Axos vs. LendingClub: Which Offers Better Personal Loans?

Axos Bank and LendingClub offer unsecured personal loans to consumers in all 50 states and Washington, DC

Axos Bank, based in San Diego, is an online financial institution that offers innovative digital banking solutions. LendingClub also operates online and offers lending, banking and investing solutions.

Both are ideal for borrowers with at least fair credit, but LendingClub gives you more flexibility when applying.

Axos Bank vs. LendingClub at a glance

Axos Bank and LendingClub offer unsecured personal loans with generous borrowing limits. Still, each has variations you should consider when deciding which one works best for your financial situation.

Personal loans from Axos Bank

Rating: 4.5 stars out of 5

4.5

Learn more

in our bank interest overview

• Pros and cons
  

  

  Plus points
  

  • Online prequalification with soft examination.
  • Refinancing available.
  • Same day financing.

  

  Cons
  

  • Origination fee.
  • Good or excellent credit required.
  • High minimum interest compared to other lenders.

• Bankrate’s opinion
  

  Axosbank has flexible, unsecured personal loans. They charge an origination fee, but there is no prepayment penalty if you pay off the loan early. In addition, the lender does charge an origination fee, but it is lower than what you get with LendingClub.

  Some loans are funded on the same business day. It may take up to two days for LendingClub to fund your loan. You can also extend your due date to 10 days to better fit your budget. Moreover, you can apply for a refinance at Axos Bank to get a better rate after six months. These benefits are not common with many other lenders.

LendingClub personal loans

Rating: 4.3 stars out of 5

4.3

Learn more

in our bank interest overview

• Pros and cons
  

  

  Plus points
  

  • Co-borrowers allowed.
  • Fast approvals.
  • Allows expiration date adjustment.

  

  Cons
  

  • Origination fee.
  • Minimum credit score not specified.
  • Steep maximum APR.

• Bankrate’s opinion
  

  CreditClub stands out from the competition because it is one of the few borrowers that allows co-borrowers. This benefits those who want to borrow money, but cannot qualify for it themselves. There is also the option to get prequalified online with a co-borrower without affecting your credit score.

  Another key benefit of doing business with LendingClub is the fast application process. Approvals are often issued within two hours if you upload the necessary documentation in a timely manner. You can also get a slightly lower APR than Axos Bank if you have excellent credit and qualify for the lowest rate.

  Like Axos Bank, LendingClub lets you adjust your due date permanently or as a one-time courtesy to make your loan more manageable.

How to choose between Axos Bank and LendingClub

Both lenders prohibit loan proceeds from being used to finance investments or cover higher education expenses or costs associated with illegal activities.

Axos Bank has larger loans

LendingClub limits loans to $40,000, but it could work if you’re looking for a small loan. However, borrowers who need more financing may find that Axos Bank is the better choice.

Loan amounts up to $50,000 are available, and you can receive the proceeds the same day. You can also enjoy lower borrowing costs, as the maximum APR is significantly lower than LendingClub. Additionally, repayment periods are longer, which helps lower monthly payments. Keep in mind that extending the term of the loan means you will pay more interest over the life of the loan.

LendingClub allows joint borrowers

Co-signers on personal loans are not allowed at either lender. You can, however, take out a joint personal loan with LendingClub. This allows you to apply with a co-borrower, and the lender evaluates the income and credit information so both applicants can make a decision.

However, adding a joint borrower with Axos Bank is not an option. You must self-qualify with a credit score of 700 or higher and a source of verifiable income.

Compare lenders before applying

Axos Bank and LendingClub are worth considering if you need an unsecured personal loan. You can access more financing with Axos Bank, but LendingClub is the better option if you want to apply with a co-borrower. Axos Bank also offers longer loan terms than LendingClub, with lower origination fees.

However, you may want to lean more toward LendingClub if you have a lower credit score. Or, if your score is on the higher side, you can still get a more competitive interest rate with this lender since the minimum APR is slightly lower.

Get pre-qualified with both to make the best decision for your finances. And before you submit a full application, check your rates with other lenders.