In this Review..
Lending Point is based in Kennesaw, Georgia. This online lender offers a competitive option for those with fair credit. Lending Point personal loans have a fixed interest rate of 15.49% to 35.99%. You can borrow $2,000 to $25,000 with a term of 24 to 48 months.
Where Lending Point stands apart from many lenders is that you can qualify for a loan if your credit score is 585 or above. The company will also consider other factors to establish your eligibility including:
- Income
- Financial history
- Job history
- Overall credit behavior.
Lending Point does not have prepayment fees, but there is a potentially costly origination fee. This can be zero to 6% depending on your location. There is also a $30 late payment fee, applied after a 15 day grace period.
Despite the higher rates, Lending Point can be a Competitive option for those with fair credit.
APR
15.49% – 35.99%
Loan Amount
$2,000 – $25,000
Term
24 to 48 months
Min score
600
LendingPoint is an online personal loan provider, established in 2014 out of Atlanta, GA. LendingPoint focuses on “near prime” borrowers, or borrowers with average to poor credit. The founders of the company noticed this underserved market after the market crash.
At the time, large banks focused mainly on prime borrowers. LendingPoint has issued almost 70,000 loans, totaling nearly $500 million in consumer loans.
“LendingPoint built a proprietary credit risk model which allows it to offer more loans to consumers with FICO scores between 580-700. Using hundreds of data points, LendingPoint looks at a person’s complete financial picture, taking into consideration credit history, employment history, earning potential and other data to determine creditworthiness.”
LendingPoint Loan Pros & Cons
As we know, each lender has its own pros & cons – here are the relevant things we found for potential borrowers:
Pros
- Quick turnaround times – LendingPoint has a quick process and an easy application. Many borrowers are approved with money in their account by the end of the next business day.
- Soft Pull Inquiry – LendingPoint allows for an initial soft pull inquiry online so the borrower can get an idea of the options for which they may qualify. A soft pull does not affect your credit.
- Good for borrowers with poor credit – LendingPoint targets borrowers without perfect credit. Many other providers will not service borrowers with poor credit.
- Flexible repayments – You can customize your repayments. You can choose a payment due date and schedule your payments every other week, every 28 days, or monthly. You can also request one loan modification during the term of your loan.
- No Prepayment Penalty –LendingPoint does not have a prepayment penalty.
Cons
- Origination Fee – LendingPoint deducts a one-time origination fee of 0% to 6% of your loan amount directly from your loan funds. This should be considered in the pricing of your loan when you apply.
- Smaller max amount –The LendingPoint maximum amount is smaller than many other personal loan providers. If you need more, you will have to go to another provider.
- Not Available in All States – LendingPoint is available in 40 states. See the list here.
- Large late payment fee –LendingPoint has a late fee of $30, which is higher than most other providers.
- High rates –LendingPoint has high rates. If you have a good credit history there are more competitive rates in the market.
Loan Details
What Can a LendingPoint Personal Loan Be Used For?
LendingPoint loans can be used to pay for debt consolidation or credit card refinancing, moving expenses, vacations, medical expenses, wedding expenses, car purchase or repair, or home improvements.
- Home Improvement
- Vacation
- Debt Consolidation
- Wedding Expenses
LendingPoint loans can be used for wedding expenses like engagement rings, and reception and honeymoon costs.
- Moving Expenses
LendingPoint loans can be used to help with moving expenses. For example, a LendingPoint loan could help you take the risk of moving across the country for a new job.
LendingPoint Reputation
- A+ on BBB: BBB assigns ratings from A+ (highest) to F (lowest). BB ratings are based on information in BBB files with respect to factors such as the business's complaint history with BBB, type of business, time in business, transparent business practices, and more.
- 4.9/5 on Trustpilot ( 3900 reviews): TrustScore is also an overall measurement of reviewer satisfaction, represented numerically from 1 to 5.
- J.D Power: We considered J.D. Power’s lending consumers satisfaction study. .J.D Power offers the most comprehensive and independent study of personal loans consumer satisfaction . The study aims to help consumers and issuers to understand user opinions and ratings of top lenders. It covers terms, benefits, services, communication, transparency and more. Lending Point wasn't rated in the 2020 research.
Application Process
- 1.
The LendingPoint application process only takes a few minutes.
- 2.
You will fill out a short form with some basic questions about yourself, including your full name, contact information, date of birth, employment status, and income.
- 3.
The minimum requirements for applying are a minimum credit score of 600 with no bankruptcy, charge-offs, or liens in the past 12 months. The borrower needs one year of consistent employment with a minimum annual income of $20,000.
- 4.
LendingPoint will usually let you know if you are approved very quickly and have the money in your account in one day. Sometimes the borrower may need to provide verification information such as picture ID, social security card, bank statements, pay stubs, or tax returns.
Despite the higher rates, Lending Point can be a Competitive option for those with fair credit.
APR
15.49% – 35.99%
Loan Amount
$2,000 – $25,000
Term
24 to 48 months
Min score
600
Alternatives Lenders For Consideration
Here are our 3 choices of lenders which can use as a great alternative to LendingPoint personal loan:
- Prosper
Prosper is the first peer-to-peer lending marketplace, a platform that matches lenders with borrowers.
Prosper marketplace is a great place to start in your personal loan search. Prosper focuses on the mass market of borrowers and their personal loans can be used for a wide range of reasons. They also have a lending arm for medical costs, Prosper Healthcare Lending. They offer personal loans for a wide variety of purposes and to a large market of borrowers.
They do have a high origination fee while other providers do not have one. The process will take longer than with other platforms, so if you need funds quickly Prosper may not be the right place to start your search.
- SoFi
SoFi has moved away from that business model and moved to a “non-traditional underwriting approach focused on lending to financially responsible individuals. SoFi uses an underwriting model that examines free cash flow, professional history and education in addition to a history of responsible bill payment to evaluate its borrowers.”
SoFi personal loans have no origination or late fees. They also do not have a prepayment penalty so the loan can be paid off early without additional costs. SoFi gives borrowers flexibility in payments and allow you to change payment due dates and do not charge late fees.
- Upstart
This is a unique lender created in 2012 by a group of former Google executives. They are the first lending platform to use artificial intelligence with an automated lending process. The company aims to go the extra mile for its customers.
Most lenders primarily focus on a FICO score to approve a loan. However, Upstart uses its advanced technologies to look beyond this and explore the risk of your loan. These calculations are used to assess your ability to repay your loan.
The company has a strong belief that if lenders would use its intuitive credit model, they would probably be approving more loans.
For borrowers, this means that Upstart can offer high quality loans at low interest rates. With fair terms for borrowers with bad credit, this company has a strong reputation with excellent reviews on Trustpilot and other sites.
LendingPoint Personal Loan is Best for..
LendingPoint is a great option for borrowers with poor credit that need money fast. They service an underserved market that many of the big banks do not.
LendingPoint is great for borrowers who have high amounts of debt and want to consolidate and simplify life.
If you need credit fast, LendingPoint is a good option but you should keep your options open and shop around for a better rate.
