LendUp is an online payday lender app and while the reputation of payday lenders is terrible, it may serve you as an overdraft app if you’re in need of a quick cash. Watch out for the APR (Annual Percentage Rate a.k.a. how much you’re going to pay for your loan)!
After entering some personal information (including your SSN), if you live in an eligible state (24 states so far), you will be able to get a cash advance. They claim to be able to get you money within minutes, but we found the process to be longer than advertised.
How It Works
First, they ask you how much you want and when you will be able to repay it (usually the day you get your paycheck).
They are able to price your loan right away, and ask follow up questions such as:
– Are you a renter or owner?
– What is your monthly rent (or mortgage payment)
– What do you need the loan for?
They will then ask you for your employment information:
-Are you working full time?
– How much you’re making?
– What company do you work for?
-They also ask questions about the amount you are paid, the frequency with which you are paid and type of payment you receive.
Finally, they will ask you for your account information (routing number and account number) in order to make the transfer.
Depending on what state you live in LendUp has multiple loan types. In some states, loans ranging from $100 to $250 are allowed, and in others up to $1000. The lesser amounts ($100-$250) could serve as a bridge until your paycheck and that’s why we consider it an overdraft app. Please note that only about half (24 out of 50) of U.S states. are served by LendUp so make sure you live in an eligible state.
The states (as of January 2018) are: Alabama, California, Florida, Hawaii, Idaho, Illinois, Indiana, Kansas, Louisiana, Maine, Minnesota, Mississippi, Missouri, New Mexico, Ohio, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah, Washington, Wisconsin and Wyoming.
Bottom line: it is quite expensive. Like most short-term loans, the interest rates are quite high. The APR varies according to the state you live in, the amount you’re borrowing and the period of time you need the money for.
Example: If you live in California and need $250 for 7 days, you will end up paying $44 of fees for it (917% APR). What we do like about the LendUp is that the cost is clearly established up front. You know what you are getting into when you borrow the money.
There is an extra fee of $15 if your check bounces (meaning that you don’t have sufficient funds in your account). This reminds us of an overdraft fee and we do not like this – at all!
While LendUp doesn’t require a good credit score to get approved, they do factor your credit score into their decision when giving you loans. They will also base loan decisions on your answers to the questions they ask during the signing-up process (as described in “How it Works” in this article).
LendUp is an ok option if you urgently need more than $250 for a period of more than 7 days. They are quite expensive and the sign-up process isn’t as easy as on other apps, but they are quite transparent about what they charge you. If you’re looking for a cash advance of $500 or less, you should check out our MoneyLion Plus Review. Our opinion regarding LendUp? Only use them if you REALLY need to.