LendingClub vs. Upstart: Which Personal Loan Provider Wins?

LendingClub vs Upstart personal loan comparison

LendingClub and Upstart are two of the most popular online personal loan platforms, but they differ in eligibility, APR ranges, fees, and application process. In this head-to-head comparison, we’ll break down their strengths and weaknesses to help you choose the best fit for your borrowing needs.

Table of Contents

1. Platform Overview

LendingClub launched in 2007 as a peer-to-peer lender connecting investors with borrowers. Upstart uses AI models to assess creditworthiness, often approving borrowers with limited credit history.

2. Eligibility Criteria

  • LendingClub: Credit score ≥ 600, annual income ≥ $24,000, no recent bankruptcies.
  • Upstart: Credit score ≥ 580, income ≥ $12,000, considers education and job history.

3. APR & Fees Comparison

Platform APR Range Origination Fee
LendingClub 6.95%–35.89% 1%–6%
Upstart 7.47%–35.95% 0%–8%

4. Repayment Terms

  • LendingClub: Terms of 36 or 60 months.
  • Upstart: Terms of 36 or 60 months, with flexible payment dates.

5. Application Process

  1. Prequalify with a soft credit check on each site.
  2. Compare offers: APR, fees, terms.
  3. Submit full application and documentation.
  4. Receive funds via direct deposit (usually within 1–3 business days).

6. Pros & Cons

  • LendingClub Pros: Lower fees for high-credit borrowers, P2P backing.
  • LendingClub Cons: Stricter eligibility, slower funding.
  • Upstart Pros: Approves thin-file borrowers, fast decisions.
  • Upstart Cons: Potentially higher fees for lower credit profiles.

7. Verdict

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