simple forms out was asked to provide last two paystubs and w-2. The next morning I emailed and by that evening I was 100% approved. The following Tuesday morning the money was in the bank. Trans score was 670


0 votes

So, I finally found the source of the junk mail that keeps following me. In 2 years I have had 3 address change and I only update my bank information. However I keep getting these junk mail every week in my mail. I believe Credit Karma is proving them with my information so they can send mail in my address. I don't mind junk mail but it is kind of annoying when it starts following you around. I have never applied to this loan but do have applied to several ... other loans which I was declined. So I'm skeptical in applying any more loans. I recently got a good job so I have been paying off all my credit card debts. Next month I will have all my debts paid off. Anyways if you could please stop sending junk mail, THAT WOULD BE GREAT!!! More Less


0 votes

I was approved for $15,000 immediately when no one else would give me a personal loan. Negative points are the 1% fee that comes off the top and the fact that you really cannot pay early or pay more. The money is taken out of your checking account on the day you specify. Other than that I would recommend this ONLY if you get an offer in the mail.


0 votes

I almost didn't apply because some of the reviews, because my credit is not perfect. I am so glad I did. I had an immediate approval and confirmed my personal email and then my work email and that eveing I had an official ok. From applying to the deposit in my account, it only took 5 days!!!! So impressed.


0 votes

I was applying to consolodate my credit cards. Lending Club offered the lowest interest rate, so I decided to apply. I was approved and began the application process only to find that they require employer contact information. I am a public emplyee, and I cannot share that information without jeapordizing my job. When I called to ask how to proceed, a customer service representative told me to "share what information I felt comfortable with providing". I reminded him that I did not feel comfortable providing any of that information because ... it was against my employer's policy to not conduct private business at work and to not give out the address, phone number, or email address for personal reasons. He kept repeating the same thing to me as if it would change the situation. Poor customer service, and horrible privacy policy. More Less


0 votes

People sured know that the loans are based on your credit sore and the interest rate maybe a bid higher than normal loans, but if you are paying a higher rate on credit cards this is your best way to go.


0 votes

I was happy to have the option to take out a loan with Lending Club when I needed the money. I was able to pay off the loan a year early and sent in a check for the pay off amount a week before my next automatic payment was due. They cashed the check and then debited my next monthly payment from my account as well 4 days later. I waited 2 months for a refund but it never came. When I went online to check the status of my ... Lending Club account, there was no record of my overpayment or of a refund owed. I called customer service and was told that they were storing this overage in a "wallet". I asked why I couldn't see this wallet and they said that it was for their internal purposes only. They are supposedly processing a refund now prompted only by my call. I was very disappointment in their lack of checks and balances to 1) cancel my automatic payment when the loan had been paid off; and 2) not immediately refund the amount owed me when the overage occurred. I really wonder what would have happened with my money in their "wallet" had I not found this mistake and called them. More Less


0 votes

I applied, went through the process by documenting income with W2s, pay stubs, and even bank statements. I was approved for a loan pending income verification. However, even after documenting everything they said they could't verify my income. Also it's important to know I just paid off 2 $10k loans, one hade a $5k+ balance, and the other $9k. Both of the loans were always paid on-time paying.


0 votes

Money was in my bank account 3 business days after I applied. The customer service was fantastic. They called me before I finalized my application to go over everything and answer all my questions.


0 votes

I was inquired bout lending club! Unfortunately! When I thought I was get a loan at lending tree they turned me down? I was really needing a loan. So I hope your company will be more helpful.


0 votes

I got an offer from the mail saying I'm pre-approved. I was just declined by Lending Club from getting a second loan two weeks before (I have another LC loan for the past 3 years that have been current). The reason given is my low credit score. However, when I tried the pre-approved code at the "MyInstrantOffer" website, I got an immediate approval with a 643 Experian score. It confused me but I was happy to get a loan to consolidate other debt. I applied on May 7, got emails ... to verify my email and bank account on May 8, then finally an email that I got approved on and that my funds have been disbursed May 11. All told it took 3 business days. I think LC has another set of lending criteria for people with medium credit, as I did not see the usual approval phases when I got my first loan. My status display even showed Final Review and Done with green checkmarks before I verified the bank account. I also cannot see who invested, which makes me think that certain loans with higher APRs (mine was 26%) are fast tracked as institutional investors are salivating for those and making instant investments (the Backing Loan status was instantly green-checked when I applied - no In Funding status and my loan was never displayed on the list of people with active funding/duration left. It was easy, but I was anxious as I thought that maybe they'll yank out the funding at the end of the process. Everything went ok and I got my money deposited as promised. More Less


