About lender
LendingPoint is a web-based lender which provides personal loans that are customized for its clients. The loans are mostly offered to people with bad credit or fair credit. Their brand of lending is better suited for borrowers that prefer to have a higher degree of control over their finances, who prefer to have a more flexible payment schedule, and who need the loan amount deposited quickly into their bank accounts.
History of LendingPoint
The company was established in 2014 by Juan E. Tavares, Franck Fatras, Victor J. Pacheco, and Tom Burnside. One of the key things that immediately set LendingPoint apart from other competitors is the fact that this company took a science-based approach to unsecured personal loans: they use trademarked algorithms, which, in turn, make the application review process efficient and consistent. In addition to making almost-instant decisions regarding the loan application, LendingPoint also offered genuinely competitive interest rates.
Pros and Cons of LendingPoint
Pros
It's a great option for people with bad credit and/or fair credit. Most lenders expect you to have excellent credit, but LendingPoint makes sure that there are enough options for those that were less fortunate and are now branded with lower credit scores.
There are no prepayment penalties. Even the most negative LendingPoint reviews point out that this company does not charge any fees for prepayments, which saves a lot of money, hassle, and time.
The entire loan amount is quickly deposited into your bank account. Even if you are applying for a very large loan, it won't take even a few days for the fund to be sent into your account. You get the money almost the next business day.
They have an easy and transparent online application process. There's only a soft credit check that occurs at the end of the application process. There is no need to mail in any paperwork or make an appointment to meet with a loan officer in person in order to be pre-qualified.
Adjustable payment schedule. You are able to select the loan terms that are best for you and your finances. You're given enough flexibility to be able to pay the loan on time.
Cons
They don't allow joint loans. There's no option to get a personal loan with a cosigner or co-borrower. This might limit your options because some people would like to use a cosigner as a way to ensure that the loan will be repaid.
The higher end of the APR range is 36%. It might be hard for some people to pay an APR that high. Depending on the APR range offered, it makes sense to turn to other loan options.
There's an origination fee. It can be as high as 6% of the loan amount, but most of the time, it's lower. The mere existence of an origination fee can sway your decision to not apply for the loan. It also necessitates additional calculations.
LendingPoint only reports your monthly payments to two out of three major credit bureaus. This is certainly a disadvantage for borrowers who want all three of the bureaus to receive their payment information.
Terms and Conditions of LendingPoint
Main Information
This company offers fixed-rate personal loans in the range of $2,000—$36,500. The repayment terms usually range from two to five years. LendingPoint offers its services to clients residing in forty-eight states and Washington. The states that LendingPoint does not serve are Nevada and West Virginia. This online lender offers interest rates from 10% to a maximum of 36%. The rate that you will receive depends on your current financial position.
The personal loans provided by LendingPoint may be used for any type of purpose. They include a personal loan for home improvement, wedding loan, debt consolidation, and more. In order to gain access to the funds, you will have to have a minimal credit score of 580, in addition to a minimal annual income of $25,000. Further requirements include:
18+ years of age,
Verifiable personal bank account,
Government-issued photo identification document, and
Valid Social Security Number.
It's possible to gain approval even if your credit report indicates prior bankruptcies, overdue and missed payments. At the time of writing, Lending Point does not have the option for co-signer loans, which means you will have to turn to other lending options in case you fail to qualify.
If your application gets accepted, you will receive your funds the next business day. That makes LendingPoint one of the best options for borrowers in need of quick cash.
Out of the major credit bureaus, they report to two of them: Experian and TransUnion. In case it's vital for you to boost your credit score, LendingPoint might not be your best bet.
Penalties and Fees
As already alluded to above, this company charges an origination fee. It can be as high as 6%, but it's typically lower. This type of fee is the only charge that might negatively affect your decision to take out the loan.
LendingPoint does not impose any other fees. This is especially important to take into consideration if you want to pay off the loan as soon as possible.
However, the firm does not provide any information regarding the charges triggered by late payments or bounced checks. You should definitely study the final proposal carefully and look out for hidden fees.
Funding a Loan
This lender allows borrowers with either bad or fair credit to make a loan request. The company considers not only your credit history but also your earnings, bank statements, and other financial data. As far as key requirements go, LendingPoint makes it clear that you'll need a minimum monthly salary of $20,00 or more, a minimum credit score of 580 or better, and several other factors that were already outlined above.
