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LendingPoint is a direct lender that offers personal loans with quick funding and reasonable rates. In this comprehensive review, we will analyze the features, pros, and cons of LendingPoint personal loans, as well as explore the borrowing requirements and application process.

LendingPoint Personal Loans at a Glance

It’s important to note that LendingPoint personal loans have most of the qualities you would want in a personal loan, including reasonable rates, fast funding, and the ability to pre-qualify to check your rate before applying. However, there are some limitations to consider, such as lower loan amounts compared to competitors and the absence of co-applicants or collateral options.

Where LendingPoint Personal Loans Stand Out

LendingPoint offers several noteworthy features that make it a viable option for borrowers:

Fast Funding

One of the standout features of LendingPoint personal loans is the speed of funding. The application process can be completed within minutes, and the lender aims to make approval decisions in seconds. If you are approved before noon Eastern time, LendingPoint may send the funds on the same day. Even if your approval comes after noon, you can expect funding on the next business day. This level of efficiency is rare in the personal loan industry, making LendingPoint an attractive choice for those in need of immediate funds.

Mobile App and Credit-Building Features

LendingPoint provides a mobile app that allows borrowers to pre-qualify, apply for loans, and manage their personal loan payments conveniently. The app also offers credit monitoring tools, allowing borrowers to keep track of their credit scores and receive tips on building credit. While these features are becoming more common among lenders, LendingPoint’s inclusion of them adds extra value to their offering.

Soft Credit Check with Pre-Qualification

Like many online lenders, LendingPoint allows borrowers to pre-qualify, which involves checking their loan offers without impacting their credit score. This feature is especially beneficial for individuals who want to shop around for the best personal loan terms without the risk of negatively affecting their credit. By pre-qualifying, borrowers can get a sense of their loan options and make an informed decision.

Option to Change Payment Date

LendingPoint offers borrowers the flexibility to change their payment due date after closing the loan, and they can make this change once per year thereafter. This feature can be particularly useful if your income or payday schedule changes, as it allows you to align your loan payments with your financial situation more effectively. The ability to adjust the payment date sets LendingPoint apart from lenders that offer less flexibility in this regard.

Ability to Refinance

LendingPoint allows borrowers to refinance their existing personal loans, whether they are from LendingPoint or another lender. This feature is convenient if you have improved your credit since taking out your original loan and qualify for a lower interest rate. By refinancing, you can potentially reduce your monthly payment amount and save on interest over the life of the loan.

Hardship Plan

LendingPoint demonstrates its commitment to customer support by offering a hardship plan for borrowers facing financial difficulties. The lender has a dedicated customer service team to assist borrowers through hardships and provides programs such as reduced payments over time, lower interest rates, or extended repayment terms. This level of assistance and flexibility is valuable for borrowers who may experience unexpected changes in their financial circumstances.

Where LendingPoint Personal Loans Fall Short

While LendingPoint has many positive attributes, there are some areas where it falls short compared to its competitors:

Origination Fee

One notable drawback of LendingPoint personal loans is the potential origination fee. Depending on various factors such as income, debt obligations, and creditworthiness, LendingPoint may charge an origination fee of up to 8% of the total loan amount. For example, if you borrow $10,000, the origination fee could amount to $800. This fee can significantly reduce the loan proceeds available to borrowers and should be considered when evaluating the overall cost of the loan.

Reports Payments to Two Credit Bureaus

LendingPoint reports loan payments to two out of the three major credit bureaus: Experian and TransUnion. While this can positively impact your credit score when payments are made consistently and on time, it may limit the potential credit-building benefits if you apply for credit with a lender that primarily checks Equifax. Most lenders report payments to all three credit bureaus, which allows borrowers to establish a comprehensive credit history across all reporting agencies.

No Joint or Co-Signed Loans

LendingPoint does not offer joint or co-signed loans, meaning borrowers cannot add a co-applicant or co-signer to their loan application. This limitation can be disadvantageous for individuals who may not meet the credit or income requirements on their own and would benefit from the support of a co-borrower. Joint or co-signed loans provide lenders with additional information and can potentially lead to better loan terms or approval chances for borrowers.

No Secured Loans

Unlike some other lenders, LendingPoint does not offer secured personal loans. Secured loans allow borrowers to use collateral, such as a vehicle or savings account, to secure the loan and potentially qualify for lower interest rates or higher loan amounts. While LendingPoint focuses on unsecured personal loans, the absence of secured loan options may be a drawback for individuals who have valuable assets they are willing to pledge as collateral.

Loan Amount Limit

LendingPoint sets a maximum loan amount of $36,500, which may not be sufficient for borrowers with larger financing needs. Competing lenders often offer higher loan limits ranging from $50,000 to $100,000 or more. If you require a substantial loan for purposes such as home improvements or a major purchase, LendingPoint’s loan amount limit may not meet your requirements.

