LendingClub and Prosper offer fixed-rate personal loans that can be used to consolidate debt, make a major purchase, pay for a home improvement project and more.
LendingClub and Prosper personal loans have a number of similarities, so whether one of these lenders is right for you probably depends on your financial goals for the loan.
If you want a debt consolidation loan from a lender that offers direct payments to creditors, LendingClub may be the better option for you.
Both lenders offer prequalification applications to check your potential rate, so that may be the best first step to take to compare any offers you receive. Just remember that a prequalified offer isn’t guaranteed — your approval or terms could change after you go through the formal application process.
What to consider when applying for a personal loan
Personal loans can be used to pay for many things, including debt consolidation, home improvement projects, medical and dental bills or other major purchases. But factors that influence your monthly payment as well as the total cost of the loan, such as interest rates, fees, loan amounts and repayment terms, can vary from lender to lender.
Since everyone’s financial needs are different, it’s important to review the terms and conditions of a loan before signing on the dotted line to ensure you’re getting a loan that fits your budget.
For example, your monthly payment may be more affordable with a longer loan term, but you’ll pay more in interest over the life the loan. On the flip side, a loan with a shorter term may save you money on interest charges, but your monthly payments may be uncomfortably high. You’ll need to weigh the pros and cons of different loans to find the one that’s right for you.
We recommend searching for lenders that offer the ability to prequalify so you can check rates and compare potential offers from different lenders before you apply.
*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.