LendingPoint personal loans review: Potentially high interest rates and fees

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In a Nutshell

If you need cash quickly and have fair credit, a LendingPoint personal loan might be an option. But you may be charged an origination fee depending on the state you live in, and interest rates might be higher than you’d find with many other lenders.

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Pros Cons
Minimum credit scores of 580 for consideration Possible origination fee
You can apply for prequalification $20,000 minimum annual income requirement
Funds may be available by the next business day No co-signers

What you need to know about personal loans with LendingPoint

LendingPoint offers personal loans between $2,000 and $25,000 and will consider those with less-than-stellar credit.

Loans for people with fair credit

LendingPoint considers loans to people with credit scores as low as 580. But when reviewing your application, the company looks at more than just those scores. It also considers your job and financial history, income and whether your credit is steadily improving.

To qualify for a loan at LendingPoint through its platform, you must be at least 18 and have a valid Social Security number, minimum annual income of $20,000, a verifiable personal bank account in your name and valid government-issued identification.

Funding initiated as soon as the next business day 

If you need a loan for an emergency expense, like an unexpected car repair or veterinary bill, you likely need money fast. LendingPoint can work quickly and can initiate the deposit to your bank account as soon as the next business day if you’re approved.

Potentially high interest rates and fees

In general, the lower your credit scores, the higher your interest rate. Because LendingPoint is willing to work with people with varying credit scores, it charges higher interest rates than you may see with other lenders. Its maximum annual percentage rate, or APR, is among the highest we’ve seen from lenders.

LendingPoint also may charge you an origination fee. Depending on where you live, there could be no fee — or a fee of up to 6% of the amount you borrow. That might not sound like a lot, but if you borrowed $20,000 and were charged a 6% origination fee, you’d pay $1,200 to cover the origination fee.

LendingPoint personal loan details

LendingPoint offers loans in Washington, D.C., and every state except West Virginia, so that’s something worth keeping in mind. Here are a few other important details to know.

  • You can apply for prequalification through LendingPoint’s website. LendingPoint will complete a soft credit inquiry, which means your credit won’t be affected.
  • LendingPoint offers loan terms of 24 to 48 months.
  • If you’ve declared bankruptcy in the past, you might still qualify for a loan, as long as your bankruptcy was discharged at least 12 months ago.
  • Unlike some personal loan lenders, LendingPoint does not allow co-signers.
  • LendingPoint doesn’t charge prepayment penalties for extra payments or paying off a loan early.

Who is a LendingPoint personal loan good for?

A LendingPoint personal loan might be good for someone who’s working on rebuilding credit and has a steady income. But given LendingPoint’s potentially higher interest rates and origination fees, be sure to shop around to help make sure you’re getting the best loan terms you can.

A LendingPoint loan could also be ideal if you’re looking for flexible repayment options that can help you better manage your budget. LendingPoint offers 28-day, monthly and biweekly payment options so you can coordinate your due date with what’s most convenient for you. It also offers the option to set up automatic payments using your debit card or bank account.

How to apply for a personal loan with LendingPoint

Applying for prequalification on LendingPoint’s website is simple. You’ll find out whether you prequalify and see any loan offers after you submit the application. To apply for prequalification, you’ll need to provide basic information about yourself.

  • Your name
  • Desired loan amount
  • Address
  • Income
  • Social Security number

If you prequalify and choose a loan offer, you’ll need to complete a formal loan application and provide LendingPoint with additional information, like your driver’s license, bank statements and proof of income. Once you submit these documents, LendingPoint can provide a loan decision in as soon as a few hours.

Not sure this lender is for you? Consider these alternatives.

While LendingPoint may be a good choice for some people, it may not be right for you. Here are some other options to consider.

  • Upstart: Upstart could be good if you want to borrow a smaller amount — as little as $1,000.
  • ELoan: ELoan might be ideal if you want a loan without an origination fee.