How to Get a Personal Loan with LendUp
Personal Loan Options - Understanding Them
A 2015 report noted that personal loan products were encroaching on the traditional space of credit card lenders, and with good reason. Before the advent of credit cards, personal loans were a preferred way for many individuals to seek short-term financing. While many people turn to credit card accounts for such purposes today, personal loans can provide better terms, an easier path to payoff and costs that are disclosed upfront. At LendUp, we even have the LendUp Ladder, which rewards responsible loan management with larger loans at better rates over time (where available). This may help you better handle cash flow or emergency expenses.
What is a personal loan, and why get one?
A personal loan usually refers to a loan that is received without putting up collateral. Collateral is something of value that a lender might sell to recover money if the borrower doesn't make payments. Common examples of collateral lending arrangements include vehicle loans from a bank or products bought on credit at a jewelry or furniture store. Those loans are tied to a specific piece of property. This means they are secured by that property, which is why they are referred to as secured loans.
Personal, or unsecured, loans are not tied to property. Lenders often review a person's credit history or income statements when making a decision on whether to offer an unsecured loan. When you accept this type of loan, you agree to a payment schedule and must pay the loan back within a specific time by making certain payments weekly, biweekly or monthly. In the case of LendUp's short-term personal loans, you might only make a single payment.
How do personal loans differ from credit cards?
Personal loans are different from credit card accounts. Credit cards do offer unsecured credit, but they are also revolving. This means as long as you keep your balance below the limit and pay at least the minimum due each month, you are considered current and can keep using the card. Credit cards and other revolving loan situations can be difficult to manage because the interest rates and terms can change. Personal loans through LendUp don't come with changing terms. You know exactly what you'll pay before you even receive your loan.
Why apply for a personal loan?
Common reasons people apply for unsecured loans include a need for immediate funds to cover an emergency expense or a problem accessing other forms of credit. LendUp works with people of all income levels and credit backgrounds, helping to cover necessary expenses or stretching finances during a time of crisis.
Is your credit score a factor for receiving personal loans?
The importance your credit score plays in the personal loan process depends on the lender. Some lenders base approvals solely on credit scores, while others charge a much higher interest rate on loans if your credit score is below a certain range. Your credit score, also known as your FICO score, is a score that ranges from 250 to 850 and is based on factors such as your past payment history, the amount of debt you currently have and how many times you've recently applied for credit.
LendUp doesn't base lending decisions solely on your traditional credit score, which means past credit challenges don't automatically discount you from receiving a loan. Instead of tedious application processes that involve pulling information from the credit bureaus — which could actually negatively impact your score — we make an instant decision and let you know the outcome immediately.
Minimum requirements to apply for personal loans with LendUp
To apply for a personal loan through LendUp, you must meet some very basic minimum requirements. First, you have to be at least 18 years old and able to complete our simple, five-minute application. The application asks for information including a current contact number and address and a valid email address. You will also need a checking account that accepts electronic transfers, and you must live in a state where LendUp is licensed to provide loans. As of 2016, we're able to lend in 23 states and are always working to expand to more.
What is the LendUp advantage?
LendUp Loans come with what we believe are numerous advantages for borrowers.
Another advantage of LendUp is that we strive to make our fees and business model as transparent as possible. If you are approved for any type of loan, we disclose exactly how much you will pay back and when.
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