Personal loan lending is a service that has become quite popular in recent years. There are several reasons why people might take out a personal loan, from consolidating debt to funding a large purchase.
LendingPoint is a personal loan company that offers unsecured loans to people with a variety of credit scores. It’s a direct lender that provides loans for personal and business needs alike. LendingPoint is a great choice for people with fair to bad credit scores, even if other lenders have previously turned them down.
In this article, we will take a closer look at how LendingPoint works and what its loan requirements are. We will also compare it to other lenders and discuss its fees and charges. Continue reading our LendingPoint review if you wish to learn more.
APR from 9.99% to 35.99%
- Fast quotes
- No origination fees
- Same-day approval
- Next-day funding
- Low credit score requirements
- No secured and co-signed loans
- Reports payments to two of three bureaus only
LendingPoint is a financial technology platform that extends financing solutions to consumers and businesses. Founded in 2014, LendingPoint offers a variety of financial products, including personal loans, business loans, lines of credit, and merchant cash advances.
Rated with an A by Better Business Bureau, LendingPoint is one of the leading providers of financing solutions in the US. This lender also provides a number of resources to help borrowers understand their options and make the best decision for their needs.
In addition, LendingPoint offers a loyalty program that rewards customers for making on-time payments and referring new borrowers to the platform.
LendingPoint Features and Services
All LendingPoint’s features can be divided into two main categories: personal loans and business solutions.
Personal loans are funds intended for people who need money for personal expenses like weddings, medical bills, or other emergency occurrences. LendingPoint offers a wide range of loan amounts, fast payouts, no prepayment penalties, and APRs as low as 9.99%.
The second category, business loans, is targeted at small businesses, and it is designed to help them simplify financial services and open up more possibilities for their growth. LendingPoint does this by implementing point-of-sale financing, marketplace seller financing, and white-labeled credit approval technology.
LendingPoint Application Process
The LendingPoint application process is fairly straightforward, and it consists of two steps:
- Complete the application
This part of the process will require some of your personal and financial information. This typically includes your name, email and physical address, and phone number. You’ll need to provide your pre-tax annual income, income source, and the last four digits of your Social Security number. The only thing left to do is create a password, and you’re done with the first step!
- Wait for the approval
Once you complete the application, LendingPoint will evaluate your information and decide within minutes. If you get approved, you can expect to receive the funds as early as the next business day.
LendingPoint Terms and Fees
Whatever the reason for considering a personal loan, it’s important to understand the terms and fees before borrowing.
LendingPoint Personal Loan Terms
LendingPoint offers personal loans with 24-60 months terms, and the origination fee goes up to six percent of the loan amount. The minimum amount is $2,000, and the maximum is $36,500.
Your APR on a loan depends on income, credit score, and other information in your application, but with LendingPoint, it will fall somewhere from 9.99 to 35.99%.
If you wish to quickly check the rate, you can do so on LendingPoint’s website by typing in desired loan amount and loan purpose, after which you’ll receive an instant quote.
LendingPoint Personal Loan Fees
LendingPoint charges an origination fee that can go up to six percent, and it can be financed or disbursed from the loan. There are no other hidden fees, and you won’t be charged any prepayment penalties if you decide to pay off your loan early.
One of the main advantages of LendingPoint is that it doesn’t discriminate against borrowers with bad credit scores. According to LendingPoint credit score requirements, the minimum credit score required is 580, which is lower than what most other lenders require.
One of the few downsides of LendingPoint is that it does not report payments to the Equifax credit bureau. It only sends reports to Experian and TransUnion. If you’re looking to improve your credit score, make sure you understand how each credit bureau calculates it and which one makes the most sense for your needs.
LendingPoint Eligibility Requirements
Now that we know how LendingPoint works and what its terms and fees are, let’s take a look at the eligibility norms. In order to qualify for a LendingPoint personal loan, you need to meet the following criteria:
- Be at least 18 years old
- Have a minimum annual income of $20,000
- Live in one of the states where LendingPoint does business
- Have a personal bank account in your name
- Have a Social Security number
- Be able to provide a US federal, state, or local government-issued photo ID
LendingPoint eligibility requirements are not too difficult to meet. If you can provide the necessary information and documents, you should have no problem getting approved for a loan.
LendingPoint currently provides services to customers in 48 states and the District of Columbia. Unfortunately, Nevada and West Virginia residents are not eligible to apply for a personal loan through LendingPoint as the lender doesn’t operate in these two states.
LendingPoint Customer Service
LendingPoint offers excellent customer support and has an informative website. You can reach LendingPoint’s customer support by phone or email. You can also contact them through social media channels like Facebook and LinkedIn. The customer support is responsive and more than happy to answer any of your questions.
In addition to this, the website also has an extensive knowledge center. There, you can find various tips on handling unexpected expenses, consolidating your debt, and improving your credit health.
How Does LendingPoint Compare to Other Lenders?
LendingPoint is one of many financing solutions available to customers. Before getting involved with one lender, it’s good to check out other options too. We’ll compare LendingPoint to some other popular loan providers.
LendingPoint vs. Avant
Avant is a company that provides financial services, including personal loans, credit cards, and mobile banking. It offers personal loans ranging from $2,000-$35,000, with 24 to 60 months repayment terms and an APR rate of 9.95-35.99%. Avant charges an administration fee of up to 4.75% and does not charge any prepayment penalties. There is, however, a late fee of $25, which you should be aware of if you decide to take out a loan from Avant.
The main difference between these two providers is that, unlike LendingPoint, Avant reports your payment history to all three major credit bureaus, which can be crucial if you’re trying to boost your credit score.
LendingPoint vs. Prosper
Prosper is another popular personal loan lender that offers loans ranging from $2,000 to $40,000. The repayment terms are three to five years, and the APR rates start at 7.95% and go up to 35.99%.
Prosper has slightly higher requirements in terms of credit scores. You have to have a score of 640 or above to be eligible for a loan. Prosper also has an origination fee, which may vary depending on the lender. It is either $15 or an extra five percent, whichever is higher when it comes to late payment fees.
As you can see, both Prosper’s and LendingPoint’s personal loans are solid choices for prospective borrowers. Both lenders offer competitive rates and terms. The main difference is that Prosper requires a higher credit score and has an origination fee, while LendingPoint does not.
So if you need to borrow more money, Prosper might be a better option for you. On the other hand, if your credit score is not that presentable, LendingPoint’s lower credit score requirements will make it easier to qualify for a loan.
What documents does LendingPoint need?
Once you submit your application for a loan through the website, it usually takes only a few seconds for it to be reviewed and for you to get a response. If you decide to proceed with the application, you will be asked to provide some personal documents to verify the information you provided. These documents may include bank statements, employment verification, bank stubs, driver’s license, etc. Once you do that, LendingPoint reviews the documentation and starts the approval process.
Can you cancel a loan after being accepted?
Typically, when you accept a loan and sign the contract, you are committed to that loan, and there’s no turning back. However, some lenders allow their customers to cancel the loan within a certain time, also known as the cooling-off period.
Does LendingPoint require income verification?
LendingPoint does require income verification. You must have a minimum annual income of $20,000 and a verifiable personal bank account in your name to qualify for a loan from LendingPoint. You might have to provide additional documentation if you are self-employed, such as tax returns or financial statements.
Does LendingPoint make a hard inquiry?
If you only wish to get a quote, LendingPoint will not perform a hard inquiry. They will only do a soft pool to see which offers you qualify for. But if you decide to proceed with the application, LendingPoint will review your information and perform a hard inquiry in order to get more accurate rates and terms, which can leave a mark on your credit report.