0 votes

This unique lending method really helped me get a better rate on a loan than with any other traditional lender out there. My credit is ok, but not perfect. They treated me like a person - not just a number.


0 votes

I was a little confused at first about how this works, since it's a totally new concept to me. It was a little difficult to get someone on the line to explain it to me, but once I did, the person who helped me totally spelled everything out. I'm glad that I got a loan through Lending Club. They are absolutely incredible.


0 votes

I've had nothing but a good experience with Lending Club. Towards the end of the year, I was in a pinch between credit card payments and the holidays. I applied for a loan of $6,000 and within 12 days it was released into my bank account. I was able to focus my money on the holidays, while paying my credit cards. Instead of having 3 different cards to pay, I now have one monthly, consolidated repayment. It definitely helped me out, and I will be using it in the future.


0 votes

This outfit has been round a long time, and they are probably the best P2P lender out there. They have a streamlined, transparent process that lets you know every step of the way that you've made the right decision in choosing them. I've been happy with the whole experience.


0 votes

Like most peer-to-peer lenders, there are also fees involved that you should take into account when determining how much you want to borrow. You should also have decent credit and be willing to make your case to increase your chances of having your loan funded. Lending Club also takes underwriting seriously its possible to be pre-approved and have your loan fully funded but still ultimately be turned down. That said, Lending Club may present an alternative, especially for people who want to borrow larger sums but dont have ... or are not willing to put up collateral. More Less


0 votes

Lending Club has been great in my time of need! The application process couldn't have been easier, and I received my loan of $2,500 in six days. I did take one star off simply because of the customer service. I called in with a question, and the woman I spoke with was very rude. Other than that little incident, Lending Club is a great option. The interest rates are reasonable, and the monthly payments are manageable.


1 votes

I honestly don't know what I was waiting for! This was by far the best and easiest experience I have ever had! I have always been so skeptical about borrowing money online since you never know who you can trust out there. But this process was so simple and easy and I had the money in my account later that same week! Thank you!


1 votes

This company has provided the easiest process I have found to date. Not only that, but their rates are beyond fair and their customer service team is top-notch. I applied for a $10k loan and had the money in my account 4 days later. All of the steps were handled on line and when I had questions, there was a real live person on the phone to answer them for me.

1 votes

LendingClub is the leading P2P marketplace for personal loans and business loans. They offer reasonable rates to those with good or great credit. If you're looking to consolidate a bunch of credit card debt into one fixed installment payment at a lower interest rate, LendingClub is one of your best options.

LendingClub is also a great way to diversify your portfolio if you're an investor. Definitely a better yield than putting your money in a savings account - but definitely some more risk as well! They do allow you to ... spread your investment across a group of loan investments to mitigate that risk. More Less

1 votes

I am a credit karma customer and found this company through their site. I always heard how great they were, but never thought that I would qualify so I never applied. Thank goodness I finally did! The intrest rate I got made up for a large portion of what I was paying! Dont miss out you should apply today if you need help.


0 votes

Great P2P lender. They are well-organized, which I consider a good benchmark of success. Their application process is somewhat lengthy, but not terrible, and they deliver as promised. I reserved my excitement about getting a loan until I actually saw the money in my account. When it was there, I celebrated!


1 votes

I applied with another company before trying Lending Club. That was a mistake! The process was so full of confusion and problems with the other guys that after two weeks I was still nowhere near getting the money I needed. Not so with Lending Club! It was a simple process that only took 20 minutes and I had the money in my account within just a few days.

1 votes

I have to say I was skeptical at first, especially after my experience with a couple of other companies I dealt with a year ago that promised big but came up very short. I decided debt consolidation wasn't to my benefit and determined to pay off my debts by making a determined, sustained effort to pay off my store accounts first and then tackle my credit cards next.

