Earnest and LendingClub are both bigger names in online personal loans. While they all offer competitive options for borrowers with good credit, they may not be the best choice if you have excellent credit.
Still, they’re worth a look as you compare your options. Earnest is a great way to do just that – and it can help you find a competitive loan. And while LendingClub has a high APR, it can still be good if you’ve exhausted other, cheaper options.
Earnest vs. LendingClub at a glance
Earnest works with lenders who offer a wide range of loan amounts and terms. However, it means extra steps – something you can avoid by working with a direct lender like LendingClub.
| Serious | CreditClub | |
|---|---|---|
| Bank rate score | 3.7 | 4.3 |
| Better for | Compare multiple lenders | Medium loans |
| Loan amounts | $1,000 – $250,000 | $1,000 – $40,000 |
| APRs | Varies per lender | 9.57%-35.99% |
| Length of the loan | 6-144 months | 24-60 months |
| Cost | No | 3%-8% origination fee |
| Minimum credit score | 680 | 600 |
| Time for financing | As soon as the next working day | Within four days |
Serious personal loans
Learn more
in our bank interest overview
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Plus points
- Joint applications accepted.
- Wide range of loan options.
- Fast approval process.
Cons
- No direct lender.
- Good credit required.
- Approval not guaranteed.
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Earnest is a platform that matches borrowers with lenders they qualify forand recently partnered with Fiona to provide more options. This can make it a good choice if you are just starting to borrow. If you have a credit score below 740, you’re unlikely to qualify for the largest loans (which are aimed at borrowers with excellent credit), but you may still be able to find a lender that meets your needs.
You don’t have to wait long either. Many of the lenders in Earnest’s network can fund loans as early as the next business day after you’re approved. You must be aware of submitting documents and providing any additional information required to ensure a quick turnaround time.
LendingClub personal loans
Learn more
in our bank interest overview
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Plus points
- Joint applications accepted.
- Flexible due dates.
- Low starting amount.
Cons
- Slower funding timeline.
- High origination costs.
- Starting APR is not competitive.
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LendingClub does not have the most competitive rates or terms on the market. In fact, the high starting APR can be a turnoff for borrowers with excellent credit who could qualify for lower rates elsewhere. The processing time is also set at around four days, which is much slower than other online lenders who may be able to fund your loan in one or two days.
However, it is one of the few lenders that accepts co-borrowers. And while the APR is nothing to write home about, LendingClub does give you the option to change your due date. This can help you avoid missing a payment, or simply allow you to coordinate your due date with your regular payment schedule So you don’t have to worry about not having enough in your bank account.
How to Choose Between Earnest and LendingClub
Earnest and LendingClub offer various services. To compare multiple options at once, use Earnest. If you want a once-in-a-lifetime experience, LendingClub is a good direct lender for borrowers with poor or fair credit.
Earnest is better for comparing multiple lenders
Earnest is best if you are new to personal loans. As a matching platform, it can help you see which loans you may qualify for, making the comparison process much easier.
You will still need to provide additional information to the lender you are matched with to confirm your loan, but you may be able to avoid some of the headaches associated with doing the research yourself. And some lenders accept co-borrowers, which can make it easier to find a loan you qualify for.
LendingClub has relatively competitive mid-market loans
LendingClub has higher rates – and a high origination fee – but its flexible payment schedule can offset this. Furthermore, there is no guarantee that you will not face similar rates and other costs with a lender you find through Earnest.
You probably won’t get the best APR on the market, but LendingClub can still be a cheaper option than many other lenders if you have fair credit. Combined with the ability to add a co-borrower to your loan, LendingClub is a good choice if you want a direct lender and have already been turned down by lenders with lower rates.
Compare lenders before applying
Earnest can be a useful tool if you’re not sure what you qualify for. Because it works with a wide variety of lenders, you can compare multiple personal loans to see what suits you best. But it requires submitting an application to Earnest and then following up with the lender you’re matched with. If you want to skip this step, you can apply with a direct lender like LendingClub.
