Business Insider's personal finance team compared LendingPoint personal loans to the best personal loans and found it to be an industry leader. LendingPoint is a solid option if you need to get a loan with bad credit or you don't qualify for a loan with another lender. It offers fast funding, the potential for debt consolidation, and flexible loan terms. However, the range of loan amounts is more limited than what other lenders offer, and if you have good credit, you can likely get a better rate elsewhere.
The best personal loan for you depends on your credit score, which determines your eligibility and can lower your rate.This review will provide an unbiased analysis of LendingPoint personal loans, focusing on key features, fees, advantages, drawbacks, and more.
LendingPoint Personal Loan Overview
Rates and Terms
LendingPoint offers personal loans between $2,000 and $36,500 for unexpected urgent expenses, debt consolidation, medical or dental costs, home improvement, traveling, paying taxes, financing a wedding, or other personal financial reasons. Loan terms range between 24 and 60 months, with certain states offering terms up to 72 months.
Interest Rates and Fees (APR)
As of September 2024, current rates offered for LendingPoint personal loans range between 7.99% to 35.99% APR, based on creditworthiness, the purpose of your loan, and other factors.
There is no prepayment penalty or application fee, but you can expect to pay an origination fee of up to 10%, and a late payment fee of 5% of the payment amount or $35, depending on where you live.
LendingPoint Personal Loan Pros and Cons
Advantages
- Low minimum credit score to qualify. LendingPoint has a minimum credit score requirement of 580 to be eligible for a loan, which is lower than many comparable lenders.
- High Better Business Bureau rating. The BBB gives LendingPoint an A+ rating, and the company has no recent scandals.
- No prepayment penalties. You can pay off your loan early with LendingPoint without paying a fee.
- Fast Funding. Funds can be available as soon as the next business day after approval.
- Various Loan Purposes. Debt consolidation, home improvement, medical expenses, etc.
- Direct Payment to Creditors. Streamlines debt consolidation.
- Potential for Lower Rates with Joint Applications. Option to apply with a co-borrower for potentially lower rates.
Drawbacks
- Potentially High APRs. Borrowers with lower credit scores may face higher interest rates.
- Origination Fees. Can increase the overall cost of the loan.
- High minimum loan amount. The least amount of money you can take out from LendingPoint is $2,000, while you can get small personal loans with other lenders.
- Low maximum loan amount. You can borrow up to $36,500 with LendingPoint, while other online loan companies may let you take out up to $100,000 if you have a good enough credit score.
- No loans in Nevada or West Virginia. While LendingPoint offers loans to residents of 48 states and Washington, DC, you won't be able to take out a loan if you live in Nevada or West Virginia.
Who Are LendingPoint Personal Loans Best For?
LendingPoint offers borrowers unsecured personal loans, which are loans that don't require collateral like a house or car. LendingPoint offers loans in 48 states and Washington, DC, but you can't get a loan if you live in Nevada or West Virginia.
LendingPoint allows you to use a personal loan for various reasons, including weddings, and unexpected medical expenses. It's also an option for debt consolidation loans. Check with the company to see if your loan purpose qualifies.
The application process is fast with LendingPoint, and the company may approve you for a loan the same day you apply. You often get your funds the next business day after approval, which earns LendingPoint a spot on our list of the best quick personal loans.
How to Apply for a LendingPoint Personal Loan
1. Prequalify. LendingPoint allows you to prequalify for a personal loan, which enables you to get an estimate of the interest rate and terms of personal loans it might offer you if you're approved. Prequalification requires only basic information and does not affect your credit score.
2. Choose a loan offer. If you prequalify, LendingPoint may send you several loan offers with various amounts, interest rates and terms. Choose the one that's right for you.
3. Submit a full application. Once you select a loan option, complete LendingPoint's full loan application. This requires extensive documentation such as a driver's license, pay stubs, bank statements, and tax returns that the lender will use to fully assess your creditworthiness.
4. Receive funding: LendingPoint says it can often approve loans in just a few hours, and you may be able to get your funds as soon as the next day.
LendingPoint Alternatives
LendingPoint Personal Loans vs. Avant Personal Loans
LendingPoint and Avant have similar interest rate ranges. LendingPoint's APRs range 7.99% - 35.99% and Avant's are 9.95% to 35.99%. The amounts available to borrow from each lender also are close, $2,000 to $36,500 for Lending Point, and $2,000 to $35,000 for Avant.
LendingPoint charges an origination fee of as much as 6%. Avant's origination fee is up to 4.75%.
Read our Avant personal loan review here.
LendingPoint Personal Loans vs. Upstart Personal Loans
Upstart offers personal loan amounts from $1,000 to $50,000 (borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100). That could make it a better choice if you need a very small or very large loan amount. LendingPoint's loans range from $2,000 to $36,500. Upstart's APR range of 7.80% - 35.99% fixed compares with LendingPoint's 7.99% - 35.99%, making Upstart a potentially better choice if you have an excellent credit score and can qualify for its lowest interest rate.
Upstart charges an origination fee of as much as 8%, while you might pay as much as 6% with LendingPoint.
Read our Upstart personal loan review here.
7.99% - 35.99%
$2,000 to $36,500
620
- Low minimum credit score required
- No prepayment penalties
- Restrictive loan amount range
- Origination fees
- No loans in Nevada or West Virginia
LendingPoint is a solid option if you need to get a loan with bad credit or you don't qualify for a loan with another lender. However, the range of loan amounts is more limited than what other lenders offer, and if you have good credit, you can likely get a better rate elsewhere.
- Loan amount range $2,000 to $36,500
- Loan term lengths range from 24 to 60 months
- Loans made by FinWise Bank, member FDIC
LendingPoint Customer Experience
LendingPoint has garnered 4.8 stars on Trustpilot, with almost 5,000 reviews. Borrowers reported an easy application process, quick payouts, and very strong customer service. However, those who gave the lender 1-star reviews reported that the fee structure made it severely difficult to repay the loan, with the balance increasing over time.
Is LendingPoint Trustworthy?
The Better Business Bureau, a non-profit organization focused on consumer protection and trust, gives LendingPoint an A+ rating. LendingPoint is a BBB-accredited business. The BBB evaluates companies by measuring businesses' replies to consumer complaints, advertising honesty, and business practices clarity.
Even though LendingPoint has a stellar BBB rating, you aren't guaranteed to have a good relationship with the company. Make sure you read customer reviews and talk to friends and family about the business.
LendingPoint hasn't been involved in any recent controversies or scandals. As a result of the company's great BBB rating and clean history, you may feel comfortable borrowing from LendingPoint.
LendingPoint Personal Loan FAQs
You should have a minimum credit score between 580 and 600 to be approved for a LendingPoint personal loan.
Yes, you can pre-qualify for a LendingPoint personal loan without it impacting your credit score. This is done by submitting an initial application, also known as a soft credit inquiry, which only does not affect your credit score.
You can contact LendingPoint customer support by phone, email, or via physical mail. To manage your loan on the go, download LendingPoint's mobile app from the Apple store.
Why You Should Trust Us: How We Rated LendingPoint Personal Loans
We rated LendingPoint and all other personal loan products on a 1-5 scale. The overall rating is the average of seven different categories, judging some more heavily than others. This is how it breaks down:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
