LendUp Loans Are A Big Deal

LendUp Loans Are A Big Deal

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With initial loans starting at $250 and ranging to $1,000 for proven borrowers, LendUp offers an excellent service when it comes to short-term financial needs.

Highlights of the LendUp offering include:

  • Instant decision 24/7
  • Apply in as few as 5 minutes
  • Good Credit is NOT required
  • Free Credit Education and Opportunity to Build Credit over time where available

LendUp loans have no hidden fees, no rollovers, lower interest rates and clear terms and conditions. They offer up to $250 for first time borrowers and up to $1,000 for proven borrowers where available. Applying for a loan takes only 5 minutes and you’ll know instantly if you’re qualified.

LendUp is an innovative lender providing consumers safe borrowing alternatives that banks and credit unions typically do not offer. Leveraging technology and innovative thinking, LendUp works to provide its customers with quick and easy access to short-term loans, while also offering free credit education.

We actually put LendUp to the test:

Applying is simple. You create an account by selecting a username and password, accept the terms of service and privacy policy, and consent to electronic disclosures. Enter your name and social security number, birthdate, mobile phone number, address, and choose a reason for the loan from a short drop-down list. You will specify your source of income, how often you are paid, how you receive it (such as direct deposit), and indicate when your next pay date is. You will also indicate your military status. You’ll then provide your bank checking account information to specify where your loan funds should be deposited by direct deposit. This information is submitted via a secure web connection, and the approval process takes less than a minute.

If approved, you’ll then verify your email and phone number. Simply log into your email account and click on the verification button in the email they sent. LendUp will then call your cell phone and read you a phone verification code which you enter into the online application form.

You then have an option of receiving your loan funds either within a couple days, or instantly with a transaction fee. You will then enter your bank debit card information. You could have access to your money in as little as 15 minutes (but it may be longer). If your bank debit card supports instant deposits, your money will be sent to this debit card immediately. Your repayment will be processed through the same account.

Not all bank debit cards are capable of accepting instant payment through the system used by LendUp. If your card is not currently supported for instant funding, then the funds will instead be transferred by direct deposit to your checking account within 48 hours.

Your final step in the transaction is to agree to the Loan Agreement and Electronic Funds Transfer (EFT) Authorization, and certify that you have the ability to repay the loan under the terms of the Loan Agreement. You are acknowledging that you will repay the loan as it becomes due. The funds will then be processed through the banking system and will appear in your account in 48 hours or less. You have now begun a relationship with LendUp.

This initial transaction is handled similarly to a payday loan, except it is repaid in full on the date you specify, in 7 to 30 days. You can then earn trust and the opportunity to build a credit relationship with LendUp through the LendUp Ladder (if you’re in a qualifying state). This is done through a point system. Merely opening your account could earn you 125 points. Repaying that initial loan on-time, and any subsequent loans, could earns you an additional 1,000 points. By completing the free LendUp Credit Education Courses you will earn more points. Earning points is the way you climb The LendUp Ladder.

An additional 500 points may be earned by referring a friend who becomes a LendUp customer. To facilitate your referrals and to insure you receive credit, LendUp will even provide you with your own personalized referral link you can share by email or on Facebook.

If you are willing to share your story with a video testimonial, explaining how LendUp has helped you meet your short-term goals, or access lower-cost loans over time, you could be rewarded with more points. Once your video has been reviewed and approved, you may move up the LendUp Ladder with another 500 points.

After earning 5,000 points you may move from Silver to the Gold Level (where available). At Gold Level, with a history of paying off your loans as agreed, LendUp may grant access to Installment Loans at lower interest rates.

In terms of its free credit education, LendUp provides a series of short videos, each followed by multiple choice quiz questions to better help retain the information provided. The series of short courses cover the following topics and more:

  1. Credit Building Unveiled, explaining FICO credit scores, and how higher credit scores can lead to lower credit costs.
  2. Know Your Credit Rights, explaining your rights under the Equal Credit Opportunities Act, the Fair Credit Reporting Act, and the Fair Debt Collection Practices Act.
  3. The True Cost of Credit, explaining how FICO scores affect interest rates, and how higher scores result in lower borrowing costs.
  4. Roadmap to Your Credit Report, explaining the difference between credit reports and credit scores, and how scores are calculated, and the importance of checking your credit report to be sure it is up to date.
  5. Build Your Credit: Ladder to Success, discussing how to establish a good credit history and build savings.
  6. How to Protect Yourself Online, explaining how to avoid identity theft and protect yourself from computer hackers.
  7. Pay Yourself First, where a habit of putting money aside in a savings account is promoted.
  8. Better Budgeting, discussing the importance of living within a budget.
  9. Benefits of Your Credit Card, explaining the wise use credit cards to increase credit scores.
  10. Beating Credit Card Risk, considering credit card interest rates and fees, and spending within your means.
  11. What’s Up With Your Finance Charges? — discussing APR, and how finance charges are calculated, and the effects of compound interest.

Completing a course could earn you 125 points. Complete them all, and you could earn a bonus of another 250 points.  The reward for earning these points could be a reduction in your interest rate on future loans, and possible access to increasing amounts of cash loans.

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LendUp is different from other payday lenders in that your repayment history could lead to bigger loans with lower interest rates and longer repayment periods, at which point your payments could be reported to the three major credit bureaus — possibly increasing your credit score.

After earning sufficient points, LendUp customers could earn access to installment loans of up to $1,000, at rates as low as 29% APR, depending upon the terms of the LendUp Ladder in their state.

LendUp is a direct lender based in San Francisco, California, and licensed as a California Finance Lender under the California Finance Lenders Law, and as a Deferred Deposit Originator by the California Department of Business Oversight pursuant to the California Deferred Deposit Transaction law. LendUp is now offering loans in a variety of US states. Check the LendUp website for availability in your state.

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