LendingPoint Bad Credit Loan Review

LendingPoint is a privately owned company that lets those with average or bad credit scores to take out personal loans. The loan can be used in any way the borrower chooses. Most use it for debt consolidation or if their credit score is below average, and they need a loan to cover personal costs.

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    The company was founded in 2014. Led by Franck Fatras, Tom Burnside, Victor Pacheco, and Juan Tavares, their goal was to create affordable loans for those with average to poor credit scores. After the recession, lots of people were looking to borrow money.

    LendingPoint has successfully helped many people by issuing over 70,000 loans worth roughly $500 million. This number will continue to grow as more and more people decide to select LendingPoint as their loan company.

    LendingPoint is rated very highly among its clients with almost a perfect score when it comes to feedback. Most people comment about how easy it was to receive the loan they needed and that it was a rapid process. Many clients comment that the team at LendingPoint are helpful, knowledgeable, and a pleasure to deal with.

    Now, we are going to talk about the specifics of LendingPoint and how you can apply today.

    LendingPoint Financial Terms in a Glimpse

    Loan Amounts
    $2,000 - $25,000
    Term Length
    24 - 48 Months
    Loan Rates
    9.99% - 35.99% APR
    Min Credit Score
    Better Business Bureau RatingA+
    Time to Funding
    24 hours - 1 week

    LendingPoint Highlights

    LendingPoint has many fantastic qualities, which is why it’s such an excellent company to borrow from. We are going to go over some specific highlights, and then you can decide if you want to take out a personal loan with them.

    Pre Qualify with Soft Credit Pull

    The application process for LendingPoint, which can be completed online, is quick and easy. First, the application page will ask potential borrowers how much money they are looking to take out. They will ask you some of your personal information for the loan at this stage, too.

    Some of the personal information needed will be your name, contact information, the last digits of your social security number, and some financial information that you will self report without a background check.

    LendingPoint will then do a soft pull on your credit score, but it will not affect your rating by doing this. Then, within a few minutes of submitting your application, you will receive your approved loan details, which include the amount, rates, fees, and other information.

    Next, you can accept or deny the offer. If you agree, you will have to submit some more information about yourself and some documents. Those papers included, a bank statement, driver’s license number, a voided check, and proof of employment or an income. LendingPoint will do a hard credit score check at this part of the process.

    Once all the paperwork is submitted and approved, you will get your money within a couple of days. At times it could be within 24 hours of acceptance. If there is a problem with the information, then the process could take longer.

    High Debt to Income Ratio Allowed

    In order to borrow from LendingPoint, one must have a debt to income rate that is lower than 40%. The people who take out loans with them usually have a 15% debt to income rate on average.

    Line of Credit

    You can take out any amount between $2,000 and $25,000 in the form of a personal loan. This can be used for a number of things, including consolidating your existing debt to help you manage your finances better.

    With LendingPoint, a borrower is only allowed to have one loan at a time. If you wish to take out another loan with them, your first loan must be completely paid off before applying for another. There is a convenient refinancing option if you have started paying off your loan. This way, you can take out more money, a smaller monthly payment, or a lower interest rate.

    The annual percentage rate or APR is 9.99% to 35.99%. The rates are on the higher side because LendingPoint aims to provide money to those with average to poor credit scores and history. The better your credit score, the lower your APR will be on your loan. However, if you have a bad credit score, the rates could be a bit high.

    There are no extra fees on the money borrowed, only the interest rate. Also, there is no charge or penalties for paying the loan off early.

    Credit Health Tools

    Most people use LendingPoint as a way to consolidate their debt. By doing this, you can improve your credit score by lowering your credit utilization. This number is a ratio from the amount of available credit you have used based on the available credit you have in total. This ratio is responsible for 30% of an overall credit score.

    If you consolidate all of your debt with LendingPoint, it is imperative to pay your monthly amount on time. Paying on time and consistently the minimum or more is the most critical factor in calculating a credit score. It is responsible for 35% of your overall rating.

    By lowering your credit utilization and having a record of consistent monthly payments, you can use LendingPoint personal loan to make your credit score better.

    Hardship Programs

    Clients are able to customize their payment plans with LendingPoint. You can choose which day you will make payments each month and how often. One is able to make payments monthly, twice a month, once a week, or even twice a week.

    If, for any reason, you are unable to pay on the scheduled date you choose, LendingPoint has a policy that provides only temporary relief. You can delay your payment up to 14 days after the selected day without any fees. After the grace period, you will be charged an additional $30. You can also refinance your loan if the payment amount is too high for your lifestyle.

    No Prepayment Penalty

    There are no penalties for anyone who pays more towards their loan per month or pays their loan off early.

    Unsecured loans

    LendingPoint does not secure its loan against your possessions and valuables. The company aims to provide those with lower or average credit scores a chance to get a hold on their debt without the risk of losing securities such as cars, homes, and jewelry.

    A person’s credit score will determine how much they receive and also the interest rate for the loan. The APR is between 9.99%-35.99%, which is a high and broad range, but LendingPoint lends money to those with low scores or those with a lot of debt.

    LendingPoint Fees

    The minimum fee you have to pay is the interest of the money borrowed if paid on time. There are fees linked with the loan when you miss payments or pay late. If you are reliable with payments, you have to pay a minimum of 9.99% interest rate to 35.99%, depending on what LendingPoint offers you when you apply.

    To qualify for a loan, you have to provide a credit history, proof of employment or income, and your debt to income ratio. The minimum credit score you need to be approved is 600. The minimum yearly salary required is $20,000. The required debt to income ratio is less than 40%.

    General Conditions

    Additional requirements are that you have to be 18 or older to apply. Also, you need your social security number or valid identification. You must have a valid bank account to apply for a loan, as well.

    LendingPoint only can be used in 42 of the 50 states in the United States of America. It does not work in the states of Wyoming, Wisconsin, West Virginia, New York, Nevada, Connecticut, or Colorado.

    The Bottom Line

    If you fit all of the requirements for LendingPoint and like the idea of using them to take out a personal loan, then we strongly recommend them to all those looking for a loan with a bad credit score.

    They are a valid lending company that has an excellent reputation. Also, it is perfect for those who have less than ideal credit scores.