LendingPoint Personal Loans: 2020 Review

LendingPoint features

Here's a breakdown of some of the benefits and drawbacks of LendingPoint personal loans.

Whether your credit score is in fair shape or less than stellar, you may be able to qualify for a personal loan with LendingPoint. The lender offers quick funding and relatively low loan amounts but also has an origination fee and shorter-than-average repayment terms.

If you’re looking for a personal loan from $2,000 to $25,000, here’s what you need to know about LendingPoint.

• LendingPoint snapshot
• Pros and cons of LendingPoint personal loans
• Lending terms
• Fees and penalties
• How to apply for a loan with LendingPoint
• How Bankrate rates LendingPoint

LendingPoint snapshot

Pros and cons of LendingPoint personal loans

Make sure to evaluate the benefits and drawbacks of a LendingPoint personal loan before sending in your application.

Pros:

• Options for people with a low credit score: LendingPoint accepts borrowers with credit scores as low as 585, making it an attractive option for people who may have trouble getting approved elsewhere.
• No prepayment penalties: Even if you’re quoted a high APR, you can still save on interest costs by paying off your loan early — LendingPoint charges no fees for doing so.
• Quick funding: Loan approval can be completed within just a few hours of accepting a loan offer, and LendingPoint initiates funding as soon as the next business day.

Cons:

• No joint loans: If you have a subpar credit score and are having trouble getting approved with LendingPoint on your own, it may not be the right lender for you. The lender doesn’t allow joint loans, meaning you can’t add a co-signer in order to improve the overall credit picture.
• High maximum APRs: LendingPoint’s maximum APR of 35.99 percent, likely offered to those with the poorest credit, may increase your monthly payment significantly. If you’re looking to consolidate credit card debt, make sure the offer you get from LendingPoint will be less than what you’re paying now.
• Short repayment periods: While some lenders offer repayment terms of 60 months or more, LendingPoint’s repayment terms range only from 24 to 48 months.

Lending terms

LendingPoint offers fixed-rate personal loans ranging from $2,000 to $25,000, with repayment terms from 24 to 48 months. Some similar lenders offer up to five years to repay what you owe, giving you a little more time and a lower monthly payment.

LendingPoint offers loans in 49 states and the District of Columbia. The only state where residents can’t apply is West Virginia. Interest rates range from 9.99 percent to 35.99 percent APR, depending on your creditworthiness.

You can use a LendingPoint personal loan for any legal purpose, such as debt consolidation or to pay for a wedding. To qualify, you need to have a credit score of at least 585, as well as an annual income of $35,000 or higher. You also need to:

• Be at least 18 years old.
• Have a federal, state or local government-issued photo ID.
• Have a Social Security number.
• Have a verifiable personal bank account in your name.

You can even get approved if you have a bankruptcy on your credit report, as long as it was discharged at least 12 months ago.

Unfortunately, the lender doesn’t currently allow co-signers. So if you can’t get approved on your own, you will need to find a different lender. You also can’t include income from someone else in your household when filling out that portion of the loan application.

If you get approved for a loan, you can receive the funds as soon as the next business day, making it a great option if you’re experiencing an emergency and need quick access to cash.

If you’re hoping to use the loan to improve your credit, though, keep in mind that LendingPoint promises only to report to “one or more” of the three national credit reporting agencies. If improving your credit is your priority, find a lender that will report to all three.

Fees and penalties

LendingPoint charges an origination fee of 0 percent to 6 percent of the loan amount. If you like, you can have this upfront fee deducted from your loan disbursement instead of paying it out of pocket. If you choose this option, though, you may need to borrow more than you need to make sure you don’t end up with a shortfall.

The lender doesn’t charge an application fee, and it also won’t penalize you if you choose to pay off your loan early.

How to apply for a loan with LendingPoint

To apply for a LendingPoint personal loan, you’ll start with the lender’s prequalification process. During this part, you’ll provide your:

• Desired loan amount.
• Name.
• Date of birth.
• Email address and phone number.
• Address.
• Income information.
• Last four digits of your Social Security number.

Then click the button that says “Find My Loan Options.” LendingPoint will run a soft credit check and provide a few offers based on the information you provided.

After you choose the offer that best suits your needs, you’ll need to provide some additional information to get approved, including your driver’s license, proof of income, bank statements and a voided check. LendingPoint will then run a hard credit check (which will show up on your credit report) to finalize its offer.

Before you complete this process, though, take a few minutes to compare the offers LendingPoint provides with other personal loan rates from top lenders with which you might qualify.

How Bankrate rates LendingPoint

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.