LendingPoint launched its first personal loans in 2015, targeted at borrowers with bad credit. While traditional personal loan companies only lend to prime and super-prime borrowers, LendingPoint set out to unlock credit for consumers across the credit spectrum. Last year alone, nearly 7 million people applied for financing with LendingPoint. Our LendingPoint personal loan review will show you the key benefits and drawbacks of applying.
|Lending Partner||Best For||Min. Credit Score||Loan Amounts||APR Range||Next Steps|
Rating image, 4.5 out of 5 stars.
4.5 starsWe want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
|Best For: Borrowers with poor credit scores||Min. Credit Score: 585||Loan Amounts: $2k - $25k||APR Range: 9.99 - 35.99%||
On Secure Website.
Soft credit check: LendingPoint will conduct a soft credit check in order to tell you what your interest rate will be before you apply. The advantage of a soft credit check is that it won't negatively impact your credit score, meaning that you can compare rates before making a decision.
Low credit threshold: Loans are available for borrowers with FICO® Scores as low as 585. Rather than require a high credit score, LendingPoint says they look for a "responsible banking and financial track record."
Available loan amounts: $2,000-$25,000. While other lenders offer larger loans, it's less common to see loans as small as $2,000, which you can get with LendingPoint.
No prepayment penalty: Whether you plan to pay the loan off early from the outset or just come into some extra cash, there is no penalty for doing so.
Funding time: Funds will be deposited in your account in one business day.
Instant approval: No need to wait to learn if you qualify.
APR range: Loans through LendingPoint have an APR range from 9.99%-35.99%. The low end makes sense if consolidating high-interest debt, but the upper end is among the highest in the industry.
Origination fees: Depending on your credit rating, LendingPoint's origination fees range from 0%-6% on the loan amount. The highest origination fees are charged to those with the lowest credit.
Loan terms: Loan terms are only 24 to 48 months, meaning there's not much flexibility when it comes to monthly payments. Still, if you're looking at personal loans for bad credit, LendingPoint may be a good option for you.
You'll generally need the following to qualify for a LendingPoint personal loan:
You can apply for a LendingPoint personal loan on their secure website. Once you've filled out some basic information, you'll be able to see what interest rate and terms you should qualify for. If you decide to move forward, you'll be asked to provide proof of income and employment, your most recent bank statements, a voided check, and current driver's license or government-issued ID.
The next step is to choose the loan offer that best suits your needs and formally apply. A hard credit inquiry will be conducted, and if approved, your loan will be deposited into your account (generally by the next business day).
Whether you are someone with great credit, or you're seeking a debt consolidation loan for those with bad credit, do yourself the favor of checking loan offers from several lenders. You may find yourself surprised by the wide range of interest rates available on personal loans. Here are a few examples of other loans worthy of your attention:
Still on the fence about whether LendingPoint is a good fit for you? If all the statements below apply to you, LendingPoint should likely be on your shortlist of companies.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. The Motley Fool has a Disclosure Policy. The Author and/or The Motley Fool may have an interest in companies mentioned.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 - 2021 The Ascent. All rights reserved.