LendingClub Review: Still A Stable Online Loan Option?

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Lending Club logoAre you trying to keep your small business afloat but can’t get a bank loan?  You’re certainly not alone — funding is one of the most stressful parts of owning and building your own business. But you don’t have to give up hope.

Online small business loans can be a viable option if you’ve come up dry with other funding sources. LendingClub loans are a popular choice for tons of small businesses. But how suitable are they to your business? Our comprehensive review digs deep to help you find out.

Note: Your chances are better for getting approved with online small business loan services compared to more traditional lenders, but these services will cost you — their interest rates are extremely high. However, if you’ve run out of options, or need funding immediately (and plan to pay it off quickly), an online loan is worthy of consideration.

Visit LendingClub’s Website

Article Overview

Lending Club

4.3 / 5
Lending Club
Speed of Approval & Funding 3.5
Qualifications for Approval 3.5
APR Rate 5.0
Loan Amounts & Payment Terms 4.5
Customer Service 5.0


  • Business must have at least $50,000 in annual revenue (lower than many)
  • Can borrow up to $500,000 if qualified
  • Lower APR average at 9%-35% (includes a 3%-8% origination fee)
  • Flexible terms, from 1-5 years
  • Dedicated U.S.-based client advisor


  • Several days to find out what loans are available to you
  • Must be in business at least 1 year
  • Personal guarantee required
  • No weekend customer support hours
  • BBB accredited but not rated, perhaps due to a pending FTC investigation

Key Features

  • BBB accredited
  • More than $11 billion loaned to small businesses
  • Peer-to-peer lending site, backed by a secure base of everyday investors (not large financial institutions)
  • LendingClub rates: they have low APR rates compared to many other services we reviewed
  • Offers small business loans from $5,000 up to $500,000

How Do Borrowers Rate LendingClub?

Check out what customers have to say about their experiences getting LendingClub business and personal loans.

Positive Reviews

What a great lending experience!!! I read these other reviews and don’t understand what the problem is. From the very start from application and loan was super easy!! Maybe people’s credit is terrible and why there having bad experiences. I applied for a $3600 loan and was approved in like a day and had the money in my account within a few days and super easy. Great and easy experience with lendingclub!! Thanks. – Travis D., BBB 7/6/2019

I needed money and they were there for me. The whole process took less than 48hrs and the money was on my account. They have a high interest but nothing is free. They have an easy app that is user friendly and it’s really easy to make the payments. – zurzuela, Trustpilot 6/27/2019

Negative Reviews

My experience with Lending Club started on June 11, 2019. I applied for a loan and was asked numerous times for my husbands 2 current paystubs. They were faxed 3 times from ******* and they kept saying they didn’t get them. Then they kept asking for more information which we kept sending them. I talked to six different people saying they had everything they needed but asking for the same information over and over again. The last straw was speaking with a lady yesterday saying we were approved and the money should be in our account within a week to ten days. Then this morning I get another email asking for more information. Looks like the one department doesn’t know what the other department is doing as there is no communication between the two. This was a total waste of my time. – Susan K., BBB 6/28/2019

There are many options out there for someone seeking a personal loan and I highly recommend anyone seeking a loan to find an alternate source. DO NOT use Lending Club. Their customer service is horrible. They made in error in my payment processing which completely threw my finances into chaos. Despite LC being quick to admit fault they were painfully slow to resolve the issue and simply put, their resolution wasn’t much of a resolution. In speaking with over a dozen different representatives the story being spun by LC kept changing and evolving as to why they would be unable to assist me. – Chris, Trustpilot 6/18/2019

FTC Government Actions vs LendingClub And Loan Scam Alert1

You have have noticed that we provided a con above of “pending FTC actions.” In some not so sweet news, here are the accusations against LendingClub filed by the FTC in 2018.

FTC vs Lending Club

On April 25, 2018, the Federal Trade Commission (FTC) filed a complaint against LendingClub Corporation, dba LendingClub. Case #: 3:18-cv-02454.

The FTC alleges that LendingClub promised consumers “no hidden fees”, but when the loan funds arrived in consumers’ bank accounts, hundreds to thousands of dollars were found short of expectations due to a hidden up-front fee that Defendant deducts from the consumers’ loan. The complaint also alleges that the company mislead consumers into thinking their loan had been approved, when Defendant knew many consumers would never receive a loan. Consumers then believed that funds were forthcoming and did not apply for credit with Defendant’s competitors. Other allegations include: continuing to charge consumers who cancelled their automatic payments or had paid off their loans entirely; and withdrawing double payments from accounts, as well as failing to provide consumers with privacy notices.

The case is currently pending.

Lending Club Lending Practices Settlement

On September 27, 2018, Lending Club agreed to pay $2 million in civil penalties to resolve allegations that it violated the Financial Institutions Reform, Recovery, and Enforcement Act of 1969 (FIRREA).

The settlement, with the Department of Justice stems from finding that between January 2009 to September 2010, Lending Club made misrepresentations to its FDIC-insured loan originator, WebBank. It is also alleged that due to the misrepresentations, WebBank originated over 200 loans to borrowers who did not satisfy WebBank’s credit requirements.

What’s Our Final Verdict?

If you want the speediest turnaround on getting your loan funded, the LendingClub may not be your best bet since you have to wait for an investor to get on board with your loan request. However, if you don’t need funding immediately, LendingClub could be a good option for you, and could save you money in the long run compared to similar services.

See how LendingClub stacks up against other online lenders in our online small business loan comparison, where we’ve reviewed 11 of the top companies.

What difficulties have you encountered on your quest for a business loan?

Sources: [1] BBB

About The Author:

While attending the University of North Carolina at Chapel Hill’s graduate school for journalism and public relations in the late 1990s, Sally began a long career researching and writing about business, technical and scientific topics.

Her decades of experience as well as a passion to stay on top of the latest online tools and resources combine to help small businesses (and freelancers like herself) flourish. Her work has appeared in many notable media outlets, including The Washington Post, Entrepreneur, People, Forbes, Huffington Post, and more.

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