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Lending Club Reviews: Does Offer Bad Credit Loans Guaranteed Approval With Legit APR Rates?

by Arthur Zuckerman

lendingclubSan Francisco, CA-based Lending Club is one of the largest online loan marketplaces that acts as the middleman for borrowers and lenders. It claims to have taken out loans for billions of dollars already since it started operations eight years ago. It is registered with the U.S. Securities and Exchange Commission and processes its loan through WebBank, an FDIC-insured bank.

The lending company charges from 1.1% to 5.00% origination fee for a successful loan match, which is deducted from the borrower’s loan proceeds. Aside from transaction fees, the lending company makes money by charging servicing fees from investors (lenders) and management fees from investment funds and managed accounts.

Borrowers with excellent credit score, a low outstanding debt compared to income, and a long positive credit history are the usual clients approved by Lending Club. In general, a Lending Club borrower has the following profile:

  • 706 FICO score
  • 15.8% debt-to-income ratio (mortgage not included)
  • 14.6 years of credit history
  • $70,794 personal income
  • average loan size $13,076

How is the lender different?

Lending Club has already issued over 7 billion dollars in loans since it started in 2007, making it one of the most established and trusted lending companies today. In fact, BBB gave it an A+ rating, the highest in the industry. You can borrow from $1,000 to $35,000 and enjoy a 15-day grace period, which is notably higher than industry standard of 3-5 days.

Surprisingly, you cannot use the loan as a student loan. Lending Club prohibits borrowers from using the loan, among others, to finance “any postsecondary educational expenses, including but not limited to tuition, fees, books, supplies, miscellaneous expenses, or room and board.” Likewise, the lender prohibits the use of the loan proceeds for the purpose of purchasing or carrying any securities. Likewise, residents of Iowa, Idaho, Maine, North Dakota, and Nebraska cannot apply for a loan because of current state laws.

Notwithstanding the prohibition to use the loan for higher education, you can take out a loan to refinance your debt or mortgages and save huge amounts off the debt’s penalty and late payment fees.

How much are the rates and fees?

Interest rates vary and based on your credit rating, with APR ranging from 6.68% to 29.99% across the loan terms of 2 years to 5 years. A typical loan Grade A  enjoys 5.93% rate, while Grade G can go as high as 26.06%. Lending Club loans have fixed interest rates and monthly payments throughout the loan term, so you need not to worry about appreciating interest tied to inflation.

There are no prepayment charges so you can make advance payments to reduce the interest amount of your future payments. In fact, you can pay the whole amount at once and close your loan with no extra charges.

How to apply for a loan?

Applying for bad credit loans guaranteed approval starts by requesting for a credit rate in the lender’s website. Your loan application and pre-screening process don’t impact on your credit score. After submitting your basic personal and financial information, Lending Club will verify them and also look into data on you given by third-party credit bureaus. If you qualify, you’ll receive loan options. Choose one and your request will be put in the waiting list. Final approval, when an investor takes the tab of your loan, can take up to fourteen days, after which the loan will be deposited to your bank account.

The Fine print

As a peer-to-peer lending site, Lending Club will charge you with administrative fees to cover its overheads. The fees range from origination fees to check processing. Make sure to also monitor your automatic payments because Lending Club charges you $15 every time your bank rejects a payment process due to, often, lack of funds in your account. The lender will send you an email reminder days before the payment.

On the brighter side, Lending Club doesn’t charge prepayment fee, which means you can take out a loan and plan to pay it off right away once you’ve financially recovered. This works for people with sudden financial needs like medical expenses or business expense, but who expect a steady income in the coming weeks.

Likewise, if you hit a financial hardship during the loan term, for instance, sudden unemployment or accident, Lender Club advises that you contact them at once and a payment adjustment may be worked out (subject to case) to avoid additional penalties or fees.


Most recurring positive comments

  • Loan application is convenient, easy, and fast
  • Loan approval (or denial) is processed within the day

Most recurring negative comment

  • Not substantial to measure a pattern.


Loan amount: $1,000 to $35,000

Loan Period: 2 to 5 years

Grace perios: 15 days

APR (est.): 6.68% to 29.99% across the loan terms 2 years to 5 years

Area being served: U.S. except Iowa, Idaho, Maine, North Dakota, and Nebraska

Fees and charges

  • 1.1% to 5.00% origination fee
  • $15 or 5.00% of the recent installment payment, whichever is higher
  • unsuccessful payment fee of $15 if an automatic payment is rejected by your bank
  • check processing fee of $15 per payment
  • no prepayment charges

How to apply for a loan

  1. Check your rate at the Lending Club website.
  2. If you qualify, you’ll be presented with several loan options.
  3. Choose one and your loan request is listed.
  4.  Wait for final approval, which can take from 7 to 14 days.
  5. Your loan will be electronically transferred to the bank account you’ve submitted.

Terms & Conditions

  • You must be a U.S. citizen or permanent resident, or be in the United States on a valid long term visa.
  • You must be at least 18 years old with a verifiable bank account.
  • Residents of Iowa, Idaho, Maine, North Dakota, and Nebraska cannot apply for a loan because of current state laws.
  • Borrowers are prohibited to fund any post-secondary educational expenses, including but not limited to tuition, fees, books, supplies, miscellaneous expenses, or room and board or use any of the loan proceeds for the purpose of purchasing or carrying any securities.
  • Interest rate is calculated daily over a 360-day year of 12 months, whether the month has more or less than 30 days .
  • Early payoffs reduce the amount of interest of future payments.
  • Information on you provided by credit bureaus, such as, credit score, outstanding payment, payment history, and latest credit card activity will be used to calculate your loan eligibility.
  • Qualified borrowers may have up to two loans outstanding at the same time. To qualify for a second loan, you’ll need to meet the current credit criteria for the second loan and have made either 6 or 12 consecutive on-time monthly payments on your existing Lending Club loan.
  • If your automatic payment is rejected by your bank, Lending Club charges you $15 for the failed transaction.

Personal information required

  • basic personal and financial data
  • credit history provided by third-party credit bureaus
  • housing status
  • employment status
  • Social Security Number
  • bank account
  • email address
  • recent credit card transactions

Contact details

phone: 1-888-596-3157

email: [email protected]

office address:
71 Stevenson Street, Suite 300
San Francisco, CA 94105, USA

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