LendUp review: Alternatives for 2021

3 alternatives to LendUp

LendUp set itself apart by reporting payments to credit unions. This is rare for lenders that offer payday or installment loans.

Fortunately, you aren’t limited to payday loans. You can improve your credit by working with an online lender that offers personal loans. These are often safer, less expensive ways to borrow money.

Monevo personal loans

4.4 / 5 ★★★★★

Go to site on Monevo's secure website

• Overview
• Pros & Cons
• More Details

Monevo works by matching borrowers with lenders they qualify for. And because of its wide range of partners, it is able to offer options to people with bad credit. While this does mean potentially high interest rates — and an annual percentage rate (APR) of 35.99% — it also means you may not need to turn to payday loans to cover emergency expenses. With loans as small as $500, Monevo covers most needs and can help you find a lender with one application. And unlike LendUp, Monevo also lets you check your eligibility for car loans and business loans.

• Available in all states

Pros

• Upfront about partners
• Bad credit OK
• Wide range of loan amounts

Cons

• Limited partners in network
• Marketing phone calls and emails common

Loan Amount	$500 - $100,000
APR	1.99% to 35.99%
Interest Rate Type	Fixed
Min. Credit Score	None
Turnaround Time	Varies by lender
Maximum Loan Term	12 years
Minimum Loan Term	0.5 years

APR	1.99% to 35.99%
Min. Credit Score	None
Loan Amount	$500 - $100,000

Go to site on Monevo's secure website

OneMain Financial personal loans

3.4 / 5 ★★★★★

Go to site on OneMain's secure website

• Overview
• Pros & Cons
• More Details

OneMain Financial is a direct lender that offers secured loans. This means you'll need to provide collateral for most loans. But unlike other lenders that work with borrowers who have bad credit, same-day funding may be available — and OneMain Financial offers a seven-day satisfaction guarantee. The downside is the expense. Alongside a high starting APR of 18%, you'll be on the hook for a high origination fee and a hefty late fee if you miss a payment. For those considering LendUp, OneMain Financial is a less expensive option that may be able to get you quick funding.

• Not available in: Alaska, Arkansas, California, Connecticut, Massachusetts, Michigan, Rhode Island, Vermont

Pros

• Same-day funding available
• May offer unsecured loans to some applicants
• Nearly 1,500 branches in the US

Cons

• Origination fee up to 10%
• High late and return payment fees

Loan Amount	$1,500 - $20,000
APR	18% to 35.99%
Interest Rate Type	Fixed
Min. Credit Score	Varies
Turnaround Time	As soon as the same day
Maximum Loan Term	5 years
Minimum Loan Term	2 years

APR	18% to 35.99%
Min. Credit Score	Varies
Loan Amount	$1,500 - $20,000

Go to site on OneMain's secure website

Universal Credit personal loan

Go to site on Universal Credit's secure website

• Overview
• Pros & Cons
• More Details

Universal Credit is backed by Upgrade, a top online lender. It isn't the most upfront about its process or many of its costs, but it does cover the basics. Like most lenders that offer loans to borrowers with bad credit, expect to pay a high interest rate and multiple fees — including an origination fee up to 8%. You also won't qualify if your credit score isn't at least 600. But overall, it's a good alternative to LendUp for those who don't quite qualify for larger personal loans.

• Not available in: Iowa, West Virginia

Pros

• Backed by Upgrade
• Discount for automatic payments
• Free credit monitoring

Cons

• Limited information available
• Origination fee up to 8%

Loan Amount	$1,000 - $40,000
APR	10.97% to 35.93%
Interest Rate Type	Fixed
Min. Credit Score	600
Turnaround Time	As soon as one business day
Maximum Loan Term	5 years
Minimum Loan Term	3 years

APR	10.97% to 35.93%
Min. Credit Score	600
Loan Amount	$1,000 - $40,000

Go to site on Universal Credit's secure website

There are some credit unions and pay advance apps that may also offer small loans or advances on your paycheck. However, you will need to open an account or sign up for these services.

Some federal credit unions even offer payday alternative loans. Your options will be more limited, but these are a helpful way to avoid high interest rates — and give you access to other benefits offered by a credit union.

A breakdown of LendUp’s lawsuits

Beyond this newest lawsuit that alleges LendUp violated CFPB orders, there have been two other lawsuits against LendUp in the past.

In December 2020, the CFPB filed a lawsuit against LendUp. It states that LendUp allegedly violated the Military Lending Act (MLA) by charging active-duty service members and their dependents APRs over the legal limit of 36%. It also states that LendUp allegedly included an arbitration clause – which is against the MLA – in its contracts and failed to make required disclosures.

This isn’t the first time LendUp has faced legal action from the CFPB. In 2016, LendUp was found guilty of violating consumer finance laws because it failed to report borrowers’ payments to credit bureaus. It also failed to disclose its APR, changed its pricing for some borrowers and blocked borrowers from accessing the higher rungs in its ladder system. LendUp paid around $1.83 million to its borrowers and another $1.8 million to the CFPB’s Civil Penalty Fund.

Previous LendUp rates, fees and terms

LendUp’s options depended on your state and if you had already paid back one of its high-cost loans. Most first-time borrowers only qualified for payday loans between $100 to $300.

The financing fee also depended on your state. It ranged from 15% to 25% of the amount you borrowed.

Because these loan amounts were small and loan terms were short, the cost of borrowing from LendUp was high. A personal loan — which has a maximum APR of 36% no matter which lender you pick — is a much more affordable option. And just like LendUp, most online lenders can get you funds as soon as the next business day after you apply.

Recap: Alternatives to LendUp

LendUp isn’t an option if you need a quick loan to cover a small expense. But these three lenders are solid alternatives even if you don’t have good credit. Better yet, they won’t cost as much as LendUp.

• Monevo
• OneMain Financial
• Universal Credit