Say you want to start a business but don’t have the funding to do so. You also don’t want to borrow from a bank because of the many requirements you have to submit. Now, this is where online lending companies come in.
Personal loans have been gaining a lot of popularity in recent years. There are many options to choose from, so there’s no need to worry about convenience.
Among these popular lending companies is LendingPoint. Today, we’ll share our thoughts about LendingPoint to help you decide if it’s the best lender for you. Read on to know what we have to say about it!
What is LendingPoint?
LendingPoint is an Atlanta-based financial solutions platform that launched in 2015. It’s an online lender known for offering loans to people in the fair to better credit range. Additionally, it provides you loans ranging from $2,000 to $25,000.
With LendingPoint, you can get fast financing because it can approve applications in as fast as 24 hours. Not only that, but it’s also known for its simple and secure online application. For people with fair credit, LendingPoint is a good financing option to consider.
The Pros and Cons of LendingPoint
Now that you know what LendingPoint is, it’s time to dive deeper into its pros and cons. Here are the things we’ve noticed about the good LendingPoint has to offer and where LendingPoint falls short.
Pros of LendingPoint
Loans Are Approved Based on Many Factors.
Unlike other online lending companies, LendingPoint depends on many factors when approving personal loans, including how long you’ve been in your current job. Additionally, LendingPoint also considers how well you’ve managed your finances beyond other loans and credit cards.
The Payment Terms Are Flexible.
LendingPoint lets its borrowers customize their repayment features. One of these features is choosing a payment deadline best suited to you. Also, LendingPoint allows its borrowers to pay biweekly instead of once a month.
Additionally, LendingPoint also allows customers to ask for a payment delay of up to 2 weeks without fees.
There’s Fast Funding and Many Ways to Pay.
As opposed to other online lenders, LendingPoint approves loans in as fast as two business days. After the loan’s approval, the borrowers can already receive the funds from LendingPoint. Also, the online lender offers various ways to pay the loan.
Cons of LendingPoint
Lendingpoint Doesn’t Allow Joint Applications.
If you’re planning to have a co-signer or get a joint application, then LendingPoint isn’t for you. Not only that, but it can also be trouble for people whose credit score falls below 585. Given this, finding a lender who allows joint applications is your next best option.
You Can Only Borrow up to $25,000.
Probably one of the biggest cons LendingPoint has is its credit limit. If you need more than $25,000, it’s better to find alternatives that offer higher loans. You can find many lenders that offer loans ranging from $40,000 to $100,000.
Lendingpoint’s Repayment Terms Are Limited.
LendingPoint allows borrowers to pay a loan in only three repayment terms: two, three, or four years. If you think you won’t be able to repay a loan in any of these terms, find other lenders. Some offer up to 5 or 7 years.
Keep in mind that although you will be paying less interest, monthly payments are higher in a short repayment term. If you’re unsure of getting a loan, you can read this article to know if a credit card is better for you.
LendingPoint at a Glance
|Credit Building(★★★★)||– Customers can pre-qualify through a soft credit check.- LendingPoint reports to two major credit bureaus.|
|Affordability(★★)||– APRs are higher than LendingPoint alternatives.- May charge an origination fee of up to 6%.- Offers no rate discount for auto payments.- No prepayment fee.|
|Flexibility(★★★)||– Allows customers to choose their payment deadline/due date.- Borrowers can refinance with LendingPoint for lower rates.- LendingPoint offers only unsecured loans.|
|Transparency(★★★)||– Fees and terms are stated on the lender’s home page.- They have FAQs that answer borrower’s questions.|
|Customer Experience(★★★)||– There are many ways to repay the loan.- They offer online services to process the loan online.- There is minimal educational content for customers.|
Is a LendingPoint Loan Suited for You?
Now, we’re done with the basic details you need to know about LendingPoint. It’s time to decide if it’s the right lender for you. There are several things you have to consider to figure this out.
Here are some of the things we suggest you keep in mind
- If you’re trying to rebuild your credit and have a stable income source, a LendingPoint loan might be right for you. However, remember that they have high-interest rates and origination fees of up to 6%.
- If you’re looking for a lender that allows co-signers, LendingPoint isn’t the lender for you. It also doesn’t allow joint applications, so you might want to look around for alternatives.
- Remember that LendingPoint only allows loans of up to $25,000. So, if for any reason you need a large amount of money, try looking for other loan options.
- Lastly, if you have an excellent credit rate, you might want to consider other lenders. This is because some lenders offer better rates than LendingPoint.
Given all these, it’s still best to shop around for terms suited to you and your finances before making a loan.
