LendingPoint specializes in offering personal loans to borrowers with less than perfect credit. Unlike many other online lenders, the company lends to borrowers with credit scores as low as 600. Borrowers must have an annual salary of at least $25,000 to be approved for a loan.
Traditional loans have strict underwriting criteria that can prevent many people from being eligible for a loan. LendingPoint takes into account a wide range of factors when making a loan decision. These factors include:
- Credit card debt
- Charge-offs within the last year
- Credit history
- Employment status
- Open tax liens
- Overall debt-to-income ratio (less than 45%)
- Current bankruptcies and delinquencies
Using a complex formula, LendingPoint uses these factors to assign each applicant a grade. Because of the wide range of factors considered during the underwriting process, an applicant’s grade may not directly correspond with their credit score. This means that an applicant with a low credit score may still be able to earn a high grade and get approved for a loan with favorable terms.
Interest rates for these loans start at 15.49%. Although this is rate is slightly higher than other companies that cater to the same type of borrower, it is much lower than lenders that do not evaluate credit at all. In most cases, applicants receive funds within 24 hours.
The average LendingPoint customer has little credit history or may have had difficulty qualifying for traditional credit in the past. These borrowers are typically looking to consolidate their debt into one manageable monthly payment.
LendingPoint reports payments to two major credit bureaus: Experian and TransUnion. This rewards borrowers who make timely payments by allowing them to improve their credit scores. Using the company website, borrowers can compare rates without any impact to their credit score.
How is LendingPoint different from other companies?
Flexibility is one of LendingPoint’s biggest features. Borrowers can choose to make loan payments once or twice a month. They can also choose to pay origination fees upfront or adding them to the interest rate.
Customer service is another area where LendingPoint excels. Each customer is assigned a “PointPerson” to help them navigate through the application process. This customer service representative is available to provide assistance throughout the lifespan of the loan. If a borrower has trouble making payments, their PointPerson can help them negotiate a new payment schedule or temporarily suspend payments.
Here is some other information to consider before applying for a personal loan from this company:
LendingPoint Credit Standards
- Minimum credit score: 600
- Minimum income requirement: $25,000
- Minimum credit history: None
- Debt to income ratio limits: Less than 45%
- Limitations: LendingPoint offers personal loans in 16 states
- Annual Percentage Rate: 15.49% to 35.99%
- Minimum loan duration: 24 months
- Maximum loan duration: 48 months
- Minimum loan: $3,500
- Maximum loan: $20,000
- Funds availability: Next non-holiday business day
LendingPoint’s Fee and Penalty Schedule
– Origination fee: 0% to 5% depending on state of residence (may be paid upfront or spread over the duration of the loan)
- Prepayment Fee: N/A
- Late payment fee: $30
- Check processing fee: None
2017 LendingPoint Review: Bottom Line
Interest rates on LendingPoint loans are steep. Depending on your credit circumstances, there may be cheaper options available for borrowers with little or poor credit history. LendingPoint’s interest rates pale in comparison to payday loans or other no-credit-check installment loans. These loans can carry APRs of more than 300%.
When used wisely, personal loans can help individuals pay down high-interest debts. They should not be used to support poor lifestyle habits. If you can qualify for a lower interest rate, a personal loan from LendingPoint may help you pay down your debt and improve your credit score.
If you have had trouble qualifying for a traditional loan, LendingPoint may be a viable option for you.