finder.com’s rating: 3.6 / 5.0
★★★★★
Bottom line: LendUp is unique among its competitors because it helps borrowers to build your credit over time. Although you’ll be limited to a small amount at first, consistent payments and financial courses could lead to you getting access to better terms, lower rates and higher loan amounts. Read our full review.
$100
Min. Amount
$250
Max. Amount
As soon as the next business day
Turnaround time
| Product Name | LendUp Payday Loans |
|---|---|
| Min. Amount | $100 |
| Max. Amount | $250 |
| Loan Term | 7-30 days |
| Loan Security | Unsecured |
| Turnaround Time | As soon as the next business day |
| Costs | Depends on your state, loan product, loan amount and the term of the loan. |
| Requirements | Checking account with ACH, proof of income, Social Security number, ages 18+ |
Review by
Kellye Guinan is a seasoned financial writer with over 500 articles under her belt spanning all things loans from auto to personal to business and everything in between. With four years in the field and five years of research experience, she's able to make complex personal finance decisions easier for anyone to tackle. When she's not up to her knees learning about the latest trends in lending, she spends her time improving her own financial literacy and expertise — and maintaining a Duolingo streak of over 1,300 days.
LendUp uses a ladder system that lets borrowers earn points and potentially improve their credit by paying back short-term loans. First-time borrowers may be limited in how much they can borrow. But repeat borrowers are rewarded with larger loans and lower interest rates.
However, it’s still an expensive form of credit: Interest rates can be above 1,000% in some states. Your options will also be limited depending on where you live. Mississippi, Tennessee and Wisconsin don’t offer the ability to build your credit.
And LendUp has recently faced lawsuits from the Consumer Financial Protection Bureau (CFPB) for violating the Military Lending Act (MLA) and failing to report borrowers’ payments.
While it may be a better choice for some, compare more payday loan and installment loan options before you borrow.
The amount you can borrow — and the cost of your loan — will depend on your state and your previous history with LendUp. Most first-time borrowers will likely only qualify for payday loans between $100 to $300.
The financing fee also depends on your state. It can range from 15% to 25% of the amount you borrow. But if you choose to borrow from LendUp again, you may qualify for lower interest rates and more financing options.
Late fees and nonsufficient funds (NSF) fees also depend on your state, but expect to pay $10 to $15. Texas residents may also have to pay a Credit Access Business (CAB) fee in addition to other fees LendUp charges.
LendUp’s loan amounts and terms by state:
| State | Loan amount | Loan term |
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| California |
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| Louisiana |
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| Mississippi |
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| Missouri |
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| Tennessee |
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| Texas |
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| Wisconsin |
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The ladder system allows repeat borrowers to access more money at lower rates by paying back a loan on time or completing free financial education courses. Your earn points to get into one of four rungs: Silver, gold, platinum or prime. When you reach LendUp’s platinum and prime loan rungs, you can choose to have your credit reported to boost your score.
LendUp has recently introduced a new service, Ahead Money. While you’ll only be able to join the waitlist for now, you’ll have access to quick direct deposit of your paychecks, financial resources, credit-building opportunities and fee-free ATMs once it goes live. However, there is no information on what bank Ahead will work with — or when the app will go live.
LendUp is a legitimate company that allows you to borrow short-term loans and work on rebuilding your credit score. It is licensed in every state it services and keeps its rates transparent so you can see exactly what you’ll be spending. Like all short-term loan providers, the exact regulations LendUp abides by depend on your state. It was also recognized at the Lend360 conference in 2018 for its innovation in helping borrowers build savings.
Yes. LendUp has a secure website that keeps your information encrypted when you apply and when you log in to your account. It also has an industry-standard privacy policy that covers what type of information it collects and how that information is used. Review it carefully, and if you would like to opt out of some of your information being shared with third party lenders, you can call LendUp at 855-253-6387.
| BBB accredited | No |
|---|---|
| BBB rating | A+ |
| BBB customer reviews | 1.83 out of 5 stars, based on 29 customer reviews |
| BBB customer complaints | 39 |
| Trustpilot score | 4.7 out of 5, based on 2,470 customer reviews |
| Customer reviews verified as of | 16 October 2020 |
LendUp receives mixed reviews on its BBB and Trustpilot pages. Some borrowers were happy with the speed and customer service, while others had difficulties with having their payments processed early and the high interest rate charged by LendUp. And LendUp has a good track record of responding to negative comments — but frequently uses the same form response for each.
In December 2020, the Consumer Financial Protection Bureau (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.
While this new lawsuit won’t affect most borrowers, it’s important to read your loan contract carefully and ensure LendUp meets all the legal requirements of your state. You can view payday loan laws in by state and learn more about the MLA if you’re currently serving in the military.
LendUp’s application requires you to provide some important information about yourself, including:
You will need to create an account to complete an application with LendUp. Read its disclosures carefully — although LendUp can improve credit for repeat borrowers, this option isn’t available for your first loan and may not be provided in your state.
Provide basic information about yourself and submit your application. If you’re approved, LendUp will provide more instructions on how to finalize your application and what you’ll need to do to receive your loan funds.
Once you agree to borrow from LendUp, you can choose from one of three options to receive your loan funds:
Your repayment will be deducted from the bank account you provided when you applied. LendUp also accepts payment by MoneyGram and personal checks. If you’re unable to make your repayment, contact LendUp as soon as possible. Otherwise, you may be charged a late fee — and if you’ve borrowed a prime loan, it’s critical that you make your payments on time since these may be reported to all three credit bureaus.
If you need to borrow more money than LendUp offers, you can explore other short-term loan providers or compare loans similar to LendUp see if there’s a better option for you.
Our answers to more common questions about LendUp.
You will need to have a checking account that accepts ACH transfers. Unfortunately, prepaid debit cards and savings accounts cannot be used.
Yes. LendUp does send both credit card and loan offers by mail. To accept, you simply need to visit LendUp’s website, click Respond to Mail Offer, select the type you received and follow the application instructions LendUp provides.
Once you pay your first LendUp loan completely, there is usually a waiting period of three to four days before you can apply for another loan. There may be other restrictions depending on your state.
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
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