LoanDepot Personal Loans: 2017 Review

Loans, Personal Loans, Personal Loans Reviews
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3.5 stars out of 5

NerdWallet rating: 3.5 / 5.0
Good for: Good credit

loandepot-logo-cmyk-no-nmlsLoanDepot, best known for its mortgages, also makes unsecured personal loans to good-credit borrowers.

LoanDepot is a good fit for people who:

  • Have good credit scores. The minimum requirement is 660, but its borrowers’ average score is between 705 and 715, the company says. If you don’t have good credit, you might be better off considering these bad-credit loan options.
  • Have a debt-to-income ratio of 40% or below, excluding a mortgage. The lender says it has no minimum income requirement. It didn’t provide average income information about its borrowers.
  • Are homeowners. More than 80% of its personal loan borrowers own a home, according to the company.

Detailed LoanDepot personal loan review

To review LoanDepot, NerdWallet collected more than 30 data points from the lender, interviewed company executives, viewed the online loan application process with sample data, and compared the lender with others that seek the same customer or offer a similar product.

How to apply

Minimum requirements

Lending terms

Fees and penalties

Learn more about personal loans

LoanDepot is one of the largest online lenders in the country. It has made more than $500 million in unsecured personal loans since it started offering them in May 2015. Including mortgages, the California-based lender has made more than $70 billion in loans since it was founded in 2010.

Most borrowers use the loans to consolidate debt or pay for home improvement projects, the company says. The most common loan amounts range from $12,000 to $15,630. The typical borrower is a homeowner between 35 and 50.

LoanDepot has rates, fees and loan terms comparable with those at most other online lenders. The lender assigns borrowers an internal grade to determine their origination fee amount. All personal loan borrowers, regardless of their credit score, should shop around to get the lowest rate. This is especially true for those with good credit.

Lenders with comparable offerings include Discover, Freedom Plus and Wells Fargo. Unlike LoanDepot, however, all three give debt consolidation borrowers the option to pay off their creditors directly. Discover and Wells Fargo don’t charge an origination fee and give borrowers free access to their FICO credit scores.

How to apply for a LoanDepot loan

  1. Fill out an application on LoanDepot’s website by providing your identity and income information. You can also start an application over the phone.


  1. LoanDepot will give you a rate estimate by conducting a soft credit check, which doesn’t affect your credit score. The company pulls your credit report from credit bureau Equifax, so it’s best to check it for any errors before applying for a loan. LoanDepot reports payments only to Equifax.


  1. After you complete the application, a LoanDepot representative will give you a call to verify your identity and income information.
  1. If your application is approved, LoanDepot will do a hard credit check and then send the money electronically into your bank account.

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Minimum requirements for a LoanDepot loan

  • Credit score: 660, but borrowers’ average is between 705 to 715.
  • Gross income: no minimum.
  • Credit history: none.
  • Debt-to-income ratio: no higher than 40%, excluding mortgage.

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LoanDepot’s lending terms

  • Annual percentage rate range: 6.17% to 29.52%.
  • Minimum loan amount: $5,000.
  • Maximum loan amount: $35,000.
  • Loan duration: three or five years.
  • Time to receive funds: three days.

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LoanDepot’s fees and penalties

  • Origination fee: 1% to 5% of loan amount, depending on the borrower’s loan grade.
  • Prepayment fee: none.
  • Late fee: $15 after 15-day grace period.
  • Personal-check processing fee: none.
  • Other fees: $15 returned payment fee.

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Before you take a personal loan

Consider other debt consolidation options

Check your credit report and know your financial strengths

Learn how personal loans work

Calculate payment scenarios

Have a plan for getting out of debt

Amrita Jayakumar is a staff writer at NerdWallet, a personal finance website. Email: Twitter: @ajbombay.

Personal Loans Ratings Methodology

NerdWallet’s ratings for personal loans awards points to lenders that offer consumer-friendly features, including: soft credit checks, no origination fees, payment options, short time to funding, interest rate caps of 36%, and absence of prepayment penalties. Features are considered for their positive impact on consumers’ credit history and financial health. To ensure accuracy and consistency, our ratings are reviewed by multiple people on the NerdWallet Personal Loans team.

5 stars out of 5— Among the very best for consumer-friendly features

4.5 stars out of 5— Excellent; offers most consumer-friendly features

4 stars out of 5— Very good; offers many consumer-friendly features

3.5 stars out of 5— Good; may not offer something important to you

3 stars out of 5— Fair; missing important consumer-friendly features

2.5 stars out of 5— Poor; proceed with great caution