LendingPoint Personal Loan Review

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What is LendingPoint?

LendingPoint is an online lender which was founded in 2014. In its four-plus years of business, it has issued over 70,000 loans worth more than $500 million. Initially loans were only issued in the company’s home state of Georgia, but since that time it has opened its services to 43 states and Washington, D.C.

LendingPoint is unique in that it does not target those with prime credit. Instead, it targets what it labels as “NearPrime” consumers. The company says it aims to serve those with credit scores as low as 585 as they may need credit, but aren’t able to access any through traditional financial institutions.

Just because it serves consumers without excellent credit histories doesn’t inherently mean LendingPoint is a predatory lender. The product it offers is a personal loan and not a payday loan. Payday loans have significantly higher APRs and often create oppressive debt cycles that are difficult to escape.

While LendingPoint’s APR offerings are far from the best around, it does offer access to comparatively cheap credit for those who are hitting brick walls with traditional banks and don’t want to turn to payday lenders.

LendingPoint personal loan highlights

  • Low minimum credit score requirement: LendingPoint’s minimum credit score requirement — 585 — is among the lowest around, allowing it to extend fixed-rate personal loans to those who may not qualify with traditional financial institutions.
  • High APR offerings: While borrowers with NearPrime credit may be able to qualify for a loan, that doesn’t mean they’ll be getting decent rates. LendingPoint’s APR range — 9.99% to 35.99% — makes it imperative to crunch the numbers and feel confident in your decision before signing on the dotted line.
  • No prepayment penalty: While LendingPoint does charge an origination fee of 0.00% - 6.00% that is prefigured into its APR, it does not charge a prepayment penalty. That means you can pay off your loan as early as you’d like, which could save you money in interest over the course of your loan.
  • Terms: 24 to 48 months
LendingPoint Personal Loan Details
Terms
Fees and Penalties
  • Term lengths: 24 to 48 months
  • APR range: 9.99% – 35.99%
  • Loan amounts: $2,000 – $25,000
  • Time to funding: As soon as the next business day.
  • Credit check: To get your initial quote, LendingPoint will do a soft pull on your credit, which will not affect your score. If you do decide to go ahead with the formal application, a Hard Pull will be performed, which can ding your credit. This is standard procedure when taking out a personal loan.
  • Origination fee: 0.00% - 6.00%
  • Prepayment fee: None
  • Late payment fee: Not specified
  • Other fees: Not specified

LendingPoint product details

Most of the time, when you take out a personal loan, your minimum payment will come due monthly. However, with LendingPoint, you will be billed twice per month, which synchronizes your loan payment and paychecks if you get paid with the same frequency.

Another unique aspect of LendingPoint’s personal loans is their accessibility. On top of a low minimum credit score requirement, eligibility requirements are such that DACA recipients who have received work authorization and a Social Security number may apply. Many other lenders require U.S. residency or visa requirements, which often exclude this subset of borrowers.

While these loans are accessible, it’s important to remember that they should not be a first choice. The offered APR is high. Those with U.S. citizenship or residency with excellent credit should borrow elsewhere. DACA recipients should note that they can find other lending institutions where they may be eligible for a loan. A good place to start your search is with credit unions bearing the Juntos Avanzamos designation.

Eligibility requirements

  • Minimum credit score: 585
  • Minimum credit history: Not specified
  • Maximum debt-to-income ratio: Not specified

In order to be eligible for a LendingPoint personal loan, you must be at least 18 years old and have a Social Security number. On top of that, you must provide an ID issued by the federal, state or local government. Because LendingPoint does not issue any federal residency requirements, these loans are also potentially open to Deferred Action for Childhood Arrivals (DACA) recipients who have obtained work authorization and a Social Security number.

While LendingPoint has proliferated its services across much of the country, it has still not reached all 50 states. If you live in any of the following states, you are not eligible for a LendingPoint personal loan: Colorado, Connecticut, Nevada, New York, West Virginia, Wisconsin and Wyoming.

Finally, you need to prove that you have sufficient income to pay back your loan. The amount of income you need will vary depending on loan amount and credit history, but you will not qualify for a loan if your income is below $20,000. Bear in mind that your income doesn’t have to come from a traditional office job. It can also come from self-employment, alimony, mature retirement accounts or any other income source you would like counted on your application. However, LendingPoint does note that it’s a plus to see 12-plus months of employment on an application.

Applying for a personal loan from LendingPoint

After you determine that you’re eligible for a personal loan from LendingPoint, you can check your potential rate. You do so by checking your offer, providing information such as desired loan amount, loan purpose, name, physical address, email address, phone number and Social Security number. With this information, LendingPoint will generate an offer for you by running a soft pull on your credit report. This will not affect your credit score.

