LendingPoint also looks at a range of other factors to make a loan decision, including:
- credit history and credit card debt
- employment status
- current delinquencies and bankruptcies
- charge offs in the last 12 months
- open tax liens
- debt-to-income ratio (less than 45%)
The lender uses these factors to assign a grade to each applicant. But grades don’t correspond directly with credit scores, so an applicant with a low credit score could still earn a high grade and get favorable loan terms, says Tom Burnside, LendingPoint’s CEO.
LendingPoint’s starting interest rate is 17.46%, which is higher than some competitors that cater to the same type of borrower, but much lower than lenders that do no credit check at all. Approved applicants usually receive funds within 24 hours.
Many of the lender’s customers have thin credit files or trouble qualifying for traditional forms of credit, Burnside says. Borrowers typically use the loans to consolidate debt, he says.
The company reports payments to credit bureaus Experian and TransUnion, so borrowers who make payments on time could see a boost in their credit scores. Borrowers can compare rates from LendingPoint on the company’s site without affecting their credit scores.
A relatively new company, LendingPoint is available in eight states as of January 2016: Georgia, Minnesota, Missouri, Montana, New Mexico, Oregon, South Dakota and Utah.
[Compare LendingPoint with other personal loan companies.]
What makes LendingPoint different
LendingPoint personal loans come with a lot of flexibility: Borrowers can choose to pay their origination fee upfront or add it on to their interest rate. They can also choose between making loan payments once or twice a month.
LendingPoint provides a customer service representative, known as a “PointPerson,” to guide potential borrowers through the application process and help approved borrowers during the life of the loan.
If borrowers have trouble making payments, they can reach out to their PointPerson to pause payments or negotiate a new payment schedule.
Here’s what else you need to know before applying for a personal loan from LendingPoint:
LendingPoint’s credit standards
- Minimum credit score required: 600
- Minimum gross income required: $20,000
- Limitations: Available only in 8 states
- Minimum credit history: None
- Maximum debt-to-income ratio: Less than 45%
LendingPoint’s lending terms
- APR: 17.46 to 35.99%
- Minimum loan amount: $3,500
- Maximum loan amount: $20,000
- Minimum loan duration: 2 years
- Maximum loan duration: 3 years
- Time to receive funds: Next day
LendingPoint’s fees and penalties
- Origination fee: 5% of loan amount, can be paid upfront or spread over monthly payments
- Prepayment fee: None
- Late fee: $30
- Personal-check processing fee: None
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