LendUp Personal Loan Review: Payday Loan Alternative
Some people might apply for a bank loan when they need money. But getting approved for a traditional loan is challenging when you have no credit or bad credit.
LendUp, on the other hand, is an option regardless of your credit history. But is this the right solution for you?
What You Need to Know About LendUp Personal Loans
LendUp’s short-term microloans operate similar to payday loans.
They’re due in full in about 30 days and you can borrow up to several hundred dollars.
But unlike payday loans, LendUp has tools to help borrowers improve their financial situation.
Unfortunately, LendUp isn’t in every state. These loans are currently only available in seven states:
1. How much can you borrow with LendUp?
LendUp is an excellent solution if you’re looking for a loan fast. But whereas some banks might give a borrower thousands of dollars — if they are eligible — LendUp limits its loan amounts.
The amount you’re eligible to receive will vary depending on your location. The loan amount also depends on whether you get a single payment loan or an installment loan.
If you’re a first-time applicant, you’re eligible for a single payment loan. These loan amounts range from $100 to $300.
LendUp also offers installment loans with amounts that range from $100 to $400.
However, you’re only eligible for an installment loan after laddering up (more on this later).
Keep in mind:
Installment loans are only available in California, Louisiana, Missouri, and Texas
2. What is the repayment term?
Since this isn’t a bank loan, don’t expect a long repayment term.
With a traditional loan, your lender might allow you to repay the balance over several years. LendUp doesn’t work this way.
When you apply for a single payment loan, full repayment of your balance is within 14 to 30 days.
If you have an installment loan, you must repay the full balance within four months.
3. What is the minimum income requirement?
LendUp’s website doesn’t specify minimum income requirements for a loan.
However, the company will verify your income before issuing funds.
You’re required to upload proof of income, such as a recent paycheck stub, to the company’s website.
LendUp uses this information to gauge your ability to repay your single payment loan or installment loan.
4. What is the minimum credit score to get approved?
Bad credit and no credit are often obstacles to getting a personal loan.
The best part here:
Your credit history doesn’t impact your ability to get a LendUp loan.
This loan is a viable option for those who don’t have a strong credit history, yet can afford the monthly payment on a small loan.
When you apply for a loan, you’re required to provide your Social Security number.
But LendUp only uses this information to verify your identity. So applying for a loan does not affect your FICO credit score.
5. How soon can I get funds?
The LendUp application process is quick and you’ll receive an instant decision.
You’ll need a checking account to apply for a loan. In addition, this account must allow ACH transfers.
Once you’re approved for a loan, LendUp will transfer money to your checking account in as little as one business day.
Unfortunately, you cannot use a savings account or a prepaid debit card when applying for this loan.
On your payment due date, LendUp will debit the amount from your checking account.
You can, however, use a debit card, MoneyGram, or check when repaying your balance early.
6. What fees are involved?
You can expect fees with any type of loan, and LendUp is no exception.
Since this is a payday loan alternative, the fee you’ll pay is comparable to those charged by payday lenders.
However, your actual loan fee will depend on your state and the length of your repayment term.
For illustrative purposes, you might pay a loan fee of $17 for a $100 loan, and a $45 fee for a $300 loan.
Improve Finances With The LendUp Ladder
One feature that separates LendUp from a typical payday lender is the company’s tools to help improve your financial future.
The LendUp Ladder provides a way to qualify for bigger loans at a reduced interest rate.
If you live in a state that supports this program, you can use a LendUp installment loan to build or increase your credit score. This program also provides financial education.
It's important to note:
Applying for a single payment loan will not help your credit.
LendUp doesn’t report this payment activity to the credit bureaus. However, if you climb the LendUp Ladder and receive an installment loan, the lender can report these payments to the credit bureaus.
You climb the LendUp Ladder by earning points. Borrowers earn points each time they apply for a LendUp loan.
You’ll also earn points when you pay off your loan.
Additionally, you receive a point bonus when you take advantage of LendUp’s financial education, and when you share your LendUp experience online.
How to Get Approved for a LendUp Loan?
To apply for a LendUp loan, you’ll need to provide the following information:
- Social Security number
- Checking account information
To get started, create a LendUp account using your email address. From here, you’ll provide your personal information and answer a few basic questions.
Be prepared to provide information about your monthly rent or mortgage payment, other monthly expenses, and your reason for applying.
To improve your chances of getting approved, don’t sign up with a checking account that’s already in the LendUp system. Each new LendUp account must have a unique bank account number.
You might run into a problem if you share a checking account with another LendUp accountholder.
Additionally, the system doesn’t let accounts share the same contact information. So the phone number you provide must be unique to your account, too.
Also, if you’re required to submit documentation to verify your income, do so in a timely manner. Failure to upload this proof can delay your loan.
How Does LendUp Compare to Other Personal Loans?
Many features of a LendUp loan are similar to a payday loan.
These loans are useful when you need a small loan for an emergency or unexpected expense.
Although LendUp provides a short-term solution to cash-flow problems, it’s important to always compare rates and terms.
Short-term loans typically have higher interest rates.
Even so, rates and fees can vary from lender-to-lender. Shopping around is an excellent way to get the cash you need, while saving money on finance charges.
