Upstart and LendingClub are two popular lenders that offer personal loans for various uses, such as consolidating debt, paying for home renovations, or dealing with emergencies.
Both lenders make it easy to apply online and are well-matched in terms of rates, loan amounts, and term lengths—so how do you choose which is right for you? We’ll go over a few key details that may point you more in the direction of Upstart vs. LendingClub or vice versa, depending on your situation.
In this guide:
Upstart vs. LendingClub: Rates and terms at a glance
| Upstart | LendingClub | |
| Rates (APR) | 5.20% – 35.99% | 9.57% – 35.99% |
| Loan amounts | $1,000 – $50,000 | $1,000 – $40,000 |
| Repayment terms | 3 or 5 years | 3 – 5 years |
| Funding time | 1 business day | Several days |
| LendEDU editorial rating (out of 5) | 4.8 | 4.7 |
| Best for | Thin (little to no) credit | No best-for designation |
Upstart and LendingClub both work with an ecosystem of other financial partners to offer personal loans, so your options may vary depending on your situation and the broader economic environment.
Both lenders offer generally comparable rates and terms on their personal loans. However, Upstart offers a better shot at lower rates, larger loan amounts, and faster funding timelines.
LendingClub has more term length choices and may charge a smaller origination fee for applicants with lower credit scores. However, if you’re a well-qualified applicant, Upstart can help you save more on origination fees, totaling 0% to 12% for Upstart, vs. LendingClub, which charges origination fees of 3% to 8%.
Does Upstart or LendingClub have better customer reviews and ratings?
Upstart and LendingClub are well-known lenders with many reviews from customers who’ve taken out a personal loan with each company. These real-life reviews can help key you in on potential problems or issues in working with a lender.
Reviews collected on November 1, 2023.
Both lenders scored well on most customer review websites but were docked as unsatisfactory options by the independent reviewer J.D. Power on its annual customer satisfaction survey.
Complaints are generally mixed with each lender and don’t focus too much in one area with any particular customer review source.
Regardless of whether you’re looking at Upstart or LendingClub, several borrowers mentioned similar problems in understanding their loans, getting ahold of customer support representatives, and resolving credit reporting errors.
Is a personal loan from Upstart or LendingPoint more accessible?
Personal loan lenders can make all the promises in the world to lure you into their sales funnel, but whether you qualify for the best terms on those loans can be another factor altogether.
Upstart and LendingClub both set minimum requirements you’ll need to meet. The more qualified you are compared to the minimum requirements, the better your chances of getting approved for the best personal loan offer.
Here are the minimum requirements for each lender, but keep in mind lenders don’t publicize every qualification.
| Upstart | LendingClub | |
| Citizenship | U.S. citizen or resident | U.S. citizen or resident |
| Age | 18 or above | 18 or above |
| State of residence | Not disclosed | All U.S. states and Washington, D.C. |
| Minimum income | $12,000 | Not disclosed; over $100,000 on average |
| Minimum credit score | None | Not disclosed; 700 for the average borrower |
| Other requirements | Bank account
Email address No delinquent debts Debt-to-income ratio of 50% or less Employed or a job offer starting within 6 months |
Bank account |
In general, you’re more likely to get approved for a personal loan from Upstart than LendingClub, which prefers applicants with a higher credit score and income.
Both lenders allow you to prequalify with no commitment or credit score impact, so there’s no harm in checking your rates and options with each one.
Scenarios where Upstart or LendingClub is the better option
To help you make a decision, we’re breaking down whether Upstart or LendingClub is a better choice based on common scenarios.
Click the scenario in the table to read more about why we think that lender is best.
To ensure you’re getting the right loan, be sure to check your rates with other personal loan lenders that might be a good match. If you haven’t explored your options, check out our resource on Upstart alternatives and competitors.
If you need fast funds: Upstart
Upstart provides a better runthrough of funding timelines, and it’s faster in many cases. It often takes a few hours to get approved for a loan, although it can take a few days or longer if you’re self-employed or require a more in-depth check.
Once Upstart approves your loan and you sign the final acceptance, it will send the funds to your bank account by the next business day if you complete this process before 5 p.m. Eastern on a normal working day.
