LendingPoint Personal Loan Review

See if LendingPoint personal loan rates are right for you

Shot of an attractive young woman using a laptop while working from home
•••

 mapodile/Getty Images

Founded in 2014, this Atlanta-based online lender markets itself as a consumer-friendly alternative for borrowers whose credit scores are too tarnished for many other lenders to consider. Operating in 49 states and Washington D.C., LendingPoint is willing to consider borrowers with less than stellar credit histories and offer them rates that are fairly competitive with those of lenders with more stringent requirements. So if you’re struggling to find a lender, a LendingPoint personal loan may be worth considering. 

Who Is a LendingPoint Personal Loan Best For?

A LendingPoint personal loan may be the answer for you if your credit score is fair or better and you’re having difficulty getting approved by other lenders. LendingPoint’s minimum recommended credit score of 585 is below what many other personal loan lenders ask for. A LendingPoint personal loan may be a good fit for you if:

  • Your credit score is 585 or higher 
  • You don’t need to borrow more than $25,000 
  • You don’t need a repayment period of more than 48 months

Pros

  • Accessible for borrowers with blemished credit

  • Approval based on a variety of factors

  • A relatively low minimum loan amount

  • Customizable payments

Cons

  • Pricey origination fees for some borrowers

  • Joint applications not allowed

  • Loans capped at $25,000

Pros Explained

  • Accessible for borrowers with blemished credit: LendingPoint may lend to you even if you have negative marks on your credit report, such as bankruptcies that are at least one year old. It is one of the few online lenders that we’ve found willing to give personal loans to borrowers who often feel shut out from affordable financing altogether.
  • Approval based on a variety of factors: LendingPoint considers a broader range of information when approving borrowers than the average online lender. This includes how long you’ve stayed at your current job, and how you’ve handled your finances beyond consumer loans or credit cards.
  • A relatively low minimum loan amount: LendingPoint allows you to borrow as little as $2,000. That’s a higher minimum loan threshold than some online lenders offer, but it’s still lower than what many personal loan lenders require you to borrow.
  • Customizable payments: LendingPoint lets you schedule biweekly payments, rather than one monthly payment, if you prefer to pay smaller sums more often throughout the month, or if you want to make extra loan payments.

Cons Explained

  • Pricey origination fees for some borrowers: Like a number of alternative lenders, LendingPoint may charge you an origination fee of 0% to 6%, depending on where you live. Depending on how much you borrow, a 6% fee can add up to a sizable chunk of your loan. You may be able to have the fee deducted from your loan amount when the funds are disbursed, or you may be able to finance it into the loan amount and pay it off over time.
  • Joint applications not allowed: LendingPoint doesn’t allow you to have a co-signer or joint application. This may be troublesome if your credit score is below 585. Because of this, you may be better off with a lender that does allow co-signers.
  • Loans capped at $25,000: If you’re planning a project or expense that requires you to borrow more than $25,000, you may have to look at other options. There are other lenders that offer bigger loans, such as up to $40,000, and even $100,000 in some cases.

LendingPoint Personal Loan Rates & Terms

LendingPoint personal loans come with fixed interest rates that range from 15.49% to 35.99% APR, with repayment periods of 24 to 48 months.

Since LendingPoint loans are fixed-rate loans with simple interest, you can expect to have the same monthly loan payment for the life of the loan. However, the repayment terms of two to four years are a fairly short leash—some lenders offer repayment for up to seven years.

LendingPoint accepts borrowers with a wide range of credit scores, including those with scores as low as 585. According to its website, it typically works with “near prime” consumers, which it defines as those with scores in the 600s.

How Much Can You Borrow With LendingPoint?

You can borrow up to $25,000 if you’re planning a big expense, such as a wedding or home repair project, or if you need to refinance a lot of debt. Alternatively, if you’re looking for a way to finance smaller purchases or add more breathing room to your budget, you can borrow as little as $2,000. LendingPoint allows you to use your funds for any purchase—as long as it’s legal.

