The personal loans offered by LendingPoint have all the makings of a reliable financing option: competitive interest rates, quick funding, and the ability to pre-qualify for a loan and see what rate you’ll be offered.
However, there are no extra features included in this item. Loan amounts are lower than those offered by many of the company’s rivals, co-applicants and collateral are not accepted, and only two of the three main credit bureaus are notified of the payment.
LendingPoint has most of the features you’d want in a personal loan, though competitors may offer more.
LendingPoint Personal Loans
Minimum credit score: 600
APR range: 7.99% to 35.99%
Loan amounts: $2,000 to $36,500
Term lengths: 2 to 5 years
Min. annual income: n/a
Why We Selected It
LendingPoint, based in Atlanta, is an online lender that offers personal loans to residents of 48 states and DC (but not Nevada or West Virginia). Online applications in eligible states can result in quick funding.
LendingPoint’s minimum personal loan amount in Georgia is $3,500, with loan amounts ranging from $2,000 to $36,500. Loan terms can be as long as 60 months (or anywhere between two and five years).
Limitless APRs and origination fees are two significant drawbacks of LendingPoint. The origination fees charged by LendingPoint vary from 0% to 6% according to where you live, so keeping your credit score high can help you avoid paying high-interest rates.
Pros & Cons
Who Benefits Most from LendingPoint Personal Loans?
People who might benefit from a personal loan from LendingPoint are those who:
Have adequate credit: The minimum credit score to qualify for a personal loan through LendingPoint is 600, which is lower than the requirements of some other lenders.
The need for quick: A lending decision from LendingPoint can be provided in as little as 60 seconds. After it receives and verifies your paperwork, you might get your money the next business day.
I prefer a loan with minimal requirements: Any legitimate personal expense, such as consolidating debt, making repairs or upgrades to your home, paying for medical care, or even taking a vacation, is fair game for a personal loan from LendingPoint.
Not Everyone Should Use LendingPoint Personal Loan
The following consumers may not be good candidates for a loan through LendingPoint:
Get approved by a different bank for a lower interest rate: LendingPoint’s rates aren’t the cheapest, starting at around 8% APR. You should look around for a better rate if your credit is good or excellent (minimum 670).
Financial need for funds over $36: Some personal loan lenders will lend you a considerable sum if you have a demonstrated need.
Interest in establishing a good credit history: Payments made through LendingPoint are reported to two of the three major credit bureaus, which is helpful. You may want to work with a lender that reports to all three major credit bureaus if establishing or improving your credit score is a top priority.
Get a place in Nevada or West Virginia: There are some states where LendingPoint is not available. Nonetheless, if you live in one of the other 49 states or the District of Columbia, you may qualify for a loan through LendingPoint.
Details of LendingPoint Personal Loan
Loan Amounts & Terms
Loan amounts: LendingPoint’s personal loans range from $2,000 to $36,500 and are interest-free for 36 months.
Loan terms: Terms of repayment range from 24-60 months.
Loan Expenses
APR: A 7.99% – 35.99% APR is available.
Origination fee: LendingPoint’s origination fee ranges from 0% to 7%. This fee will be deducted from the total amount you borrow.
Charges for late: There are no late fees with LendingPoint.
Prepayment penalty: If you need to pay off your loan early, you won’t be charged any fees by LendingPoint.
Benefits and Options
Low required minimum credit score: The lowest credit score accepted by LendingPoint is 600, while the minimumobtainedd by many other lenders is 670.
In-depth online prequalification: The LendingPoint website lets you view your rates immediately without affecting your credit score. If you’re interested in an offer and decide to apply in full, LendingPoint will pull your credit report (a hard inquiry) to determine if you’re a reasonable risk for them to lend to.
Date of payment may be adjusted: After making your initial payment, you may request a new due date.
Qualification Requirements for LendingPoint Personal Loan
Various criteria determine whether an application for a personal loan is accepted or rejected. Lenders’ underwriting standards vary, but income and credit history are frequently considered alongside other indicators of a borrower’s capacity to repay loans. If you meet the criteria below but still have doubts about whether or not a LendingPoint personal loan is right for you, we recommend checking out our eligibility calculator.
Minimum Required Credit Rating
When applying for a personal loan through LendingPoint, a credit score of 600 is required as a bare minimum. Rates are typically best for those with scores between 670 and 850.
The Necessary Funding
The minimum annual income required to borrow from LendingPoint is $20,000. This income can be earned through a job, retirement, or other means. You’ll also need a bank account in your name that can be used to prove your identity.
Multiple Applicants and Co-signers
Regarding personal loans, LendingPoint does not permit co-signers or co-applicants. Joint applications often have better approval rates and lower interest rates. You’ll have to look elsewhere for a lender who will accept applications with a co-signer.
Customer Reviews
Based on 215 customer reviews, LendingPoint has earned a Better Business Bureau (BBB) rating of 4.07 out of 5 stars. One satisfied client wrote that LendingPoint “did a phenomenal job getting me accepted and funded quickly and easily!”
Another reviewer was pleased with LendingPoint’s customer service, stating, “The team assisted me to step by step to guarantee that my loan was approved.” Excellent service”
However, not every reviewer had a good experience. One unsatisfied client expressed concern about the customer service team’s communication difficulties. Another consumer complained about an increase in interest rates following preapproval.
Notably, the rate for which you have prequalification is not guaranteed. You will not know the precise terms of your offer until you submit a complete application and authorize a credit check.
Trustpilot gives LendingPoint an even higher rating: 4.8 out of 5 stars based on 6,260 client ratings. Numerous consumers remarked that the loan application procedure was quick and painless and that customer support was informative and cordial.
Application Procedure for a LendingPoint Personal Loans
LendingPoint offers convenient options for requesting unsecured loans, whether you apply online or over the phone with a lending expert. Here are the measures you must follow to apply online:
Check your rate: To get started, visit LendingPoint’s website and specify the loan amount and purpose. You will be asked to enter identifying information (such as your name, address, and annual income) and select a password.
Formal applications must be submitted: Soft credit checks are what LendingPoint does to determine whether or not to display your loan options. If you get preapproved, you’ll have more time to consider alternatives and pick one that works. Personal loan calculators can help you figure out what your monthly payments and the total loan cost will be.
Consider an offer: If you find a deal you like, you can accept it by signing the application and sending it in. In addition to the basic information, you will be asked to provide documents such as your driver’s license, bank statements, and proof of employment. LendingPoint will perform a hard credit check to verify your identity, which may have a short-term impact on your score.
Get ready to wait for the money: Your loan funds could be deposited into your bank account the next business day after LendingPoint approves your application.
Once your loan is authorized, LendingPoint will send you essential information, such as the payment due date. Aside from the LendingPoint app, you can use the LendingPoint customer portal to access your loan documents. You may set up an automatic amount to avoid forgetting a fee. You can use a money order, cashier’s check, or certified check to pay via mail.
If your credit isn’t great, you might not have many good loan options. For those with less-than-perfect credit (FICO scores of 670), LendingPoint provides unsecured personal lending choices that don’t charge the exorbitant interest rates associated with payday loans. If you have had problems getting a loan elsewhere but need between $2,000 and $36,500, you may still qualify for a loan through LendingPoint.
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Source: Forbes