If you’re satisfied with the offer, you can move forward with the loan application process. Here you will have to provide documentation proving your employment or income situation, your most recent bank statement, a voided check and your current driver’s license or other state-issued ID. At this point, LendingPoint will do a hard pull on your credit, which is likely to lower your credit score. This is a normal part of the loan application process, regardless of which lender you go with.

Note that your APR, term or loan amount may change between your initial quote and your firm offer after application. This firm offer is only made after the hard credit check has been completed. The length of the application and verification processes vary from individual to individual, but can be completed in as little as a few hours.

Sometimes, your loan can even be funded as soon as the next business day. But this, too, will vary from individual to individual.

Pros and Cons of a LendingPoint Personal Loan
Pros
Cons
  • Those with fair credit scores can qualify: Because LendingPoint will consider borrowers with credit scores as low as 585, those with these “fair” credit scores may be able to qualify for a personal loan.
  • DACA recipients may be eligible: Many lenders require that you be a U.S. citizen or resident in order to qualify for a personal loan. Some even extend loans to those with specific visas. But with only the requirements of Social Security number and government-issued ID, DACA recipients who have obtained work authorization may be eligible to apply.
  • Fast turnaround time: Your loan could get funded as soon as the next business day after you’re approved.
  • No prepayment penalties: Because this fee is not charged, you can pay off your loan early, saving yourself money in interest.
  • Extremely high APR: The low end of the APR range is not nearly competitive enough to merit your patronage. If you have fair credit, bear in mind that while LendingPoint may be the first lender to not reject you outright, you will be charged a premium for the negative items on your credit report. The high end of LendingPoint’s APR range is extremely high for a personal loan, but it’s still better than a payday loan.
  • Origination fee: The APR range on LendingPoint’s personal loans may have been lower if it didn’t charge an origination fee in many of the states it operates in. This fee can be between 0.00% - 6.00%, though it will already be reflected in the APR quote you receive after checking your offer.
  • No five-year loan term: While having a longer loan tends to increase the amount of interest you pay over its term, it also tends to lower minimum monthly payments. If your credit’s already teetering on the edge, it would be nice to have the option to spread your personal loan out over five years in order to lower payments and ensure that you’ll have no trouble meeting them on time.

Who’s the best fit for a LendingPoint personal loan?

If you are having trouble qualifying for a personal loan elsewhere, LendingPoint can be a saving grace. Credit scores as low as 585 are accepted, though it is important to know that this liberal eligibility policy comes with extremely high APRs. However, if you’re trying to avoid the more insidious world of payday lending, the fact that LendingPoint will offer you a personal loan at all can be a positive change of pace.

If you find yourself in this situation, you will likely need to have your loan funded quickly. As long as you are approved and submit all your paperwork in a timely manner, your loan funds could hit your checking account as soon as the next business day. If you’re just trying to get by until you can get over the latest car repair or healthcare deductible and aren’t trying to borrow more than you need, LendingPoint’s minimum loan amount of $2,000 is on the lower end. Some credit unions may offer smaller personal loans, but minimum credit score requirements may be prohibitive.

Alternative personal loan options

While it’s wonderful that LendingPoint extends personal loan lending to those with fair or “NearPrime” credit scores, it isn’t the only one to do so. In fact, you may find more favorable terms or APRs with other lenders.

Peerform

  • APR: 5.99% – 29.99%
  • Credit requirements: 600
  • Terms: 36 or 60 months
  • Origination fee: 1.00% - 5.00%

Peerform also accepts those with credit scores as low as 600. The two biggest differences are that you can potentially stretch your payments out over a 36 or 60 month term, and that both the minimum and maximum APR with Peerform are 10 percentage points less than the rates offered by LendingPoint, making it a potentially better option for those with credit scores ranging from fair all the way to excellent.

LendingClub

  • APR: 6.95% – 35.89%
  • Credit requirements: 600
  • Terms: 36 or 60 months
  • Origination fee: 1.00% - 6.00%

LendingClub is another platform where you’ll find personal loans for those with credit scores as low as 600. Like Peerform, you can secure a longer-term 36 or 60 month loan, but LendingClub’s APR offerings max out at a similar rate as LendingPoint. While it does offer lower APRs as well, these lower rates are conceivably for those with higher credit scores. If you do choose to stretch your loan out to 60 months with LendingClub, you’ll end up paying more in interest over the life of your loan at the maximum APR than if you took out a 48-month loan with LendingPoint at the maximum APR.

Tower Federal Credit Union

  • APR: 8.74% – 11.74%
  • Credit requirements: 580
  • Terms: 12 to 72 months
  • Origination fee: No origination fee

Tower Federal Credit Union accepts those with lower credit scores than any of the other three lenders highlighted in this piece. Not only that, but it does it with a dramatically lower maximum APR than these other lenders. If you qualify, you can even stretch your loan out for 12 to 72 months, making your monthly payments more manageable, though this term length is also likely to see you pay more in interest over the course of your loan.

Interested in a personal loan?

