LendingPoint
LendingPoint is ideal for borrowers in the 600-690 range, but the company focuses on the overall creditworthiness of the borrower and not just credit score alone.
4.7
Our Score
The Good
The primary strength of LendingPoint is its unique credit scoring model, which considers the overall credit profile of the borrower instead of just the credit score. Its primary customers include subprime borrowers – anyone from bad to good credit. You do need a minimum of at least a 600 FICO score.
Some of the key factors LendingPoint takes into account include:
- Job history: More than 12 months in the current job
- Verifiable income: Annual income of at least $20,000
- Financial history: No recent delinquencies or bankruptcies
- Credit behavior: Debt-to-income ratio (35% or below), recent charge-offs, open tax liens etc.
And you must be in one of the following 30 states: Alabama, Alaska, Arizona, California, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Virginia, Washington DC
The application process is simple and takes only a couple of minutes. Depending upon the borrower’s information, LendingPoint presents an offer and the funds are generally released within the next 24-48 hours.
Transparent with no pre-payment penalties
LendingPoint does not charge any pre-payment penalties, meaning borrowers can pay the loan off early without incurring any kind of fee. They may charge an origination fee of up to 5%, but it varies state-by-state. In instances where they do charge this, they are very clear and upfront about the fee. Some lenders – like SoFi – do not charge an origination fee, but these are typically only going to be lenders that cater to borrowers with good and excellent credit.
LendingPoint offers custom loan repayment options, which means that borrowers can choose a due date and schedule their payments monthly, 28 days, and bi-weekly.
The Bad
- High APR rates
- Serviced states
High APR rate: APR rates of 15.49% to 34.99% are high in comparison with other online lenders, but what you would expect if in the 600-700 FICO score. Borrowers with a higher credit score can get better rates from other providers.
Serviced states: LendingPoint offers its services in 30 states and Washington D.C, limiting access to their services.
The Summary
LendingPoint is an excellent credit option for borrowers with less than perfect credit score. Their unique loan eligibility model puts them ahead of their competition. At the same time, quick loan approval and next day funding are some of the most sought-after features by borrowers.
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