WiseIQ Expert Tip
Financial decisions made with complete information consistently outperform those made under pressure or with incomplete data. Take time to compare at least 3 options before committing.
Quick Comparison: LendingClub vs Prosper
UpstartFeature
LendingClub
Prosper
APR Range
6.53% - 35.99%
8.99% - 35.99%
Origination Fee
0.00% - 8.00%
1.00% - 9.99%
Loan Amounts
$1,000 - $60,000
$2,000 - $50,000
Loan Terms
24 - 84 months
24 - 60 months
Funding Time
As little as 24 hours
As soon as 1 business day
Credit Score Impact (Checking Rate)
Soft inquiry (no impact)
Soft inquiry (no impact)
Prepayment Penalty
None
None
Minimum Credit Score
Not explicitly stated, but higher scores get better rates
600
Verdict: LendingClub vs Prosper
Choose LendingClub if: You need a larger loan amount (up to $60,000) or a longer repayment term (up to 7 years). LendingClub also offers a slightly lower starting APR for highly qualified borrowers and potentially lower origination fees.
Choose Prosper if: You have a fair credit score (600+) and are looking for a straightforward peer-to-peer lending experience. Prosper's loan amounts and terms are more limited, but it can be a good option for those who meet its specific credit criteria.
LendingClub: Full Review
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#1 Top Pick #1
LendingClub Personal Loans
Peer-to-Peer Personal Loans
6.53% - 35.99%
APR Range
$1,000 - $60,000
Loan Amounts
0.00% - 8.00%
Origination Fee
Pros
- Higher maximum loan amount ($60,000)
- Longer repayment terms available (up to 7 years)
- Potentially lower starting APR for excellent credit
- No prepayment penalties
Cons
- Origination fees can be up to 8%
- Lowest rates require excellent credit
- Not ideal for those with very poor credit
LendingClub stands out for its flexibility in loan amounts and terms, catering to a wide range of financial needs from small expenses to significant debt consolidation. Their peer-to-peer model allows for competitive rates, especially for borrowers with strong credit profiles. The application process is entirely online, offering quick decisions and funding in as little as 24 hours.
While LendingClub offers attractive rates for well-qualified applicants, it's important to note the origination fee, which can range from 0% to 8% and is deducted from the loan proceeds. This fee can impact the total amount received. However, the absence of prepayment penalties provides borrowers with the freedom to pay off their loans early without incurring additional costs.
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Prosper: Full Review
Prosper Personal Loans
Peer-to-Peer Personal Loans
8.99% - 35.99%
APR Range
$2,000 - $50,000
Loan Amounts
1.00% - 9.99%
Origination Fee
Pros
- Minimum credit score of 600 makes it accessible
- No prepayment penalties
- Quick funding, as soon as 1 business day
- Transparent fee structure
Cons
- Higher minimum APR compared to LendingClub
- Origination fees can be higher (up to 9.99%)
- Lower maximum loan amount ($50,000)
- Shorter maximum loan term (5 years)
Prosper is another prominent player in the peer-to-peer lending space, offering personal loans with a focus on accessibility for borrowers with fair credit. Their minimum credit score requirement of 600 makes it a viable option for individuals who might not qualify for loans from traditional banks or other lenders with stricter criteria. The application process is streamlined, and funds can be disbursed quickly.
While Prosper provides a valuable service for many borrowers, its APR range starts slightly higher than LendingClub's, and its origination fees can also be higher, reaching up to 9.99%. The maximum loan amount and term are also more restrictive. However, like LendingClub, Prosper does not charge prepayment penalties, allowing borrowers to save on interest by paying off their loans ahead of schedule.
Who Should Choose LendingClub?
LendingClub is an excellent choice for borrowers who:
- Need to borrow a larger sum, up to $60,000.
- Desire longer repayment periods, up to 7 years, to manage monthly payments.
- Have a strong credit history and are looking for the most competitive rates.
- Want the flexibility of no prepayment penalties.
Who Should Choose Prosper?
Prosper is a strong contender for individuals who:
- Have a fair credit score (600+) and are seeking accessible loan options.
- Need a loan amount between $2,000 and $50,000.
- Appreciate a quick and efficient online application and funding process.
- Prefer a peer-to-peer lending model with transparent terms.