Whether your credit score is in fair shape or less than stellar, you may be able to qualify for a personal loan with LendingPoint. The lender offers quick funding and relatively low loan amounts but also has an origination fee and shorter-than-average repayment terms.

If you’re looking for a personal loan from $2,000 to $25,000, here’s what you need to know about LendingPoint.

• LendingPoint Company Profile
• Type of Loans Offered by LendingPoint
• Is LendingPoint a Direct Lender
• LendingPoint Personal Loan Terms
• How to qualify for LendingPoint Personal Loan
• How to Apply for LendingPoint Personal Loan
• LendingPoint Invisalign
• Personal Loans for Bad Credit
• Bad Credit Lenders

LendingPoint Company Profile

LendingPoint is a lender founded in 2014 and is based in Kennesaw, Georgia. The firm provides personal loans to individuals and mezzanine financing and credit to businesses.

Contact Information

Website

www.lendingpoint.com

Year Founded

2014

Service Provider Type

Lender

Primary Office

• 1201 Roberts Boulevard
• Suite 200
• Kennesaw, GA 30144
• United States

+1 (888) 

LendingPoint was founded in 2014 by Tom Burnside, Franck Fatras, Victor J. Pacheco, and Juan E. Tavares. The founders saw that the aftermath of the Great Recession was a polarizing force in consumer lending, as consumers were divided into either “prime” or “subprime” asset classes as defined by their FICO scores.

Banks continued to compete for prime customers by offering low interest rates and loyalty programs, but consumers below the 700 FICO dividing line were grouped together and remained stuck between bank declines and very few responsible borrowing choices.

Read Also: Mariner Finance Personal Loans Review

The founders recognized financial behaviors and characteristics that were more distinctive than FICO scores, which defined an asset class that could be seen as an emerging market with predictive behaviors and risk profiles.

LendingPoint officially launched its first consumer loan product in January 2015. In October 2015, LendingPoint announced a $100 million credit facility with funds managed by the Tradable Credit and Direct Lending groups of Ares Management.

Just two months later, LendingPoint signed an additional credit facility for $5 million of incremental financing with Aeterna Capital Partners. This money was raised to help the company expand its loan portfolio to even more consumers and grow with the demands of the market as it continued rollout across the U.S

LendingPoint was created with the goal of providing access to more affordable loans for these consumers with credit scores between 580-700, a class which LendingPoint names “NearPrime”.

On June 28, 2018, LendingPoint upsized its mezzanine financing, bringing the total of its mezzanine credit facility to $52.5 million. The upsized mezzanine allows LendingPoint to more efficiently manage its equity by warehouse financing its originations before selling them into its Senior Credit Facilities.

To date, the company has issued almost 70,000 loans, totaling nearly $500 million in consumer loans.

Type of Loans Offered by LendingPoint

LendingPoint offers personal loans to borrowers who need financial help to pay for a major purchase, such as a new home appliance or wedding, or to help consolidate debt. LendingPoint’s personal loans can reach up to $25,000 with terms of 24 to 48 months.

Is LendingPoint a Direct Lender

LendingPoint is a fast-growing direct lender that makes personal loans of up to $25,000 as soon as the next business day to borrowers with credit scores of 585 and up.

LendingPoint personal loans are best if you:

• Don’t have great credit
• Need a smaller personal loan fast
• Want the option to pay your loan off early

Advantages and Disadvantages of LendingPoint Loans

Make sure to evaluate the benefits and drawbacks of a LendingPoint personal loan before sending in your application.

Advantages:

• Options for people with a low credit score: LendingPoint accepts borrowers with credit scores as low as 585, making it an attractive option for people who may have trouble getting approved elsewhere.
• No prepayment penalties: Even if you’re quoted a high APR, you can still save on interest costs by paying off your loan early — LendingPoint charges no fees for doing so.
• Quick funding: Loan approval can be completed within just a few hours of accepting a loan offer, and LendingPoint initiates funding as soon as the next business day.

