LendingPoint Personal Loans Review

What is LendingPoint?

LendingPoint is a personal lender that was founded in 2015 as a FinTech lender. They quickly evolved to offer a variety of services, including personal loans, small business loans, and merchant point-of-sale lending. LendingPoint's company is founded on the principle that the FICO credit score model is outdated and does not provide lenders with the best information on borrowers. Their evaluation process includes all sorts of factors, such as income, employment history, and debt-to-income ratio. This allows a larger percentage of the population to qualify for a decent loan.

LendingPoint Rates and Fees (at a glance)

 

 

What type of personal loans does LendingPoint offer?

LendingPoint offers personal loans that can be used for a variety of purposes, including:

• Debt consolidation: Pay off high-interest credit card debt with a lower-interest personal loan.
• Credit card refinancing: Refinance your credit card debt at a lower interest rate, saving you money on interest payments.
• Home improvement: Make your home more beautiful and comfortable with a personal loan.
• Home purchase: Buy a new home with a personal loan.
• Major purchase: Pay for a big-ticket item, such as a car or a new computer, with a personal loan.
• Car financing: Buy a new or used car with a personal loan.
• Business loan: Start or grow your business with a personal loan.
• Vacation: Take the vacation of your dreams with a personal loan.
• Medical expenses: Pay for unexpected medical expenses with a personal loan.
• Moving and relocation costs: Cover the costs of moving to a new city with a personal loan.

LendingPoint Pros and Cons

Sure, here is the list with some improvements:

LendingPoint Pros and Cons

Pros:

• Fast funding: Funds can be deposited into your bank account as quickly as the next business day.
• Flexible payment schedule: Choose from a variety of repayment terms, from 24 to 60 months.
• Multiple ways to pay: Pay your loan online, by phone, or by mail.
• Loan can be processed and managed entirely online in most cases: No need to visit a branch or speak to a loan officer.

Cons:

• High origination fees: LendingPoint charges an origination fee of up to 8% of the loan amount.
• Does not report to all three credit bureaus: LendingPoint only reports to Experian and TransUnion, so your loan payments will not affect your credit score with Equifax.
• No joint, secured, or co-signed loan options: LendingPoint does not offer joint, secured, or co-signed loans.
• No direct payment to creditors: You cannot use a LendingPoint loan to pay off your credit card debt directly.

Who should use LendingPoint?

LendingPoint is a good option for people who:

• Need a personal loan quickly. LendingPoint can fund loans as quickly as the next business day.
• Want a flexible payment schedule. You can choose from a variety of repayment terms, from 24 to 60 months.
• Want to manage their loan online. You can apply for a loan, sign documents, and make payments online.
• Have a good credit score. LendingPoint generally requires a credit score of at least 620.

What are the eligibility requirements for a LendingPoint personal loan?

To be eligible for a LendingPoint personal loan, you must:

• Be at least 18 years old
• Have a valid U.S. Social Security number
• Have a minimum annual income of $35,000
• Have a credit score of at least 620

How much can I borrow with a LendingPoint personal loan?

LendingPoint personal loans range from $2,000 to $36,500.

When applying for a personal loan, it's essential to be aware of your own financial situation, credit score, and debt-to-income ratio, as these factors will play a significant role in determining how much you can borrow.

What are the repayment terms for a LendingPoint personal loan?

LendingPoint personal loans have terms of 24 to 72 months.

What are some alternatives to LendingPoint for a personal loan?

Some alternatives to LendingPoint for a personal loan include:

1. SoFi: SoFi (Social Finance) is a reputable online lender known for its wide range of financial products, including personal loans. They offer competitive interest rates and flexible repayment terms, making them an excellent choice for borrowers with good credit scores.
2. Earnest: Earnest is a popular lending platform that stands out for its unique approach to evaluating borrowers. They take into account not only credit history but also factors like employment history and savings habits. This makes Earnest a good option for individuals with thin credit files or non-traditional income sources.
3. PenFed: PenFed (Pentagon Federal Credit Union) is a credit union that provides personal loans to its members. They often offer lower interest rates and more favorable terms than traditional banks, making them an attractive choice for those who qualify for membership.
4. Lightstream: Lightstream, a division of SunTrust Bank (now part of Truist), is a well-regarded online lender that specializes in personal loans. They are known for their quick and easy application process, and borrowers with excellent credit can access some of the most competitive rates in the market.
5. Upstart: Upstart is an innovative online lender that utilizes artificial intelligence and alternative data to assess borrowers' creditworthiness. This approach allows them to provide personal loans to individuals with limited credit histories or those who experienced financial setbacks in the past.

Remember to compare interest rates, loan terms, and any additional fees before choosing a lender. Each of these options offers unique advantages, catering to different credit profiles and financial needs. Always ensure that the loan you select aligns with your financial goals and repayment capabilities.

Is LendingPoint a trustworthy option for personal loans?

LendingPoint is a legitimate company that has been in business for over 10 years. They are a registered lender with the Consumer Financial Protection Bureau (CFPB) and they have an A+ rating with the Better Business Bureau.

However, it is important to note that LendingPoint's loans have high origination fees and interest rates. This means that you will need to carefully consider your financial situation before applying for a loan from LendingPoint.

Overall, LendingPoint is a trustworthy company, but you should be aware of the high fees and interest rates before you apply for a loan.

How do I apply for a LendingPoint personal loan?

Here are the steps on how to apply for a LendingPoint personal loan:

1. Go to the LendingPoint website and click on the "Apply Now" button.
2. Enter your basic information, such as your name, email address, and phone number.
3. Provide your Social Security number and date of birth.
4. Enter your income and employment information.
5. Provide your credit score and debt-to-income ratio.
6. Answer a few questions about your financial situation.
7. Review your loan terms and click on the "Submit" button.

LendingPoint will review your application and contact you if you are approved for a loan. The entire application process typically takes just a few minutes.

Closing thoughts

LendingPoint is a legitimate company that offers personal loans to borrowers with good to bad credit. They have a quick and easy application process, and they offer a wide range of loan amounts and repayment terms. However, their loans have high origination fees and interest rates, so you should carefully consider your financial situation before applying for a loan from LendingPoint.

Overall, I think LendingPoint is a good option for borrowers who need a personal loan quickly and who have a good credit score. However, if you are looking for a lower-cost loan, you may want to consider other lenders.