2020 LendingPoint Personal Loans Review
LendingPoint Review Summary: LendingPoint personal loans are on the smaller side, ranging from $2,000 to $25,000 and lasting for 24 to 48 months. LendingPoint also has one of the lowest minimum credit score requirements around: 585. The company not only provides an opportunity for people with bad credit to get an unsecured loan, but they also offer decent rates. The minimum LendingPoint personal loan APR is 9.99%, and the maximum is 35.99%. That’s on par with or better than many other lenders who cater to people with bad credit, but there are far better rates elsewhere for people with good or excellent credit.
LendingPoint lends to people in 49 states and the District of Columbia. The sole exception is West Virginia. They also offer very quick financing, with a decision usually within hours and funding as soon as the next business day after they receive all your documents. Keep reading to learn more about LendingPoint, as well as see how they rate in WalletHub’s three key categories: Terms, Requirements & Application, and Reviews & Transparency. You can also see what other lenders offer in comparison.
LendingPoint Personal Loan Terms
|APRs||9.99% - 35.99%|
|Loan Amount||$2,000 - $25,000|
|Loan Terms||24 - 48 months|
|Origination Fee||0% - 6% (varies by state)|
|Late Fee||$30 (after 15 days late)|
|Minimum Credit Score||Bad*|
|Loan Purpose||Debt Consolidation, Refinance, Home Improvement|
|Time to Receive Loan Money||1 - 2 business days|
*According to multiple third-party sources
LendingPoint Rates, Fees & Other Terms
Category Rating: 3.1/5
LendingPoint’s rates range from 9.99% to 35.99%. Many lenders have minimum APRs lower than that, starting as low as 6% in some cases. LendingPoint’s maximum APR is on the high end as well. People with high credit scores will likely want to look elsewhere as a result. However, people with low scores may find LendingPoint to be worthwhile. LendingPoint has fixed interest rates, so the rate you get at the beginning will be the rate you have for the entire payoff period.
You may owe an origination fee with LendingPoint, depending on the state you live in. The fee can range from 0% to 6% of the loan amount. It will depend on your credit, income and loan size, among other factors. LendingPoint has no prepayment penalty, so you can pay the loan off as early as you’d like. However, if you are 15 days late on your loan payment, you will owe a fee of $30.
LendingPoint offers more funding than most lenders that accept bad credit do, with loans ranging from $2,000 to $25,000. Their payoff periods are middle-of-the-road, at 24 to 48 months.
Overall, LendingPoint earns a decent score in this category because its rates and fees, while certainly not the cheapest around, aren’t excessive. They are miles ahead of certain lenders that specialize in bad credit and charge APRs in excess of 100%. In addition, LendingPoint’s funding amounts and timelines are respectable.
LendingPoint Requirements & Application Info
Category Rating: 3.8/5
LendingPoint’s website says their personal loans are for people with credit scores of 585 or higher. That’s a lot lower than what most lenders with personal loans require (660+). LendingPoint’s minimum income requirement is $20,000, which is close to $14,000 less than what most people make, according to data from the Federal Reserve Bank of St. Louis.
Like with all personal loan providers, you will need to be at least 18 years of age to borrow from LendingPoint. LendingPoint will also ask for your Social Security number, though you can be either a U.S. citizen or permanent resident to apply. In addition, you will need to show proof of a U.S. bank account.
LendingPoint has a tool to check for pre-qualification, which will show you what kind of loan offers are available to you. This will not affect your credit in any way. But choosing one of the offers and applying for it will then lead to LendingPoint doing a hard pull of your credit, which will likely cause your score to drop slightly. You can apply for a LendingPoint personal loan online or by calling (888) 969-0959. Unfortunately, LendingPoint does not allow joint applications.
LendingPoint scores well for being available to consumers with bad credit, letting potential borrowers see their rates ahead of time, and offering more than one way to apply. Areas where they lose points include not being open to joint applications and not allowing an ITIN or passport to substitute for an SSN.
LendingPoint Reviews & Transparency
Category Rating: 4.7/5
- Better Business Bureau: LendingPoint, LLC became accredited with the agency in 2014 and currently has an A+ rating.
- Consumer Financial Protection Bureau: There are around 30 complaints about LendingPoint’s personal loans within the CFPB database. Some concerns include customers having trouble accessing their online account and LendingPoint inaccurately reporting payments as late. LendingPoint has given a “timely” reply to nearly all of the complaints.
- WalletHub: There is not enough user data to give a score to LendingPoint.
- Transparency: LendingPoint is very upfront about their personal loan rates and fees, and makes them easy to find online. Plus, their pre-qualification tool allows you to see your options without affecting your credit. In addition, LendingPoint specifies both minimum credit score and minimum income requirements, which is fairly uncommon among personal loan providers.
LendingPoint scores very well in this category. They are extremely transparent about not only their loan terms but also their requirements. In addition, they have a good reputation with watchdog agencies.
LendingPoint Personal Loans vs. the Competition
|APRs||9.99% - 35.99%||9.95% - 35.99%||6.99% - 29.99%|
|Loan Amounts||$2,000 - $25,000||$2,000 - $35,000||$7,500 - $40,000|
|Loan Terms||24 - 48 months||24 - 60 months||24 - 60 months|
|Minimum Credit Score||Bad*||Bad*||Bad*|
In order to provide the most accurate LendingPoint review, WalletHub used 17 key metrics grouped into three overall sections: Terms, Requirements & Application, and Reviews & Transparency. We rated each section on a scale of 0 to 5, with 5 being the best, and then averaged the scores of the three sections to produce an overall rating for the loan.
- The “Terms” section includes information about how expensive the loan is, including rates and fees. It also takes into consideration how much consumers can borrow and how quickly they must pay it back.
For companies where APR and fee ranges differ greatly by state, we used data from the most populous state serviced by the company. LendingPoint terms do not fluctuate significantly by state, however.
- The “Requirements & Application” section examines how easy it is to apply for a loan and how long it takes to receive the money. It also looks at exactly who is eligible to apply.
- The “Reviews & Transparency” section measures the loan provider’s reputation as well as how clearly the lender discloses its terms and requirements. This takes into account user reviews and information from watchdog organizations.
The average of these three scores reflects how close a loan offer is to WalletHub’s definition of a 5-star loan. For more information, please read WalletHub’s full methodology.
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