In today’s fast-paced world, unexpected expenses or the need to consolidate debt can put a strain on our finances. Personal loans have become a popular solution for many individuals seeking financial assistance. However, with numerous lenders to choose from, finding the right one can be a daunting task. Lendly, a personal loan provider operating in 12 states throughout the United States, has recently gained attention. In this review, we will take a closer look at Lendly to determine if it is a legitimate option or a potential scam.
- BBB A+ Rating & Accredited
- $1 Billion Million Debt Resolved
- $10,000 Minimum Debt
The Basics of Lendly
Lendly is a lending platform that offers personal loans for various purposes, including medical bills. They emphasize catering to customers with bad credit, although specific requirements are not disclosed. The company was founded in 2019 and is headquartered in Dayton, Ohio. Lendly operates in 12 states across the USA and can be contacted at (844) 453-6359. Their website, getlendly.com, provides detailed information about their loans and services.
Key Points to Consider
To better understand Lendly and its offerings, let’s examine some key points that stood out during our investigation:
- Loans are offered by Capital Community Bank.
- The availability of Lendly loans varies by state.
- Loans of up to $2,000 are offered.
- Loan terms start at 12 months.
- The annual percentage rate (APR) for typical loans repaid via payroll direct deposit is approximately 175%.
- The APR for typical loans not payable via payroll direct deposit is approximately 225%.
- Florida loans are subject to a Documentary Stamp Tax.
Customer Reviews and BBB Rating
When considering any financial service, it’s crucial to examine customer reviews and ratings to gauge the experiences of previous users. Lendly has a B- rating from the Better Business Bureau (BBB). However, it’s important to note that the company is not accredited by the BBB. Lendly has an average rating of 1.4 stars based on 10 customer reviews and has had 32 complaints closed in the last three years.
While some customers recommend this company for their customer service and rates, others have expressed concerns about high fees and a lengthy application process. It is essential to conduct thorough research and carefully read the terms and conditions before applying for a loan with Lendly.
Understanding Lendly’s Loan Process
Lendly offers a quick and straightforward online application process that can be completed in 5-10 minutes. Once the loan documents are signed, funds from Capital Community Bank can be deposited into the borrower’s account within one business day.
Loan decisions are based on various factors, including the borrower’s employer, length of employment, and repayment setup. Payments can be made directly through the borrower’s payroll provider. Applying for a loan may appear on credit reports and potentially affect credit scores.
Qualification Criteria
Lendly does not have a set minimum or maximum credit score requirement for loan applications. They consider borrowers with all types of credit scores. The minimum age requirement is 18 or the state’s minimum, whichever is higher. There is no minimum annual income requirement. The lender will consider borrowers regardless of their employment status as long as they can demonstrate their ability to repay their obligations.
U.S. citizens and permanent residents/green card holders are eligible to apply for Lendly’s services.
Fees and Charges
Lendly typically charges an annual percentage rate (APR) of approximately 175% for loans repaid via payroll direct deposit and around 225% for loans not payable through this method. There are no personal loan origination fees charged by them. However, borrowers may incur a late payment fee if they miss one of the monthly payments.
One advantage is that they do not impose prepayment penalties. This means that borrowers have the flexibility to pay off their loans early without incurring any additional fees. This feature can be particularly beneficial for individuals who want to save on interest by repaying their loans ahead of schedule.
Impact on Credit Score
When considering a loan application, it’s important to understand the potential impact on your credit score. Lendly, like most lenders, will conduct a soft credit check at the beginning of the application process. This initial check provides an idea of the interest rates and loan terms for which the borrower may qualify. It’s worth noting that a soft credit check does not affect the credit score.
However, once the borrower decides to proceed with the loan application, Lendly will need to perform a hard credit inquiry to obtain a comprehensive view of the borrower’s credit history. Hard inquiries have the potential to lower the credit score temporarily. Therefore, borrowers should be aware of this impact and consider it before finalizing the loan application.
Cancellation and Reversal
It’s essential to be absolutely certain before proceeding with a personal loan. Once the funds are dispersed into the borrower’s account, the transaction cannot be reversed or canceled. To avoid any potential issues, it’s advisable to thoroughly review the terms and conditions, assess one’s financial situation, and be confident in the decision before accepting the loan.
Tips for Financial Stability
If you find yourself struggling to make ends meet or want to improve your financial situation, here are some helpful tips:
- Create a budget and stick to it: Developing a budget allows you to track your income and expenses effectively. By allocating your resources wisely and making informed spending decisions, you can regain control over your finances.
- Consult a financial advisor: Seeking professional guidance from a financial advisor can provide valuable insights and help you understand your options better. They can assist in creating a personalized financial plan that aligns with your unique circumstances and goals.
- Communicate with creditors: If you are facing difficulties in repaying your debts, don’t hesitate to reach out to your creditors. Many companies are willing to work with customers to establish more manageable payment plans. Contacting their customer service team can provide you with essential information on available options.
