Upstart and LendingClub are two of the most popular online personal loan lenders, but they serve different borrowers and have meaningfully different approval models. Here is a complete comparison to help you decide which is right for your situation.
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.
The Key Difference
Upstart uses AI to evaluate borrowers beyond their credit score — considering education, employment history, and income. This makes it the better choice for borrowers with lower credit scores or thin credit files. LendingClub uses a more traditional credit-based model but allows co-signers, which Upstart does not. LendingClub is better for borrowers with fair-to-good credit who want the option to add a co-signer.
Based on our analysis of thousands of consumer financial profiles, the most common mistake people make is focusing solely on the interest rate without considering total loan cost, fees, and repayment flexibility. Always compare the APR — not just the rate — and read the fine print on prepayment penalties before signing.
Side-by-Side Comparison
| Factor |  Upstart |  LendingClub |
|---|---|---|
| Min Credit Score | 300 | 600 |
| APR Range | 6.2%–35.99% | 9.57%–35.99% |
| Loan Amount | $1K–$75K | $1K–$40K |
| Origination Fee | 0%–15% | 3%–8% |
| Loan Terms | 3 or 5 years | 2–5 years |
| Co-signer | No | Yes |
| Funding Time | 1 business day | 2–4 business days |
| Approval Model | AI (education, employment) | Traditional credit-based |
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When to Choose Upstart
Choose Upstart if: your credit score is below 600, you have a limited credit history but strong income or education credentials, you need funds quickly (same-day or next-day funding), or you need a larger loan (up to $75K vs LendingClub's $40K cap).
When to Choose LendingClub
Choose LendingClub if: your credit score is 600+ and you want to compare rates, you want to add a co-signer to improve your approval odds or rate, you need flexible loan terms (2–5 years vs Upstart's 3 or 5 only), or you prefer a lender with a longer track record (LendingClub was founded in 2006).
Best choice for scores below 600 or thin credit files. AI-powered approval. Typical APR 6.2%–35.99%, subject to change. Origination fee 0%–15%. Upstart is rated 'Excellent' on Trustpilot.
Best choice if you have a co-signer or want flexible loan terms. One of the few major lenders that allows co-signers. Origination fee 3%–8%.
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Check My Options →💡 Expert Tip: Check Your Rate Before You Commit
Upstart offers prequalification with a soft credit pull — meaning you can check your rate in minutes without any impact to your credit score. Before applying, review your debt-to-income ratio (DTI): Upstart looks for a DTI below 45–50%. Divide your total monthly debt payments by your gross monthly income to calculate yours. A lower DTI improves your approval odds and typically results in a lower APR.
Frequently Asked Questions
Is Upstart or LendingClub better for bad credit?
Upstart is significantly better for bad credit. It accepts scores as low as 300 compared to LendingClub's 600 minimum. Upstart's AI model also considers factors beyond your credit score that may help you qualify at a lower rate.
Does LendingClub allow co-signers?
Yes. LendingClub is one of the few major personal loan lenders that allows co-signers. Adding a co-signer with good credit can significantly improve your approval odds and lower your APR.
Which has lower fees, Upstart or LendingClub?
It depends on your loan. Upstart's origination fee is 0%–15% (can be higher). LendingClub's is 3%–8% (more predictable). For borrowers who qualify for 0% origination with Upstart, it wins on fees. For everyone else, LendingClub's fee range is narrower.
How long does Upstart take to fund a loan?
Upstart can fund loans as fast as 1 business day after you accept your offer. LendingClub typically takes 2–4 business days.