LendingPoint November 2023 Review

LendingPoint provides personal loans for consumers with fair-to-poor credit scores. and relatively low annual incomes. This LendingPoint personal loan review should help you determine if LendingPoint is the best personal loan provider to meet your borrowing needs. 

Who is LendingPoint

LendingPoint was founded in 2014 and is headquartered in Kennesaw, Georgia. The company touts its proprietary underwriting technology that allows it to approve applicants who don’t qualify for loans under traditional underwriting standards (FICO score, debt-to-income ratio, and payment-to-income ratio). 

LendingPoint personal loan top features

Prequalification without a hard inquiry: LendingPoint allows you to prequalify without hurting your credit score. If you get one or more acceptable offers, you can click to apply. 

Fast funding: LendingPoint states that “once Approved, the Funds Could be in Your Account as Soon as the Next Business Day, which is very fast,

Low minimum credit score: LendingPoint’s proprietary underwriting system doesn’t rely as heavily on credit scoring as other companies, so they are willing to accept scores as low as 580. 

Variety of repayment terms: The repayment options on a loan are from 2 to 6 years. Short-term loans will have a high monthly payment.

Low Loan limits: LendingPoint offers small loans starting from $1,500. However, their maximum loan is also relatively small at $20,000.

High rates: LendingPoint offers fixed-rate unsecured personal loans with interest rates from 7.99% - 35.49% APR. The high-end rates are in the same range as other lenders who take borrowers with low credit scores. High fees: LendingPoint charges an origination fee of up to 6%. State law can cap the fee, depending on the state. $30 late fee if payment is 15 days late.

No co-signer: LendingPoint doesn’t accept joint applications or co-signers.

Fast Pre-approval: Using high-tech data analysis, LendingPoint delivers a lightning-fast initial lending decision in just seconds without affecting the borrower’s credit.

Wide availability: They offer loans in all states except West Virginia). There are no restrictions on how you may use the money.

Doesn’t report to all credit bureaus: LendingPoint has confusing information about reporting payments to a credit bureau. Bills.com investigated the matter. LendingPoint only reports to two of the three credit agencies. They don’t report to Equifax. According to a customer representative, “...LendingPoint only reports to Experian and TransUnion at this time. If you have any further questions or concerns, please feel free to reach out to us at our customer service number (888) 969-0959”

Qualifying for a LendingPoint loan

LendingPoint uses artificial intelligence (AI) and a proprietary program to evaluate your application. They allow you to prequalify without harming your credit score. To be eligible for a LendingPoint loan, you must:

• Be 18 years or older.
• Provide a U.S. federal, state, or local government-issued photo ID.
• Have a Social Security number.
• Earn a minimum annual income of $35,000.
• Possess a verifiable personal banking account in your own name.

Prequalifying involves completing an application online or calling their loan agents, and you’ll receive a decision (and loan offers, if applicable) “in just seconds,” according to LendingPoint.

How to apply for a LendingPoint loan

To start the application process, you first prequalify by calling LendingPoint at 1 (888) 969-0959. Or you can input your desired loan amount and loan purpose on their homepage and click “Check Your Rate.” 

Judging from customer reviews on TrustPilot, you’re more likely to have a great experience by calling than by using the website. The process detailed below reflects a web-based experience.

LendingPoint only asks for your name, the last four digits of your social security number, address, and annual income to make an initial decision. In seconds, if you qualify, you’ll be presented with offers for different loan amounts, repayment terms, and annual percentage rates. The offers don't show the fees associated with the loan; there's a statement that your final loan amount and payment may show an origination fee of 0% to 8%.

Selecting an offer doesn’t get you additional fee disclosures. Instead, a screen pops up to transfer you to a lending partner. If you select a loan option and continue your application, LendingPoint will do a hard inquiry into your credit to verify the information you provided on the application. Hard inquiries show up on your credit report and can temporarily lower your credit score by a few points.

You can then choose to go forward with the application or back out. If you choose a loan option, you may be asked for documentation to verify information on your application.

Loan approval and loan funding from LendingPoint

LendingPoint conducts its final review of your application once you’ve submitted all requested information and documents. This review can take one to three days.

After final loan approval, LendingPoint transfers the funds into your bank account via ACH, and you may have access as soon as the next business day. LendingPoint and many reviewers note that some receive money in one to two business days after applying.  

LendingPoint: Customer service and customer satisfaction

LendingPoint has earned an excellent 4.9 out of 5 stars with nearly 8,000 reviews on TrustPilot. The rave reviews mention two specific things – first, customers who experienced financial difficulties found the company loan retention staff to be sympathetic and helpful. 

The other notable point is that people seeking loans gave high marks to the representatives they spoke to on the phone. They usually mention the names of their reps. 

The one point in which LendingPoint may fall short is in the technology. Here are typical comments in which the word website was mentioned:

• Borrowing from LendingPoint started off a little rocky because of the website…
• The website/mobile app is consistently under maintenance or freezes...
•  I had some trouble downloading my files to the website…
• The Lending Point website kept kicking me out.

Even with the website issues, however, most of these reviewers still left positive reviews and high ratings. If you experience an issue with the website or just have questions, contacting them by phone should help. 

LendingPoint has an A rating from the Better Business Bureau.

When a LendingPoint personal loan might be the best choice

LendingPoint might be a great choice if your credit score is too low to qualify elsewhere. LendingPoint’s website plainly states that they examine an applicant’s entire financial picture—not just a credit score. So consumers with lower credit scores (as low as 580) who earn sufficient income to repay a loan might find love there. 

LendingPoint is also a good option if you need cash fast. You can prequalify in seconds, and, if approved (which takes one to three days), get their money as soon as the next business day. If you need money faster than that and have to take a costly short-term loan, consider paying it off with a LendingPoint loan so you can avoid rolling over a title or payday loan.

If you have excellent credit and time to shop around and compare, though, prequalify with a few other lenders and get quotes before committing. LendingPoint discloses that it might charge an origination fee as high as 8% of the loan amount, and you don’t see that figure when just prequalifying online. Ask for the exact fee and know the true cost before authorizing a credit inquiry.