Although they do not advertise themselves as an overdraft app, the LendingClub app can function as one in many circumstances.

LendingClub is a payday lender that lends between $1,000 and $40,000. They issue loans based on a variety of criteria, including your credit score (often, even if you have a poor credit score you can still get a loan). The app also lends to small businesses and offers Auto Refinancing.

Though they offer larger loan sizes than other overdraft apps we have reviewed, they also charge higher fees.

  • Payday lender App
  • Amount of $1,000-$40,000
  • Available to anyone

Editor's Score: Payday lender... (2/5)

How It Works

Upon entering their website, you will be prompted by the following questions:

– How much do you need?

– What’s the money for?

– What is your credit score?

The minimum you can borrow from LendingClub is $1,000, so if you aren’t looking for that much, this is the wrong app for you.

They will then ask you if you are applying by yourself or with others. This is likely to mitigate risk – if you seem too risky to lend to on your own, they want to know that there is another person they can rely on to get paid back.

Before they give you the rate (which they give you up front – see screenshot), they will ask for more information:

– Name, address, date of birth, annual income (verifiable – meaning salary, retirement pay or other source of income) and income of additional people in your household.

Then, they make you create an account (still haven’t gotten our rate!).

Loan Amounts

Up to $40,000, Not less than $1,000

Score: 3/5

LendingClub only offers large loans, ranging from $1000 to $40,000. Loans of this size are likely more than you will need to avoid overdraft fees.  The loans they offer are often paid back over the course of 5 years.

Because of the large loan sizes, and high fees most of you will be better served by one of the other apps reviewed on this site.


Not very clear but expect 2-digit APR

Score: 3/5

Their pricing model is very tricky and not transparent on their website!

They charge you an origination fee (cost of making the loan) of 1%-6% directly from the principal you borrow. For example, if you ask for $2,000, you might only receive $1,900 in your account.  You will then pay interest payments on the original $2,000 you borrowed.

The interest rate can be up to 30% annually for a period of 5 years (you might end up paying 150% of your original loan amount)!

Approval Process

Not clear at all!
Score: 2/5

Your interest rate will depend on several factors:  your credit score, the amount you wish to borrow and the amount of money you owe to other lenders. They will ask you for a co-borrower and won’t give you a rate if you do not enter all of your information.


LendingClub is a very popular online lender – more of one of these personal loan apps than anything else – that can provide people with long term (up to 5 years) loans of relatively large amounts ($1,000-$40,000).  According to their website, they have already lent more than $31 billion dollar (as of January 2018). The platform provides a solid solution for people in need of cash for larger expenses, but, we don’t think it’s the best solution for the small-dollar loans often necessary to prevent overdraft fees.