The minimum loan amount of $2,000 is just low enough to allow you to borrow a significant amount without committing to a huge monthly payment. For example, a borrower who’s assigned an APR of 22.99% on a $2,000 loan, with a repayment period of 36 months, would owe just $77.41 per month.

LendingPoint Personal Loan Fees

While it doesn’t charge a prepayment penalty if you settle your debt early, LendingPoint does include several other fees:

  • Origination fee: 0% to 6%
  • Late payment fee: Up to $30
  • Insufficient funds fee: Up to $20

Compared to many online lenders with similar terms and customer profiles, LendingPoint’s fee schedule isn’t especially noteworthy. However, there are other lenders that do not charge an origination fee, which could help you save. If you decide to borrow from LendingPoint, just be sure to calculate how much you need to borrow if you’ll pay the origination fee upfront, or how much you can afford to pay per month if it’s financed into the loan.

Always check a lender’s fees before applying for a personal loan. Peer-to-peer lenders and online lending platforms are the most likely lenders to charge an origination fee. However, there are plenty of banks, credit unions, and other online lenders that don’t charge origination fees. 

How to Get a Personal Loan From LendingPoint

To get a LendingPoint personal loan, you’ll need a credit score of at least 585. You also will need to apply independently, as LendingPoint does not offer the ability to apply with a co-signer.

When you’re ready, simply visit its website and click “apply.” LendingPoint will first do a soft credit check—meaning it will check your credit history without affecting your credit score—and provide you with a tentative offer. If you decide to move forward, it will then proceed with a formal credit application and hard credit check, which could lower your score temporarily. It may also ask you for additional documents, such as bank statements and paycheck stubs, to help verify your information. Once you accept LendingPoint’s formal loan offer, you may be able to get your money as soon as the next business day. 

LendingPoint considers a broad range of personal information, going beyond an applicant’s income, credit history, and major ongoing obligations, like a mortgage—one of the few online personal loan lenders to do so. By using these alternative metrics, LendingPoint claims it can score your application in a way that better helps you get the loan you need. Because the lender openly considers non-traditional data, such as your bank statements and job history, you may qualify for a lower-priced loan than you’d get elsewhere with your low score. 

Depending on your personal and financial history, LendingPoint’s use of alternative data may not help your application though. It’s possible to wind up with a lower credit rating from LendingPoint than you’d get from a traditional credit score provider, such as VantageScore or FICO. For example, if you've only been at your job for a few months, LendingPoint's scoring algorithm may see it as a detriment. A conventional credit score, by contrast, won't measure job history.

The Bottom Line

LendingPoint personal loans may be best suited for borrowers with a credit score of 585 or higher—that fits into the FICO score range for fair credit (580 to 669). If your credit score is substantially higher, in the good-to-excellent range, you’re likely better off shopping elsewhere, as you’ll be eligible for a lower interest rate from other lenders. If your credit score is below average, though, and you think a fuller picture of your job and financial history will help bolster your application, then investigating LendingPoint is worth your time. 

Although there are lower interest rates and fewer fees elsewhere, LendingPoint personal loans may still be less expensive than many of the other options for borrowers with fair credit. However, if you don’t meet all of its qualifications, you may need to find a lender that offers a co-signer, since LendingPoint does not. If you have fair, or even bad credit, consider all of your options before locking in a rate and term with a lender.

Article Sources

  1. LendingPoint. "FAQ: Applying for a Loan: Do You Offer Loans in All States?" Accessed May 22, 2020.

  2. LendingPoint. "Personal Loans for Fair Credit Customers." Accessed May 22, 2020.

  3. LendingPoint. "FAQ: About My Loan: Are All of My Payments Due on the Same Date Every Month?" Accessed May 22, 2020.

  4. LendingPoint. "Apply Now." Accessed May 22, 2020.

  5. LendingPoint. "Better Loans." Accessed May 22, 2020.

  6. myFICO. "What Is a FICO Score?" Accessed May 22, 2020.