LendingClub
Direct-to-creditor debt consolidation with joint application support
How it works
LendingClub is a publicly traded fintech company (NYSE: LC) that started as a peer-to-peer lending marketplace and now operates as a full-service digital bank. Its personal loans range from $1,000 to $60,000 with APRs from 6.53% to 35.99%. The standout feature for debt consolidation is the Balance Transfer Loan, which sends funds directly to up to 12 creditors so you never touch the cash. The mobile app combines banking and loan management in one interface with credit monitoring tools like DebtIQ.
Is it right for you?
Consider if you
- You want loan proceeds sent directly to up to 12 creditors for true debt consolidation
- You have fair credit (600+) with at least 3 years of credit history
- You want to apply with a co-borrower to improve your chances or get a better rate
Skip if you
- Borrowers with excellent credit (740+) who can get zero-fee loans from SoFi or LightStream
- Those with thin credit files — LendingClub requires 3+ years of history and 2+ accounts
- Anyone needing more than $60,000 — consider SoFi for loans up to $100,000
Your money and data
LendingClub is an FDIC-insured bank regulated by the OCC, with deposits insured up to $250,000. The platform uses SSL/TLS encryption and supports biometric login via Face ID and Touch ID. However, the company paid $18 million in a 2018 FTC settlement over no hidden fees advertising when origination fees were being charged, and has approximately 489 CFPB complaints on file for its installment loan products.
Pros & Cons
Pros
- Direct-to-creditor payoff sends funds to your creditors and may earn you an undisclosed rate discount
- Joint applications allowed, making it one of the few online lenders supporting co-borrowers
- Low minimum loan of $1,000 and flexible terms from 24 to 84 months
Cons
- Origination fee of up to 8% deducted from proceeds — on a $30,000 loan you may receive only $27,600
- 2018 FTC settlement for $18 million over no hidden fees advertising while charging origination fees
- High maximum APR of 35.99% makes it expensive for lower-credit borrowers
Pricing details
APR 6.53%-35.99% · Loans $1K-$60K · Terms 24-84 months · Origination fee 0%-8% · No prepayment penalty · 15-day late fee grace period
On lendingclub.com · We may earn a commission
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