Are you struggling to keep up with high-interest credit card payments and various other debts each month? Debt consolidation can provide relief by rolling multiple balances into one new loan with a lower monthly payment.
In this post, you will find key information on how their debt consolidation loans work, eligibility requirements, interest rates, alternatives to consider, and ultimately whether LendingPoint is the right choice for you.
What is LendingPoint?
LendingPoint is an online lending company founded in 2014 and based in Kennesaw, Georgia. They offer a variety of consumer loan products including personal loans, auto loans, and consolidation loans.
With debt consolidation loans in particular, LendingPoint aims to help provide borrowers with high amounts of revolving credit card debt an opportunity to consolidate balances into one fixed-rate instalment loan with more manageable monthly payments.
Benefits of Using LendingPoint for Consolidation
Here are some of the key advantages LendingPoint offers for debt consolidation loans:
- You can apply in minutes without ever needing to visit a branch or gather paperwork.
- Unlike some other lenders, LendingPoint does not charge an upfront origination fee on their consolidation loans.
- Available rates range from 6.99% APR up to 35.99% APR depending on your creditworthiness.
- You may be able to qualify for lower rates by bringing on a cosigner with better credit.
If approved, loan proceeds can be deposited as soon as the next business day.
Downsides of LendingPoint for Consolidation
However, there are also some potential drawbacks:
- You’ll need a minimum credit score of 640 to qualify. Those with scores below 600 will not be approved.
- Only those with great credit will qualify for the lowest advertised rates. Most will pay above 20% APR.
- LendingPoint only offers 3 or 5-year repayment terms.
- You’ll be hit with a fee equal to 2 months of interest if you pay off the loan early.
You can only consolidate up to $35,000 with LendingPoint.
What Types of Debt Can You Consolidate?
Some common types of unsecured debt that LendingPoint allows consolidating into their loans include:
- Credit card balances
- Medical bills
- Payday loans
- Personal loans from other lenders
Most federal and private student loans, auto loans, and mortgages cannot be consolidated through LendingPoint.
LendingPoint Consolidation Eligibility
To qualify for a LendingPoint debt consolidation loan, here are the basic eligibility requirements:
- Minimum credit score of 640
- At least $20,000 in annual personal income
- U.S. citizen or permanent resident
- Not currently in active bankruptcy
- Debt-to-income ratio generally below 50%
Meeting these criteria is no guarantee of approval or the lowest advertised interest rates.
How to Get the Best Rate from LendingPoint
Borrowers with the highest likelihood of qualifying for the lowest fixed interest rates generally:
- Have credit scores above 700
- Have low debt-to-income ratios below 30%
- Bring a cosigner with good/excellent credit
- Have a high annual income well above the minimum
- Have substantial assets or cash reserves
Having these positive financial factors on your application can lead to the best rate offers from LendingPoint.
Walkthrough of the Application Process
If you decide a LendingPoint consolidation loan meets your needs, here is an overview of what to expect during the application and funding process:
- Check your personalised interest rate online without impacting your credit score.
- Provide information on your income, employment, monthly expenses, and debts to be consolidated.
- If approved, you will receive loan offers listing the interest rate, term length, and monthly payment amount.
- Carefully review the loan agreement and e-sign if you wish to accept one of the offers.
- LendingPoint deposits the loan funds directly into your bank account, often as soon as the next day.
- You will make fixed monthly instalments over the 3 or 5-year repayment term.
Pros and Cons of LendingPoint Consolidation
Pros
- Lower monthly payment than paying debts individually
- Fixed interest rate for the life of the loan
- Fast and easy online application process
- Quick access to funds if approved
Cons
- Interest rates above 20% APR for many borrowers
- Origination fee on top of interest charges
- Taxing credit requirements to qualify
- Early payoff penalty limits flexibility
LendingPoint vs. Other Top Debt Consolidation Lenders
Here is how LendingPoint consolidation loan rates and terms stack up against some other prominent lenders:
LendingPoint
- Rates 6.99% – 35.99%
- No origination fee
- Minimum credit score 640
Marcus by Goldman Sachs
- Rates 6.99% – 24.99%
- No fees
- Minimum credit score 660
Lightstream
- Rates 3.99% – 19.99%
- No fees
- Minimum credit score 660
Upstart
- Rates 7.69% – 35.99%
- Origination fees apply
- Minimum credit score 620
As you can see, those with good credit have a better chance of qualifying for lower rates from competitors. LendingPoint is more middle-of-the-road.
Alternatives to LendingPoint for Debt Consolidation
Beyond LendingPoint, here are a few other debt consolidation options to consider:
Balance Transfer Credit Card – Transfer to a 0% intro APR card to pay down balances interest-free for 12-18 months.
401(k) Loan – Borrow against your own 401(k) balance and repay yourself over 5 years.
Personal Loan from a Credit Union – May offer lower rates than online lenders if you belong to one.
Debt Management Plan – Work with a non-profit credit counsellor to negotiate lower interest rates on debts.
Is LendingPoint the Right Choice for You?
LendingPoint consolidation loans are likely best suited for those with:
- Mid-level credit scores in the 640-700 range
- Significant high-interest revolving debt exceeding $10,000
- Stable income to afford monthly payments
For borrowers who don’t meet credit requirements or want to minimize interest, other debt-relief options may be better instead of LendingPoint.
Conclusion
Debt consolidation can provide real financial relief, but only if done right based on your unique situation. LendingPoint is an accessible option for consolidating credit card and other unsecured debt balances into one instalment loan with fixed monthly payments.
Just be sure to compare interest rates across multiple lenders, and explore alternatives like balance transfer cards if your credit is on the lower end. This will help ensure debt consolidation provides you with the most savings possible.
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