That's when I received a letter from the Lending Club. I really liked their concept and decided, "OK, I'll ... take a chance." I am so happy I did. Their organization is above board, and I appreciated the no-nonsense email updates they sent on the progress of my funding. It is a good feeling to know I have 201 people who invested in my cause. The approval and funding process was very fast, and I was surprised the entire loan process took less than week. More Less


0 votes

I had a bunch of credit cards but absolutely no late fees. The bank hiked my interest rates up despite of that!! Really made me mad. Then I found Lending Club and I thought--to heck with the banks. They don't reward me for good behavior, so I'm pulling all of my money from them. Now I'm giving my interest to Lending Club. They're more appreciative!


0 votes

I can see why Lending Club has funded billions to date. They totally know what they are doing and they do it better than any other company. That's why they're the biggest P2P around. Fortunately, they chose to fund some money for me, which turned out to be a lifesaver. Really glad to be a part of it.

1 votes

I must say that there is no need to give a bad review because you weren't approved for a loan. Just move on.

I, like many others, is in debt. I've been in debt for over 18 years. It all started with my very first credit card. I'm sure you can see where it went from there.

I don't have great credit but I do own my house and I have a great, steady job. I received a brochure in the mail on November 8, 2013 like everyone else. I looked at ... it and almost threw it away. They aren't going to give me credit! I sat down and added up all the bills I pay each month, only the minimum due and looked at the APR I was paying on each. I logged into the Lending Club website and filled out the application.

As I filled it out, it was pretty easy. It gave me the interest rate and how much I would get back after the origination fee. I could handle that AND my monthly payment would be cheaper than what I was paying minimally and I'd pay it off in 3 years or less.The interest rate is higher because of my credit but it is way lower than what my credit cards are. I hit send, biting my nails waiting for a reply.

A note popped up that I need to verify my bank account, phone number and my email address. It was a Friday so I had to wait until Monday to verify my bank account. Almost immediately I was fully funded. Yay, step one done.

On Tuesday the 12th, I received an email that my bank account was verified. I needed to call Customer Service to verify my work phone number. I was able to connect to a person right away and wasn't put on hold. I verified my work and home phone and then he asked me for a number to verify my employment. I didn't have the number on me so I had to call back. Again, I got a person right away and gave the phone number. Then I waited. Both customer service representatives were very nice.

While I waited I read reviews and got bummed out. There was no way they would approve me.

On Monday, the 18th, I received an email that I have been approved for the loan amount requested and funds would be in my account in 2-4 days depending on my bank. I thought no way! NO WAY! But I didn't want to get excited because there was one reviewer that said he was approved and then they didn't deposit the money into his account and when he called they had rescinded their offer.

Well today, the 19th the money was in my bank account. Sigh of relief. I am finally debt free. Well, except this loan which will be paid off faster than the 3 years and I'll actually have money each month to either save or buy a pair of jeans if I want. No more stressing every month about paying my minimum balance.

Thank you Lending Club and to everyone that invested in me! I would recommend this to anyone needing a little help.
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1 votes

Applying for a loan is easy. Getting people to fund your "cause" is even easier. However, your loan can get denied from underwriting even if your 100% funded. I am unemployed but have an income.

Their website states that they will contact you if they need ot verify your income.

I got no phone call, not even an email. Just a denial. If you ask me, they should approve your loan before they post it for funding. It looks like everything is ... going along smoothly, you're 100% funded and then at the very last minute, DENIED.

Bottom line, just use a real bank. At least you'll know where you stand.
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1 votes

Get ready to jump through hoops.

Application process is endless. If you've jumped through one hoop, be assured you'll jump through the same one again and again. They indicated the loan was fully funded then asked for another form, then 2 days later re-asked for the same form. Happened 2 to 3 times. They indicated after emailing them 3 times the process takes 10 days. 12 days later no indication of the loan being finally approved or not. Enough was enough, once I was approved, I declined the offer.

