LendingPoint Review

Pros

• Borrower qualifications are lower than going through banks
• Few extra fees
• The application process is fast and easy
• Multiple avenues of customer support

Cons

• Potentially high origination fees
• Low borrowing amounts
• Rates can be expensive

What Is LendingPoint?

LendingPoint is an online lender that specializes in lending to consumers who have less-than-perfect credit scores.

LendingPoint loans are considered personal loans, but they can be used for entrepreneurial purposes. As a rule of thumb, it’s not a good idea to mix personal and business finances. As such, personal loans are mainly suited to entrepreneurs with a business concept, startups, or very young businesses.

If you are in one of those situations and you need a small amount of cash to launch your business, you might consider applying for a LendingPoint personal loan. The application is easy, customer service is communicative, and the lender has a very positive reputation online.

On the other hand, entrepreneurs with higher credit scores or merchants with established businesses will want to look elsewhere for funds. Conversely, if you don’t quite meet LendingPoint’s eligibility standards, check out some other startup loans for bad credit.

Interested in learning more? Read on for the details!

Services Offered By LendingPoint

LendingPoint offers personal installment loans. You receive a lump sum from your lender, minus any origination fees. You then, over an agreed period called the term, pay the loan (plus accumulated interest) back in regular installments.

LendingPoint doesn’t offer any loan products specifically tailored to businesses.

Borrower Qualifications

These are the requirements for getting a LendingPoint loan:

Because LendingPoint offers loans based on the strength of your personal (not business) creditworthiness, the lender does not require a certain time in business or annual business revenue. In addition to the requirements listed above, you must also:

• Be at least 18 years of age
• Have an eligible ID and SSN
• Have a verifiable bank account

If you meet all of the above requirements, you have a good chance of being approved for a LendingPoint loan. Approval is not guaranteed, however. In addition to the above, LendingPoint considers the following factors:

• Job history
• Income
• Financial history
• Credit behavior

Finally, LendingPoint does not currently lend to residents of Connecticut, Iowa, Maryland, Maine, Nebraska, Nevada, Vermont, West Virginia, and the District of Columbia.

LendingPoint Rates & Fees

These are the rates and fees for LendingPoint’s loans.

LendingPoint offers traditional term loans, which means you receive the funds in one lump sum and repay in fixed payments over a set period.

Unlike most lenders, LendingPoint adds the cost of the origination fee to your total borrowing amount. For example, if you have an origination fee of 5% and are borrowing $10,000, you will receive the full $10,000, but you will repay a total of $10,500. You can, however, request that it be deducted from your disbursement if you prefer.

Aside from the origination fee and potential late fees, LendingPoint does not charge extra fees. You will not be charged a penalty for paying your loan early.

LendingPoint Application Process

LendingPoint offers an application via its website.

First, the company asks for the amount you want to borrow and its intended purpose. You will also need to provide some basic information about yourself, such as your name, contact information, some self-reported financial information, and the last four digits of your Social Security number.

At this point, LendingPoint may do a soft pull of your credit, but this will not affect your credit score.

The estimated loan offer is sent to you just a few minutes after your initial application, which details the rates and fees you are eligible for. You might have a couple of offers to choose from at this stage.

Once you choose your offer, LendingPoint will ask for some more documentation:

• Proof of employment and income
• All pages of your most recent bank statement
• A voided check
• Current driver’s license or government/state-issued ID

This is the point at which LendingPoint will conduct a hard credit inquiry.

According to customer reviews, if you have all your documentation in order and ready to go, the process will likely be quick and easy. It may only take a few hours (generally 24 or fewer) after LendingPoint receives and verifies your documentation until you receive the final underwriting review and loan approval. However, if your paperwork is not in order, you may be in for a longer process.

LendingPoint allows only one loan at a time per borrower. If you want to take out an additional loan with them, you’ll have to wait until that first loan is paid off.

LendingPoint Sales & Advertising Transparency

Most loan and eligibility information is easily found on LendingPoint’s website. However, a minimum credit score is not disclosed. However, the company does note that it looks beyond just your credit score to evaluate creditworthiness.

However, overall, LendingPoint is transparent throughout the whole loan process. It’s pretty easy to figure out what paperwork you need and what the process will be. You shouldn’t encounter any surprises.

LendingPoint Customer Service & Technical Support

LendingPoint advertises 24/7 customer support via email or phone. You won’t get a dedicated support representative, however.

Although a few users express frustration due to slow communication, the majority of reviewers report positive experiences with LendingPoint’s customer service. Accordingly, we’re giving LendingPoint decent marks in this section.

LendingPoint Reviews From Users

LendingPoint has customer reviews on Trustpilot, Credit Karma, and its Facebook page. It’s also accredited with the BBB and has an A+ rating. Plus, there are a few reports on the Consumer Financial Protection Bureau (CFPB) website. Overall, reviews trend on the positive side. However, a few customers report negative experiences.

Final Verdict: Is LendingPoint Worth It?

It’s clear that LendingPoint provides a useful service to consumers. Although it’s not the only lender to offer loans to customers with less than perfect credit, its focus on those consumers, combined with its high-quality customer service, means that this lender is a useful tool for people without the best credit profiles.

In terms of startup funds, LendingPoint could be useful, but its narrow focus means that this source of funding will only work for a very small number of entrepreneurs. If you happen to fit this lender’s target customer profile, it may be worth applying. However, if you have a higher credit score, check out your other options for top small business loans.

Even if you have a relatively low credit score, it may be worth getting quotes from other lenders. Each lender has their own way of calculating risk, so there’s a chance you’ll be able to get a better rate elsewhere.