Start with small loans and work towards rebuilding your credit with this provider
LendUp offers a unique borrowing platform where you can rebuild your credit history as you move up the LendUp Ladder and take free financial education courses. Although you’ll be limited to small loan amounts at first, you can keep borrowing over time to help build your credit and get access to better loan terms.
|Product Name||LendUp Payday Loans|
|Min. Loan Amount||$100|
|Max. Loan Amount||$250|
|Loan Term||7-30 days|
|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+|
- Reside in CA, LA, MO, MS, TN, TX or WI
- Proof of income
- Social Security number
- Checking account with ACH
Where does LendUp offer loans?
LendUp currently offers loans in seven states:
How does LendUp work?
LendUp uses a unique ladder system that lets borrowers earn points and choose to improve their credit by successfully paying back short-term loans. You can borrow anywhere from $100 to $250 for your first loan, and you may be eligible for larger loan amounts if you borrow again.
Interest rates vary based on your state of residence and how many times you’ve borrowed from LendUp. Your term could range from 7-30 days based on your state laws and your pay date.
Like all loans, there are fees you have to pay in addition to the principal amount you borrow. You can find out how much you’ll end up paying by going through the list of fees and charges detailed on LendUp’s website and on your loan agreement. Texas residents may also have to pay a Credit Access Business (CAB) fee in addition to other fees LendUp charges.
How the LendUp ladder works
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.
- Silver: Borrow a single-payment loan.
- Gold: Take out a single-payment or installment loan.
- Platinum: Qualify for a single-payment loan or larger installment loan, with the option to have your repayments reported to credit bureaus to boost your score.
- Prime: Get a single-payment, installment or “prime loan” with a more competitive rate. The installment loan comes with optional credit reporting. The prime loan comes with automatic credit reporting.
What are the benefits of a short-term loan from LendUp?
LendUp loans have received positive mention from CNN, TIME, Wired and Financial Times. And while they are still short-term loans, they come with a number of helpful features.
- Good credit isn’t required. LendUp approves people with poor credit. Their mission is to provide money to qualified applicants when they need it.
- Instant decision on loan. Applying takes no more than a few minutes, and you can find out if you’re approved instantly after submitting your application.
- Credit education. LendUp offers free credit education courses through its website where everyone (whether they’re customers or not) can learn about topics including credit-related rights, how to establish credit, how to go through their credit reports and how to find out about the true cost of borrowing.
- Online personal dashboard. You can check your loan’s status at any time by signing into LendUp’s online platform.
What to watch out for
LendUp isn’t a perfect company, so consider these drawbacks before you apply.
- Still expensive. LendUp brands itself as a payday loan alternative, but you’ll still face much higher APRs than you would if you borrowed a personal loan from a bank or other lender.
- Not always honest. Despite its promises to help build credit, LendUp failed to report borrowers’ payments to credit bureaus.
- Limited reach. LendUp only services a handful of states. If you don’t live in one of them, you won’t be eligible for a LendUp loan.
How do LendUp payday loans compare?
LendUp goes beyond just short-term loans
While LendUp is primarily a short-term loan company, it also offers other products that you might find beneficial.
- Credit card. LendUp has recently started offering its Arrow Card, which allows select borrowers to build credit without having to put down a deposit.
- Educational resources. LendUp offers a library of information and courses about personal finance. You can use these financial literacy courses to help score lower rates on your loans with LendUp.
More about the LendUp credit card
LendUp has developed a system of low payments that are reported to the three major financial bureaus so you can start improving your credit score right away without worrying about over limit fees and hidden costs. You’ll also have access to LendUp’s financial videos that can teach you all you need to know about borrowing smartly and safely. And unlike secured credit cards, LendUp’s card doesn’t require a deposit for you to apply. However, the card isn’t open to everyone. You’ll have to sign up for updates through email and wait for a promo code. Once you have one, you can start the application process.
Like all forms of credit, be careful when applying. If you’re approved, you’ll be required to pay interest on the amount you borrow. It may not be as much as other short-term credit products, but if you don’t budget with the interest in mind, it’s possible damage your credit even further.
Is LendUp legit?
Yes. LendUp is a legit 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.
Must read: LendUp failed to report borrowers’ payments to credit bureaus
In 2016, LendUp was found guilty of violating consumer finance laws because it failed report borrowers’ payments to credit bureaus like it claimed on its website. It also failed to disclose APR on its website, changed its pricing for some borrowers and blocked borrowers from accessing the higher rungs in its ladder system. The Consumer Financial Protection Bureau (CFPB) ordered LendUp to pay around $1.83 million to its borrowers and another $1.8 million to the CFPB’s Civil Penalty Fund.
If you were affected by this unlawful activity, it’s likely you’ve already been notified and received your funds. However, borrowers should be wary in the future. Carefully read any loan agreement you’re given and ensure that LendUp — and any other lender — abides by your state’s short-term loan laws.
Is LendUp safe?
Am I eligible?
To be eligible for a payday loan alternative from LendUp, you must meet the following requirements:
- Reside in one of LendUp’s serviced states
- Valid checking account
- At least 18 years old
- US citizen or permanent resident
How to apply
Follow these steps to complete LendUp’s quick application:
- Click the Go to Site button to visit LendUp’s website.
- Select the amount you want to borrow and the day you want to repay your loan. Then click Apply Now.
- Enter information about yourself, your employment and your bank account.
- Review your information, agree to LendUp’s credit report authorization and click Looks Good.
LendUp will process 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.
What documents do I need?
LendUp’s application requires you to provide some important information about yourself:
- Personal details, including your name, date of birth and Social Security number
- Contact details, including your address, email, and phone number
- Financial details, including your bank account information
I got a LendUp loan. Now what?
Once you agree to borrow from LendUp, you can choose from one of three options to receive your loan funds:
- Standard delivery. LendUp processes and funds approved loans through the Automated Clearing House (ACH) weekdays by 5 p.m. PST. While many banks post funds the next day, it could take a day or two for you to see your money.
- 15-Minute Transfer. Available in select states, this optional service allows you to choose a third-party service that can transfer funds to your bank within 15 minutes of your application’s approval. LendUp does not guarantee 15-minute delivery. Actual deposit times vary by bank. You’ll also pay a fee for this service that depends on your specific loan.
- Same-day transfers for Wells Fargo customers only. If you have a Wells Fargo checking account, you can pay a fee for a same-day deposit as long as you complete an application by 11 a.m. PST on business days only. Your funds should appear in your bank account by 2 p.m. PST the same day.
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.
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 repayment and financial courses could lead to you getting access to better terms, lower rates and higher loan amounts.