LendingClub also generally approves loans quickly, within an average of two hours, according to the company. However, due to the way LendingClub does business, it occasionally approves people for loans but then changes its mind before funding—a hassle if you’re dealing with an emergency and counting on the money coming through once you’re approved.
If you have a lower income: Upstart
Upstart is better if you have a limited income. Its minimum requirement is $12,000 per year as long as you meet other requirements. Be aware that all lenders approve loans within the limits of your ability to pay, so you may not qualify for a large loan in this case.
LendingClub doesn’t specify a minimum amount. However, according to company documents, the average borrower has an income over $100,000 per year—far higher than the average median household income of $74,580 in 2022.
If you’re consolidating debt: LendingClub
You can use a personal loan from both lenders to consolidate debt. If Upstart offers you a lower APR than LendingClub, it may be wise to choose Upstart instead, but LendingClub offers one advantage.
If you notify LendingClub that you’re using your loan to consolidate debt, you can specify the accounts you want to pay off in your application. If you’re approved, LendingClub will send the loan funds to your creditors. It saves you a step you’ll need to complete on your own with Upstart.
If you have little to no credit: Upstart
Upstart uses a platform powered by artificial intelligence (AI) to assess each applicant. This allows it to consider far more factors beyond just your credit score when reviewing your loan application—up to 1,500 details, such as your bank account history, regional cost of living, and education history.
As a result, borrowers with limited credit—or even no credit—can get access to loans if the AI model determines you’re a reliable bet. If you recently immigrated to the U.S. with a doctoral degree, for example, or if you’ve long preferred to avoid using credit, Upstart may be more likely to approve you for a loan.
If you’re looking for a larger loan: Upstart
Upstart offers larger loans than LendingClub: $50,000 versus $40,000, respectively. Remember, you’ll still need to qualify for that higher loan amount by demonstrating your income and debt load are sufficient to repay the loan in your selected term.
Remember: Upstart and LendingClub may charge origination fees for their personal loans. These fees come from your loan proceeds, so you may need to borrow more to accommodate these fees if you need a specific amount.
If you’re looking for the lowest rates: Upstart
It’s worth getting a quote from both companies, but it’s possible for well-qualified applicants to score lower rates with Upstart vs. LendingClub. Upstart offers rates as low as 5.20%—versus 9.57% for LendingClub.
Well-qualified borrowers may also save on origination fees with Upstart, which charges anywhere from 0% to 12% of your loan amount. LendingClub, in contrast, charges 3% to 8%—a higher minimum amount for well-qualified applicants but a lower maximum.
If you have good credit, consider a personal loan from SoFi—our best personal loan for good credit. Read our comparison of Upstart vs. SoFi for more.
If you’re applying with someone else: LendingClub
If someone else is taking out the loan with you, LendingClub is your only option in this comparison. It allows you to apply for a loan with a joint applicant who is responsible for repaying the loan with you right from the start (different from a cosigner, who only repays it if you can’t).
Applying with a well-qualified co-applicant can help you score lower rates or even get approved for a loan if you can’t do so alone. Some people also choose to apply for a joint loan if they’re sharing the purchase, such as partners chipping in to buy a new hot tub.
If you’re looking for more term-length options: LendingClub
The range of potential loan term lengths is similar for Upstart vs. LendingClub: between three and five years. However, Upstart only offers you these two choices—three years or five years—but LendingClub also allows for an in-between option of four years.
It’s not a huge difference, but it gives you one more option to choose from when selecting the right personal loan option. That may be enough to tip the balance between these two similar lenders.
CFP® Erin Kinkade tells us she doesn’t have a strong preference for one lender over the other:
I like both companies’ websites. I recommend reading through the information about each lender and using the calculators and resources to determine which is best for you.
Which company is our choice between Upstart and LendingClub?
Upstart is the better option for most borrowers because its AI-powered underwriting model considers more factors than the average lender: 1,500 possible data points for each applicant, according to the company.
It’s possible to qualify for better rates with Upstart, but both lenders have the same maximum APR cap. Upstart also waives the origination fee for well-qualified applicants, but it may charge a higher fee than LendingClub in some cases.
Finally, Upstart offers a faster funding timeline and larger potential loan amounts. As a result of these combined factors, LendEDU editors have given Upstart a rating of 4.8 out of five stars, versus 4.7 out of five stars for LendingClub.
