LendingPoint introduced its first personal loan in 2015, aimed at people with poor credit. While traditional lenders of personal loans offer loans only to super-prime and prime-prime customers, LendingPoint set out to make credit available to all people across the credit spectrum. In the last year alone, more than 7 million people sought credit through LendingPoint. Our LendingPoint personal loan review will outline the main advantages and disadvantages of applying for a loan.
Calculator for monthly payment
Directions:
- Enter the amount you'd like to take out into the "Loan Balance" box.
- Enter the amount you'd like to earn from a loan into the "Interest Rate" box.
- Either:
- Input the amount of time you'd like to complete the loan payment within the "Desired Payoff Timeframe" box.
OR - Input the desired monthly amount into the "Expected Monthly Payment" box.
- Input the amount of time you'd like to complete the loan payment within the "Desired Payoff Timeframe" box.
Full LendingPoint Personal Loans Review
Top perks
A soft credit test: LendingPoint will conduct a soft credit check to inform you of the interest rate you will be prior to you applying. The benefit of a low-risk credit test is that it will not adversely affect your credit score which means you are able to look at rates before making a final decision.
Credit scores that are low The loans are available to those who have FICO(r) scores that are as lower as 585. Instead of requiring a high rating on credit, LendingPoint says they look at a "responsible financial and banking of record."
Loan amounts available: $2,000-$36,500. While some lenders provide larger loans, it's not common to get loans as little as $2,000 which is possible with LendingPoint.
No penalty for prepayment If you intend to pay off the loan in advance or simply get some extra cash, there's no penalty for it.
Time to fund: The funds taken from the LendingPoint loans will appear in your account within the course of one working day.
Instant approval: There is no need to wait around to find out whether you're eligible.
What can be improved?
The APR of loans offers APRs ranging from 9.99%-35.99 percent. This is quite a large range when you consider that research on personal loans indicates that the average interest rate for 24-month loans is 9.41 percent in February 2022. The lower range is ideal when consolidating debt with high interest through LendingPoint however the higher end is among the most expensive in the business.
Origination fee: Based on your credit score LendingPoint's origination fees vary between 0% and 6% of the amount of the loan. The most expensive origination fees are charged to customers who have the weakest credit.
Terms for loans: The terms of loans are limited to 24 to 48 months. This means that there's no flexibility in the monthly payment. If you're considering personal loans for people with poor credit LendingPoint might be a suitable alternative for you.
How do you qualify for LendingPoint personal loans? LendingPoint personal loan
The following are the most common requirements to be eligible for a LendingPoint individual loan
- A minimum FICO(r) Score of 585 or more (ideal especially for people with poor credit)
- A Job that is steady (LendingPoint requires a minimum of 12 months in your current position "a and")
- An annual minimum income of $20,000.
- Recent credit activity that indicates that you're on the right path
The application process
Apply for a LendingPoint personal loan via the secure site. After you've completed certain basic details and have it verified, you'll be able find out what rate of interest and terms you're eligible for. If you decide to proceed as an unsecured borrower, you'll be required to show evidence of your earnings and employment, as well as your current bank account statements, an unpaid check, and a current driver's license or other government-issued ID.
Next, pick the loan which best meets your requirements and then applies. An inquiry on your credit will be conducted and if the loan is approved the LendingPoint money will transfer to your bank account (generally on the following work day).
Options to think about
If you have good credit or looking for a loan to consolidate debt for those with low credit make sure you take the time to look over loans from a variety of lenders. You might be amazed by the variety of interest rates offered for personal loans. Here are some examples of other loans that are worthy of your consideration:
- If you have good credit, FreedomPlus offers lower interest rates for personal loans.
- Upstart is proud of its innovative approach to customers with no credit background. In addition, the minimum loan amount is $1,000.
- Payoff also provides an interest-free rate for those with good credit scores and gives similar borrowers a no-origination fee loan.
As of June. 10, 2022
| LENDER |
FreedomPlus |
Payoff |
|---|---|---|
| RATE | Image for rating, 4.5 out of 5 stars. | Image of rating, 4.5 out of 5 stars. |
| MIN. CREDIT SCORE | 640 | 640 |
| LOAN AMOUNTS | $7,500 - $50,000 | $5,000 - $40,000 |
| APR Range | 7.99% - 29.99% | 5.99% - 24.99% |
| The Next Steps | Read Review | Read Review |
Personal loans are ideal for you if
Still unsure whether LendingPoint is the best choice for you? If all of the above pertains to the person you are, LendingPoint should likely be one of the companies you're considering.
- You're not able to get good credit. LendingPoint is a specialist in lending to customers who have less credit scores. This means that it isn't the best choice for those with better scores who might be eligible for lower rates elsewhere. If you're in the fair credit range the odds of getting approval for personal loans are better with LendingPoint over the average lender.
- You need a loan quickly. The ability to receive the loan amount in just one day is a benefit. This is especially the case if you're looking to get quick cash in order to avoid a late charge on a bill or to settle an overdraft on your bank account.
- You've had a bankruptcy in the past. It's not the finality of your financial situation however, it can make it more difficult to borrow cash once the bankruptcy has been discharged. LendingPoint is among the few lenders to offer loans as short as 12 months following the bankruptcy.
- You require a loan that is smaller. LendingPoint will approve loans of as little as $2,000. It's a significant advantage over other lenders who generally have minimum requirements that are two times as high. In the first place, even if you need just three thousand dollars, it's not making sense to seek a loan of an organization that is able to only offer loans for at least $5,000. LendingPoint is a viable alternative for borrowers who require small loans.