LoanDepot personal loans review
Personal loans with fair terms, but watch out for high fees and APRs beyond an advertised 6.67% if you don’t have good credit.
What makes LoanDepot personal loans unique?
LoanDepot is a pioneering online lender with a quicker turnaround time and less strict requirements than your typical bank or credit union.
Its speed comes in part from its automation for some services that can make the borrowing process simpler. Though, it still has a lot of resources for borrowers that may have trouble making repayments.
What’s a LoanDepot personal loan?
LoanDepot personal loans are unsecured fixed-rate term loans that can be used for any legitimate purpose aside from education-related expenses and investments. They’re designed to cover smaller one-time personal expenses like medical bills, home improvements or buying an inexpensive car. You can also use a LoanDepot to consolidate debt.
What are the benefits of LoanDepot personal loans?
This lender prides itself on a quick, easy application that you can complete online or by phone, among other features.
- Potentially low rates. If you have excellent credit, you could qualify for an APR as low as 6.67%.
- Unsecured loans. You won’t have to put up your house, car or other assets for collateral.
- Fast turnaround. You can typically get your funds within three days.
- No minimum income. If you’re regularly employed, you should easily meet income requirements.
What to watch out for
- High rates for lower credit credit scores. Low advertised rates are reserved for those with excellent credit. Others could see APRs as high as 29.99%.
- Origination fee. A 1% to 5% origination fee comes directly out of your loan, so you won’t actually get as much money as you applied for. This means if you apply for a $10,000 loan and pay a 5% origination fee, you could actually get $9,500.
- Multiple fees. If you opt out of autopay, you’ll pay a $15 processing fee for each payment. And you’ll pay another $15 for any payment that falls through.
- State-specific eligibility requirements. Connecticut and Vermont residents must qualify for an APR of less than 12% to be approved (for New York it’s 16%). Massachusetts residents can must take out more than $6,000 to qualify — it can get confusing.
Compare LoanDepot to other personal loan providers
What does the Internet say about LoanDepot?
Online reviews of LoanDepot are mixed. It’s accredited with the Better Business Bureau (BBB), which primarily means that it meets certain transparency standards. The BBB also gives it an A rating, based on nearly 750 customer reviews. Almost 200 Trustpilot reviewers were more lukewarm, giving it an average 8.5 out of 10 — lower than most other online lenders.
The topic of most reviews is customer service, which appears to be hit or miss. Either customers had a terrific, smooth experience thanks to a particular LoanDepot employee or were left feeling like they had been a victim of a scam. Multiple reviewers complained that they were unaware of the fees that came with their loan or when LoanDepot was going to pull a hard credit check.
Am I eligible?
You’re eligible for a personal loan with LoanDepot if:
- You’re a US resident. LoanDepot personal loans aren’t available to American expats.
- You’re at least 18 years old. You must be at least 19 years old if you live in Alabama or Nebraska.
- You have a credit score of at least 660. The cut-off for other LoanDepot loans is 600.
- You can provide proof of income. For example, you can provide a W-2 or employer pay stubs.
LoanDepot has additional state-specific requirements:
- Connecticut. Residents must qualify for an APR of 12% or lower.
- Massachusetts. Residents must borrow at least $6,001.
- New Hampshire. Residents applying for a loan of $10,000 or less must qualify for an APR of 10% or lower.
- New York. Residents must qualify for an APR of 16% or lower.
- Ohio. Residents must borrow at least $5,001.
- Vermont. Residents must qualify for an APR of 12% or lower.
How do I apply?
You can apply for a LoanDepot personal loan online or by phone by calling 888-983-3240. To apply online:
- Go to LoanDepot’s website and select “Personal Loans” under the “Loans” dropdown menu.
- Select a loan amount, purpose and your residence type before clicking Check Your Offers.
- Review the rates you qualify for after LoanDepot pulls a soft credit check. If you’re not pre-approved, loandDepot provides you with a link telling you why.
- Follow LoanDepot’s instructions to apply for your loan, uploading all required documents. LoanDepot pulls a hard credit check, which causes your credit score to dip, after you submit your application.
- Two to five days after you’re officially approved, LoanDepot will deposit funds into your bank account.
What documents do I need to apply?
Applying online or by phone is simple, especially if you gather all the information and documents you’ll need ahead of time.
Be ready to submit at least:
- Your full name and contact information.
- Your Social Security number and date of birth.
- Personal bank statements.
- Employment details or verification of income if you’re self-employed.
I got my LoanDepot personal loan. Now what?
- Set up autopay. To avoid a $15 fee per payment, set up automatic repayments from your bank account.
- Customer service. If you have questions about your loan or repayments, get phone support at 877-420-4526 or email firstname.lastname@example.org. You can also complete a secure online form. It’s especially important to contact LoanDepot if you have trouble making repayments. It has lots of resources for borrowers struggling to make repayments.
LoanDepot’s rates, terms and fees are comparable to other non-bank lenders. But reasonable advertised rates can increase considerably if you don’t have good credit. The quality of customer service is a point of disagreement among customers. Be sure to look out for state eligibility requirements before applying.
Take advantage of the instant rate quote feature on its website to see what you qualify for. Haven’t looked around much? Use finder.com to compare more personal loan options and find the best deal for your needs.