Given that nine out of 10 top lenders use FICO scores to make lending decisions, having a fair credit score can be a barrier to entry when applying for a personal loan.
So, how do you get the money you need when your credit isn’t perfect? You could consider LendingPoint.
The company looks beyond your credit score to determine your risk. It lends cash to those who might not otherwise be approved by a traditional lender. Check out this LendingPoint review to see if this personal loan company is right for you.
LendingPoint review: Pros and cons
LendingPoint helps people with fair credit scores in the 600s get up to $25,000 in personal loans. While that might sound appealing if you fall into that category, here are some pros and cons you should consider before borrowing.
Pros of LendingPoint personal loans
LendingPoint’s focus on customers with fair credit is just one benefit to this lender. Here are some others:
Easy application process: Through LendingPoint’s online platform, you can apply for a personal loan in minutes.
Funds are quickly dispersed: You can get your money in as little as one business day.
Applying won’t affect your credit score: You can check rates and your eligibility without your credit score being affected; LendingPoint performs a soft credit check. If you select a LendingPoint loan offer, however, the lender will do a hard credit check.
Various repayment options: You have the option to make monthly or biweekly payments. Payments can be made through an autopay system, anytime online through your LendingPoint account, or using certified funds such as a money order or cashier’s check.
- No fees for paying off your loan early: You can pay off your balance as quickly as you’d like.
Cons of LendingPoint personal loans
Getting the money you need with a less-than-stellar credit score is certainly a plus. But you should know the downsides as well.
Interest rates are high: While some lenders have interest rates starting lower than 6.00%, LendingPoint’s rates range from 15.49% to 34.49%. Make sure to check with LendingPoint for the most up-to-date rates.
LendingPoint personal loans are not available everywhere: You can only borrow from LendingPoint if you live in one of 32 states or Washington, D.C.
LendingPoint personal loan products
You can use loan funds for “whatever legal personal expense or purchase you choose.” Consider the following uses for a personal loan.
Debt consolidation: Although the interest rates are higher than with some other personal loan companies, credit card debt can have an APR of over 20.00%. Getting a potentially lower rate on a personal loan through LendingPoint can help you consolidate your credit card debt.
Home improvements: You can use a LendingPoint personal loan to make home repairs. Doing so could add value to your home.
Medical expenses: You can use a LendingPoint personal loan to pay back medical bills or cover the cost of a procedure.
Wedding costs: In 2017, the average cost of a wedding in the U.S. was $33,391, according to The Knot. You can use a LendingPoint personal loan to cover the costs of your wedding day.
Car expenses: You can borrow money from LendingPoint to fix your current vehicle or purchase a new one.
If you’re considering using a personal loan to help cover education costs, research private student loan lenders instead.
Using the LendingPoint personal loan online system
Here’s a step-by-step guide to LendingPoint’s easy application process:
Step 1: Determine how much you want to borrow
The first step of the process will ask you to state how much you need to borrow ($2,000 to $25,000) and why you’re borrowing the money.
Step 2: Input personal information
As you scroll down the page, you’ll be asked to input personal information, such as your name, birthdate, address, income, and Social Security number.
Step 3: Agree to the terms and finalize details
Before you can get your loan offers, you’ll have to agree to LendingPoint’s terms. Agreeing to these terms permits the lender to contact you via phone or text message when needed.
After agreeing to the terms, you’ll be shown a variety of offers with stipulated interest rates and terms. From there, you’ll select an offer and finalize the agreement. An internal review will take place. But you could receive your funds by the next business day.
LendingPoint personal loan interest rates and fees
Although your credit score might not be as heavily weighed when you apply for a LendingPoint loan, your financial background will affect the interest rate you’re offered. As stated above, rates range from 15.49% to 34.49%. And that’s in addition to an origination fee, which can be as high as 6%.
The LendingPoint website offers the following example: Say you have a $10,000 loan with an origination fee of 6% and an APR of 24.098%. If you have a repayment period of 24 months, your monthly payment would be $529.20. At the end of your repayment term, you’ll have paid a total of $12,700.80.
Your terms and rate will depend on a variety of factors, from your credit history to income. Keep in mind that LendingPoint offers repayment terms between 24 and 48 months.
LendingPoint personal loan eligibility requirements
The company looks “beyond your credit score to see your complete credit story” to determine your eligibility. But what does that entail? Here’s what the lender looks for:
- A verifiable income
Proof that you’ve been at your current job for at least a year
Recent and current credit behavior
A positive financial history
You can still qualify if you have a discharged bankruptcy, as long as it’s at least 12 months in the past. Further, you must have a minimum annual income of $20,000.
Be sure to have proof of employment and income on hand, as well as your most recent bank statements. You’ll also need a U.S. federal-, state-, or local government-issued photo ID.
LendingPoint personal loan customer service
If this LendingPoint review didn’t answer all your questions, reach out to the lender’s customer service for more details. You can contact customer service by email or by phone at 888-969-0959.
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|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 6.16% to 35.89%. 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 time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. 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 or longer.
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.
|7.73% – 29.99%||$1,000 - $50,000||Visit Upstart|
|6.26% – 14.87%1||$5,000 - $100,000||Visit SoFi|
|6.99% – 35.97%*||$1,000 - $50,000||Visit Upgrade|
|8.00% – 25.00%2||$5,000 - $35,000||Visit Payoff|
|4.99% – 29.99%3||$10,000 - $35,000||Visit FreedomPlus|
|5.99% – 18.99%4||$5,000 - $50,000||Visit Citizens|
|15.49% – 34.49%5||$2,000 - $25,000||Visit LendingPoint|
|6.16% – 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|