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
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.
- 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
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.
- 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.
- 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!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
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.
8 Important Disclosures for Avant.
* 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
** 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.
|5.74% – 16.99%1||$5,000 - $100,000|
|7.54% – 35.99%||$1,000 - $50,000|
|7.99% – 35.89%*||$1,000 - $50,000|
|5.99% – 24.99%2||$5,000 - $35,000|
|5.99% – 29.99%3||$7,500 - $40,000|
|6.79% – 20.89%4||$5,000 - $50,000|
|9.99% – 35.99%5||$2,000 - $25,000|
|6.95% – 35.89%6||$1,000 - $40,000|
|6.99% – 18.24%7||$5,000 - $75,000|
|9.95% – 35.99%8||$2,000 - $35,000|