LendingPoint Personal Loans: 2021 Review

LendingPoint considers more than just credit information to offer loans to consumers with fair or bad credit. It's a solid choice for those with low credit scores, but lacks some flexible features.

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Our Take

4.0

NerdWallet rating 

The bottom line: LendingPoint personal loans are a fast-funding option for bad-credit borrowers, but the lender doesn't report payments to all three credit bureaus.

LendingPoint

on LendingPoint's website

on LendingPoint's website

Min. Credit Score

580

Est. APR

9.99 - 35.99%

Loan Amount

$2,000 - $36,500

Pros & Cons

Pros

  • Soft credit check with pre-qualification.

  • Option to choose and change your payment date.

  • Can fund a loan the business day after approval.

Cons

  • No co-signed or joint loan option.

  • Reports payments to two of the three major credit bureaus only.

  • Doesn't offer direct payment to creditors with debt consolidation loans.

Compare to Other Lenders

LendingPoint
Upgrade
FreedomPlus
NerdWallet rating 
NerdWallet rating 
NerdWallet rating 
Est. APR

9.99 - 35.99%

Est. APR

5.94 - 35.47%

Est. APR

7.99 - 29.99%

Loan Term

2 to 4 years

Loan Term

2 to 7 years

Loan Term

2 to 5 years

Loan Amount

$2,000 - $36,500

Loan Amount

$1,000 - $50,000

Loan Amount

$7,500 - $50,000

Min. Credit Score

580

Min. Credit Score

560

Min. Credit Score

620

Compare estimated rates from multiple lenders

Compare Rates

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Full Review

LendingPoint says its personal loans are an accessible option for people with bad credit scores (629 or lower FICO) and those trying to rebuild their credit. These loans can be funded quickly and are repaid over two to five years.

LendingPoint is best for borrowers who:

  • Have fair or bad credit (689 or lower FICO).

  • Want a flexible repayment schedule.

  • Need funds fast.

LendingPoint at a glance

Affordability

  • May charge an origination fee up to 6%.

  • No rate discount for autopayments.

  • No prepayment fee.

Loan flexibility

  • Borrowers can choose their payment date and change it once per year.

  • Refinances loans from LendingPoint and other lenders.

  • Offers only unsecured loans.

  • Loans not available in Nevada or West Virginia.

Transparency

  • Offers pre-qualification with a soft credit check.

  • Reports to two of the three major credit bureaus.

  • Offers FAQ that answers borrower questions.

Customer experience

  • Many ways to make loan payments.

  • Loan process can be completed online.

  • Offers some educational content.

Key terms to know about personal loans

Annual percentage rate is the interest rate on your loan plus all fees, calculated on an annual basis and expressed as a percentage. Use the APR to compare loan costs from multiple lenders.

An origination fee is a one-time, upfront fee that some lenders charge for processing a loan. The fee can range from 1% to 10% of the loan amount, and lenders typically deduct it from your loan proceeds.

The debt-to-income ratio divides your total monthly debt payments by your gross monthly income, giving you a percentage. Lenders use DTI — along with credit history and other factors — to evaluate a borrower's financial ability to repay a loan.

Lenders that offer pre-qualification typically do so using a soft credit check, which allows you to see rates and terms you qualify for without affecting your credit score. If you accept the loan offer, the lender will perform a hard check to confirm your information. Hard checks knock a few points off your credit score.

Where LendingPoint stands out

Soft credit check with pre-qualification: Like many other online lenders, LendingPoint allows borrowers to check their potential rate and terms on a personal loan by pre-qualifying. Doing so doesn’t affect your credit score, and can help you compare LendingPoint with other loan offers.

Fast funding: LendingPoint says that applying takes minutes, and an approval decision is made within seconds. The lender says it can fund a loan the day after a borrower is approved. The usual funding time for LendingPoint is within 24 hours, according to the company.

Flexible payment options: Borrowers can customize some features of repayment, like scheduling payments biweekly or monthly. Customers can also choose their repayment date when they sign the loan agreement and change it once a year.

Borrowers struggling to repay their loan may be able to lower their rate or extend their loan term to ease financial strain.

Multiple ways to pay: LendingPoint loans can be paid by mailed-in check, ACH, phone, online or mobile app.

Where LendingPoint falls short

Doesn’t report payments to all three credit bureaus: LendingPoint reports payments to Experian and TransUnion, but not Equifax. Reporting payments to all three bureaus ensures that any lender or business that checks your credit sees your loan payment history. A record of consistent, on-time payments can help improve your credit profile and give you access to lower rates in the future.

No direct payments to creditors: Unlike some lenders that focus on debt consolidation, LendingPoint doesn't send loan proceeds directly to your creditors when you consolidate debts with a loan. Direct payments save you this step and eliminate any temptation to spend the loan money elsewhere.

No co-signed, joint or secured loan options: LendingPoint offers only unsecured personal loans, meaning borrowers can’t add collateral, like a vehicle, or a co-applicant to improve their chances of qualifying or getting a lower rate. These options aren’t always common in personal loans, but they give consumers with low credit scores more choices.

How to qualify for a LendingPoint loan

LendingPoint says it takes an inclusive approach to approving borrowers, using its in-house program to review loan applications and “understand the unique creditworthiness of every application.” With this technology, the lender says it’s able to serve 85% of consumers with a FICO score.

  • Minimum credit score of 580; average is 673.

  • No minimum income; average customer earns $80,000.

  • Debt-to-income ratio of less than 50%, not including mortgage; average customer's ratio is 13%.

Loan example: A three-year, $15,000 loan with an APR of 23.4% would have a monthly payment of $584. You’d pay $6,024 in total interest on that loan.

How to get a LendingPoint loan

Pre-qualify on NerdWallet

NerdWallet recommends comparing loans to find the best rate for you. When you pre-qualify, you may receive personalized rates from multiple lenders that partner with us, including LendingPoint. Pre-qualifying will not impact your credit.

Apply on LendingPoint

You can apply on LendingPoint’s website. To start the application, you’ll need information including the loan amount and purpose, some basic personal information, your annual income and the last four digits of your Social Security number.

on LendingPoint's website

Personal Loans Rating Methodology

NerdWallet’s review process evaluates and rates personal loan products from more than 30 lenders. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.

Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.

This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation for our star ratings. Read our editorial guidelines.

Frequently asked questions