LendingPoint Personal Loan Review

At a Glance:

• Loans between $2,000-$36,500
• Best for those with bad credit who are facing emergency financial situations
• Fasting funding, usually within 24 hours
• Flexible payment date which can be changed once per year
• Loans can be used for anything, as long as it’s legal

What is LendingPoint?

LendingPoint is a personal lender that got its start in 2015 as a FinTech lender and evolved quickly to offer a variety of services. Their company is founded on the principle that the FICO credit score model is outdated and does not provide lenders with the best information on borrowers - their evaluation process includes all sorts of factors that give a larger percentage of the population the ability to qualify for a decent loan.

LendingPoint Rates and Fees

What type of personal loans does LendingPoint offer?

LendingPoint offers personal loans that can be used in a variety of situations including but not limited to:

• Debt Consolidation
• Credit card refinancing
• Home improvement
• Home purchase
• Major purchase
• Car financing
• Business loan
• Vacation
• Medical expenses
• Moving and relocation costs

LendingPoint Pros and Cons

PROS

• Fast funding
• Flexible payment schedule
• Multiple ways to pay
• Loan can be processed and managed entirely online in most cases

CONS

• High origination fees
• Does not report to all three credit bureaus
• No joint, secured, or co-signed loan options
• No direct payment to creditors

Who should use LendingPoint?

LendingPoint personal loans are best suited for anyone who has a bad credit score as the low credit score requirements allows many people to qualify. These loans are also ideal for anyone facing financial emergencies as they are funded within 24 hours in the majority of cases. The APR range is quite typical although those with low credit scores will likely receive the higher end of the spectrum and be required to pay origination fees which can be up to 6% with LendingPoint’s personal loan options.

What are some of the benefits of using LendingPoint?

LendingPoint personal loans are funded quickly.

LendingPoint personal loans are typically funded within 24 hours which can make it a suitable option for anyone who is facing emergency expenses. The funding time may take up to three business days depending on the bank the funds are being deposited into and if the processing time includes any bank holidays.

Borrowers have options for flexible repayment schedules.

Once you start your loan term with LendingPoint you will have the ability to select a payment date that works for you. You will also have the chance to change that payment date up to once per year. Changing a payment date can make a huge difference as if you’re short on funds one month, you can move the payment date ahead to a day or two after your next paycheck. That can help you avoid any fees and stress that come along with a late payment.

There are multiple repayment methods offered.

LendingPoint offers multiple methods for repayment which allows you flexibility and the ability to customize a process that fits your pre-existing habits. You can pay off your monthly bills with LendingPoint online, on the mobile app, by phone, by mail, or ACH.

LendingPoint conducts only a soft-credit check during the prequalification process.

As with most lenders, LendingPoint will run a credit check on you when you apply to determine your credit-worthiness. The credit check they run before you accept an offer is a soft credit check which does not hurt your credit history. Once you accept an offer you will likely have a hard inquiry run but these will only knock your credit score down a few points and handling your finances responsibly and avoiding additional inquiries can help you recover from this quickly.

What are some of the downsides to using LendingPoint?

LendingPoint’s origination fees are quite high.

Online lenders charge origination costs, and LendingPoint is no exception. They charge an origination fee of up to 6% which is high compared to most other similar lenders. Borrowers with a better credit score have a better chance of receiving a lower origination fee so the 6% is a maximum amount, not a strict requirement.

Your on-time payments will only be reported to two out of the three major credit bureaus.

LendingPoint reports your payments to Experian and TransUnion, but not Equifax. While this isn’t necessarily a deal-breaker, it’s far better to choose a lender that reports to all three as these reports from a lender help establish a solid track record of on-time payments and financial responsibility which can help when you apply for lines of credit any time in the future and receive better interest rates.

There are no co-signed, joint, or secured loan options.

Secured loans are those that require collateral such as a home or a car as security. If you take out a secured loan, the lender will be able to seize your assets if you default on your payments. Secured loans may be the less appealing alternative, but they usually have cheaper interest rates and a wider range of applications in exchange for that higher risk to you. Co-signed or joint loans can allow someone with poor credit to receive a better offer if applying alongside someone with a better financial history but LendingPoint does not offer this option.

There are no debt consolidation services with LendingPoint personal loans.

Although you are able to use your funds from a LendingPoint personal loan to consolidate debt yourself, there is no option for LendingPoint to send funds directly to creditors. While certainly not a significant dealbreaker, there are many lenders that do offer this service which can save you time and stress.

Do I need a credit check to take out a loan with LendingPoint?

When you are ready to accept an offer, LendingPoint will perform a hard credit check, but this does not have to happen until you are committed to taking out a loan with them. They will do a soft credit check throughout the prequalification procedure, which will not affect your credit score.

Does LendingPoint cost any money?

While it does not cost any money to simply use LendingPoint’s services, you will likely encounter at least one type of fee throughout your loan term. The most common fee borrowers face is an origination fee which is applied at the beginning of your loan process. LendingPoint’s origination fee is quite high compared to similar lenders at 6% of the total loan amount and you will likely be able to find other lenders that do not require this. However this is the only notable fee as LendingPoint does not charge prepayment fees.

Where does LendingPoint operate?

LendingPoint offers personal loans to residents of most of the United States of America - the exception would be residents of Nevada and West Virginia.

How is LendingPoint’s customer service and support?

LendingPoint does offer customer service support but the main way this is offered is through email. They do offer a phone support line but the hours are not specified on the website so you may not be able to get help this way when you need it. The best way to get in touch with LendingPoint’s customer service is to email them at customerservice@lendingpoint.com.

How to qualify for a Personal Loan through LendingPoint

LendingPoint prides itself on evaluating each application in detail and carefully considering every quality of the borrower. They know that everyone has a unique story and their application approval process accounts for that. While the exact factors that lead to a successful application vary immensely, applications should have:

• Minimum credit score of at least 580
• Debt-to-income ratio of less than 50% although borrower average is much lower
• Although no minimum income is listed, potential borrowers will need to demonstrate the ability to repay the debt in some way

How to Apply for a LendingPoint Personal Loan

Applying for a personal loan through LendingPoint involves a frictionless three step process. First, you will fill out an application on their website which will allow you to see what options you may qualify for without any impact to your credit score. Next, you will select the loan that you are interested in accepting and provide some additional information to finalize the application before receiving your approval notice on your application and signing some paperwork to finalize the loan. Once this process is complete, LendingPoint will send the funds to your bank account - you may receive them the same day as you apply but in some cases it may take up to three business days.

Is LendingPoint Legit and Trustworthy?

LendingPoint is a completely reputable online lender that takes every measure to secure and encrypt any of your data that you provide to them during the application process and throughout your loan term.

Conclusion

LendingPoint personal loans are suitable options for anyone who is facing financial hardship but finds applying for loans challenging due to a low credit score which may be caused by any number of factors. LendingPoint personal loans are efficient and secure and can get you on track provided you never are late on a payment and ideally pay it off early when possible.