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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.
LendingPoint has flexible credit requirements. The maximum loan limit is a little smaller here, but so is the minimum. This could be a great stop for someone who needs a smaller loan, as well as someone still building their credit.
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 minimum credit score: 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-$36,500. 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 from your LendingPoint loan will be deposited in your account in one business day.
Instant approval: No need to wait to learn if you qualify.
APR range: Loans have an APR range from 9.99%-35.99%. This is quite a range, considering personal loan research shows the average interest rate on 24-month loans is 9.41% for February 2022. The low end makes sense if consolidating high-interest debt through LendingPoint, but the upper end is among the highest in the industry.
Origination fee: 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 as a borrower, 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 LendingPoint 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.
Our Loans Expert
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