LendingClub is one of the few major online lenders that accepts borrowers with credit scores as low as 600. While the interest rates will be higher than what excellent-credit borrowers receive, it is a viable option when you need funds and have limited alternatives. Here is everything you need to know about qualifying with below-average credit.
What "600 Credit Score" Means for Your Loan
A 600 FICO score falls in the "Fair" credit range (580–669). Lenders consider this higher risk, which typically means:
- Higher APR (often 25%–35.99% at LendingClub)
- Higher origination fee (often 6%–8%)
- Lower loan amounts approved ($1,000–$10,000 typically)
- Shorter repayment terms offered
Pros & Cons for Bad Credit Borrowers
✅ Pros
- One of few mainstream lenders accepting 600+ credit score
- Joint loan option — adding a co-borrower can dramatically improve terms
- Soft pull for rate check — apply without hurting your score
- No prepayment penalty — pay off early to reduce total interest
- Fixed rate — your payment never increases
❌ Cons
- APRs up to 35.99% can be nearly as expensive as credit cards
- Origination fee 6%–8% significantly reduces loan proceeds
- Rejected applicants may need to consider alternatives (Avant, Upstart, OneMain)
Expected Rates by Credit Score
| Credit Score Range | Approximate APR | Origination Fee |
|---|---|---|
| 720+ (Excellent) | 9.57%–15% | 3%–5% |
| 670–719 (Good) | 15%–22% | 4%–6% |
| 620–669 (Fair) | 22%–30% | 5%–7% |
| 600–619 (Fair-Low) | 28%–35.99% | 6%–8% |
| Below 600 | Likely declined | N/A |
Tips to Improve Approval Odds
- Apply with a co-borrower — a spouse or family member with better credit improves your combined profile significantly.
- Reduce your debt-to-income ratio — pay down some debt before applying.
- Dispute credit report errors — a corrected error can boost your score 20–50 points quickly.
- Lower your requested loan amount — smaller amounts have higher approval rates for borderline applicants.
- Show stable employment — lenders want to see consistent income history.
Frequently Asked Questions
What is the minimum credit score for LendingClub?
LendingClub's published minimum is around 600 FICO, but factors like income, existing debt, and employment history also heavily influence decisions.
Are there alternatives if LendingClub rejects me?
Yes — Avant, Upstart, and OneMain Financial specialize in loans for borrowers with poor or thin credit histories and may approve you where LendingClub did not.
How quickly will I know if I am approved?
Rate checks are instant. Full application decisions typically come within a few minutes, though verification documents may add 1–2 business days to funding.