Here are the top personal loan lenders of 2019!
LenderAPR RangeLoan Amount 
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Fixed rates from 5.990% APR to 16.240% APR (with AutoPay). Variable rates from 5.75% APR to 14.60% APR (with AutoPay). SoFi rate ranges are current as of March 18, 2019 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 5.75% APR assumes current 1-month LIBOR rate of 2.50% plus 4.28% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
  2. To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.
    See Consumer Licenses.
  3. Minimum Credit Score: Not all applicants who meet SoFi’s minimum credit score requirements are approved for a personal loan. In addition to meeting SoFi’s minimum eligibility criteria, applicants must also meet other credit and underwriting requirements to qualify.
  4. SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, VA, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, TX, VA, WY, or for residents of IL for loans greater than $40,000.
  5. If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions.
  6. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

2 Includes AutoPay discount. Important Disclosures for Payoff.

Payoff Disclosures

  1. All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. Currently loans are not offered in: MA, MS, NE, NV, OH, and WV.

3 Important Disclosures for FreedomPlus.

FreedomPlus Disclosures

  1. All loans available through FreedomPlus.com are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details. The following limitations, in addition to others, shall apply: FreedomPlus does not arrange loans in: (i) Arizona under $10,500; (ii) Massachusetts under $6,500, (iii) Ohio under $5,500, and (iv) Georgia under $3,500. Repayment periods range from 24 to 60 months. The range of APRs on loans made available through FreedomPlus is 5.99% to a maximum of 29.99%. APR. The APR calculation includes all applicable fees, including the loan origination fee. For Example, a four year $20,000 loan with an interest rate of 15.49% and corresponding APR of 18.34% would have an estimated monthly payment of $561.60 and a total cost payable of $7,948.13. To qualify for a 5.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $12,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you also qualify for the lowest rate available.

4 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Personal Loan Rate DisclosureFixed interest rates from 6.79% – 20.89% (6.79% – 20.89% APR) based on applicable terms. Lowest rates range from 5.99%-18.99% (5.99%-18.99% APR), are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment Discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  2. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with us at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  3. Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Personal Loan during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12-month period, the borrower will no longer be eligible for this discount.

5 Important Disclosures for LendingPoint.

LendingPoint Disclosures

  • Loan approval is not guaranteed. Actual loan offers and loan amounts, terms and annual percentage rates (“APR”) may vary based upon LendingPoint’s proprietary scoring and underwriting system’s review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees from 0% to 6% may apply depending upon your state of residence. Upon LendingPoint’s final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. LendingPoint makes loan offers from $2,000 to $25,000, at rates ranging from a low of 9.99% APR to a high of 35.99% APR, with terms from 24 to 48 months. The loan offer(s) shown reflect a 28 day payment cycle which is being offered as a courtesy as many of our customers are paid on a biweekly schedule and thus this may better align the loan payment dates with your actual income receipt schedule.

6 Important Disclosures for LendingClub.

LendingClub Disclosures

All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.95% to 35.89%*. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: LendingClub, 71 Stevenson Street, Suite 1000, San Francisco, CA 94105.

†Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis. All reviews can be reviewed at reviews.lendingclub.com

**Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20,2018. The time it will take to fund your loan may vary.


7 Important Disclosures for Earnest.

Earnest Disclosures

  1. Earnest does not lend in Alabama, Delaware, Kentucky, Nevada, or Rhode Island.

8 Important Disclosures for Avant.

Avant Disclosures

* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.

** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33


* Important Disclosures for Upgrade Bank.

Upgrade Bank Disclosures

* Your loan terms are not guaranteed and are subject to our verification and review process. You may be asked to provide additional documents to enable us to verify your income and your identity. This rate includes an Autopay APR reduction of 0.5%. By enrolling in Autopay your payments will be automatically deducted from you bank account. Selecting Autopay is optional. Annual Percentage Rate is inclusive of a loan origination fee, which is deducted from the loan proceeds. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. All loans made by WebBank, member FDIC. Please refer to Upgrade’s Terms of Use and Borrower Agreement for all terms, conditions and requirements.

** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.

5.75% – 16.24%1$5,000 - $100,000

Visit SoFi

7.69% – 35.99%$1,000 - $50,000

Visit Upstart

7.99% – 35.89%*$1,000 - $50,000

Visit Upgrade

5.99% – 24.99%2$5,000 - $35,000

Visit Payoff

5.99% – 29.99%3$7,500 - $40,000

Visit FreedomPlus

6.79% – 20.89%4$5,000 - $50,000

Visit Citizens

9.99% – 35.99%5$2,000 - $25,000

Visit LendingPoint

6.95% – 35.89%6$1,000 - $40,000

Visit LendingClub

6.99% – 18.24%7$5,000 - $75,000

Visit Earnest

9.95% – 35.99%8$2,000 - $35,000

Visit Avant

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

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