LendingPoint Personal Loans Review: Quick Loans for Poor Credit

Since 2015, LendingPoint has provided over $9 billion in funding to individuals and businesses. While traditional personal loan companies only lend to prime and super-prime borrowers, LendingPoint set out to unlock credit for consumers across the credit spectrum. Our LendingPoint personal loan review will show you the key benefits and drawbacks of applying.

Top perks

Soft credit check: Once you provide LendingPoint with basic personal and financial information, it runs a soft credit check. A soft credit check will not hurt your credit score.

Low minimum credit score: Loans are available for borrowers with FICO? Scores as low as 620. Rather than require a high credit score, LendingPoint says it looks for a "responsible banking and financial track record."

Available loan amounts: Loans are available in amounts from $2,000 to $36,500. While other lenders offer larger loans, it's less common to see loans as small as $2,000, which you can get with LendingPoint.

No prepayment penalty: Whether you plan to pay the loan off early from the outset or just come into some extra cash, there is no penalty for doing so.

Funding time: In most cases, funds from your LendingPoint loan will be deposited in your account in one business day.

Instant approval: No need to wait to learn if you qualify.

What could be improved

APR range: Loans have a wide range of possible APRs. The low end makes sense if you're consolidating high-interest debt through LendingPoint, but the upper end is among the highest in the industry.

Origination fee: Depending on your credit rating, LendingPoint's origination fees can be up to 10% of the loan amount. Let's say you're offered an acceptable interest rate on a $20,000 loan, but your origination fee is 10%. LendingPoint will take $2,000 off the top (10%), and deposit the remaining $18,000 in your bank account. However, the amount you're expected to repay remains $20,000, plus interest.

Monthly payment calculator

Directions:

• Enter the amount you plan to borrow in the "Loan Balance" box.
• Enter the rate you expect to get from a loan in the "Interest Rate" box.
• Either:
  • Enter the number of months you'd like to take to pay off the loan in the "Desired Payoff Timeframe" box.
    OR
  • Enter your desired monthly payment in the "Expected Monthly Payment" box.

You'll generally need the following to qualify for a LendingPoint personal loan:

• Minimum FICO? Score of 620 or higher
• Be 18 or older
• Be able to provide a federal, state, or local government-issued ID
• Have a Social Security number
• Provide proof of a personal bank account
• Have a minimum annual income of $35,000 (from employment, retirement, or some other source)
• Not be a resident of Nevada or West Virginia

Application process

You can apply for a LendingPoint personal loan on its secure website. Once you've filled out some basic information, you'll be able to see what interest rate and terms you should qualify for. If you decide to move forward as a borrower, you'll be asked to provide proof of income and employment, your most recent bank statements, a voided check, and current driver's license or government-issued ID.

The next step is to choose the loan offer that best suits your needs and formally apply. A hard credit inquiry will be conducted, and if approved, your LendingPoint loan will be deposited into your account (generally by the next business day).

Whether you are someone with great credit, or you're seeking a debt consolidation loan and have bad credit, do yourself the favor of checking loan offers from several lenders. You may find yourself surprised by the wide range of interest rates available on personal loans. Here are a few examples of other loans worthy of your attention:

• If you have excellent credit, Achieve offers lower interest rates on personal loans.
• Upstart prides itself on its unconventional approach for borrowers with little to no credit history. Plus, Upstart's minimum loan amount is just $1,000.
• Happy Money also offers a lower interest rate for those with the best credit, and offers the same borrowers a no-origination-fee loan.

Still on the fence about whether LendingPoint is a good fit for you? If all the statements below apply to you, you'll want to include LendingPoint as you rate shop.

• You have less than stellar credit. LendingPoint specializes in lending to people who have lower credit scores. That means it probably isn't a good fit for people with higher scores who may be eligible for lower APRs elsewhere. Of course, if you are in fair credit territory, your odds of getting approved for a personal loan are likely higher with LendingPoint than with the average lender.
• You need a loan quickly. Being able to get a loan disbursement in one business day can be an advantage. That's especially true if you need to get your hands on fast cash to avoid a late penalty on a bill or pay off an overdraft on your checking account.
• You have a recent bankruptcy. Bankruptcy isn't the end of your financial world, but it will make it harder to borrow money shortly after your bankruptcy is discharged. LendingPoint is one of the few lenders that will make a loan as soon as 12 months after bankruptcy.
• You need a smaller loan. LendingPoint offers loans as small as $2,000. That's a big benefit over other lenders, which often have minimums twice as high. For obvious reasons, if you only need $3,000, it doesn't make sense to apply for a loan from a company that can only issue loans of $5,000 or more. LendingPoint is a good loan option for borrowers who need small loans.