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If your credit score isn’t perfect, the thought of applying for a personal loan can be daunting. However, joint applications could help you get a better loan offer.
A joint application is when two co-borrowers apply for a loan on behalf of both parties. Both co-borrowers provide their name, income information, and credit history in the application to qualify for the loan. If you’re unsure whether you qualify for a personal loan on your own, including someone with a stronger credit profile on the application can improve your chances of approval.
Both co-debtors undertake to take over the repayment of the loan. It is important to ensure that both parties agree on the risks and obligations involved in borrowing, as late payments affect the creditworthiness of both borrowers.
Not every personal loan lender allows joint applications, but LendingClub offers loan options from $1,000 to $40,000 for co-borrowers and individuals alike.
Ahead, Select reviews LendingClub personal loans and looks at the APR, perks, fees, loan amounts and tenors. (Read more about our methodology below.)
Lending Club Personal Loan Review
LendingClub personal loans
Annual Percentage Rate (APR)
Debt consolidation, big expenses, emergency expenses, moving, weddings
2% to 6% of the loan amount
Penalty for Early Payout
15-day grace period to make payments without penalty
Find the best personal loans
LendingClub’s APRs range from 8.05% to 35.89%. As of this writing, the average two-year interest rate on personal loans is 9.46%, according to the Fed.
The lowest APRs are available to borrowers and fellow borrowers with excellent credit ratings. Factors such as creditworthiness, income, loan amount and loan term are taken into account when determining your APR.
LendingClub doesn’t offer some of the benefits offered by fintech lenders like SoFi. But it offers some core benefits that can have a big impact on your bottom line. LendingClub does not charge prepayment penalties. If you decide to pay off your loan in full before the end of the term, you will not have to face any fees or penalties.
In addition, applicants can apply for a LendingClub loan with a co-applicant. Joint applications allow two borrowers to apply for a loan together, so both credit histories are evaluated equally. However, LendingClub does not accept co-signers on loans.
LendingClub loans come with processing fees ranging from 2% to 6% of the loan amount. Depending on how much you borrow, this can be a significant expense. For example, if you take out a $10,000 loan and are charged a 5% processing fee, only $9,500 will be deposited into your bank account while you still have to pay back the full $10,000 plus interest.
For loans with no processing fees, see our list of the best personal loans.
Those looking for smaller amounts of credit can take advantage of a LendingClub loan, which starts at $1,000. The maximum loan amount you can borrow is $40,000.
OneMain Financial is another solid option for borrowers looking for small loans — loans start as low as $1,500.
LendingClub offers fairly limited terms. There are only two options to choose from, 36 and 60 months.
LendingClub personal loans can be a good choice for people who need cash for medical bills, weddings, moving expenses, or debt consolidation. While LendingClub does not accept co-signers, co-borrowers can apply.
Find the best personal loans
To determine which personal loans are best for consumers with bad credit, Select analyzed dozens of US personal loans offered by both online and brick-and-mortar banks, including major credit unions. Where possible, we’ve selected loans with no closing or application fees, but we’ve also included options for borrowers with lower credit scores on this list. Processing fees apply to some of these options.
In narrowing down and ranking the best personal loans, we focused on the following characteristics:
- Fixed rate annual percentage rate: Variable interest rates can rise and fall over the life of your loan. With a fixed APR, you lock in an interest rate for the life of the loan, which means your monthly payment doesn’t vary, making it easier for you to budget.
- Flexible minimum and maximum loan amounts/terms: Each lender offers more than one financing option that you can customize based on your monthly budget and how long it will take to repay your loan.
- No prepayment penalties: The lenders on our list do not charge borrowers for prepaying loans.
- Optimized application process: We checked that lenders offer same-day approval decisions and a fast online application process.
- Customer service: Every loan on our list offers customer service via phone, email or secure online messaging. We also chose lenders with an online resource hub or advice center to help you learn about the personal loan process and your finances.
- Fund payout: The loans on our list deliver the money instantly either via electronic transfer to your checking account or in the form of a paper check. Some lenders (which we mentioned earlier) offer the option to pay your creditors directly.
- Autopay discounts: We’ve listed the lenders that reward you for signing up for Autopay by reducing your APR by 0.25% to 0.5%.
- Creditor Payment Limits and Loan Sizes: The above lenders offer loans in a range of sizes, from $1,000 to $100,000. Each lender posts their respective payment limits and loan sizes, and completing a pre-approval process can give you an idea of what your interest rate and monthly payment would be for such an amount.
The interest rates and fee structures advertised for personal loans are subject to fluctuations in line with the Fed interest rate. However, once you accept your loan agreement, a fixed annual rate guarantees your interest rate and the monthly payment remains constant throughout the life of the loan. Your APR, monthly payment, and loan amount depend on your credit history and creditworthiness. To obtain a loan, many lenders do a hard loan request and request a complete application, which may require proof of income, identity verification, proof of address, and more.
Editorial note: Any opinion, analysis, review, or recommendation expressed in this article is solely that of Select’s editorial team and has not been reviewed, approved, or otherwise endorsed by any third party.