Disadvantages:

• No joint loans: If you have a subpar credit score and are having trouble getting approved with LendingPoint on your own, it may not be the right lender for you. The lender doesn’t allow joint loans, meaning you can’t add a co-signer in order to improve the overall credit picture.
• High maximum APRs: LendingPoint’s maximum APR of 35.99 percent, likely offered to those with the poorest credit, may increase your monthly payment significantly. If you’re looking to consolidate credit card debt, make sure the offer you get from LendingPoint will be less than what you’re paying now.
• Short repayment periods: While some lenders offer repayment terms of 60 months or more, LendingPoint’s repayment terms range only from 24 to 48 months.

LendingPoint Personal Loan Terms

LendingPoint offers fixed-rate personal loans ranging from $2,000 to $25,000, with repayment terms from 24 to 48 months. Some similar lenders offer up to five years to repay what you owe, giving you a little more time and a lower monthly payment.

LendingPoint offers loans in 49 states and the District of Columbia. The only state where residents can’t apply is West Virginia. Interest rates range from 9.99 percent to 35.99 percent APR, depending on your creditworthiness.

You can use a LendingPoint personal loan for any legal purpose, such as debt consolidation or to pay for a wedding. To qualify, you need to have a credit score of at least 585, as well as an annual income of $35,000 or higher. You also need to:

• Be at least 18 years old.
• Have a federal, state or local government-issued photo ID.
• Have a Social Security number.
• Have a verifiable personal bank account in your name.

You can even get approved if you have a bankruptcy on your credit report, as long as it was discharged at least 12 months ago.

Unfortunately, LendingPoint doesn’t currently allow co-signers. So if you can’t get approved on your own, you will need to find a different lender. You also can’t include income from someone else in your household when filling out that portion of the loan application.

If you get approved for a loan, you can receive the funds as soon as the next business day, making it a great option if you’re experiencing an emergency and need quick access to cash.

If you’re hoping to use the loan to improve your credit, though, keep in mind that LendingPoint promises only to report to “one or more” of the three national credit reporting agencies. If improving your credit is your priority, find a lender that will report to all three.

LendingPoint Personal Loan Fees and Penalties

LendingPoint charges an origination fee of 0 percent to 6 percent of the loan amount. If you like, you can have this upfront fee deducted from your loan disbursement instead of paying it out of pocket. If you choose this option, though, you may need to borrow more than you need to make sure you don’t end up with a shortfall.

The lender doesn’t charge an application fee, and it also won’t penalize you if you choose to pay off your loan early.

How to qualify for LendingPoint Personal Loan

There are four major criteria you need to hit to qualify for a personal loan with LendingPoint:

• Credit score: One thing LendingPoint has going for it is that it’s comfortable lending to “near prime” borrowers with credit scores as low as 585.
• Employment: If you’ve been at your current job for at least 12 months, LendingPoint considers that a “plus.” It’s not a big deal if you’re retired or self-employed, as long as you have verifiable income.
• Annual income: The minimum income to get approved for a loan is $20,000, but the more you make (and the lower your current level of debt) the more you’ll be able to borrow. Having a “responsible banking and financial track record” will also score points with this lender.
• Residency: You need to have a social security number and a bank account in your name. You’ll typically be expected to provide other documentation, including proof of income, statements from your financial institution, and a driver’s license or other government-issued photo I.D.

How to Apply for LendingPoint Personal Loan

To apply for a LendingPoint personal loan, you’ll start with the lender’s prequalification process. During this part, you’ll provide your:

• Desired loan amount.
• Name.
• Date of birth.
• Email address and phone number.
• Address.
• Income information.
• Last four digits of your Social Security number.

Then click the button that says “Find My Loan Options.” LendingPoint will run a soft credit check and provide a few offers based on the information you provided.

After you choose the offer that best suits your needs, you’ll need to provide some additional information to get approved, including your driver’s license, proof of income, bank statements and a voided check. LendingPoint will then run a hard credit check (which will show up on your credit report) to finalize its offer.

Before you complete this process, though, take a few minutes to compare the offers LendingPoint provides with other personal loan rates from top lenders with which you might qualify.

How long does LendingPoint take to Deposit

After sending an application, finding out whether you were approved for a loan should take anywhere between 24 hours to a week. Once you know that you have been approved, and for how much, it is your responsibility to fully understand the terms of the loan, what your interest rate and minimum monthly payments are, the estimated repayment period and any other terms you might be agreeing to.

