LendingPoint Review 2022: Personal Loans for Fair Credit
Fast recording: LendingPoint is an online lending platform that matches people with fair credit ratings looking for a personal loan with lenders who go beyond credit to get approval. Approved applicants can get funds quickly, but APRs and processing fees may be higher than other lending options. Borrowers can use funds for any legal purpose.
- Customer service
How did we calculate that?
- No prepayment fees
- Borrowed funds may be available the next business day after credit approval
- Minimum credit requirement of 580
- APR reduction after six months of on-time payments for eligible borrowers
- Annual minimum income of $20,000
- Processing fee of up to 7% for some borrowers
- Does not allow co-signers or co-borrowers
LendingPoint offers unsecured fixed rate personal loans to borrowers in every state except West Virginia and Nevada. Consumers with good credit and a minimum annual income of $20,000 can borrow $2,000 to $36,500 at an APR of 7.99% to 35.99%. The repayment periods are two to five years.
GOBankingRates gave LendingPoint a 4.3 rating based on the following factors.
LendingPoint personal loans are available to qualified applicants aged 18+ with a minimum credit rating of 580, a verifiable bank account, and a minimum annual income of $20,000. Income may come from employment, pension payouts, or some other source.
With a lending fee of up to 7% and APRs of up to 35.99%, a LendingPoint loan may be prohibitive for some borrowers. However, borrowing rates are fixed and some borrowers may be eligible for a lower APR after six months of on-time payments.
Applicants and borrowers can reach customer service via email or phone at [email protected] or 888-969-0959. Borrowers also have online account access on the LendingPoint website.
Eligible LendingPoint applicants can benefit from the following features:
- Pre-approval without credit request
- Credit approval on the same day
- Financing can take place as early as the next working day
- APR reduction after six months of on-time payments
How LendingPoint stands out
LendingPoint’s mission is to help people with fair credit to find lenders who look beyond an applicant’s credit history. The company’s belief that not everyone with a lower credit rating poses a credit risk is supported by the policy that eligible borrowers who make six months of payments on time can receive an APR reduction.
Comparable LendingPoint options
Here are two emergency loan originators comparable to LendingPoint that those with bad to fair credit should consider.
SeedFi is a secured personal loan option that holds a portion of the loan as collateral in an FDIC-insured savings account. A borrower will not have access to all of the funds borrowed, but those with poor or inadequate credit may have a better chance of qualifying. Once the loan is paid in full, the borrower gains access to their savings account. SeedFi APRs range from 11.59% to 29.99%.
One Main Financial
OneMain Financial does not have minimum credit requirements, but those with lower credit ratings usually have a higher interest rate. The effective annual interest rate is between 18.00% and 35.99%. OneMain origination fees can be as high as 10% of the loan amount for some borrowers.
How to apply
Applicants can complete and submit an application on the LendingPoint website. Once the initial application is submitted, the applicant will receive loan offers, often within seconds. The applicant then selects an offer which may require additional information or documentation for approval.
After final approval, the borrower can receive the loans in their bank account, sometimes as early as the next business day.
Who LendingPoint is best suited for
Because of the higher interest rates and processing fee, LendingPoint is best suited for those with fair credit who need quick cash to cover an emergency expense and have limited borrowing options.
LendingPoint can help borrowers with fair credit ratings get cash fast and build their credit score. Those with bad credit will likely need to turn to other lenders to get a personal loan. People with good to excellent credit ratings may find better personal loan rates and terms elsewhere.
If you need a personal loan, you should compare the conditions, interest rates, fees and qualifications of several lenders before applying.
Find answers to frequently asked questions about LendingPoint here.
- What credit rating do you need for LendingPoint?
- Applicants must have a minimum credit rating of 580 to qualify for a LendingPoint loan. Applicants must meet additional requirements to receive approval.
- Is LendingPoint legit?
- With the many online financial platforms, it is crucial to confirm the legitimacy of a platform before using it. So is LendingPoint legit and trustworthy?
- LendingPoint has been accredited by the Better Business Bureau since 2014 and has an A rating. It has a Trustpilot rating of excellent, with a customer rating of 4.9 out of 5 stars from more than 6,300 reviews.
- How long does it take for LendingPoint to approve an application?
- LendingPoint can provide loan offers within seconds after applicants submit their information. However, once an applicant decides to make an offer, the approval time varies depending on the lender and how much additional documentation is required.
- Is LendingPoint conducting a hard investigation?
- LendingPoint uses a soft credit request to pre-qualify applicants for offers. A hard request is performed once an applicant selects a loan offer and proceeds with the application process.
Data is correct as of June 21, 2022 and is subject to change.
Editor’s Note: This content is not provided by LendingPoint. Any opinion, analysis, review, rating, or recommendation expressed in this article is solely that of the author and has not been reviewed, approved, or otherwise endorsed by LendingPoint.
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