- LendingPoint offers personal loans to borrowers with fair or better credit.
- You need to earn at least lendingpoint-perl-48-minannualincome annually and have a credit score of at least lendingpoint-perl-48-mincreditscore to qualify.
- LendingPoint may charge origination fees, and it offers lower loan amounts and term lengths than some other lenders.
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|
LendingPoint offers personal loans designed for people with fair credit. This means it’s willing to look beyond just your FICO credit score to provide broader access to financing at reasonable loan terms. The lender does this by focusing on your “financial potential, rather than your financial past.”
This LendingPoint review will help with the process of deciding which lender and loan product is right for you.
In this review:
- LendingPoint personal loans: At a glance
- Pros & cons of LendingPoint personal loans
- How to Get a LendingPoint Loan
- Where to find LendingPoint alternatives
LendingPoint personal loans: At a glance
|LendingPoint personal loans|
|Loan amounts||lendingpoint-perl-48-amountlow – lendingpoint-perl-48-amounthigh|
|Rates||lendingpoint-perl-48-fixlow% – lendingpoint-perl-48-fixhigh%|
|Minimum annual incom||lendingpoint-perl-48-minannualincome|
|Minimum credit score||lendingpoint-perl-48-mincreditscore|
|LendEDU rating||3.63 / 5.00|
LendingPoint is a solid choice for people who have only fair credit. It offers average loan amounts and term lengths that should satisfy the needs of most borrowers. However, it’s not the best lender for everybody.
Pros & cons of LendingPoint personal loans
- 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 marcus-perl-56-mincreditscore. 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 loan limits are low. You’re able to borrow up to lendingpoint-perl-48-amounthigh. 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.
- The interest rates are fairly high. A minimum interest rate of lendingpoint-perl-48-fixlow% is higher than some other lenders, though fair credit borrowers shouldn’t expect to qualify for rates any lower than this amount.
- The term limits are limited. Many lenders offer loan terms as long as 60 months, which gives you more flexibility in determining your monthly payments and repayment timeline.
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.
Where to find LendingPoint alternatives
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.
However, you may also be able to find competitors that don’t have origination fees and that charge lower interest rates, especially if you have good credit.
Our guide to the best personal loans is an excellent place to start your search. We recommend getting pre-qualified quotes from at least three lenders before making your decision, so you can find the best rates.
How we rated LendingPoint personal loans
LendingPoint received a LendEDU rating of 3.63 / 5.00 as a fair credit lender. We rate personal loans based on the weighted average of multiple data points, which vary based on the credit category.
You can read more about our methodology here.3.63 LendingPoint Personal Loans
Author: Christy Rakoczy
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