LendUp

• Easy-to-Use Loan Calculator
• Fast Application and Fast Decision
• LendUp Ladder Rewards Responsible Behavior
• Fast Customer Service
• Lender Availability
• Credit Builder Credit Cards

Easy-to-Use Loan Calculator

LendUp values transparency and is upfront about what a loan will ultimately cost, providing consumers with a loan calculator directly on the main page of its website. 

With this calculator, customers can adjust the lending amount, which is typically from $100 to $250 for first-time borrowers, and the repayment terms, which are typically from 7 to 30 days (varies by state).

Fast Application and Fast Decision

A LendUp payday or personal loan application is free and takes as few as 5 minutes to fill out. The application requires several pieces of information from each customer: 

• Address
• Income
• Social security number
• Checking account that accepts ACH transfers
• Income verification (in select states)

The application process doesn’t affect your credit score because it doesn’t require a hard credit check with the three main credit bureaus. 

After customers apply, an instant decision is given. 

If your loan is submitted by 5 PM Pacific or 8 PM Eastern on a business day, your funds will be deposited into your checking account within one business day. 

LendUp Ladder Rewards Responsible Behavior

Uniquely, LendUp states that one of its goals is to move beyond a traditional payday loan format (where available), so it encourages responsible financial behavior. As you repay your loan, eligible customers move up the LendUp Ladder by taking financial education courses and avoiding late payment, among other things.

Customers in certain states can borrow larger maximum loan amounts, with longer terms, and lower interest rates as they earn more ladder points (where available). In states with installment loans, with successive loans, borrowers can progress all the way up to prime loan rates. 

With additional LendUp loans and progression up the Ladder, consumers in some states have the opportunity for repayment to be reported to the major credit bureaus to help build their credit history, to get a better credit score. 

Fast Customer Service

LendUp provides clients with an online email form and a physical mailing address for contacting the company. Emails are generally responded to right away with an automated message, and from someone on the LendUp team within an hour or so. No phone number is provided.

Most reviews of LendUp's customer service have been positive, and LendUp has even received positive notice and reviews from several reputable national news sources, including TIME, Fortune, and TechCrunch.

Availability

LendUp loan services are available in more than 20 states to existing customers, and in seven states for brand new customers: 

• California
• Louisiana
• Mississippi
• Missouri
• South Carolina
• Tennessee
• Wisconsin 

The specific terms of personal loans will vary from state to state; for example, some allow for longer repayment periods. 

The terms and conditions for each state are clearly outlined, and several states even include links to longer pamphlets officially issued by the states’ Consumer Protection departments. Borrowers should thoroughly review the details for their state before starting the application process or accepting a loan.

Credit Card

In addition to online payday loans, LendUp offers a credit card called Arrow Card aimed at helping people build credit. 

Additionally, the company is beta testing the Arrow secured credit card from Visa, a card for people with poor credit who have trouble getting a normal, unsecured credit card. It is secured with a consumer deposit and helps users to establish credit history. Your credit limit will be based on your secured deposit. 

Currently, both are only available if you get a direct customer offer, like a direct-mail invitation. Interested parties can join the waitlist on the Lendup.com site.

• High Interest Rates
• 2016 CFPB Finding
• Possible Additional Fees

High Interest Rates

Although this lender is interested in providing more transparent funding than traditional payday loan companies, interest rates on LendUp payday loans are still very high due to the nature of short-term and single-payment loan services. 

This lender offers APRs from 96.82% to 446.90%. Rates and terms vary depending on the applicant’s state and creditworthiness. 

LendUp breaks down that rate for each state as a percentage of the loan amount. While these rates are potentially much better than the rates offered by other payday loan companies, they are still quite high because they are meant for people with subprime credit. 

2016 CFPB Finding

In September 2016, the Consumer Financial Protection Bureau (CFPB) took action against Flurish, Inc. dba LendUp for failing to deliver on company promises. The main issues involved transparency issues and undisclosed information about which states the LendUp ladder perks were available in, the true cost of loans, and failure to report to the credit bureaus, among others. 

The company was required to provide $1.83 million to more than 50,000 customers, end deceptive practices and unlawful advertisements, ensure that annual percentage rate (APR) information is disclosed, and pay a $1.8 million civil penalty. 

Possible Additional Fees

LendUp is dedicated to remaining transparent about borrowers' responsibilities, and in accordance with that, the online lender states that there may be additional fees to pay. 

In particular, there is an insufficient funds fee (NSF) if adequate funds are not in a bank account when payment is due, although the NSF fee amount varies by state.

Although LendUp is a short-term direct lender and therefore charges higher interest rates and fees, the company has set out to change the payday loan system to encourage smart financial decisions and reward responsible borrowing.

A first-time borrower is offered small-dollar loans of $100 to $250, although that amount may go up depending on the state. Personal loan service is available in more than 20 states for existing customers and in seven states for new customers. Loan terms and rates vary from state to state. 

A reward system called the LendUp Ladder lets customers can earn points when they pay off loans and complete online courses about financial health, credit, and money management. This includes opportunities for credit reporting to improve your credit report. 

LendUp has received positive reviews and feedback in the news, with most of the attention focused on its unique approach to the payday lending system.