Summary
- Best Overall: LendingClub (competitive rates, flexible terms)
- Best for Young Professionals: Upstart (AI underwriting)
- Best for Fair Credit: Prosper (accessible approval)
- Rate Range: 6.50% – 35.99% across all three
Choosing between the top three peer to peer lenders? Here’s everything you need to know about LendingClub, Upstart, and Prosper to make the right decision.
LendingClub: The Veteran Choice
Pros:
✅ Pioneer in peer to peer lending
✅ Consistent approval criteria
✅ Joint applications accepted
✅ AutoPay discount available
✅ No prepayment penalties
Cons:
❌ Higher minimum credit score
❌ Origination fees on all loans
❌ Slower funding than competitors
Best For:
- Established credit history 660+
- Joint applications with spouse/partner
- Borrowers who want predictable terms
Check your LendingClub rate See personalized terms in 2 minutes, no credit impact.
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Upstart: The AI Powered Innovator
Pros:
✅ AI considers education and job history
✅ Fast funding
✅ Higher loan amounts available
✅ Some loans have no origination fee
✅ Three-day grace period
Cons:
❌ Variable origination fees
❌ Limited loan terms (3-5 years only)
❌ Newer company (less track record)
Best For:
- Recent college graduates
- Young professionals with limited credit
- Borrowers needing larger amounts
- Those wanting fast funding
Prosper: The Accessible Option
Pros:
✅ Lower credit score requirements
✅ Competitive rates for good credit
✅ Established platform since 2005
✅ Flexible loan amounts
✅ No prepayment penalties
Cons:
❌ Higher minimum credit score than others
❌ Limited customer service options
❌ Fewer loan term options
Best For:
- Borrowers with good to excellent credit
- Those wanting competitive rates
- Debt consolidation needs
Detailed Feature Comparison
Credit Requirements:
- LendingClub: 600+ most approvals 660+
- Upstart: 600+ considers other factors
- Prosper: 640+ strict credit requirements
Income Requirements:
- LendingClub: Minimum $20,000 annually
- Upstart: No minimum stated considers job potential
- Prosper: Sufficient to support payments
Unique Features:
LendingClub:
- Joint applications with co borrower
- Hardship assistance program
- Direct creditor payment option
Upstart:
- AI considers education, job history, residence
- Fastest funding option
- Rate shopping encouraged
Prosper:
- Personal loan marketplace
- Investor funding model
- Risk-based pricing
Compare all three lenders instantly See which offers your best rate and terms.
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Real World Examples
Example 1: $15,000 Debt Consolidation 720 Credit Score
LendingClub:
- APR: 12.99%
- Origination Fee: $750 (5%)
- Monthly Payment: $359
- Total Cost: $17,124
Upstart:
- APR: 11.50%
- Origination Fee: $300 (2%)
- Monthly Payment: $347
- Total Cost: $16,628
Prosper:
- APR: 13.50%
- Origination Fee: $450 (3%)
- Monthly Payment: $366
- Total Cost: $17,616
Winner: Upstart (saves $496-988)
Example 2: $10,000 Home Improvement 650 Credit Score
LendingClub:
- APR: 18.99%
- Origination Fee: $600 (6%)
- Monthly Payment: $267
- Total Cost: $12,812
Upstart:
- APR: 16.99%
- Origination Fee: $800 (8%)
- Monthly Payment: $255
- Total Cost: $12,520
Prosper:
- May not qualify (640+ requirement)
Winner: Upstart (saves $292)
How to Choose the Right Lender
Choose LendingClub If:
- You have excellent credit 720+
- You want joint application option
- You prefer established, predictable lending
- You’re not in a rush for funding
Choose Upstart If:
- You’re a recent college graduate
- You have limited credit history
- You need funding quickly
- You want higher loan amounts
Choose Prosper If:
- You have good credit 680+
- You want competitive rates
- You prefer marketplace lending
- You’re doing debt consolidation
Application Strategy
Smart Approach:
- Check pre-qualification with all three soft credit pull
- Compare offers side by side
- Consider total cost rate + fees + terms
- Apply to your top choice within 14 days
Rate Shopping Tips:
- Apply to all three within 14-45 days
- Multiple inquiries count as single credit pull
- Focus on APR not just interest rate
- Calculate total loan cost not just monthly payment
FAQ
Q: Which lender has the lowest rates? A: Upstart often offers the lowest APRs, but LendingClub may have lower total costs depending on fees.
Q: Can I apply to all three? A: Yes, pre-qualification doesn’t hurt your credit. Only apply formally to your top choice.
Q: Which approves the most applications? A: Upstart has the highest approval rates due to AI underwriting considering more factors.
Q: What if I’m denied by all three? A: Consider lenders that accept lower credit scores like Avant or OneMain Financial.
Conclution
For most borrowers, Upstart offers the best combination of competitive rates, fast funding, and flexible approval criteria.
LendingClub is ideal if you have excellent credit and want predictable, established lending.
Prosper works best for borrowers with good credit seeking competitive marketplace rates.
Find your best personal loan match Compare personalized offers from all three lenders in minutes.
Emergency expenses can’t wait Get pre approved for fast funding in under 2 minutes.
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