LendingPoint Personal Loan Review
LendingPoint funding is quick, with some borrowers receiving their money as soon as the next business day. Borrowers benefit from flexibility on how they pay back their loans, with the option to select bi-weekly payments, payments every 28 days, or monthly payments.
What we like:
Great Trustpilot and BBB ratings
|Rates (APR)||17.47% – 34.99%|
|Loan Terms||2 – 4 years|
|Loan Amounts||$3,500 – $20,000|
|Fees||Origination fee: 0.0% – 6.0%|
Prepayment penalty: None
Late fee: $30 after 15-day grace period
LendingPoint is a personal loan issuer that emphasizes fair credit. This means LendingPoint is willing to look beyond just your FICO credit score to provide broader access to financing at reasonable loan terms. LendingPoint does this by focusing on your “financial potential, rather than your financial past.”
You can borrow from LendingPoint and do almost anything you’d like with the loan proceeds, which gives you tons of flexibility. You can use the money you borrow for debt consolidation, which allows you to pay back existing debt from loans and credit cards, and ideally lower your interest rates. You can also use personal loans to pay for a vacation or wedding, or expensive purchases like a home renovation. There are some major advantages to borrowing from LendingPoint, including fast access to funding and flexibility in repayment terms. But there are also some downsides, including origination fees.
This LendingPoint review will help with the process of deciding which lender and loan product is right for you.
In this review:
- How to Get a LendingPoint Loan
- Rates, Fees, & Other Basic Info
- Benefits of LendingPoint Personal Loans
- Downsides of LendingPoint Personal Loans
Getting a LendingPoint Personal Loan
LendingPoint loans are available in most states, as well as Washington D.C. However, the company is not licensed to issue loans in Nevada, New York, Vermont, West Virginia, Wisconsin, or Wyoming.
- If you live in a state where you’re eligible, applying for a loan through LendingPoint is simple. You can start the application process online and get no-obligation loan offers without a hard credit check, so your credit score will not be affected.
- To find out your rate, visit the LendingPoint website. Initially, LendingPoint will do a soft credit check to determine your basic credit history. Unlike a hard inquiry, a soft pull won’t be reflected on your credit report, so it won’t affect your credit score.
- You’ll also need to provide your name, address, date of birth, Social Security number, and annual income as part of the initial application you submit to get your rate.
- If you’re happy with the loan offer extended to you and you decide to move forward, then LendingPoint will do a hard inquiry at that time to verify the information you provided. LendingPoint will use this information to determine your eligibility for a loan, as well as your debt-to-income ratio and official loan rates.
- You may also be asked to submit some basic documentation to prove the information you provided is accurate. This can include a driver’s license, bank statements, a voided check, and proof of income.
You should receive a preliminary offer within minutes, and final approval of your application usually happens within a few hours as soon as your documentation is verified. After underwriters review the documents you submit and your loan is formally approved, your loan will be funded right away. LendingPoint transmits the borrowed funds into your bank account as soon as the next business day.
You’ll then be able to use the money for anything you want, and will start repaying what you borrowed in accordance with your loan terms.
Basic Information: Rates, Terms, Fees and Limits
Before you borrow from LendingPoint, you need to find out the basic loan terms. Here’s what you need to know about borrowing through LendingPoint:
- You can borrow between $2,000 and $25,000.
- The annual percentage rate on LendingPoint loans ranges from 15.49% to 35.99%.
- Your loan repayment period will range from 24 to 48 months.
- The origination fee for a LendingPoint loan is between 0% and 6%, depending upon where you live.
- Depending on your state, you may face a late fee of up to $30 for missed or late payments.
- You’ll be able to choose your repayment schedule. Most LendingPoint loans are paid every 280 days, but you can also make traditional monthly payments or bi-weekly payments.
- There is no penalty for paying off your loan early.
- Funds are typically made available the next business day.
- You can qualify with a credit score as low as 600.
The Benefits of LendingPoint Personal Loans
LendingPoint personal loans have some big benefits, including the following:
- LendingPoint is willing to overlook imperfect credit: Many financial institutions are unwilling to lend to you if your credit score isn’t high enough. For example, to qualify for loans from Marcus by Goldman Sachs, you’ll typically need a credit score of around 660. LightStream also requires a strong credit report. LendingPoint looks at your financial potential, including your income, when deciding whether to allow you to borrow. A big-picture approach that doesn’t just consider credit can make it easier for more people to get access to funds.
- Payment flexibility: Most personal loan companies require monthly payments. LendingPoint is one of few lenders that give you a choice between bi-weekly payments or the option to make payments every 28 days.
- Funds are made available quickly: Sometimes, you need quick access to cash. Being able to get your money the next business day is a huge advantage when you can’t wait to borrow. Some other online lenders take much longer to fund their loans. When you borrow through Prosper, for example, it usually takes about five days for you to get your money, while LendingClub indicates most loans are funded in about seven days after you’ve accepted your loan offer. Since LendingPoint makes your money available the next business day, this could be an alternative to payday loans, which are much more expensive.
The Downsides of LendingPoint Personal Loans
Although there are clear advantages to LendingPoint personal loans, there are also some undeniable downsides, including the following:
- The loan limits are low. You’re able to borrow up to $25,000. This is a lower loan amount than many competitors, including other online lenders that are willing to look beyond a lack of an excellent credit score. Upstart, for example, allows you to borrow up to $50,000, so you can get twice as much money to consolidate debt or pay for what you need.
- The interest rates are fairly high. A minimum interest rate of 15.49% is much higher than average, even more than other lenders that don’t require perfect credit. For example, Upstart offers loans at rates as low as 7.75%, while Prosper and LendingClub’s rates go as low as 6.95%. Higher interest rates mean your loan will be costlier.
- There’s a high origination fee. While LendingPoint’s maximum origination fee of 6% is on par with LendingClub’s maximum fee, it’s above Prosper’s maximum 5% origination fee. And, other competitors such as LightStream and Discover do not charge any origination fees at all, so LendingPoint may be more expensive than these alternatives.
The Bottom Line
If you don’t need a large loan amount and you want to borrow at a reasonable rate that offers flexibility in your repayment schedule, consider LendingPoint.
LendingPoint is also an ideal choice for people who don’t have excellent credit, since the company is more willing to work with people who have good potential even if they have a rocky credit history.
However, you may also be able to find competitors that don’t have origination fees and that charge lower interest rates. Don’t take out a LendingPoint Loan until you’ve explored all your options and made sure borrowing from LendingPoint is the most cost-effective solution for you.3.33 LendingPoint Personal Loans
Author: Christy Rakoczy
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