Also, don’t dismiss the idea of applying for a traditional loan. Even if you don’t have the strongest credit history, it might still be possible to get a traditional loan.
You’ll likely pay a higher interest rate, but these loans are often more affordable than payday loans. Plus, traditional loans have longer repayment terms.
Getting a traditional loan also makes sense if you have collateral. This is personal property you pledge as security.
Secured personal loans are easier to get with no credit or a bad credit history.
If you choose a bank loan, always compare interest rates, loan terms, minimum credit requirements, and loan amounts before applying.
So, is a LendUp loan right for you?
If you need cash and can’t qualify for a traditional bank loan, a LendUp loan is useful and convenient.
You can get an instant approval and use funds for a home repair, a car repair, or another unexpected expense.
These loans aren’t available in every state and they have higher costs. You can reduce your finance charges by borrowing only what you need and choosing a short repayment term.
The upside to a LendUp loan is that the company provides tools to help improve your financial picture. This is great if you’re looking to educate yourself on money or build your credit.
Understand, though, that building credit with LendUp requires getting an installment loan. And even with an installment loan, your state might not allow the company to report your activity to the credit bureaus.
For this reason, if you’re looking to establish or rebuild your credit history, LendUp might not be the best choice.
If not, look into other tools to improve your credit. These include getting a credit builder loan from your bank or applying for a secured credit card.
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Lendup Loans: Fast, Well-Known, & Clear Costs
There are many upsides to borrowing online loans. They are quick, convenient, and accessible. But not all online lenders deliver the best experience. Some have hidden fees. Others have unclear terms and rude customer service. A few are unscrupulous and offer predatory loans.
Lendup is a shining gem in the crowded online lending space. The company helps people seeking quick and fast small-dollar loans. Something noteworthy is that you’ll know the exact loan cost upfront before you apply.
Lendup Loan Review
Lendup is a FinTech company founded in 2012. The founders sought to solve the inherent problems in the financial industry through the use of technology. Some of the company’s services include Lendup personal loans, payday loans, Lendup installment loans and credit cards offered through partnerships. They also provide free financial education.
How a Lendup Payday Loan Works
First-time borrowers get to borrow Lendup loan amounts up to $255 for 30 days. To get started, all you need to do is visit their home page. Here, you’ll find their custom payday loan calculator with a calendar view. You set your own repayment date. The finance charge will be a flat fee regardless of the loan duration.
For instance, assume you’re borrowing $100. If you choose to repay the loan after 8 days, the finance charge will be $17.60 and the APR 917.71%. If you choose a term of 30 days, your APR drops to 229.43%, but the finance charge is still $17.60. That’s basically all you must know about Lendup payday loans.
How Does Lendup Compare with Other Payday Lenders?
Most payday lenders impose a fixed APR and charge interest on a daily basis. Say, you find another payday loan lender offering a $100 loan at a fixed Annual Percentage Rate of 365%. The daily interest rate is 1%. If you took their loan for 30 days, the finance charge will be $30. That means that Lendup loans can be cheaper than other alternatives.
Lendup Installment Loans
Instead of one lump payment, an installment loan is repaid in small fixed amounts. Lendup offers personal loans, but you can only obtain about $500 on the first application. The term ranges from 2 to 12 months with interest rates starting at 36%. But they also offer installment loans with lower interest rates to return customers.
Perks of Lendup Loans Online
- Free Financial Education
Smart borrowers make smart decisions because they are informed. Lendup, through their free courses, will grant you the knowledge you need to navigate the world of lending successfully.
Currently, they have about six courses. You get points on completing each course and passing the simple quizzes. The reward points will help you get cheaper loans and higher loan amounts.
- The Lendup Ladder
Most lenders don’t reward their core customers for being good. That’s not Lendup’s philosophy. You’ll get rewarded for your on-time Lendup payment.
Once you reach the Platinum and Prime levels, you can obtain a Lendup installment loan with credit reporting to Equifax, TransUnion, or Experian.
What Other Borrowers Like about Lendup Loan
A quick search for “Lendup loan review” turns up many leads. Some are review websites like Trustpilot or Credit Karma. On these sites, customers are saying good things about the company.
Lendup has been hailed for being honest. They have been noted for treating customers not as statistics or cash wallets, but as human beings. Lendup’s reps have been also commended for being friendly and professional.
Lendup Review of Advantages
- Applying for their alternative payday loan will not put a negative mark on your credit report. Your scores stay intact.
- Loans are approved fast with money showing up in your bank account by one business day. You’ll solve your emergency in the shortest time.
- The company offers loans to people with fair or poor credit scores. You can apply with confidence knowing that your loan will have a high likelihood of getting approved.
- You get your own customer portal that you access from your smartphone or desktop. You’ll track the loan payments, rewards, etc., easily.
- Some loan companies are quick to roll over your overdue loan. That’s offering you a new loan to pay the initial loan. It’s a slippery move that causes many borrowers to fall into a circle of debt. Lendup works with you to create a repayment plan.
Is Lendup Safe?
The company offers a safe loan process. Remember, there are no rollovers, therefore, there is a lower chance of you falling into a debt trap. Your information is also protected by standard encryption. So, is Lendup safe? Sure. it is!
Get started by navigating to their website to start your Lendup loan application.
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