LendingClub and Prosper personal loans are ideal for people who are looking for a smaller loan and want to use a cosigner. Both companies charge similar APR maximums, although Prosper’s minimum APR is lower than LendingClub’s.
Although the two lenders share several similarities, they have a unique set of pros and cons and benefit borrowers in different credit and financial situations.
LendingClub vs. Prosper at a glance
Both LendingClub and Prosper offer competitively priced unsecured loans. However, they offer different products that are best for borrowers in specific situations. Compare lender details below so you can make the most informed decision before applying.
| CreditClub | Bloom | |
|---|---|---|
| Bank rate score | 4.3 | 4.7 |
| Better for | • Borrowers with a cosigner | •Honest borrowers who want to consolidate |
| Loan amounts | $1,000 – $40,000 | $2,000 – $50,000 |
| APRs | 5.66%-36.00% | 6.99%-35.99% |
| Length of the loan | 24-60 months | 24-60 months |
| Cost |
|
|
| Minimum credit score | Not specified | 560 |
| Time for financing | Within four days (on average) | As soon as one working day |
Prosperous personal loans
Learn more
in our bank interest overview
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Prosper works differently than the average online lender. Rather than offering a personal loan from Prosper, the peer-to-peer company is a marketplace that acts as a broker that exists to match investors with borrowers who meet eligibility criteria.
Prosper offers joint applications, which can increase your chances of approval and help you score a more competitive rate. The company also offers prequalification, which makes comparing offers from multiple lenders easier.
LendingClub Personal Loans
Learn more
in our bank interest overview
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LendingClub originally started as a peer-to-peer lending platform but passed to a traditional bank and lender in 2023. The lower credit score requirements and smaller loan amount of $5,000 make the one standout leader.
However, the fees – including higher rates and an origination fee between 1 Unpleasant 8 per cent – can add significant costs to the loan and detract from its overall value.
How to Choose Between LendingClub and Prosper
Both LendingClub and Prosper have unique benefits that will be beneficial to borrowers in different situations. Here’s how to make sure you choose the right lender for your needs.
LendingClub allows co-signers
Borrowers who need a smaller loan and the help of a creditworthy cosigner will benefit most from a personal loan from LendingClub. While LendingClub charges an origination fee and a late fee, with Prosper you may be charged four fees, including a returned payment and a check bounce fee.
LendingClub also charges a higher maximum rate than most lenders, so only those with an excellent credit score – or a cosigner who does – will benefit from a personal loan from LendingClub.
Prosper is best for honest borrowers looking to consolidate
Prosper’s loan minimum of 560 is quite low compared to most personal loan lenders, including fair credit lenders. The general eligibility requirements are much less stringent than those of lenders, especially for those looking to consolidate high-interest debt.
For example, it only requires that you have a declared income greater than $0 and a debt-to-income ratio of no more than 50 percent, which is much lower than the ideal lender limit of 36 percent.
If you do not meet these requirements, Prosper will allow co-applicants. This can increase your chances of approval and score a lower interest rate.
Compare more lenders before signing up
Prosper and LendingClub are strong lenders that allow co-signers or joint applicants. However, it may be easier to qualify for Prosper even with the help of a joint borrower. LendingClub, on the other hand, may be the more affordable option for people with an excellent credit score, repayment history and a high annual income – or for those with a cosigner who meets these requirements.
If you’re having trouble choosing between these two lenders, qualify for both to see which one offers the best rates and charges the fewest fees.
