LendingPoint was founded in 2014 by Tom Burnside, Franck Fatras, Victor J. Pacheco, and Juan E. Tavares. The founders saw that the aftermath of the Great Recession was a polarizing force in consumer lending, as consumers were divided into either “prime” or “subprime” asset classes as defined by their FICO scores. Banks continued to compete for prime customers by offering low interest rates and loyalty programs, but consumers below the 700 FICO dividing line were grouped together and remained stuck between bank declines and very few responsible borrowing choices. The founders recognized financial behaviors and characteristics that were more distinctive than FICO scores, which defined an asset class that could be seen as an emerging market with predictive behaviors and risk profiles. LendingPoint was created with the goal of providing access to more affordable loans for these consumers with credit scores between 600-700, a class which LendingPoint names “NearPrime”.
LendingPoint officially launched its first consumer loan product in January 2015. In October 2015, LendingPoint announced a $100 million credit facility with funds managed by the Tradable Credit and Direct Lending groups of Ares Management. Just two months later, LendingPoint signed an additional credit facility for $5 million of incremental financing with Aeterna Capital Partners. This money was raised to help the company expand its loan portfolio to even more consumers and grow with the demands of the market as it continued rollout across the U.S.
Most lenders don’t understand the potential of the fair credit consumer. At LendingPoint, we unlock access to affordable personal loans at fair rates by broadening decision-making criteria, beyond the credit score. We are making fair, fair again. We’re passionate about helping you rewrite your credit story. We get to know your past, so we can concentrate on your future. By unlocking access to money at fair rates and flexible terms, we’re creating better loans for better lives.
LendingPoint built a proprietary credit risk model which allows it to offer more loans to consumers with FICO scores between 600-700. Using hundreds of data points, LendingPoint looks at a person’s complete financial picture, taking into consideration credit history, employment history, earning potential, education and even online social profiles to determine creditworthiness.
LendingPoint provides consumer installment loans ranging from $1,000 to $25,000, with terms from 24–48 months. Credit applications can be completed online or via mobile devices, and credit decisions are made in seconds. In most cases, LendingPoint transfers funds into a customer’s bank account within one business day. Annual percentage rates range from 15-35% based on an individual’s credit and payment performance. LendingPoint charges an origination fee of 5%.
Installment loans can be used for a number of purposes including home and car repair, renovations, weddings, medical or veterinary bills, travel, or debt consolidation.
When LendingPoint began in 2014, we offered loans only in our home state of Georgia. Since then, we’ve been carefully growing to meet the needs of more of the country. Clicking on “Apply” and filling out your basic information (name, address, date of birth, social security number, annual income) to see what loan offers we can provide, does not affect your credit report, as we do what is called a “soft pull.” A soft pull is a data request that only we can see on your credit report. If and when you do select a loan offer from us, we do make a “hard inquiry” to verify the information you’ve provided on the application as part of the approval process. This hard inquiry will be shown on your credit report.
Here are 6 important requirements before you can get a loan with LendingPoint:
You must be at least 18 years of age.
You must be able to provide a U.S. federal, state or local government issued photo ID.
You must have a social security number.
You must have a minimum annual income of $20,000 (from employment, retirement or some other source).
You must have a verifiable personal bank account in your name.
You must live in one of the states where LendingPoint does business. As of November 2017, we are in 32 states and the District of Columbia, and growing.
We’ll initiate transfer of the funds into your bank account as soon as the next business day after final loan approval and receipt of all required documents.
Fair credit consumers can access affordable personal loans up to $25,000 with better rates and flexible terms (24-48 months). Annual percentage rates – 15-35%. Fixed APR and regular payments, avoid the uncertainty of variable interest rates with our fixed APR and payment options designed to fit your budget.
1201 Roberts Blvd., Building B 200