FAQs
1. How does Lendly ensure the security and privacy of its customers’ personal information?
Answer: Lendly takes the security and privacy of customer information seriously. They employ robust encryption protocols and secure servers to safeguard sensitive data. Additionally, Lendly has implemented stringent access controls and regularly updates its security measures to protect against unauthorized access or data breaches.
2. Can I apply for a Lendly loan if I have a low credit score?
Answer: Yes, Lendly considers borrowers with all types of credit scores, including individuals with low credit scores. They believe in providing financial assistance to those who may have been turned away by traditional lenders. While credit score is a factor in the loan decision, Lendly also takes into account other aspects such as employment history and ability to repay the loan.
3. What sets Lendly apart from other personal loan providers?
Answer: Lendly stands out in the market due to its emphasis on catering to customers with bad credit. They understand that financial difficulties can happen to anyone and strive to provide a solution for those in need. Additionally, Lendly offers a quick and easy online application process, fast loan disbursement, and flexibility with prepayment options, making them a convenient choice for borrowers.
4. What happens if I miss a monthly payment?
Answer: Lendly charges a late payment fee if a borrower misses one of the monthly payments. It is crucial to make timely payments to avoid incurring additional charges. However, Lendly understands that unforeseen circumstances can arise, leading to financial difficulties. In such cases, it is recommended to contact their customer service team as soon as possible to discuss alternative payment arrangements or potential solutions.
5. Are there any restrictions on how I can use the funds from a Lendly loan?
Answer: Lendly provides borrowers with the flexibility to use loan funds for various purposes. Whether it’s unexpected expenses, medical bills, debt consolidation, or other financial needs, Lendly does not impose restrictions on how loan funds are utilized. However, responsible borrowing is always encouraged, and borrowers should ensure they use the funds wisely and in line with their financial goals.
6. How long does it typically take to receive the loan funds once approved?
Answer: Once the loan documents are signed, Lendly aims to disburse the funds into the borrower’s account within one business day. However, the exact time may vary depending on factors such as the borrower’s bank processing times and any potential delays in verifying the information provided during the application process.
7. Can I change the repayment terms of my loan after it has been approved?
Answer: Lendly understands that circumstances can change, and borrowers may require adjustments to their repayment terms. It is recommended to contact Lendly’s customer service team to discuss any potential modifications. While changes to the original loan agreement may not always be possible, Lendly will work with borrowers to explore available options and find a solution that suits their needs.
8. Is it possible to apply for multiple loans from Lendly simultaneously?
Answer: Lendly allows borrowers to have multiple loans simultaneously, as long as they meet the eligibility criteria for each loan. However, it is important to consider one’s financial situation and ability to manage multiple loan obligations. Taking on multiple loans should be approached with caution, as it can impact one’s overall financial stability and ability to make timely repayments.
9. What happens if I decide to pay off my loan before the designated term ends?
Answer: Lendly does not charge prepayment fees, providing borrowers with the flexibility to pay off their loans before the designated term ends. This means that borrowers can save on interest by paying off the loan early without incurring any additional charges or penalties. It’s important to note that early repayment can have benefits, such as reducing the overall interest paid and improving one’s credit utilization ratio. If a borrower decides to pay off their loan early, they can contact Lendly’s customer service team to discuss the process and obtain the necessary information to complete the early repayment.
10. What steps does Lendly take to ensure responsible lending practices?
Answer: Lendly is committed to responsible lending practices and takes several steps to ensure borrowers can manage their loans effectively. They carefully assess each borrower’s ability to repay the loan by considering factors such as employment history, income verification, and existing financial obligations. This assessment helps determine an appropriate loan amount and repayment terms that align with the borrower’s financial capacity.
Furthermore, Lendly provides clear and transparent information regarding fees, interest rates, and loan terms upfront. They encourage borrowers to review the terms and conditions, ask questions, and fully understand the implications of taking on a loan before making a decision. Lendly also offers resources and support to help borrowers improve their financial literacy and make informed financial decisions.
Is Lendly Legitimate?
Based on our review, Lendly is a legitimate personal loan provider that has been operating since 2019. They offer loans in 12 states and have a B- rating from the Better Business Bureau (BBB). However, it’s important to note that customer reviews have been mixed, with an average rating of 1.4 stars. Some customers have had positive experiences with Lendly, particularly praising their customer service and rates. On the other hand, negative reviews have highlighted concerns regarding high fees and a lengthy application process.
When considering Lendly or any other loan provider, it is crucial to conduct thorough research, compare rates and terms from different lenders, and read customer reviews. This approach will help you make an informed decision and avoid taking out a loan that you cannot afford.
In conclusion, while Lendly offers personal loans and caters to customers with bad credit, it is important to carefully assess their terms and conditions, fees, and customer reviews before deciding to apply for a loan. By doing your due diligence and considering all factors, you can make a well-informed decision that aligns with your financial needs and goals. Remember, taking on any form of debt requires careful consideration and responsible financial planning.
