Thinking about to borrow $150 or more in just a few weeks? Are you sick and tired of traditional payday lenders and are looking for a better way to borrow funds? If so, you can think of LendUp, an online lender that offers small dollar loans without the need for credit verification.
But is the company really the best alternative to a payday loan? See what the lender offers, how much its loan costs as well as how the application process works.
What LendUp Offers
LendUp is a straight-line lender with small dollars, short-term unsecured loans for urgent cash needs. When you apply to LendUp, you can choose the loan amount and loan term from 100 to 250 US dollars and from 7days to 30 days. You can only get one loan at a time.
The difference between LendUp and other lenders is in its transparent preliminary assessment that is called LendUp Ladder. This structure allows customers to earn an annual interest rate (APR) of up to 29% over time, as they return their borrowings in a timely manner and complete credit education courses on the official website.
Essential information about rates of interest and terms
The annual interest rate on LendUp loans is high compared to other types of consumer cash advances. The company has a rule - the cost of a loan should not exceed 15% of the loan amount. The minimum loan size is $100 for 7 days; the maximum is $250 for 30 days. In the first case, the loan rate will be 558% per year (overpayment will be $10.70), in the second - 215% per year (overpayment - $44).
The APR varies for a single-payment cash advances from 134% - 1,252%. For installment loans, it will be 30% - 180%.
The sum you can borrow varies by the state you live in. Typically, it is a particular sum for some small expenses. For a single-payment cash advance, you can receive from $100 to $500. If it comes to an Installment loan, you can get from $100 to $1,000 for a longer period of time.
The terms of repayment vary from one week to one month. If you take an Installment loan, you should pay off your debt in a period of 3 months to 12 months.
The fee may not be the same as the one with which LendUp is charged. To get your funds quickly, within two hours of approval or on the same day you apply, LendUp charges an additional fee.
There is a charge for using your debit card to repay the cash advance early. And if your scheduled redemption does not clear your current account, LendUp will charge an additional amount of $15.
A variety of services
Along with payday loan, you can take additional no less beneficial services. Among them, there are credit cards, Oportun, OppLoans and Rise.
The process of application
LendUp is a website and mobile application that allows people with a bad credit history to apply for a short-term cash advance. The company evaluates customer solvency using “big data”: the algorithm developed by the creators collects user information from social networks (Twitter, Facebook, LinkedIn, etc.).
You will then need to answer a few security questions similar to those that you may have to answer when applying for a previous loan or credit card or when requesting a copy of your credit report. Questions may include: “What county did you live in? “Where is your social security number? Which of the following people do you know?“ The lender will reject your application if it cannot verify your identity based on the information you provide.
But the traditional methods in LendUp do not refuse. The potential borrower will have to provide a social security number, bank account number and contact information. If the application is approved, the money will automatically go to the specified bank account. This is a very convenient system of repayment. You will not have to visit any institution to pay off your debt.
To protect itself from unfair customers, the company charges a one-time surcharge of $15 if the borrower's payment is returned by the borrower's bank due to lack of funds in the account.
Before you get a LendUp cash advance you should know
LendUp is a convenient way to get a beneficial cash advantage just sitting on your coach. The company doesn’t require your credit history and unnecessary documents! Prepare your ID, fill out a form and within one business day, the manager will offer you the option of receiving money on favorable terms.
To make it convenient for you to use our services, the lender has created:
- a simple form of registration;
- high level of protection;
- full information on the conditions;
- online consultation.
Before applying to the lender, pay attention to these essential points:
- The client must be at least 18 years or older.
- You should be a legal resident of the USA.
- It is necessary to have a stable revenue and meet minimum income requirements.
- Confirm your phone number and an email. We will be glad to get in touch with you as soon as possible.
- It is significant to have a personal bank account.
- There should be no active or recent insolvencies.
- The client mustn’t have debt that cannot be recovered by the current earnings.
Small cash advances can be a real help when it comes to tough financial situations. But remember, small sums of money can’t solve big problems. Besides, better not to lend money from several institutions in order not to be in bigger hock.
According to the NerdWallet personal financial website, a typical payday loan recipient pays $574 per annum in fees Clients with payday money are usually regular customers, and most of them get another loan in the next 30 days. There is nothing wrong with a legitimate company making a profit for providing a service that consumers understand and appreciate, but borrowers should keep in mind that, although LendUp may have a social mission, it is a business, not a charity.