How to Qualify for a LendingPoint Personal Loan

To be eligible for a personal loan from LendingPoint, borrowers must meet certain criteria. Here are the key requirements:

1. Minimum Credit Score: LendingPoint requires a minimum credit score of 660. The lender evaluates creditworthiness using FICO version 9 and VantageScore version 3.
2. Credit History: Borrowers must have at least six months of credit history.
3. Debt-to-Income Ratio: LendingPoint sets the maximum debt-to-income ratio at 50%, excluding mortgage payments. This ratio considers your total monthly debt payments relative to your monthly income. Lower debt-to-income ratios may increase your chances of qualifying for a loan.
4. Income: While there is no minimum income requirement, LendingPoint accepts various sources of income, including employment, alimony, retirement benefits, child support, and Social Security. However, a partner’s income cannot be considered for loan qualification.
5. Residency: Borrowers must be U.S. citizens or legal residents with a valid Social Security number. Additionally, they must have a personal bank account and be at least 18 years old in most states.

It’s important to note that meeting the minimum requirements does not guarantee loan approval. LendingPoint evaluates each application based on creditworthiness, financial condition, and other factors. The lender’s proprietary scoring and underwriting system assesses various aspects of your credit and financial profile to determine loan offers.

According to LendingPoint, the average borrower has a credit score of 668, an income of $75,000, a debt-to-income ratio of 9.85% (excluding mortgage), and takes out an average loan amount of $10,760 over a term of 53 months. The average APR for LendingPoint personal loans is 24.60%. However, these figures may vary based on individual credit history, income, and other factors.

Before You Apply

Before applying for a personal loan from LendingPoint or any other lender, it’s important to consider the following steps:

1. Check Your Credit: Obtain a free copy of your credit report and review it for accuracy. Correct any errors before applying for a loan to ensure your creditworthiness is accurately reflected.
2. Calculate Monthly Payments: Use a personal loan calculator to estimate your monthly payment amount based on different interest rates and repayment terms. This will help you determine the loan amount and repayment terms that align with your budget.
3. Plan for Repayment: Review your budget to understand how the loan payments will affect your cash flow. Evaluate whether you need to adjust other expenses to accommodate the monthly loan payments. It’s crucial to have a solid plan in place to repay the loan responsibly.
4. Gather Required Documents: LendingPoint may require documents to verify your income and identity. Commonly requested documents include pay stubs, W-2 forms, bank statements, and proof of address. Having these documents ready will expedite the application process.

How to Apply for a LendingPoint Personal Loan

Applying for a personal loan from LendingPoint involves the following steps:

1. Pre-Qualify on LendingPoint’s Website: Begin by entering the loan purpose and amount on the LendingPoint website. This will take you to an application page where you provide personal information such as your name, address, birth date, and income. Pre-qualification does not impact your credit score.
2. Preview Loan Offers and Choose One: After completing the pre-qualification process, LendingPoint will present you with up to 12 loan offers. Each offer will include the expected monthly payment. Take your time to review the offers and select the one that best suits your needs.
3. Submit a Formal Application: Once you have chosen a loan offer, proceed to submit a formal loan application. This step may require additional documentation, such as pay stubs, W-2 forms, and bank statements. LendingPoint will perform a hard credit check at this stage, which may temporarily impact your credit score.
4. Make a Plan for Repayment: Once your loan is approved and funded, it’s essential to establish a repayment plan. LendingPoint offers various payment methods, including online or mail payments. Many borrowers opt for autopay to ensure timely payments. It’s crucial to stay on top of your loan payments to build a positive credit history and avoid late fees.

Comparing LendingPoint with Other Lenders

When exploring personal loan options, it’s important to compare lenders to find the best terms for your specific needs. Here’s how LendingPoint stacks up against some of its competitors:

Upgrade vs. LendingPoint

Upgrade is a lender that offers personal loans for debt consolidation. Unlike LendingPoint, Upgrade directly pays your other creditors when you receive a debt consolidation loan, which may result in a lower interest rate. Upgrade accepts borrowers with credit scores as low as 629, and their rates and fees are similar to LendingPoint’s. However, Upgrade offers higher loan amounts, secured and joint personal loans, and potentially faster funding times. Check out our Upgrade Review Here.

Best Egg vs. LendingPoint

Best Egg specializes in personal loans for borrowers with fair or good credit. They are particularly suitable for debt consolidation and home improvement financing. Best Egg allows borrowers to secure personal loans using fixtures permanently attached to their homes as collateral, which LendingPoint does not offer. While LendingPoint provides faster funding, Best Egg offers higher loan amounts and sends funds directly to creditors for debt consolidation loans.

How We Rate LendingPoint Personal Loans

At Investopedia, we evaluate personal loan lenders based on various factors, including interest rates, fees, loan terms, eligibility requirements, repayment options, customer service, and more. Our ratings are designed to provide consumers with unbiased and comprehensive reviews to make informed decisions about borrowing needs. For more information on our rating methodology, please visit our website.

Conclusion

LendingPoint personal loans offer fast funding, a streamlined application process, and the potential for interest rate reductions. While the lender has some drawbacks, such as origination fees and high APRs, it remains a viable option for borrowers with fair credit. Before applying for a personal loan, carefully assess your financial situation and compare lenders to find the best terms that meet your needs. Remember to prioritize responsible borrowing and create a sound repayment plan to ensure a positive borrowing experience.