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 to consider. But you may be charged an origination fee depending on where you live, and interest rates might be higher than you’d find with 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 required
Funds may be available by the next business day No co-signers allowed

What you need to know about LendingPoint personal loans

LendingPoint is an online lender that offers personal loans between $2,000 and $25,000. The company markets itself to people with less-than-perfect credit, saying “We find more reasons to say YES.”

LendingPoint offers loans in Washington, D.C., and every state except West Virginia, so that’s something worth keeping in mind.

Loans for people with fair credit

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

A LendingPoint personal loan might make sense if you’re building your credit and need money for an emergency expense quickly.

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 a range of credit scores, it charges higher interest rates than you may see with some other lenders. So it’s a good idea to shop around to see if you can qualify for a lower rate with another lender before signing a loan agreement.

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 may give you the option to either finance the origination fee or have it deducted from your loan funds.

Funding 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 may need money fast. LendingPoint says it can deposit money to your bank account as soon as the next business day if you’re approved.

A closer look at LendingPoint personal loans

Here are a few other important details to know if you’re considering LendingPoint.

  • Limited loan terms: LendingPoint only offers loan terms of 24 to 48 months.
  • Multiple repayment options: LendingPoint offers 28-day, monthly and bi-weekly payment options so you can coordinate your due date with what’s most convenient for you. The company also offers the option to set up automatic payments using your debit card or bank account.
  • Perfect credit history not required: 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.
  • No co-signers: Unlike some personal loan lenders, LendingPoint doesn’t allow co-signers. A co-signer may improve your chances of being approved or getting a lower interest rate.
  • No prepayment penalty: 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 if you’re working on rebuilding your credit and have a steady income. But given LendingPoint’s potentially high interest rates and origination fees, be sure to shop around to help make sure you’re getting the best loan terms you can.

If you want to consolidate credit card debt or other bills, you should review a few different lenders and compare potential rates. And since LendingPoint doesn’t offer the option to apply with a co-signer — or consider a spouse’s income in your application — you may want to consider other loan options.

If you need to finance a larger loan amount for home improvements or another major purchase, you may want to look elsewhere since LendingPoint personal loans only go up to $25,000.

If you have excellent credit, you can probably find a better rate elsewhere.

How to apply for a personal loan with LendingPoint

To qualify for a loan at LendingPoint through its platform, you must first meet some basic requirements.

  • Be at least 18
  • Have a valid Social Security number
  • Make a minimum annual income of $20,000
  • Have a verifiable personal bank account in your name
  • Provide valid government-issued identification
  • Live in a state other than West Virginia

You can start the application process by applying for prequalification to check your estimated rate. To apply for prequalification, you’ll need to provide basic information about yourself.

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

LendingPoint will complete a soft credit inquiry, which means your credit won’t be affected. Just remember that if you officially apply, your final approval and terms may differ from the rates shared with you when you applied for prequalification.

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.

  • UpstartUpstart could be a good choice if you want to borrow a smaller amount — as little as $1,000.
  • ELoan: ELoan is an option to explore if you want a loan without an origination fee.