LendingPoint Review 2022: Personal Loans for Fair Credit
GOBankingRates Score
-
Availability
4.7
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Affordability
4.0
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Customer Service
4.2
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Features
4.2
Pros
- No penalties for prepayment
- Borrowed funds may be available the next business day after loan approval
- Minimum credit score requirement of 580
- APR reduction after six months of on-time payments for eligible borrowers
Cons
- Minimum annual income requirement of $20,000
- Origination fee of up to 7% for some borrowers
- Does not allow cosigners or co-borrowers
LendingPoint Overview
LendingPoint provides fixed-rate, unsecured personal loans to borrowers in every state except West Virginia and Nevada. Consumers with fair 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%. Repayment terms are two to five years.
Key Features
GOBankingRates gave LendingPoint a rating of 4.3 based on the following factors.
Availability
LendingPoint personal loans are available to qualified applicants at least 18 years old with a minimum credit score of 580, a verifiable bank account and a minimum annual income of $20,000. Income can be from employment, retirement distributions or another source.
Affordability
With a loan origination fee of up to 7% and APRs as high as 35.99%, a LendingPoint loan may be unaffordable for some borrowers. However, loan rates are fixed, and some borrowers may be eligible for a lower APR after six months of on-time payments.
Customer Service
Applicants and borrowers can receive customer service via email or phone at CustomerService@LendingPoint.com or 888-969-0959. Borrowers also have online account access on the LendingPoint website.
Features
Eligible LendingPoint applicants may benefit from the following features:
- Pre-approval without credit hard inquiry
- Same-day loan approval
- Funding can be as soon as the next business day
- APR reduction after six months of on-time payments
How LendingPoint Stands Out
LendingPoint’s mission is to help those with fair credit find lenders that look beyond an applicant’s credit score. The company’s belief that not everyone with a lower credit score is a credit risk is backed by the policy that eligible borrowers who make six months of on-time payments may receive an APR reduction.
Comparable LendingPoint Options
Here are two emergency loan lenders comparable to LendingPoint that those with poor to fair credit may want to consider.
SeedFi
SeedFi is a secured personal loan option that holds part of the loan as collateral in an FDIC-insured savings account. A borrower won’t have access to all borrowed funds, but those with poor or insufficient credit may have a better chance of qualifying. Once the loan is paid in full, the borrower gets access to their savings account. SeedFi APRs range from 11.59% to 29.99%.
OneMain Financial
OneMain Financial has no minimum credit score requirements, but those with a lower credit score typically have a higher interest rate. APRs range from 18.00% to 35.99%. OneMain origination fees can be up to 10% of the loan amount for some borrowers.
How To Apply
Applicants can fill out 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.
Upon final approval, the borrower can receive loans in their bank account, sometimes as soon as the next business day.
Who LendingPoint Is Best For
Because of its higher interest rates and origination fee, LendingPoint is best for those with fair credit who need quick money to cover an emergency expense and have limited lending options.
Final Take
LendingPoint can help borrowers with fair credit get quick cash and build their credit. Those with bad credit will likely need to look to other lenders for a personal loan. Those with good to excellent credit may find better personal loan rates and terms elsewhere.
Anyone needing a personal loan should compare several lenders’ terms, rates, fees and qualifications before applying.
FAQ
Here are answers to common questions regarding LendingPoint.- What credit score do you need for LendingPoint?
- Applicants need a minimum credit score of 580 to qualify for a LendingPoint loan. Applicants will need to meet additional requirements to get approval.
- Is LendingPoint real?
- With the many online financial platforms, confirming a platform's legitimacy is crucial before using it. So is LendingPoint legitimate 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 4.9 out of 5 stars customer rating on more than 6,300 reviews.
- How long does LendingPoint take to approve an application?
- LendingPoint can provide loan offers within seconds of applicants submitting their information. However, once an applicant chooses an offer, approval time will vary based on the lender and how much additional documentation is required.
- Does LendingPoint do a hard inquiry?
- LendingPoint uses a soft credit inquiry to pre-qualify applicants for offers. A hard inquiry is performed once an applicant selects a loan offer and continues the application process.
Data is accurate as of June 21, 2022, and is subject to change.
Editorial Note: This content is not provided by LendingPoint. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by LendingPoint.
