When you’re considering applying for a personal loan, student loan, you name it, what do you look for in a lender? You might look at the different products it offers, and maybe a bit about the company itself so you know who you’re doing business with.
You likely look at the specifics of its loan offerings — things like personal loan interest rates and term lengths. If all that checks out, you might turn to reviews to see what others say about their customer experience. You may even start with customer sentiment and decide whether a particular lender is worth doing business with.
This LendingPoint personal loan review offers the insights you need to make an informed decision about borrowing through LendingPoint. We looked at the company itself to see what sets it apart from other lenders, what products are offered, and what customers are saying about their experience. We even answered a few frequently-asked questions to help you decide if a LendingPoint personal loan is right for you.
An overview of LendingPoint
Founded in 2014, LendingPoint is an online direct lender headquartered in Kennesaw, Georgia. It also has offices in New York. The company began by offering loans only in its home state of Georgia, but has since grown and offers personal loans to 49 states and Washington, DC.
Voted “Best Personal Loans of 2018” by US News & World Report and “Best Personal Loans for 2018” by NerdWallet, LendingPoint has loaned more than $1 billion to customers across the US since 2014 and receives more than 75,000 requests for financing each week according to the company’s website.
You might not find a clearly-defined mission statement if you head to their website, but LendingPoint markets itself as a lender that takes more into account than just your credit score when determining approvals and terms. LendingPoint also has some flexibility in its underwriting process, which means it can offer financing options to customers with credit scores that range all the way from 585 to 850.
Which loan products does LendingPoint offer?
LendingPoint offers personal loans that can be used for a variety of things, giving you the flexibility to use your funds for what matters most to you. Whether you’re looking to combine loans, take out a car repair loan, or pay for a kitchen remodel, as long as your plans for your personal loan money are legal, it’s up to you how you use it.
Personal Loans at LendingPoint
LendingPoint’s personal loans are available in amounts ranging from $2,000 up to $25,000 and with terms from 24 to 48 months. Rates at LendingPoint start at 9.99% and go up to 35.99% APR (as of Jan. 14, 2020), which is generally high when compared to other personal loan providers. Borrowers with FICO credit scores that are “good” and better may want to consider other loan companies that provide better rates. But for those with lower scores, LendingPoint can be a good, reliable option.
Based on your credit picture, LendingPoint will make a decision within minutes of you applying and will provide you with your loan offer(s). If you are given multiple offers, you may find a variety of loan amounts and payment terms. Once you choose and accept an offer, you can receive your funds in your account as soon as the next business day.
You will need to meet the following personal loan requirements to be eligible for a LendingPoint loan:
- You must be 18
- You must have a government-issued ID
- You must have a Social Security number
- You must have a minimum annual income of $20,000
- You must have a bank account in your name
- You must live in one of the states where LendingPoint does business
LendingPoint’s personal loans can be used for a variety of things, from debt consolidation and home improvement expenses to moving expenses and medical bills. You can also check to see if you’re pre-qualified before committing to a full application, and this won’t impact your credit score. This is helpful because you can then use your pre-qualification to comparison shop with other lenders so you can make sure you’re getting the best personal loan possible. Keep in mind that the actual loan offers and loan amounts, terms, and interest rates may vary from your pre-qualification based on the final review of your full credit report.
LendingPoint offers financing to customers who may not have the best credit history, and that’s because there are several other factors the company considers when making their decision. LendingPoint looks for a minimum of 12 months at your current job, a history of responsible banking, whether you have verifiable income, and your recent and current credit behavior.
Payments and rates on LendingPoint’s personal loans are fixed for the duration of your loan, and there’s no penalty for prepaying your loan early. Depending on your state, you may be charged an origination fee of 0-6%. This fee can be financed in addition to the loan amount or you may have the option to deduct the fee from the total amount you receive.
LendingPoint does not offer joint or cosigned loans at this time, and decision are made based on your individual information (not joint or household).
|Loan amount||$2,000 to $25,000|
|Loan term||24 to 48 months|
|APR||9.99% to 35.99% (as of Jan. 14, 2020)|
What LendingPoint customers are saying
Finding a loan that sounds right for you is one thing, but you may also consider what other customers are saying about the lender before you make your decision. Of course, you can’t take every review at face value, but you can get an idea of the sentiment around the company.
If you head to the Better Business Bureau (BBB), you’ll find LendingPoint has an A+ rating for meeting the necessary accreditation standards, but the majority of the reviews speak to individual customer experiences. Customers rank LendingPoint an average of 1.5 stars out of 5, with an overall negative sentiment. Several complaints focus on issues with LendingPoint’s customer support, while others express disappointment with the lender’s underwriting process after having been denied. For the two 5-star reviews, the customers commend LendingPoint for its transparency, professionalism, and quickness.
Trustpilot tells a different customer story, with nearly 2,400 reviews of LendingPoint that give the company a 5-star rating. If you scan through the reviews, most customers praise LendingPoint for its transparency, ease, and quickness in resolving questions and complaints.
Online reviews can be helpful when trying to decide on a lender, but as this shows, it’s best to compare several review sites to get a better overall idea of a company.
FAQs about LendingPoint
Is LendingPoint a direct lender?
LendingPoint is a direct lender; however, according to its website, loans “may be funded by one of several lenders.” This includes partner banks such as FinWise Bank, a Utah-chartered bank, member FDIC.
Does LendingPoint report to credit bureaus?
Just like most other lenders, LendingPoint does report your loan activity and history to the major credit bureaus. LendingPoint does not specify which credit bureaus it reports to, but it does mention reporting to one or more.
Can I make extra payments on my LendingPoint personal loan?
You can make an extra payment on your LendingPoint personal loan at any time. In fact, LendingPoint does not charge a prepayment penalty, which means you can partially or fully prepay your loan at any time without incurring additional costs.
Can I get multiple personal loans through LendingPoint?
There are some instances where you can receive an additional personal loan with LendingPoint if you already have an existing LendingPoint loan; however, LendingPoint advises that you contact its customer service team directly to speak to one of their loan specialists about the matter. You can contact LendingPoint customer service by email at email@example.com or by phone at (888) 969-0959.
The final word on LendingPoint
LendingPoint offers a quick turnaround time for its personal loans, giving you a decision in minutes that is followed by fast funding. The added benefit of being able to potentially pay your loan off early without any additional fees or penalties is really nice to see too.
LendingPoint offers fixed-rate loans from $2,000 to $25,000 at rates ranging from 9.99% to 35.99% to people with a range of credit histories. That includes those with low credit scores who may not be able to secure financing through more traditional financial lenders. This can be a double-win for people seeking to use a personal loan to improve their credit score.
If your credit score is considered “good” and better, though, you may want to consider other lenders as you may find better rates and terms. And, if you need more than the maximum of $25,000 that LendingPoint offers, you may also want to consider other lenders.
LightStream, for instance, offers a variety of loan products between $5,000 and $100,000 for borrowers with good credit. This includes loans for vehicles, home improvement, boats, medical, and even aircraft financing.
All rates and fees are accurate as of Jan. 14, 2020.