2020 LendUp Review – Personal Loans
LendUp Review Summary: LendUp loans are short-term loans for people who don’t have any other options. LendUp doesn’t do a credit check during the application process, meaning their loans are very easy to qualify for. But they are also very expensive as a result, many times more expensive than the average personal loan.
LendUp has two types of loans: single-payment and installment. Most LendUp loans are single payment loans, according to their website. They are very short: only 7 - 30 days. This makes them essentially a “payday” loan, where you’re paying the lender back with your next paycheck. You pay this type of loan off all at once, along with a fee that’s equivalent to an APR of anywhere from 247.08% to 917.71%. LendUp’s installment loans last a bit longer, as you can pay them off over several months – 6 months in California, for example. However, these loans are only available to people who have borrowed from LendUp multiple times and built up “Ladder Points,” which is definitely not worth doing. They’re still very expensive, as well.
Aside from how easy LendUp loans are to get, the only real upside is fast funding – within 2 business days. But borrowers should absolutely look elsewhere before considering LendUp. Not only are they overly pricey, but LendUp only services eight states. Plus, the company was fined $3.63 million by the government in 2016 for failing to help customers build credit and not allowing them to progress to cheaper loans over time, as was advertised. Below, you’ll find more details about LendUp as well as WalletHub’s rating in three key categories: Terms, Requirements & Application, and Reviews & Transparency.
LendUp Personal Loan Terms
|APRs||214.13% - 913.71%|
|Loan Amount||$100 - $255|
|Loan Terms||7 - 30 days|
|Minimum Credit Score||Not disclosed*|
|Minimum Income||Not disclosed|
|Time to Receive Loan Money||1 - 2 business days|
LendUp Interest Rate, Fees & Other Terms
Category Rating: 0.8/5
The rates you get with LendUp differ by state, as well as by the amount of money you’re borrowing, the amount of time you borrow the money for, and whether you choose a single-payment loan or an installment loan. For a single payment loan, you must repay the loan after 7 - 30 days with an APR of 214.13% to 917.71%. Keep in mind that an APR is the amount of interest you’d pay in a year – so the dollar amount you’d pay for a short-term loan is much smaller. For example, if you get a $250 7-day loan in California at a 917.71% APR, you’d owe $44 in interest, for a total of $294. That’s still incredibly expensive compared to a normal personal loan, though, where APRs typically won’t exceed 36%.
LendUp installment loans have an APR of 32.08% to 71.07%, and they must be repaid within 1 to 6 months. You should be able to find much better options from other lenders, even if you have bad credit. WalletHub can’t award LendUp any points for their APR.
LendUp does score some points for not having origination fees, though that can’t make up for the points lost for the high APRs. It’s also important to note that applicants in Texas are subject to a “Credit Access Business” fee, which is pretty much the same thing as an origination fee. LendUp doesn’t have “late” fees since they automatically withdraw payments from your bank account, but they do have a returned payment fee of $10 - $15 depending on the state. There’s no prepayment fee, so you can pay your loan off early without penalty.
LendUp Loan Requirements & Application Info
Category Rating: 3.5/5
One positive thing about LendUp is that they do not do a hard pull of applicants’ credit, so they don’t have a minimum credit requirement. LendUp doesn’t reveal any necessary minimum income, either.
To get a loan from LendUp, you’ll need to live in one of the 8 states they service: CA, LA, MS, MO, SC, TN, TX or WI. In addition to that, you will have to be at least 18 years old and have a Social Security number. You need a U.S. checking account as well.
LendUp doesn’t have pre-qualification, but they do have a calculator on their website to help you estimate your rates. Plus, applying doesn’t hurt your credit score, so you can always apply to see your exact rates and then reject the loan if you don’t want it. To apply for a LendUp loan, you’ll need to fill out an application online.
LendUp Reviews & Transparency
Category Rating: 4.8/5
- Better Business Bureau: LendUp gets an A+ from the BBB. They are not accredited.
- Consumer Financial Protection Bureau: Consumers have filed complaints about LendUp’s loans over 70 times, with concerns including LendUp incorrectly reporting payments as late and customers having trouble dealing with the high interest rates. The last complaint was filed in April 2019, and LendUp has almost always given “timely” responses.
- WalletHub: LendUp has an average user rating of 3.7/5.
- Transparency: LendUp’s rates and fees vary by state, but you can clearly see what terms are available to you by selecting your state on their website. LendUp doesn’t try to hide the fact that their loans are expensive.
LendUp Loans vs. Popular Competitors
|APRs||214.13% - 913.71%||99% - 199%||60% - 299%|
|Loan Amounts||$100 - $255||$500 - $10,000||$500 - $5,000|
|Loan Terms||7 - 30 days||Up to 36 months||5 months|
|Minimum Credit Score||Not disclosed*||None*||Not disclosed*|
In order to provide the most accurate LendUp 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. For LendUp, that is California.
- 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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