If you require financial assistance and have heard of LendingPoint, you may wonder if it's the right choice.
With many financial services companies offering personal loans, knowing where to turn can take time and effort.
Is LendingPoint the best option for you?
Fortunately, LendingPoint is a good option for those with bad credit. However, LendingPoint charges an origination fee of up to 8% of your total loan amount. Additionally, LendingPoint does not offer joint loans. If these factors are important to you, better options may exist.
This article will provide you with a comprehensive review of LendingPoint personal loans.
LendingPoint was founded in 2015. It is an online lender that offers unsecured personal loans to customers in 48 states and Washington. However, LendingPoint does not provide loans to Nevada and West Virginia residents.
LendingPoint welcomes borrowers with bad credit and makes the application process easy using proprietary technology and algorithms. It provides pre-approval within minutes without impacting your credit score.
LendingPoint Personal Loans Highlights
- Loan amounts: $2,000 – $36,500
- Interest rate: 7.99% - 35.99%
- Repayment terms: 24 - 72 months
- Loan types: Unsecured personal loans
- Credit check: Soft credit check with pre-qualification
- Minimum credit score: 580
- Minimum income: $35,000
- Funding time: You can get approved and funded within 1 to 2 business days.
- Co-signers and co-borrowers: Not permitted
Origination fee: 0% - 8% (varies by state) of the loan amount.
Late fee: Up to $30 (varies by state) late fee, but only if you are 15 days late on paying.
- Loan availability: Loans aren't available in N.V., WV, or W.Y.
- BBB Rating: A
- LendingPoint Offers Same-Day Funding Once Approved.
- LendingPoint Offers Loans To People With Low Credit Scores Requirements.
- LendingPoint Allows Prepaying Your Loan With No Penalties.
- LendingPoint Lets You Prequalify Online With a Soft Credit Check.
- You Have The Option To Change Your Payment Date.
- You Can Enjoy The Potential Interest Rate Reduction After Six Months.
- You Can Enjoy The Mobile App and Credit-Building Features.
- LendingPoint Doesn't Allow Co-Signers Or Co-Applicants.
- LendingPoint Would Charge an Origination Fee Up To 8%.
- LendingPoint Doesn't Offer Secured Loans And Large Loans.
It is essential to note that LendingPoint charges an origination fee of up to 8% of your total loan amount. Additionally, LendingPoint does not offer joint loans. If these factors are important to you, better options may exist.
Where LendingPoint Personal Loans Stand Out
LendingPoint Offers Same-Day Funding Once Approved
Applying for a loan with LendingPoint takes only a few minutes, and borrowers will typically receive an instant decision on their application.
Once approved, funds may be available as soon as the next business day, and loans approved before noon Eastern time can even receive same-day funding.
LendingPoint Offers Loans To People With Low Credit Scores Requirements
LendingPoint offers personal loans for bad credit, making it a good option for those with a less-than-stellar credit score. This is especially beneficial for people turned down by traditional lenders or who have struggled to find approval elsewhere.
With a minimum credit score requirement of 580, LendingPoint takes a non-traditional approach to evaluating personal loan applicants.
They consider various factors beyond the credit score, making it a more holistic and fair lending option. According to LendingPoint reviews on Reddit, many customers have been able to secure loans even with lower credit scores. They have appreciated the transparent and non-predatory approach of the lender.
LendingPoint Allows Prepaying Your Loan With No Penalties
There are no prepayment penalties. If you want to pay off your loan early, you won't be charged any extra fees. This is an excellent feature for borrowers who want to save money on interest over the life of their loan or who may come into some extra cash and want to pay off their debt sooner.
Most lenders charge prepayment penalties to compensate for the interest they would lose, but LendingPoint does not. This feature lets borrowers pay off their loans quickly without any added fees or fines.
LendingPoint Lets You Prequalify Online With a Soft Credit Check
LendingPoint lets you prequalify online with a soft credit check. And its pre-qualification process is simple and accessible.
Prequalifying means you can find out what rate you might be eligible for without affecting your credit score.
However, it's important to note that the rate you prequalify for is not guaranteed. You will receive the final details of your offer once you submit a formal and complete application which may cause a hard credit inquiry.
You Have The Option To Change Your Payment Date
LendingPoint offers the flexibility to choose your payment due date. Once you've signed your loan agreement, you can select the preferred payment date that best suits your schedule.
What's more? You can change it once per year in case of a change in income or other life events. This level of flexibility and transparency is hard to come by in the personal loan industry, making LendingPoint a good pick for many borrowers.
You Can Enjoy The Potential Interest Rate Reduction After Six Months
After six months of on-time payments, LendingPoint will review your account and consider reducing your interest rate, giving you the potential to save money in the long run. It's worth noting that loans are fixed-rate, so your interest rate won't change throughout your repayment plan.
You Can Enjoy The Mobile App and Credit-Building Features
LendingPoint offers an easy-to-use mobile app to manage your loan payments and help build your credit. The app allows you to monitor your credit score and provides tips to improve your score.
You can also check what you qualify for without impacting your credit score, complete your application, manage your accounts, and chat with customer service in one place.
Additionally, LendingPoint offers customer-exclusive discounts through its mobile app.
Where LendingPoint Personal Loans Fall Short
LendingPoint Doesn't Allow Co-Signers Or Co-Applicants
LendingPoint does not offer the option of adding a co-signer or co-applicant to your loan application. This means that you must qualify for a personal loan on your own.
Co-signers can help lower the risk for the lender, resulting in a lower interest rate and better loan terms for the borrower. Unfortunately, if you need a co-signer or co-applicant to secure a loan, LendingPoint may not be your best choice.
LendingPoint Would Charge an Origination Fee Up To 8%
LendingPoint's origination fee is high, up to 8% of the total value of the loan.