LendingPoint Loan Features
As we have mentioned, there are several factors you have to consider if you want to get a LendingPoint loan. And, before deciding to get one, consider these features that LendingPoint offers its customers.
- Offers a fast application and approval process
- Considers many factors when approving loans
- Customers are allowed to use the money for any personal expense
- Doesn’t implement prepayment penalties
LendingPoint Loan Fees and Lending Terms
One of the most important factors to consider when getting a loan is the fees you’ll be paying. Regardless of where you’re getting the loan, make sure you know what and how much costs are.
With LendingPoint, there are several fees you have to pay:
- Origination fees can range from 0% to 6%.
- The late payment fee can go up to $30.
- Insufficient funds fees are fixed at $20.
There isn’t anything special about LendingPoint’s fee schedule, as other options don’t have the same (i.e., lenders that don’t have origination fees).
If you decide to get a loan from LendingPoint, ensure that you compute how much your loan will be. Depending on what you choose, LendingPoint will allow you to pay the origination fee upfront or combine it with your loan.
Besides the fees, we highly suggest that you consider the lender’s lending terms you’re going to borrow from.
As mentioned, LendingPoint only offers limited repayment terms. A borrower can choose to repay a loan in 2, 3, or 4 years. Although there are generally lower interest rates, the downside to short repayment terms is higher monthly payments.
Applying for a LendingPoint Loan
We’ve previously shown you the features, fees, and terms of LendingPoint, as well as what it has to offer. And now, you’ve probably decided to get a loan. To help you make the process easier, we’ll list down the things you’ll need in case you apply for a LendingPoint loan.
Remember that you need to have a credit score in the fair range or, preferably, a better score. You may check this Forbes article out to know more about credit scores. Going back, aside from a fair credit score, you’ll also need:
- An annual income of at least $35,000 (from a job, retirement funds, or other income sources)
- To be at least 18 years old
- A Social Security number
- A government-issued ID
- Live in a state where LendingPoint offers its services.
- Have a personal bank account
If you have experienced bankruptcy, it doesn’t mean that your loan will be rejected. However, keep in mind that the bankruptcy on your credit report must have been discharged at least one year ago.
If your loan gets approved, your annual percentage rate (APR) will be determined by various factors, like credit history, loan amount, and income. Additionally, it could also depend on the state you live in.
Qualifying for a LendingPoint Loan
Qualifying for a LendingPoint loan is relatively easy compared to other lenders. It considers various factors besides your credit behavior, so that’s a good thing.
Together with your credit behavior, LendingPoint also considers the following during the application and underwriting processes:
- Your job history (1 year or more in the same job is an edge)
- A steady source of income (verifiable through payment stubs, bank statements, and other supporting documents)
- Your money management behavior (through bank records)
To make the application process and loan approval a breeze, ensure that you have these things ready.
How to Pay Off Your LendingPoint Loan
As we have mentioned earlier, there are many ways to repay a LendingPoint loan. As mentioned, the repayment terms are 2, 3, and 4 years. The good thing is that LendingPoint doesn’t charge you penalties if you pay off your loan sooner.
Additionally, you can also choose your payment plan. LendingPoint offers a 28-day payment schedule, and you can even contact them if you’re struggling with your monthly rates.
Now, to make your payments, there are also easy options.
- Most customers pay through a debit card or Automated Clearing House (ACH) for AutoPay. If you choose this, you don’t have to worry about transaction fees.
- Customers can pay through certified funds (e.g., cashier’s or certified check) payable to LendingPoint.
Now that you know about LendingPoint, you’ve probably reached a decision. If you think LendingPoint is the best lender for you, maybe it’s time to get a loan.
However, if you’re still unsure and want to shop around, here are some alternatives we recommend.
- Upstart: Upstart is an excellent alternative for people looking to get a small loan. It offers loans as little as $1,000 and accommodates people who have fair credit.
- ELoan: If origination fees are a problem for you, ELoan is a good option to consider.
- OneMain Financial: If you have bad credit and think you won’t qualify for a LendingPoint loan, OneMain Financial is an alternative. The good thing about it is that it doesn’t have a minimum credit score.
Getting a loan is one way to finance your needs. Whether you’re starting your business or you need money for personal reasons, borrowing money would be of great help. This is where LendingPoint comes in.
If you have a fair credit score and need fast financing, LendingPoint is probably your best option.
Liked this article? Read these articles for other tips and pieces of advice about loans and more:
- Building Your Credit From Scratch
- Paying Off Student Loans The Right Way
- Finance Charges and How to Avoid Them
Drop a comment below and let us know what you think about LendingPoint! Also, don’t forget to share this article to spread the word!