2019 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 incredibly expensive as a result, many times more expensive than the average personal loan.
LendUp has two types of loans: single-payment and installment. Single payment loans 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 156.43% to 1,251.43%. LendUp’s installment loans last a bit longer, as you can pay them off over 3 to 12 months. Their APRs range from a low of 30.04% to a high of 256.34% – still incredibly expensive.
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 and why their loans are too expensive to recommend.
LendUp Loans Terms
|APRs||Single-payment loans: 156.43% - 1,251.43%
Installment loans: 30.04% - 256.34%
|Loan lengths||Single-payment loans: 7 - 30 days
Installment loans: 3 - 12 months
|Loan amounts||Single-payment loans: $100 - $500
Installment loans: $100 - $1,000
|Credit score requirement||Not disclosed (no credit check)|
|Minimum income requirement||Not disclosed|
|Other requirements (all must apply)||
|States that LendUp services||CA, LA, MS, MO, SC, TN, TX, WI|
LendUp Interest Rates & Fees on Loans
The rates you get with LendUp differ by state, 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 156.43% to 1,251.43%. 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 917.81% 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 30.04% to 256.34%, and they must be repaid within 3 to 12 months. You should be able to find much better options from other lenders, even if you have bad credit.
LendUp’s loans don’t have origination fees, but applicants in Texas are subject to a “Credit Access Business” fee, which is pretty much the same thing. This can range from $25 - $40 for every $100 borrowed. 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
LendUp does 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
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 very expensive.
- Better Business Bureau: LendUp only gets a B+ from the BBB, a lot lower than many other lenders WalletHub has reviewed. They are not accredited.
- Consumer Financial Protection Bureau: Consumers have filed complaints about LendUp’s loans 63 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: WalletHub’s editors give LendUp loans 0.5/5 stars, as they are incredibly expensive.
Despite their transparency, LendUp still isn’t a good option due to the high cost of borrowing from them.
LendUp Loans vs. Popular Competitors
|Lender||LendUp Installment Loans||LendUp Single-Payment Loans||OneMain Financial||Avant|
|APR||30.04% - 256.34%||156.43% - 1251.43%||16.05% - 35.99%||9.95% - 35.99%|
|Loan amounts||$100 - $1,000||$100 - $500||$1,500 - $30,000||$2,000 - $35,000|
|Loan lengths||3 - 12 months||7 - 30 days||24, 36, 48 or 60 months||24 - 60 months|
|Credit score required||None||None||Not disclosed; has secured loans for bad credit||600|
WalletHub’s evaluation of LendUp loans included seven important categories: fees, loan amounts, APR, loan requirements, the application process, transparency and customer satisfaction. Read on to see the factors we considered within each category.
- APR: We found out LendUp’s cheapest and most expensive APRs, and looked into whether they vary over time or stay fixed.
- Fees: This category included all major fees, like origination fees, fees for making late payments, and prepayment fees.
- Loan amounts: WalletHub looked at the smallest and largest loans, along with the timeframes to pay them off.
- Requirements: This category included all major requirements to apply, such as credit score, U.S. citizenship, income and necessary identification.
- Application process: We looked at all aspects of the application process, from pre-qualification to submitting an application. We found out how long the process will take, and whether you can do it jointly with someone else.
- Customer satisfaction: WalletHub used several resources to measure satisfaction, including our site, the Better Business Bureau and the Consumer Financial Protection Bureau.
- Transparency: This category measured how easy it is to find out the terms of LendUp loans and the minimum qualifications for said loans.
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