Once you have accepted these terms and are aware of all the implications, you’ll sign all the necessary paperwork and provide documentation in order to move forward with the loan.

Depending on your agreement, you’ll either receive a check from the bank personally or by mail or the funds will be deposited into your bank account within a week or so. Once you receive the full amount, make sure to verify that it is what you agreed on.

How do I prepare to take out a loan?

There are six steps to follow in order to get a loan.

1. Check your credit score – Knowing your credit score and making sure there are no mistakes will make it easier for you to have an idea of what kind of loan you’ll get. Depending on whether your credit is excellent, good, fair or bad, you’ll get a different amount for approval and interest rate.
2. Get pre-qualified for a loan – NerdWallet.com says, “Re-qualifying for a loan gives you a sneak peek at the kind of offers you may receive. Many online lenders perform a soft credit check during pre-qualification that doesn’t affect your credit score, so checking it out ahead of time is a win-win.”
3. Shop around for personal loans – Shopping for lenders is key in order to find the one that best accommodates your financial needs. When shopping around, make sure to compare monthly payments and interest rates.
4. Compare your offers with other credit options – Sometimes a personal loan is not the only or best option in order to move forward and get out of debt. Depending on your unique situation, make sure to evaluate all the strategies.
5. Read the fine print – Before making a final decision, make sure to read the fine print in order to avoid surprises down the road.
6. Final approval – Once you get approved, keep in mind that there are several factors that will determine the final amount you’ll receive.

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Example of financing for well-qualified customer: a $2,499.00 loan and a $53.08 monthly payment, would receive an interest rate of 9.99% with 60 monthly payments.

Actual loan offers and loan amounts, terms, and annual percentage rates (“APR”) may vary based on LendingPoint’s proprietary scoring and underwriting system review of your credit, financial condition, other factors, and supporting documents or information you provide. Not all applicants will qualify.

LendingPoint for Providers

The LendingPoint Merchant Solution finance program is offered in all 50 states in the US. Merchant can increase sales and customer satisfaction by advertising financing options to attract more customers to their business. They can use one of LendingPoint’s many promotional offers as a way to close more sales.

Merchants can also use the program to advertise affordable monthly payment options in conjunction with their “buy today” sales price. By advertising a low monthly payment, you’re appealing to those customers who can’t afford the total cash price of your product or service today. Use one of LendingPoint’s special promotional offers as a marketing tool to drive more customers into your store.

Use the LendingPoint finance program as a way to distinguish yourself from the competition. Offer your customers a compelling offer by advertising one of our no interest (if paid in full) promotional offers along with a low, affordable, FIXED monthly payment. Let your customers know that you can approve a wide variety of credit profiles and to come in to apply for financing today.

Interest accrues during the promotional period, but all interest is waived if the entire purchase balance is paid in full before the end of the promotional period and you make all required monthly payments on or before their due dates. Terms may vary based on creditworthiness, amount of loan and length of term.

Finally, LendingPoint Merchant Solutions is a great way for you to gain new customer leads online. LendingPoint provides advertising banners for use on your website to encourage customers to apply for financing to check their rate. Each customer, regardless of whether they’re approved or not, is sent to your online portal and you’re notified via email.

Personal Loans for Bad Credit

Bad credit refers to a low credit score or a short credit history. Things like late payments or maxed-out credit cards are financial missteps that can lower your credit score.

Bad-credit loans are an option for people whose credit reflects some financial missteps or people who haven’t had time to build a credit history. These loans are either secured (backed by collateral like a home or car) or unsecured. Interest rates, fees and terms for these types of loans vary by lender.

Various banks, credit unions and online lenders offer loans to those with weak credit, but the threshold for what’s considered a “creditworthy borrower” varies by institution. Some lenders have stricter requirements than others, which makes it important to shop around thoroughly when looking for a loan.

Types of bad-credit loans

There are two main options when it comes to getting a personal loan if you have bad credit: secured and unsecured.

Secured vs. unsecured bad-credit loans

Secured loans require collateral, like a home or car. Generally, they offer more favorable rates and terms and higher loan limits, since you have greater incentive to pay back your loan in a timely manner. And if you have bad credit, it may be easier to get a secured loan than an unsecured one.

