LendingPoint Personal Loan Review
What is LendingPoint? Founded in 2014, is an online lender based in Kennesaw, Ga., outside Atlanta. It began by offering personal loans only in Georgia, but has since expanded to 34 states and Washington D.C. LendingPoint has originated more than $500 million in loans through its website and loans made through merchants known as point-of-sale … Continue reading LendingPoint Personal Loan ReviewThe post LendingPoint Personal Loan Review appeared first on MagnifyMoney.
Posted — UpdatedWhat is LendingPoint?
Founded in 2014, LendingPoint is an online lender based in Kennesaw, Ga., outside Atlanta. It began by offering personal loans only in Georgia, but has since expanded to 34 states and Washington D.C. LendingPoint has originated more than $500 million in loans through its website and loans made through merchants known as point-of-sale loans. The company lends to those with fair credit, borrowers with scores as low as 580 who may not be able to attain a personal loan through more traditional financial lenders.
[LendingPointPL]LendingPoint[/LendingPointPL] personal loan highlights
- Caters to borrowers with fair credit. LendingPoint works with borrowers who have fair credit or those the company calls “near-prime” consumers.
- Quick decisions and distribution of funds. Borrowers may apply online, see an offer within minutes and receive money as soon as 1 to 2 business days.
- Soft pull. LendingPoint conducts a soft pull to provide a rate quote that will not impact your credit score.
- Refinance option. After six months of paying your personal loan on time, and once you have paid down at least 25% of the principal, you may be able to adjust your payment or get a better deal on your interest rate.
- High rates: LendingPoint’s rates are high compared with other lenders who cater to borrowers with fair credit. Read our roundup of personal loans for those with less-than-perfect credit here.
Terms24 to 48months
LendingPoint offers personal loans for a wide variety of reasons, including paying for home repairs, consolidating credit card debt, or to make a large purchase. Their online process can help you to quickly apply for a personal loan, get qualified, and receive funding. While their interest rates can be higher than others, they do offer fast approval and can transfer funds to your bank account in 24 hours.
LendingPoint personal loan details[Chart-LendingpointPersonalLoanDetails] Fees and penalties
- Terms: 24 to 48 months
- APR range: 15.49% to 35.99%
- Loan amounts: $2,000 to $25,000
- Time to funding: After the final approval, funds may be transferred in up to 1 to 2 business days, though often as soon as the next business day.
- Hard pull/soft pull: LendingPoint conducts a soft pull when you first apply for a personal loan quote. After you review the loan offer(s) and select one, a hard pull will then be done to move forward with the final loan approval process.
- Origination fee: The Fee Varies, depending on your state of residence and credit history.
- Prepayment fee: None
- Late payment fee: Varies
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Many lenders are strict about how many loans you can have at one time, sometimes maxing out at one per borrower. However, LendingPoint may allow you to take out two loans at once, depending on your current loan’s standing and your overall credit history. Being able to take out another personal loan can be helpful if a new financial issue comes up, such as an unexpected home repair, where you need more funds than your current loan can’t cover.
Eligibility requirements
- Minimum credit score: 585
- Minimum credit history: LendingPoint looks at your overall financial potential to help determine whether you’re a good candidate for a personal loan, but it will only consider those who can show income of at least $20,000 a year.
- Maximum debt-to-income ratio: 35%
All borrowers must be at least 18 years old and reside in one of LendingPoint’s 34 designated states or Washington, D.C. Borrowers are encouraged to show consistent employment history for at least the past 12 months and must have a bank account.
LendingPoint does not offer loans in:
- Colorado
- Connecticut
- Iowa
- Louisiana
- Maine
- Maryland
- Massachusetts
- Nevada
- New York
- North Dakota
- Rhode Island
- South Carolina
- Vermont
- West Virginia
- Wisconsin
- Wyoming
Applying for a personal loan from LendingPoint
To begin the application process with LendingPoint, you’ll first need to provide basic background information, such as your name, date of birth, Social Security number, and annual income. This is the pre-approval process which will generate one or more loan offers in just a few minutes.
If you choose one of the offers and agree with the terms and rates, you will then need to provide any additional information and documents LendingPoint may request, including your driver’s license, bank statements (with voided check) and proof of income. Once all documents have been received and reviewed, a final loan approval can happen in a few hours, and your funds can possibly be distributed to your bank account within the next business day.
Pros and cons of a LendingPoint personal loan[Chart-LendingPointProsAndConsDetails] Pros:
Cons:
- No prepayment penalty. If you decide to pay off your loan before your term is up, LendingPoint will not charge you a prepayment penalty.
- Fast approval and funding. Many borrowers are pre-approved for a personal loan within just minutes and approved for the actual loan within hours. Borrowers can possibly receive funds in their bank account the next business day.
- Works with borrowers with fair credit. LendingPoint provides personal loans to borrowers with fair credit.
- Bankruptcy is not grounds for automatic disqualification. Borrowers with a discharged bankruptcy of 12 months or more can still apply for a personal loan with LendingPoint. Your credit history, income and discharged bankruptcy timeframe will all be determining factors.
- No joint or cosigner loans. Some lenders allow you to have a cosigner with a higher credit score in order to qualify for a better personal loan rate. That is not the case with LendingPoint’s personal loans, as they are based only on your individual credit history.
- Fluctuating payment schedule. Your monthly due date may change because LendingPoint uses a 28-day payment cycle.
- Higher interest rates. LendingPoint may work with borrowers with fair credit, but that can mean higher interest rates when compared with other lenders.
- Origination fee. Many lenders don’t charge an origination fee for personal loans, which is why LendingPoint’s possible charge of up to 6.00% can be off-putting.
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Who’s the best fit for a LendingPoint personal loan
If you have fair credit and meet the income requirements, LendingPoint could be a good option, especially if you need funds fast. The lack of a prepayment penalty is a plus, but other lenders offer lower rates, even for those with less than ideal credit.
Alternative personal loan options
[PeerformPL]Peerform[/PeerformPL]
Terms36 or 60months
Peerform offers lower fixed rates ranging from 5.99% to 29.99% with loan amounts starting at $4,000 and maxing out at $25,000; terms are between 36 or 60 months. Similar to LendingPoint, there are no prepayment penalties should you want to pay off your loan in advance, but there may be an origination fee that varies from 1.00% - 5.00%. There are other fees to consider with Peerform as well — these include late fees, unsuccessful payment fees, and check processing fees, all of which can range around $15 each.
[LendingClubPL]LendingClub[/LendingClubPL]
Terms36 or 60months
While LendingPoint allows borrowers to take up to $25,000, LendingClub offers loans up to $40,000 which is good for those looking to borrow more money. However, you will likely have to wait a little longer to receive the funds — LendingClub’s earliest distribution is within 7 business days. There are no prepayment penalties, but LendingClub charges an origination fee of anywhere from 1.00% - 6.00%, and you could also be charged a check processing fee or late payment fee. Credit history, the loan amount and any other outstanding debt are some of the factors used to determine the APR, which usually ranges from 6.16% to 35.89%.
[OneMainFinancialPL]OneMain Financial[/OneMainFinancialPL]
Terms24 to 60months
OneMain Financial has issued loans for more than 100 years and, similar to LendingPoint, can have money in your hands within the next business day after final approval. Loan amounts are from $1,500 to $30,000 with an APR range of 16.05% to 35.99%. Borrowers are eligible for terms of 24 to 60 months, depending on your credit and financial history and any other debts you may have. Credit score requirements vary and all personal loans have fixed rates and payments without any prepayment penalties. You may be able to get a loan offer within minutes when you apply online but will need to meet with a loan specialist in person for final approval.
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