This fee is taken from your loan proceeds, meaning you will receive less money than you were approved for. The exact amount of the origination fee will depend on factors such as your income, debt obligations, and other qualifications.
While LendingPoint does offer the option to increase your loan size to cover the cost of the fee, there may be better solutions for some.
LendingPoint Doesn't Offer Secured Loans And Large Loans
Secured loans generally have lower interest rates, but LendingPoint only provides unsecured personal loans.
The loan amounts are up to $36,500, with loan terms ranging from 24 to 72 months. While this suits many personal projects, more is needed for larger projects. Some lenders offer up to $50,000 or even $100,000 in loans, which may be a better option for borrowers with significant expenses.
Compare LendingPoint With Other Lenders
Generally, LendingPoint may not be suitable for those who qualify for better rates from other lenders, need to borrow more than $36,500, or are looking to build credit.
Some lenders offer a more suitable option for borrowers who want a co-applicant or want to avoid paying high origination fees.
Here, we will compare LendingPoint with two top personal loan lenders for bad credit.
7.99% - 35.99%
5.99% to 35.99%
5.99% to 35.99%
$2,000 - $36,500
$1,000 - $35,000
$500 - $10,000
Min. credit score
No minimum credit score is required.
No minimum credit score is required.
24 - 72 months
3 - 72 months
3 - 72 months
LendingPoint vs. Personal Loans™
LendingPoint may be a better fit for borrowers with lower credit scores, as they require a minimum score of 580. But it charges a higher origination fee than Personal Loans™.
Personal Loans™, on the other hand, may be better suited for those with good to excellent credit, as their minimum score requirement is 620, and they offer a lower starting APR. Their maximum loan amount is lower but may be sufficient for those looking for smaller loans.
LendingPoint vs. BadCreditLoans
If you want to borrow more than $1,000, LendingPoint may be a better option. LendingPoint has a higher minimum loan amount and requires a minimum credit score of 580.
But if you have a super bad credit score and need a short-term unsecured loan, BadCreditLoan may be a better fit.
Requirements for LendingPoint Personal Loans
- Age: 18 years or older
- Citizenship: USA (Nevada and West Virginia residents are not eligible)
- Identification: U.S. federal, state, or local government-issued photo I.D.
- Bank account: ACH-compatible accounts
- Minimum income: $25,000/annum
- Maximum debt-to-income ratio: 50% (excluding mortgage payment)
- Minimum credit score: 580
- Minimum credit history: 6 months
4 Steps to Apply For a LendingPoint Personal Loan
4 Preparations Before You Apply
Step 1: Check Your Credit: Your credit score will determine your eligibility for a personal loan on LendingPoint. Many tools are available online for obtaining your free credit report. This will allow you to identify and correct errors before submitting your application.
Step 2: Determine the monthly APR: The next step is to calculate your monthly payment and loan payoff date. This allows you to determine how much you can afford to borrow and how long it will take to repay based on your credit, loan amount, and repayment term.
Step 3: Develop a Repayment Strategy: After calculating the monthly payment, you will have enough information to structure your repayment.
Examine your budget to see how the monthly loan payments affect your cash flow. You may need to reduce your spending to accommodate loan repayment. You must have a plan.
Step 4: Gather Required Documents: LendingPoint will need your government I.D., social security number, and proof of income. Other possible documents include a W-2 or paystub and proof of address. Prepare all documents to aid your application process.
4 Steps To Apply For A LendingPoint Personal Loan
Step 1: Obtain Pre-qualification for a Loan: On the LendingPoint website, enter the loan amount and purpose. You must provide additional information such as your name, location, date of birth, and earnings.
You'll also need to enter the last four digits of your Social Security number, but no hard credit check will be performed now. This stage gives you an instant decision on whether you qualify and the potential loan rate in seconds.
Step 2: Examine and Select Loan Offers:After performing a soft credit check on your loan offers, determine your eligibility. Then you will be given loan options from which to choose. Choose your loan amount, repayment terms, and interest rate.
Step 3: Fill out the Application: When you find an offer that meets your requirements, you can sign up for it.
LendingPoint may require you to upload additional documents, such as your driver's license, pay stubs, bank statements, and employment verification. Before final approval, LendingPoint will also conduct a hard credit pull, which may affect your credit score.
Step 4: Get Your Loan Funds: LendingPoint makes instant decisions. You will receive your funds the same or the following business day.
Following receipt of payment, set up automatic payments and keep track of your finances. It will assist you in managing your loan payments and avoiding defaults. This is critical if you want to improve your credit score.
How CreditYelp rates LendingPoint
|Requirements & Application||3.5/5||The application process is quick and easy.|
|Loan accessibility||3.5/5||Loan is accessible to borrowers of all credit scores, from low to high.|
|Affordability||3/5||Loan has a high origination rate but is within the range of other loans.|
|Customer experience||3.8/5||Customers are generally satisfied with the company's services.|
Q1: How is LendingPoint’s Customer Review?
The Better Business Bureau has given LendingPoint four out of five stars based on more than 200 customer reviews.
LendingPoint has a Trustpilot rating of 4.8 out of 5 stars, an excellent rating based on over 5,000 reviews.
Q2: How long does LendingPoint take to review documents?
LendingPoint claims to be able to approve a loan application in seconds. Approval may take a few business days in some cases. Loan funds may be disbursed as soon as the following business day, but this may take longer, depending on your bank and other factors.
Q3: Does LendingPoint verify employment?
Yes, to access loan approval from LendingPoint, you must provide proof of employment and income, along with other documents, such as your most recent bank statement, a voided check, and a current driver's license or government/state-issued identity.
These documents, including proof of employment, are usually verified within one business day.