If you default on the loan, however, you risk losing your home, car or other collateral. The most common types of secured loans are mortgages, home equity loans and auto loans, although some lenders offer secured personal loans.

Read Also: Upstart Personal Loans Review

Unsecured loans don’t require any collateral, and the rate you receive is based on your creditworthiness — meaning they may be harder to qualify for if you have below-average credit. Since it’s not secured by an asset, this type of loan typically comes with a higher interest rate and lower loan limits, but you don’t risk losing your assets if you fall behind on payments.

Additional types of loans for people with bad credit

If you’re having trouble qualifying for a traditional personal loan, you have other options.

Payday loans

Payday loans are short-term loans, typically for $500 or less. Payday loan lenders don’t run credit checks, but the overall cost of borrowing is high — sometimes up to 400 percent in interest — so it’s important to weigh your other options first. Payday lenders can also be predatory in nature, so make sure to thoroughly research any potential companies you’re looking into before signing up.

Cash advances

Cash advance lenders generally don’t check your credit, but you’ll need to show proof of income. If you have an unsecured credit card, your cash advance interest rate will likely be higher than your card’s standard purchase APR.

Bank agreements

Depending on your bank’s policy, it may approve you for a short-term loan or minimal overdraft agreement. This is, of course, dependent on your banking history and ability to keep your account open. For more information, contact your bank and ask about your options.

Home equity loans for bad credit

Like personal loans, home equity loans disburse a lump sum of money upfront, which you pay back in fixed monthly installments. Because home equity loans are secured by your home, they may be easier to acquire for people with bad credit.

HELOCs for bad credit

HELOCs are similar to home equity loans in that they are based on your home equity and secured by your home itself. HELOCs, however, are functionally similar to credit cards in that they allow you to borrow only as much as you need, when you need it, then repay funds with a variable interest rate.

How to get a personal loan with bad credit

Getting a personal loan with bad credit isn’t impossible, but it requires diligent research to find the most affordable loan possible. Here are a few steps to find a personal loan if you don’t have strong credit.

1. Check your credit score. Learn how your credit stands by requesting a free credit report from AnnualCreditReport.com. You are entitled to one free credit report every year from each of the credit reporting agencies.
2. Ensure that you can repay the loan. Ensure that you have a steady income and calculate whether your budget can support an additional monthly loan payment.
3. Compare bad-credit personal loans. If you have an existing relationship with a bank or credit union and your accounts are in good standing, it may have a personal loan option for you. You can also research personal loans for bad credit online, but make sure to read the fine print and independent reviews about the lender.
4. Take advantage of prequalification. Many online lenders allow you to check whether or not you will qualify for a loan without pulling a hard credit check. This is a good way to shop around for a bad-credit loan without impacting your credit score further.
5. Look into secured loans. Some lenders offer secured personal loans, which are often more accessible to people with below-average credit. These loans must be backed by an asset like your home or car, but they typically have lower APRs.

Bad Credit Lenders

LendingPoint

Overview: LendingPoint operates in 49 states and the District of Columbia and offers loans for those with credit scores as low as 585. Loan amounts range from $2,000 to $25,000, and APRs start at 9.99 percent and go as high as 35.99 percent. The repayment terms offered by LendingPoint vary from 24 to 48 months.

Perks: LendingPoint provides application decisions in just a few seconds, and once the loan is approved, funds can be available as soon as the next day.

What to watch out for: Depending on your state, you may pay an origination fee with LendingPoint of as much as 6 percent, which is deducted from your loan proceeds. In addition, you must have a minimum annual income of $35,000 to qualify for a loan

BadCreditLoans.com

Overview: As a loan aggregator, BadCreditLoans.com refers applicants to reputable lenders that are willing to provide loans for those who have poor credit. The APR on personal loans from the BadCreditLoans network of lenders and financial service providers ranges from 5.99 percent to 35.99 percent, with loan amounts from $500 to $5,000. Repayment terms vary from three to 36 months. Applying for a loan is free, though applicants must be at least 18 years old.

