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Lendup Review: When it comes to payday loans, most people think these services are just out to scam you, which in many cases they are. The good news is there are a couple payday loan services that are trying to take the scam out of payday loans.
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LendUp is one of the most popular online loans services, so we decided to compare it against some of the other payday loan alternatives. Here are our top picks for sites like LendUp:
CashAdvance.com is one of the more trusted names in payday loans, and works the same as Trusted Loan Network in that it aggregates lenders to help match the best one for you. They offer a wide range of loans and have some of the lowest APRs in the payday loan business. CashAdvance.com also does not require a credit check, but you do need to be 18, have a source of income and have an open back account. Once you are approved, funds will be deposited in your account the following business day.
OppLoans is changing the way people think about short-term loans. For one thing, OppLoans offers higher loans than other short-term loans services; between $1,000 and $10,000. Another positive of OppLoans is there interest rates are much, much lower than traditional short-term loan services. Once you are approved, funds will be deposited in your account the following business day. OppLoans reviews show an A+ rating from the Better Business Bureau and great customer satisfaction to boot.
LendUp is a very new payday loan service, having started in 2012. They currently only operate in 22 states but are continuing to expand. LendUp is a great service for those who plan on taking out several payday loans, since they offer a rewards system that allows you to take out larger loans at a lower interest rate over time. They also offer same-day deposit, which is a great option for anyone who needs cash now. One of the downsides of LendUp is that they charge you $17 for every $100 you borrow, on top of the APR that you are charged. In order to apply for a loan, you will need a bank account, proof of income and social security number.
PersonalLoans.com isn’t a traditional short-term lender, it works more like a traditional loan. Like Trusted Loan Network, PersonalLoans.com aggregates offers from a range of lenders and banks so that you get the best possible offers. Unlike payday loan services, PersonalLoans.com will check your credit score to determine your eligibility. They generally don’t offer loans to anyone who has a score below 580. On the plus side, PersonalLoans.com’s APRs are generally a lot lower since they are more like traditional loans, and let you determine your payback schedule with your lender.
Overview: LendUp is a very new payday loan service, having started in 2012. They currently only operate in 15 states but are continuing to expand. LendUp is a great service for those who plan on taking out several payday loans, since they offer a rewards system that allows you to take out larger loans at a lower interest rate over time. Another great service that LendUp offers that other payday loan sites don’t is instant deposit; you can get your loan in 15 minutes or less.
Price: $17 per $100 borrowed
APR for loan: 36%-406% (depending on credit)
Maximum amount of loan: $1,000 (although you have to start with lower loans, like $250, and work your way up by paying on time.)
Maximum timeframe of loan: 30 days
Typical loan price: If you take out a $250 loan for 30 days, you would owe $293.40, including $43.40 in interest.
Requirements: You need proof of income, a checking account and your paycheck schedule, as well as typical identity info like social security number and photo ID. This site does not require a credit check. If you can’t get qualified for a LendUp loan, try a service like OppLoans. Here is our full OppLoans review.
Features: Like most payday loan sites, you can get direct deposit straight to your checking account. LendUp offers same-day and next-day deposits, as well as automatic withdrawals for paying the loan back. The company also offers payment extensions if you can’t make a payment date and no penalty for paying off your loan early, if you want to save on interest. If you are in debt and need a loan, you might consider a debt relief program, like Freedom Debt Relief and National Debt Relief, or a competitor like Accredited Debt Relief.
Customer service: LendUp offers telephone and email support, as well as helpful FAQs, but does not offer an online chat function.
Overview: OppLoans is a little older than LendUp, having started in 2010. OppLoans is not only trying to change the way payday loans work, but also the financial literacy of their clients. This commitment to education shows they truly care about the financial well-being of their customers.
APR for loan: 36%-199%, based on credit score, history, etc.
Maximum amount of loan: $10,000
Requirements: Much like LendUp, you will need proof of income, a checking account and your paycheck schedule, as well as typical identity info like social security number and photo ID. The difference is that OppLoans DOES require a credit check to be approved.
Features: OppLoans offers the same kind of features that LendUp does, including direct deposit into your checking account, automatic withdrawals for paying the loan back, payment extensions and no penalty for early payoff. They do offer next-day deposits but not same-day deposits.
Customer service: OppLoans offers the same telephone and email support, helpful FAQs, but also does not offer an online chat function.
LendUp loans prices are very affordable compared to other payday loan sites. You pay $17 for every $100 you borrow, and then interest on the loan, which can be as low as 36 percent, depending on your financial information. (LendUp does not check your credit. Another site that does not check credit is CashNetUSA. Read our full CashNetUSA review here.) Other payday loan sites have minimum interest charges of 100-200 percent. LendUp also rewards you for paying on time and repeat business by allowing you to borrow more as well as lowering your interest rate on your loans.
Even though you don’t have to have good or excellent credit to get a loan from LendUp, your interest rate can still be dependent on your credit score, so getting your credit score it good shape before applying is always a good idea. If you don’t have the time to fix your credit yourself, you can try a credit repair company to help. Some of our top picks include Sky Blue, Lexington Law Credit Repair and CreditRepair.com.
LendUp’s applications process is pretty straightforward. Pick the amount of your loan, how long you need to pay it back (up to 30 days) and go through the application process, which requires some of your financial information. Submit your application and you will get an instant decision on your loan. In order to apply for loan with LendUp, you need a personal checking account, proof of employment, your paycheck schedule and proof of ID.
LendUp loans haven’t been around long, especially compared to other payday loan sites, but it is already getting a lot of positive feedback because of the way it handles payday loans. Unlike a lot of predatory lenders in the payday loan space, LendUp makes sure you understand the terms of your loan and gives you the right tools to pay it back. It also offers its rewards program, which lowers your interest rate and increases your loan limits for returning customers who pay on time. The only downside that some consumers have commented on is that LendUp is only available in 22 states, so its availability is not as widespread as some of the other payday loan sites.
The only negative press we’ve seen about Lendup is that in September 2016, the Consumer Financial Protection Bureau ordered them to pay more than $3.6 million in fines for allegedly misleading customers about its online lending service.
The main difference between LendUp loans and other similar options is its reward system. The goal of many payday loan sites is to keep charging you a bunch of interest on your loans for as long as they can. LendUp actually rewards you for being responsible with your loan. If you are a first-time borrower, they will only let you borrow a small amount (usually around $250). If you pay it back on time, not only will it increase your loan limit, LendUp will also lower your interest rate, making it easier to pay back your next loan. It is unusual for a payday loan service to actually reward lenders for properly using their loans.
Ryan Murphy • June 4, 2015
I may be a little biased because I do work with/for several payday loans companies but most PD companies are not “scams”. Yes they have very high interest rates but the borrower is made aware of the terms before agreeing to the loan. To be fair I think many borrowers are so desperate or just incompetent they don’t understand the terms.
While I don’t have personal experience with LendUp they seem to have lower interest rates which is always good for the borrower. Time will tell if there business model is sustainable and they remain true to their “terms”.
Junior Staack • May 10, 2015
Very good blog post.Really looking forward to read more. Much obliged.