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|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
For many people, there comes a time when a quick infusion of cash can get them out of jam – an unexpected financial crunch, a need to pay off high interest debt, a medical emergency, or when they come up short for a major purchase.
The availability of personal loans through the online marketplace has made it possible to obtain cash quickly and at a relatively low cost.
However, people with less than good credit, often referred to as “fair credit consumers,” have fewer responsible borrowing choices, often having to resort to payday loans, which can exacerbate their debt and credit problems.
That’s where LendingPoint comes in – an online lender dedicated to “unlocking access to money at fair rates and flexible terms” for people with fair credit.
Founded in Atlanta in 2014, LendingPoint has grown quickly, having extended $200 million in consumer loans in 17 states within three years. It was recognized by FinTech Breakthrough for the “Best Consumer Lending Product” in 2017. Through a new partnership, LendingPoint expects to take its award-wining loan products nationwide over the next couple of years. This LendingPoint Personal Loan review will take a closer look at what makes LendingPoint the lender of choice for people looking for a fresh start with their credit.
LendingPoint Personal Loans
LendingPoint offers short-term personal loans with fair interest rates. Its loan range is $3,500 to $20,000with repayment terms of 24 to 48 months (or 2 to 4 years). Loans can be used for just about any purpose, including debt consolidation, home improvements, emergencies, and vacation travel.
The annual percentage rates (APR) offered by LendingPoint are on the high side, which you might expect from a subprime lender. Currently starting at 17.47%, APRs can range as high as 34.99% depending on your creditworthiness.
Improving Your Chance for Approval
Generally, the lowest credit score LendingPoint will consider is 600. But, as LendingPoint likes to say, there’s more to your story than just your credit score. Using a proprietary risk model, LendingPoint combines hundreds of data points with algorithms to get a more complete financial story, often leading to approving those who might otherwise have been declined based on their credit score alone.
Other factors considered in LendingPoint’s decisions include credit history, credit card debt, employment status, current delinquencies and bankruptcies, charge offs in the last 12 months, open tax liens, and debt-to-income ratio. Borrowers must have verifiable income of at least $20,000 per year.
Flexible Repayment Options
LendingPoint does offer some flexibility in its repayment options. You can choose a payment due date and you can schedule payments biweekly (which can help you pay your LendingPoint personal loan off more quickly) or at some other interval that best suits your situation. You are allowed one loan modification during your loan term.
Beware of Fees
LendingPoint does charge an origination fee of up to 5% depending on your state, which can be paid up-front or rolled into your APR. You will also get docked $30 for any late payments. There is no prepayment fee.
How to Apply at LendingPoint
LendingPoint is an online lender, so everything happens on their website. The application process is quick and easy, consisting of two short pages of basic questions – name, birth date, phone, email and address, etc. You will also be asked about your income and you will need to provide the last four digits of your Social Security number. With that, LendingPoint does a soft pull of your credit, which will not impact your credit report. You will receive an offer within a matter of minutes (you may receive several offers), detailing the rate and fees you have qualified for. You can then decide whether or not to move forward.
If you decide to move forward, you will be asked for documentation, including your driver’s license number, bank statements, a voided check, and proof of income and employment. At that point, LendingPoint will perform a hard pull of your credit. If your documentation is complete and it squares with what they find in your credit report, your LendingPoint personal loan could be approved within a matter of hours – usually less than 24 hours. When your loan is approved, you can expect to receive funding, direct deposited into your checking account, within 24 hours.
LendingPoint’s Customer Service
LendingPoint has worked hard to position itself as the lender of choice for fair credit consumers. To accomplish that, it decided not to skimp on customer service, which it provides in several forms, including an online management account, live chat, telephone support, and email. LendingPoint also offers additional online resources such as a personal loan calculator and FAQs.
If you’ve been turned down by other online lenders, but you are working to turn your credit around, LendingPoint stands ready to help. If you can get your credit score to 600 and are currently employed, the company will do the rest of the work to see that you get a loan. It won’t be an inexpensive loan, but as LendingPoint likes to say, it can be an opportunity to change your financial story.3.33 LendingPoint Personal Loans
Author: Jeff Gitlen
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