Personal Loan

Lending Club Loan Reviews

Sometimes, our financial woes can get so severe that getting a loan from the bank just isn’t the best option. As a result, we need to get our loans from elsewhere.

Taking loans elsewhere can sometimes be the best financial decision to make though. These days, people are turning to Lending Club and for their loan needs.

Lending Club is an online loan service founded in 2006 that allows customers to get loans for low costs and fixed interest rates. As much as they sound like one, take note that Lending Club is not a payday loan service.

You never win with payday loans, as their dodgy, high-interest rates can suck up all your assets quickly. Lending Club adheres more strongly to federal laws and legally can’t go to the lengths payday loans do to convince you to sign up for a loan.

However, just because lending clubs are generally better than payday loans, how do we ensure that this company isn’t also a scam?

Is a Scam?

Any sound investor should be cautious at the mere thought of taking loans outside of a bank and for good reason. Loan sharks can sniff a desperate borrower from a mile away and will take advantage of you at the drop of a hat.

Lending Club is the owner of When deciding whether to try out Lending Club, it’s understandable to also consider the reputation and quality of one of its businesses.

Let’s analyze them strategically. Google, since the launch of Lending Club (owner of, has invested millions of dollars in this company.

Why is this significant? If Google were to invest in, say, a fraudulent loan company, their entire reputation would be at risk. Any company that invests in a morally dubious enterprise runs the risk of poisoning their own reputation.

Google has expert investment teams periodically searching and researching companies for their profitability, credibility and legality. If Google’s massive investing teams trust Lending Club, then it’s safe to say most of us can as well.

On top of being trusted by Google, the Better Business Bureau (BBB), a non-profit organization whose mission is to improve the marketplace, conducted a thorough examination of Lending Club.

They found that out of the 10,000 loans offered, only 23 individuals have ever filed a complaint in 2013. As it has risen in popularity, the proportion between the number of loans and the number of complaints has stayed the same, with 99% of customers being satisfied to this day.

The other important factor that distinguishes the website from devious loan sharks is that they’re online. Not to say that there aren’t scam loan services out there that use the anonymity of the internet to their advantage, though.

But rather than using the internet against its customers, the internet aspect is what works for The fact that they’re online trumps other banks and sketchy loan sharks for a couple of reasons. One, the rates are significantly lower than average.

This is because running an online loan service is significantly cheaper than the more in-person loan services thanks to having a much smaller team. The smaller the team operating, the lesser the costs. The lesser the costs, the lesser the interest rates.

In conclusion, Lending Club isn’t a scam. However, that’s not to say that the company doesn’t have its downfalls.

Lending Club Reviews

In general, Lending Club has received mixed to polarized opinions, as can be seen on Lending Club reviews BBB. On the one hand, customers praise Lending Club’s easy to apply process, security and at times, good customer service.

Lending Club’s prices, rates and financial flexibility also make this company praised among customers.

Complaints towards Lending Club include high orientation fees, high credit requirements, unavailable customer services (sometimes) and unreliable documentation.

If your loan needs are simple, chances are your experience will be positive.

Lending Club Complaints

Lending Club has had a number of different complaints over the years. For one, Lending Club tends to be very strict about who gets to take out a loan. Despite being an alternative to a bank, Lending Club still won’t approve a loan unless customers have a credit score of at least 600.

Even with a relatively decent credit score, the interest rates on some loans can be relatively high. Although 7% interest is promised, it’s possible for customers to reach interest rates of up to 20% or so with a low credit score.

Customer service hasn’t always been the best either, with some customers complaining of how normal customer service can’t do anything unless they contact the managers in high positions. But even then, the managers of the company are seldom available, causing dissatisfaction among their customers.

There are also complaints that Lending Club provides misinformation to credit companies, the bank and even the customers themselves. In general, experiences with Lending Club are fairly polarized among customers.

Is Lending Club Legal?

Lending Club has been established since 2008 and so far, hasn’t been accused of any legal misconducts. Lending Club uses an online banking system called WebBank, which operates under federal banking laws.

WebBank itself is regulated and ensured by multiple federal acts, including the Equal Credit Opportunity Act, Fair Credit Reporting Act and the Truth in Lending Act.

Since it’s an initial organization in 1997 under Utah’s digital laws, WebBank has been a reliable digital banking service used by many Loan Service Companies.


In short, Lending Club is credible, reliable and overall, not a bad place to get a loan. Like any business, they have their downfalls, but a reliable loan service that’s not a bank is hard to come by these days. That’s why it’s such a good thing that there’s no such thing as a scam.

Lending Club has gained a reputation as one of the most credible loan services online. If you can’t get a loan from a bank, Lending Club is certainly a solid alternative for your funding needs.

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