LendingPoint Personal Loans Review: Quick Loans for Poor Credit

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.

Monthly payment calculator

Directions:

• Enter the amount you plan to borrow in the "Loan Balance" box.
• Enter the rate you expect to get from a loan in the "Interest Rate" box.
• Either:
  • Enter the number of months you'd like to take to pay off the loan in the "Desired Payoff Timeframe" box.
    OR
  • Enter your desired monthly payment in the "Expected Monthly Payment" box.

Top perks

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.

What could be improved

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:

• Minimum FICO® Score of 585 or higher (ideal for those with bad credit)
• Steady job (LendingPoint calls a minimum of 12 months at your current job "a plus")
• A minimum annual income of $20,000
• Recent credit behavior that shows you're on the right track

Application process

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:

• If you have excellent credit, FreedomPlus offers lower interest rates on personal loans.
• Upstart prides itself on its unconventional approach for borrowers with little to no credit history. Plus, Upstart's minimum loan amount is just $1,000.
• Payoff also offers a lower interest rate for those with the best credit, and offers the same borrowers a no-origination-fee loan.

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.

• You have less than stellar credit. LendingPoint specializes in lending to people who have lower credit scores. That means it probably isn't a good fit for people with higher scores who may be eligible for lower APRs elsewhere. Of course, if you are in fair credit territory, your odds of getting approved for a personal loan are likely higher with LendingPoint than the average lender.
• You need a loan quickly. Being able to get a loan disbursement in one business day can be an advantage. That's especially true if you need to get your hands on fast cash to avoid a late penalty on a bill or pay off an overdraft on your checking account.
• You have a recent bankruptcy. Bankruptcy isn't the end of your financial world, but it will make it harder to borrow money shortly after your bankruptcy is discharged. LendingPoint is one of the few lenders that will make a loan as little as 12 months after bankruptcy.
• You need a smaller loan. LendingPoint can give loans as small as $2,000. That's a big benefit over other lenders, which often have minimums that are twice as high. For obvious reasons, if you only need $3,000, it doesn't make sense to apply for a loan from a company that can only issue loans of $5,000 or more. LendingPoint is a good loan option for borrowers who need small loans.