LendingClub Vs. Thrive Personal Loans 2022 – Forbes Advisor

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Both LendingClub and Prosper are peer-to-peer lenders that offer fixed-rate personal loans. Both provide terms of three or five years and allow qualified applicants to borrow up to $40,000. Although these lenders offer similar loan products, they have their differences.

We take an in-depth look at LendingClub vs Prosper to help you decide which lender is right for you or if an alternative is better for you.

LendingClub Vs. Prosper Personal Loans at a Glance

Loan amounts

LendingClub and Prosper offer personal loans up to $40,000. However, the minimum loan amount is where they differ: LendingClub lets you take out a loan as small as $1,000 while Prosper has a minimum loan amount of $2,000.

Terms of office

Both lenders offer the same terms: three or five years. If you choose to take out a five-year loan rather than a three-year loan, you’ll have a smaller monthly payment, but you’ll pay more interest over the life of the loan.


Each lender has similar annual percentage rate (APR) ranges, but LendingClub’s lowest advertised rate is lower than Prosper’s. While LendingClub’s APRs range from 7.04% to 35.89%, Prosper’s APRs range from 7.95% to 35.99%. The lowest rate for each lender is usually reserved for borrowers who have excellent credit.

Rates are accurate as of September 14, 2021, but as advertised rates may change at any time, Prosper may offer lower rates than LendingClub in the future.

Additional costs

Both lenders charge origination and late fees. Origination fees cover the cost of processing and administering a loan for a lender. While LendingClub charges borrowers 3% to 6% of the loan amount, Prosper charges 2.41% to 5%. These fees are deducted from your loan amount.

As for late fees, both lenders charge borrowers $15 or 5% of the payment amount, whichever is greater. Charges are applied when your payment is more than 15 days late.

Minimum credit score

Both lenders allow borrowers who have fair credit scores to qualify, with minimum credit score requirements of 600. Factors other than your credit score, such as your ability to repay your loan, will also be considered. when you apply for a new loan.

Related: Best personal loans for fair credit


Prequalifying for a personal loan helps you get an idea of ​​what your APR might be and the terms before you submit your application. Prosper and LendingClub allow you to do this without affecting your credit score. When you prequalify, you’ll need to provide financial information, such as your annual income and monthly mortgage or rent payment.

Co-borrowers & Co-signers

If you can’t qualify for a personal loan on your own, adding a co-signer who has good credit and a solid income could increase your chances of approval. Unfortunately, LendingClub and Prosper do not offer this option. But both lenders allow you to apply for a loan with a co-borrower.

A co-borrower is a person who shares equal responsibility for loan repayment. When you apply for a joint personal loan, a lender reviews the creditworthiness and income of both applicants. If a borrower does not meet a lender’s eligibility criteria, your loan application may be denied.

Even if you qualify on your own, adding a co-borrower who meets all the requirements and has a solid income could help you receive a lower interest rate or a higher loan amount.

When to use LendingClub

LendingClub is ideal for candidates who:

  • Can qualify for its lowest APR
  • Need a loan amount less than $2,000
  • Want to pay their creditors directly

If LendingClub offers you its lowest advertised rate, Prosper may not be able to match it.

Using LendingClub might also be a better idea if you’re taking out a loan to consolidate your debts. Indeed, paying your creditors directly through a balance transfer loan with LendingClub could help you lower your rate and your monthly payments. Prosper does not offer this option.

Related: LendingClub Personal Loans Review

When to use Prosper

Prosper is best suited for candidates who:

  • Have a DTI ratio greater than 40% but less than 50%
  • Qualify for a lower APR than they would with LendingClub

Prosper has a less stringent debt-to-income ratio (DTI) requirement than LendingClub. You can qualify with a DTI ratio as high as 50%. This means that the amount of your monthly debt could represent 50% of your income. Conversely, the maximum DTI ratio for LendingClub is 40% for single applicants and 35% for joint applicants.

Applying for a personal loan with Prosper instead of LendingClub might also be a better decision if it offers you a lower APR.

Related: Prosperous Personal Loans Review

LendingClub & Prosper Loan Alternatives

If LendingClub or Prosper doesn’t offer the best personal loan for your situation, consider these alternatives.


Both LendingClub and Prosper offer personal loans with similar APRs, loan amounts, and loan terms. To see which lender gives you a better deal, prequalify for a loan with both lenders. If you are unhappy with either loan offer, consider other lenders to find a better match.

About Judith J. George

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