Leap Lending review 2023

Finding a debt consolidation loan with decent conditions isn’t the easiest thing in the world, but it looked like Leap was a solid option – at least if you had a good credit score. It offered personal loans to consumers who were paying off existing debt (for example, on a credit card), and it was a peer-to-peer (p2p) lending platform, which meant that it connected borrowers with investors directly.

The way p2p lending works is pretty simple. Since no financial institution is involved, the costs of running the service are considerably lower. This translates into better rates for borrowers and higher returns for investors.

Leap aimed at making its loans more competitive by combining p2p lending with its “dynamic rates”. In practice, this meant rewarding borrowers who demonstrated good financial behaviour by lowering the cost of their loan as they paid it back.

What is a “dynamic rate”?

Long story short, a “dynamic” interest rate is a rate that, instead of being fixed, goes down while you pay back your loan.

Usually, your loan’s rate is decided when you’re offered the loan and depends on how risky you prove to be as a borrower. The lender assesses this based on a series of factors (your credit history and score, affordability and so on) and then offers you a quote. Once you take out the loan, your rate remains the same until you pay it all back.

The idea of “dynamic rates” is built on this very same concept of risk-based pricing. Consistently positive financial behaviour gradually turns you into a less risky borrower, so it makes sense for your loan’s rate to go down too.

Leap was not the only lender offering dynamic rates (LiveLend, for example, does too), but it did it in a fairly unique way – that was, by looking not at your credit score, but at the overall amount of your debt. Leap checked it every 3 months; as long as your debt hadn’t gone up by more than 5% compared to when you first applied for the loan, you’d get a rate reduction.

Leap Lending customer reviews

Leap had received a limited number of reviews from customers on the review platform Trustpilot. It had an “average” rating on Trustpilot, with a score of 3 out of 5, based on only 3 reviews (updated June 2022).

Our verdict

If you were looking for a debt consolidation loan, Leap definitely had the potential to be a cheaper solution than keeping your debt on your average credit card. Fees made up a significant part of the overall cost, though.

Between being a p2p platform and its dynamic rate, Leap’s approach was certainly innovative. The overall process was smooth and relatively fast, even though p2p lending does inevitably come with some extra paperwork.

You can compare alternative personal loans to Leap Lending.

Frequently asked questions

• What happens if I don't meet the dynamic rate criteria? Will my loan's interest rate increase?

  No, it won’t. If you don’t qualify for the rate reduction offered by the dynamic rate, your loan’s rate stays the same. You won’t get the discount, but your rate will never go up, either.