Perks: BadCreditLoans.com does not charge you any fee for requesting a loan through its site. In addition, BadCreditLoans says that it designs its application process to allow nearly anyone to qualify, even those who would not necessarily be approved elsewhere.

What to watch out for: BadCreditLoans is not a lender itself. It connects consumers to lenders and other financial service providers, meaning you will need to carefully read through the terms, fees and all other requirements offered by each lender, as details will vary.

OneMain Financial

Overview: OneMain Financial offers both unsecured loans and secured loans, which require providing collateral such as a motor vehicle. Loan amounts range from $1,500 to $20,000. APRs can be run anywhere from 18 percent to 35.99 percent, and term lengths are 24, 36, 48 or 60 months.

Perks: The application and funding process with OneMain is very quick — typically about one day from the start of the application to receipt of funds. The company also has nearly 1,500 branch offices for those who like to deal with a brick-and-mortar business.

What to watch out for: OneMain Financial charges origination fees that vary based on the state you live in. In some cases, it’s a flat amount, ranging from $25 to $400, while in others it may be a percentage of the loan. Percentage-based fees range from 1 percent to as much as 10 percent. OneMain also charges late payment fees that vary based on the state where you opened the loan. Typically, the fees range from $5 to $30 per late payment.

Earnest

Overview: Earnest, which partners with Fiona to match you with personal loan providers, allows you to view personalized loan offers without a hard credit check.

Perks: When you submit your application, Earnest searches loan offers from multiple providers in order to match you with the best offer, which could save you time in comparison shopping. APRs also start at a low 4.99 for some providers.

What to watch out for: Earnest no longer provides its own personal loans, instead partnering with Fiona to match you with third-party providers. Your eligibility, rates and fees will be determined by the providers you’re matched with.

Upstart

Overview: Upstart has developed a reputation for offering fast and fair personal loans. While many loan applications are based primarily on a borrower’s credit score and years of credit, Upstart applications also factor in an individual’s education, job history and area of study.

APRs for Upstart loans vary by state and range from 6.27 percent to 35.99 percent. Loan amounts range from $5,000 to $30,000, and you can choose a repayment term of either three or five years.

Perks: Funds are provided quickly, as soon as the next day after approval. There’s no down payment or prepayment penalties.

What to watch out for: Upstart charges a one-time origination fee, which can be as high as 8 percent of the approved loan amount. Upstart also charges late payment fees and returned check fees.

TD Bank Personal Secured Loan

Overview: The TD Bank Personal Secured Loan comes with a variable interest rate. The origination fee for this loan is $50, which is collected at closing and cannot be rolled into the loan. Borrowers can apply for loan amounts of $5,000 to $50,000 with terms ranging from 12 to 60 months.

Perks: This loan allows applicants to borrow against their savings, which TD Bank treats as collateral. There are no monthly fees, annual fees, prepayment fees, late fees or insufficient fund fees.

What to watch out for: Applicants must use a TD Bank savings account, money market savings account or CD as collateral for these loans, which can be limiting for potential applicants.

Upgrade

Overview: Upgrade offers personal loans that can be used for debt consolidation, credit card refinancing, home improvements or major purchases. APRs available from Upgrade start at 7.99 percent and go as high as 35.97 percent. Loan amounts range from $1,000 to $35,000, and terms are 36 or 60 months.

Perks: When applying for an Upgrade loan, you’ll get a decision within just a few seconds, and the funds can be available within just one day of going through the provider’s verification process.

What to watch out for: All personal loans include a 2.9 percent to 8 percent origination fee, which is deducted from the loan proceeds.

Avant

Overview: Avant offers unsecured loans of between $2,000 and $35,000. Avant’s loans offer repayment terms of 24 to 60 months, and APRs range from 9.95 percent to 35.99 percent.

Perks: For those who qualify, the loan funds can be made available as soon as the next day.

What to watch out for: Avant loans come with an administration fee of as much as 4.75 percent. There’s also a late fee if monthly payments are not made in full within 10 days after the due date, as well as an insufficient funds fee.

When taking out a personal loan like the one from LendingPoint, it’s wise to compare rates you may qualify for with multiple lenders to find the best personal loan for your needs. In addition to interest rate, look for a repayment term and monthly payment that works for you.