LendUp Ladder rewards: LendUp distinguishes itself from payday loans with the “LendUp Ladder,” this program allows borrowers to receive better rates and larger loans the longer they are a customer. “LendUp Ladder points” are earned by paying back loans in a timely manner or taking free financial education courses.
Accepts bad credit: Borrowers with a thin credit file or damaged credit might qualify for a loan from LendUp. According to LendUp good credit is not required.
Quick processing: LendUp loans are intended for customers who need quick cash before their next paycheck. They offer funding in as little as one business day.
Doesn’t always report to credit bureaus: Not a great option for those looking to build credit. Only borrowers who have reached the platinum level on the LendUp ladder get reported to all three major credit bureaus.
The loan amount varies For first-time borrowers, available loan amounts may be more limited, and as low as $100. Available loan amounts increase as you climb the LendUp ladder.
Limited availability: LendUp is available in only 8 states.
High APRs: LendUp’s APRs vary by state, but the lowest rate for an installment loan is currently 41.89 percent. That’s higher than the maximums for most online lenders. In some cases, a loan with LendUp may be more expensive than one with a payday lender, with some APRs climbing into the thousands.
LendUp's short-term fixed-rate loans range roughly from $100 to $250. They feature loan terms of seven to 30 days, depending on the laws of the state in which you reside. In many states, LendUp also offers installment loans from about $500 to $1,000 and payable in up to five months where available. LendUp operates in 24 states: Alabama, California, Florida, Hawaii, Idaho, Illinois, Indiana, Kansas, Louisiana, Maine, Minnesota, Mississippi, Missouri, New Mexico, Ohio, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah, Washington, Wisconsin and Wyoming.
You’ll repay your loan with an additional fee, which serves as a form of interest. For example, a $250 loan in Wisconsin with a 14-day repayment period incurs a $60 fee, for a total repayment amount of $310. This would make the APR an astronomical 625.7 percent.
LendUp’s fees vary by state but may include a verification fee or insufficient funds fee. Additionally, if you repay your loan early with a debit card or if you repay your loan with a MoneyGram, an extra charge will apply.
LendUp does not disclose eligibility requirements, such as minimum income or minimum credit score. To apply for a loan, you’ll need a bank checking account that accepts ACH transfers and proof of employment, as well as your address, income and Social Security number.
The application process is simple. Just fill out the online form with your name, address, Social Security number and bank checking account routing number for direct deposit. In several states, you’ll also have to upload a copy of your most recent pay stub to verify your income. LendUp, like most payday lenders, performs only a soft credit check, so it won’t adversely affect your score to apply.
You’ll get a decision almost instantly, and, in most cases, LendUp offers delivery of funds into your account by the next business day. You can set up an automatic repayment from your checking account, or pay by MoneyGram, personal check or debit card.
But if your credit is strong enough, you should consider other borrowing alternatives, particularly if a short-term cash infusion isn’t necessary — many other personal loan lenders offer much better APRs and terms. If your credit is damaged, a secured credit card is another option, which can help you rebuild your credit without the huge interest charges.