1 votes

I keep getting unsolicited "invitations" to apply for a loan, with assurances that the inquiry would not count as a "hard" inquiry. I feel pretty wary about submitting personal information under such circumstances.I also don't like the idea of laying my life bare in front of total strangers, which is a necessity for peer-to--peer lending.

I have heard of others who have had good experiences, and the BBB has ruled that the company is reputable. If I were seeking a peer-to-peer loan, I would check them out as one of ... my alternatives.

To Lending Club's credit the website features both a phone number and an email address as contact information, which is more reassuring than some websites that only provide email addresses for customer service. One caveat: if you live in Iowa, Idaho, Maine, North Dakota or Nebraska you are out of luck. I don't live in any of those states, but I won't be applying for a loan anytime soon.
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1 votes

This is the best P2P lending group I have ever found, and trust me, I have done my research! The application process was simple and straight forward, the rates were competitive, and the money was in my account in just a few short days. I would highly recommend Lending Club to anybody who needs a personal loan.

1 votes

My credit is 690; no late payments; pretty decent. I was pre-approved for a $5,000 loan then subsequently received a denial letter. These guy's are a total joke and a waste of your time. I ended up going to my credit union and got the same loan at half the interest rate The Lending Club pre-approved me for. Be warned, stay away from these guys.

1 votes

My credit score is 670...i applied for 15k to consolidate...got fully funded...kept getting emails saying everything is all good...then bam - dropped. I have a full time job...decent credit...and just wasted a whole bunch of time.

2 votes

Beware of these online lending companies. I applied through lending club with a credit score of 768, well above normal and a $58,000 income and about $18,000 in credit card debt. My application was denied for income verification because they said they could not verify the income even after I provided w2s and paycheck stubs. They use an online verification system that only includes 1/3 or less of the entire US workforce (theworknumber.com). Now this will negativelly impact my credit and I will have less of ... a chance for getting approved somewhere else. Thanks for nothing lendinclub. Notice the rating of 30% of one star feedback to 50% five star, that normally shows that the positive ones are fake. I'll just go to my local bank and I'll be fine but I will onlly get aproved for about $10-$12000 versus the $20-$25000 that lendind club promised me. More Less


1 votes

I was very pleased with Lending Club's process - the application only took about 15 minutes, and I got the money I needed in just a few days. My credit is fair, but Lending Club made an excellent offer that was very competitive. Overall I had such a positive experience that I would definitely use their services again if I ever needed another loan in the future.

2 votes

I applied for a loan with LC and was approved, fully funded and according to my account summary loan was issued. The final Truth in Lending notice was issued. According to the email I received stating "this is your official notice that your loan was approved and funds will be deposited into your account within 2 to 4 days. All looked GREAT!! My LC account summary still showed funds issued with a transaction code, payment amount and due date. Great I thought, just waiting on ... funds to show up in my checking account.

Five days later still no funds deposited into my account, so I called LC to check on funds. I was told loan is complete and funds should be in account. We verified my account information and all was correct. She put me on hold to speak to her supervisor. LC rep came back and said she did not know why but the loan was rescended!?! She stated there was a note for me to call the credit department. I asked what was going on??? I never received an email stating any problems with the loan. But I called the credit department and I spoke to Bernard. He stated he was sorry but my loan was rescended due to too many credit inquiries. (I only have 3 inquiries on my TransUnion credit report). I assure you nothing outragous on my credit report was later revealed. I was in SHOCK!!!

Over the next week I spoke to several and the end result was still no loan!!!! Over the last several weeks I have kept an eye on my LC account summary, all still reflects an issued loan with a payment due in mid April. Now almost 30 days later I received an email from LC reminding me that my payment was scheduled to come out of my checking account. CRAZY!!! I called LC and they apologized and told me some line, but that it would be corrected and not report as a missed payment on my credit report. I must say I am not so confident that this will not be a later battle!!!

I know this sounds incredible and must not be true, but it is!!! I have all the emails printed out, all documents from my LC account summary. I even kept printing out all info from my account summary over the last couple of weeks.

I just wonder how the investors that funded my loan feel about having their money invested/held and not receiving any interest on their investment!?!

This kind of business should be illegal!!! If any knows a good lawyer, I have all the proof!!!!
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