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LendingPoint Personal Loans Review
18 May 2018

LendingPoint Personal Loans Review

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One in three Americans has a credit score lower than 601, according to Experian, one of the major consumer credit reporting agencies. This is why we took a look at LendingPoint, one of the great solutions for boosting credit scores.

Simply put, many people need access to lenders like them. It gives consumers a chance to better manage their debts and boost their scores over time.

The good news about credit scores is that more people are getting their credit reports — the percentage of people who got at least one credit score in the past year has risen from 49% in 2014 to 56% in 2017.

The bad news is more people are not fully understanding how credit scores are being used. Only 44% were aware that electric companies consider credit scores. This is a big drop from 53% in April 2016.

Consumers need to understand how the credit scoring system works.

Your credit score falls between 300 and 850. Here’s a breakdown of credit scores:

  • Excellent — Above 750
  • Good — Between 700 and 749
  • Fair — Between 650 and 699
  • Poor — Between 550 and 649
  • Bad — 550 and below

When you have bad credit, it’s hard to find personal loans to gain control of your score. Fortunately, this is where lenders like LendingPoint come in.

The Basics

They’re established as one of the simplest online lenders around. The process is straightforward and fully accessible online.

The LendingPoint process:

  • What you need
    • Proof of employment and income
    • Recent bank statements
    • Voided check
    • Driver’s license/ID

When you have all this information ready, your process is way easier. They consider your entire credit story when they process your request.

What does a credit story consist of?

There are many factors they look at, including the following:

Job history

You’re at an advantage if you worked at your current job for at least a year.

Credit behavior

If you’re recently building your credit, that is a great sign.


The most important aspect of your income is not the number; it’s the fact that it’s verifiable.

Financial history

Show them you have a responsible banking record.

The LendingPoint claim to fame is their specialty in what they call NearPrime consumers. In other words, they provide personal loans for those who have credit scores in the 600s.

Another important aspect to look at is how you can use your personal loan. You can spend what you borrow in several ways, including the following:

Debt consolidation

Finally get your bills under control with one simple loan payment.

Moving expenses

Cover the costs of your next relocation so you don’t have to add to your credit card balance.

Big repairs

Prevent small leaks from becoming major damages. Pay for the leaky roof or the plumbing issue right now.

Home improvement

Bring your house to the modern era by installing more energy efficient upgrades, like sealed windows and high-quality air conditioning units.


Stop putting off that next much-needed break from the day-to-day.

Medical expenses

Finally get some peace of mind and face those unexpected health care bills.

The Pros

LendingPoint is one of the most reputable online lenders on the market. They provide you with several benefits.

No Hassles

Their process couldn’t be easier. You follow their simple request process.

First, you tell them how much cash you need and what specifically you’re financing.

Then, once you provide all the important information, like your income and identity information, you can select the personal loans that fit your needs.

The best part — applying doesn’t hurt your credit score. They do what’s called a ‘soft pull.’

A soft pull is a data request that only they can see on your personal credit report.

So if you’re denied, you can focus on building your score up and then trying again down the road.

Once you select a loan offer, they conduct a full inquiry to verify all your information.

Fast response

You don’t have to wait forever for them to process your request and respond to you.

LendingPoint offers ‘next day deposit.’ In many cases, once you’re approved, you can expect cash in your account within 24 hours.

Safe and secure

They use industry-leading safeguards to keep your personal and banking information private. This includes encryption practices.


With LendingPoint, you have full control of your personal loan experience. You can select from a generous range — between $2,000 and $25,000.

Not the mention, they offer flexible repayment options. You can pick to pay every 28 days.

Also, if you need a payment plan that aligns with your budget, you can pay biweekly.

Plus, you can apply for more than one personal loan, and even increase your existing one. Once you reach 25% of the principal balance, you have the option to refinance.

The Cons

As with every online lender, they might not offer a solution that fits your needs. Here are a few disadvantages:


Their qualifications include a limit on your debt-to-income ratio. It needs to be less than 35%.

In terms of your loan amount, you can borrow up to $25,000. This might not be enough if you’re planning on using your personal loan for bigger expenses, like small business startup costs.


Whenever borrowing from an online lender, always pay attention to the fine print.

LendingPoint, unlike most other lenders, will add the cost of the origination fee to your total borrowing amount.

For instance, you borrow $20,000 at a 5% origination fee. You will get the $20,000, but you will be repaying $21,000.

The Verdict of LendingPoint

There is no online lender that is perfect for every consumer.

That being said, LendingPoint could be a great solution if you’re looking to turn your credit score around.

If you’re consistent with your repayment plan, you will likely be able to boost your score higher over time.

It’s also a great solution if you’re looking to consolidate your debts.

So if you’re carrying a lot on a high-interest credit card, you can consolidate on a lower interest loan.

You can’t afford to make the wrong decision when you get a personal loan. Here at Bonsai Finance, we help you find great personal loans that could fit your needs.

Visit our learning center to find personal finance advice that works for you.