*LoanDepot is no longer offering personal loans as of the Fall of 2018.
Cali-based loanDepot was founded in 2010 and has quickly grown to one of the largest online lenders in the United States with over $800 million in personal loans funded. It offers rates as low as 7.18% for loans up to $35,000. Want to see if loanDepot is a good fit for you? Read on for the good, the bad and my breakdown of personal loans with loanDepot.
About LoanDepot
Borrower Averages
| Credit Score | 705 – 715 |
| Annual Income | $98,436 |
| Home Owner | 80% |
- No collateral required. Don’t own a house? It’s not going to be an issue here.
- Simple application process. Just head over to loanDepot’s website and apply online.
- Soft credit check. The initial credit check won’t affect your credit score, but if your loan is approved, a hard inquiry will show up on your report.
- Quick funding. After approval, you’ll get your funds between two to three days.
- Flexible fund use. A personal loan through loanDepot can be used for debt consolidation, medical expenses, home improvement, special occasions and more.
- Competitive fixed rate. With excellent credit, your APR could be as low as 7.18%, and that won’t budge for the entire duration of your loan term.
- No prepayment penalty. So you can pay that loan of yours back as quickly as possible!
- Rebuild your credit. LoanDepot reports your payments to Equifax and TransUnion, so you can rebuild your credit by making on-time payments.
- Only two fixed term lengths. You’re limited between either a three-year term or a five-year term.
- Late payment fee. If your monthly payment is more than 15 days late, you will have to pay a $15 fee.
- Unsuccessful payment fee. If your payment is rejected, you will incur a fee of $15 per unsuccessful transaction.
Eligibility Requirements
Applicants must have a minimum credit score of 660 and a maximum debt-to-income ratio of 40%, excluding mortgage. There is no minimum income requirement.
LoanDepot Terms & Fees
| Loan Amounts | $5,000 – $35,000 |
| Loan Terms | 3 or 5 years |
| Repayment Options | Monthly |
| Origination Fee | 1% – 5% |
| Funding Time | 2-3 days |
| Soft Credit Check? | Yes |
| APR | 7.18% – 29.98% |
| How To Qualify |
|
| Prepayment Fee | None |
| Late Payment Fee | $15 |
| NSF Payment Fee | $15 |
| Check Processing Fee | None |
The Breakdown
Applying for a personal loan with loanDepot is quick and easy with a simple online form, no collateral required and a soft credit check. You can use your funds for just about anything, and your rates could be as low as 7.18%. There’s no penalty for paying back the loan early, and it’s a great opportunity for you to rebuild your credit.
Sample Loan
| Loan Size | $20,000 |
| Loan Term | 60 months |
| Origination Fee (2.5%) | $500 |
| Funds Received | $19,500 |
| APR | 18.0% |
| Total Interest | $10,472.11 |
| Monthly Payment | $507.87 |
However, if you’ve got less than stellar credit, your rates can be upwards to 29.98%. You have only two term lengths to choose from, three or five years. Plus, you have to watch out for those late payment and insufficient funds fees.
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