LendingPoint Personal Loans Review

Best For: Borrowers with bad to fair credit

Atlanta-based LendingPoint opened its doors to the state of Georgia in 2014. Immediately, it stood out as the lender who wanted to say “yes.” LendingPoint not only considers your credit score, but they also factor in your education, earning potential and general creditworthiness when reviewing your loan application.

This merit-based qualification system is designed for those with NearPrime™ credit, defined by credit scores in the 600s. LendingPoint wants to create opportunity for those who can’t easily find it. Not to worry if you’re not a Georgia resident. You could still be eligible for a loan. As of November 2017, the lender serves 32 states plus Washington, D.C.

LendingPoint loan rates and terms

» MORE: Best loans for fair credit

How Does LendingPoint Work?

While LendingPoint uses your FICO score as a baseline, they believe you are much more than just a score. When assessing your qualification for a loan, it wants to know the big picture. Do you make payments on time? Have you been employed for the last 12 months? Are you self-employed or a traditional 9-5er? How much total debt are you currently carrying? The answers to these questions will all be factored into your loan application.

With this approach, this lender aims to help those who have fallen into a fair credit score due to unforeseen circumstances or a history of regrettable financial behavior. Whether you took on debt from a divorce or have a growing pile of medical bills, LendingPoint will forgive many of these challenges and get you access to funds within 24 hours.

Once approved, you can expect your loan to be flexible. Most customers are able to choose their payment due dates. The lender defaults to a 28-day payment cycle, which alters the due date every month. However, you can set up a customized plan — even opting for twice monthly payments. For a $10,000 loan with a 24% APR and 24-month term, the monthly payment will come to about $529.20. This includes a 6% origination fee, the highest origination fee charged by this lender.

Origination fees range from 0% to 6% and can be added to the total loan amount. If you’re ready and able, there are no penalties for paying off your loan early. And while interest rates can get as high as 35.99%, you can refinance your loan once 25% of your balance has been paid. Of course, this is subject to credit approval.

The biggest benefits of LendingPoint

1. Fair credit-score holders qualify for up to $25,000
2. Once approved, you may be able to access funds as soon as the next business day
3. Flexible loan terms make managing debt easier
4. The option to make two payments a month may better sync with your pay day schedule
5. Automatic payments can help you avoid late fees and points against your credit score
6. The application process is a soft inquiry, so it will not affect your credit score

The drawbacks of LendingPoint

The upper limit for a loan is $25,000. While many beautiful bathroom remodels and relaxing vacations can be covered with moderate funding, LendingPoint is not ideal for large expenses.

Consider the fact that in 2016 the average American wedding cost $35,329, according to a survey by The Knot. If you’re approved for the maximum loan amount, you still would not be able to fully fund a traditional wedding.

Plus, when compared to other online lenders, $25,000 only scrapes the surface. SoFi, for example, offers loans up to $100,000 with APRs starting at 6.2%. Upstart, too, offers rates as low as 8.7% and will lend up to $50,000.

How LendingPoint Compares

While its loans are on the moderate side, LendingPoint is still a competitive option. To qualify for SoFi’s $100,000 loan, you would need a minimum credit score of 660. That said, a score in the upper 700s is their average customer.

LendingPoint, on the other hand, works with those who have fair credit – even in the low 600s. With riskier borrowers, this lender’s rates are a tad higher than lenders like SoFi and Upstart. Compared to others like NetCredit, however, LendingPoint is a clear winner. NetCredit only offers loans up to $10,000 and a rate of 34% to 155%.

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Should you apply for a LendingPoint loan?

Life happens. If you’ve found yourself getting buried by medical expenses or in a bind because of unexpected unemployment, LendingPoint can be a beacon of help.

They use analytics to understand your complete credit story, because your creditworthiness is not just one number. And though your income is a factor, it can be as low as $20,000, provided the sum of the parts is greater than the whole.

In fact, U.S. News & World Report ranked LendingPoint the “best for fair to good credit with merit-based qualifications.” With fair interest rates and a fast loan approval process, this lender is a good choice for those with credit scores in the low- to mid-600s.

How to apply for a LendingPoint loan

Currently, LendingPoint operates in 32 states and the District of Columbia. If you live in any of the following states, you’re eligible to apply for a loan: Alabama, Alaska, Arizona, California, Delaware, Washington D.C., Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Kentucky, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Virginia and Washington.

Applying online takes less than two minutes.

1. Visit lendingpoint.com and click APPLY in the top right corner.
2. Using their sliding scale, select how much money you need, ranging from $2,000 to $25,000.
3. Identify which type of loan you need. For example, if you need financing for a vacation, you’ll select the “vacation” option.
4. Enter your name, contact information, income and social security number.
5. Once you’ve agreed to the terms and conditions, you will immediately see what loan offers you’re eligible to receive.
6. Select the offer that’s best for you, finalize your selection and wait for the internal review.

For most applicants, you’ll have access to your requested funds by the next business day.

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