Have you previously used a loan from LendUp and were thinking about a get another? You may be surprised to learn that LendUp is no longer in business. Read on to find some good LendUp alternatives.
What are LendUp Loans?
LendUp was a one-time Silicon Valley darling, that attracted investment from PayPal, Google and top-tier venture capital funds, like Andreeson Horwitz and Kleiner Perkins. The company initially offered a more consumer-friendly online personal loan product for people with bad credit, the LendUp Ladder. The Lendup loan would report on-time repayments to major credit bureaus, which could boost your credit score, and repeat borrowers could achieve significant interest rate reductions (though these bottomed out at 36% APR, which is still quite costly).
As LendUp struggled with its business, the LendUp Ladder went away and the company shifted its product to become a more typical payday loan, offering up to $255 with rates that often exceeded 400% APR. (So much for LendUp’s original claim of creating “Loans designed to build you up, not bring you down”!)
But the LendUp story came to an abrupt end in December, 2021 when company suddenly ceased operations. This came in the wake of an order from the U.S. Consumer Financial Protection Bureau, requiring LendUp Loans to pay a $100,000 penalty, stop making new loans and halt collecting on certain outstanding ones after repeated deceptive marketing and other fair-lending violations. (If you had a LendUp loan outstanding at that time, it was your lucky day, as all outstanding loans were forgiven as the company shuttered its doors.)
LendUp offered fast approvals on loans of several thousands of dollars, even if you had a shaky credit history. (Look elsewhere if you need to borrow $50.) While LendUp isn’t around anymore, there are several other loans like LendUp that may meet your needs.
SeedFi Borrow & Grow – get cash now and savings for later
If you need access to money, but your credit score has taken a few bumps and bruises? SeedFi’s Borrow & Grow Plan may be a great tool to access some cash right away, while also building up savings for later AND building positive payment history with every on-time payment.
With the Borrow & Grow Plan1, you get some cash right away, while also building savings for later. Borrow & Grow Plan loans for first-time borrowers range from $1,500 to $9,000 with $300 to $5,000 accessible immediately and the rest of the loan locked in a savings account until you repay in full. Repayment periods range from 10 months to 48 months, and APRs range from 11.59% to 29.99%.2
Once the loan is paid off the money in that savings account is all yours. You can spend it, save it, or move it wherever you like. Plus, your payments are reported to the major credit bureaus, so paying back your plan as scheduled could help build your positive payment history.
You can see exactly what you qualify for in just a couple minutes, with no impact to your credit score.3
Access up to $4,000 for less >>> Check out the SeedFi Borrow & Grow Plan
PockBox could serve as a great alternative to the LendUp app. Similary to LendUp, PockBox allows you to borrow as low as $100 but up to $2,500 (compared to $1,000 for LendUp). The process is quite similar: a lot of questions (that shouldn’t take you more than 5 minutes) and you are good to go!
Read the terms and conditions before you take a loan (that’s true for every lender out there). This way you’ll know what you’re in for. Start the approval application here.
Earnin (also known as ActiveHours) works with many large employers to help employees receive parts of their paycheck before payday. If you work with one of their many employer partners you can get paid multiple times throughout the course of a month based on your timesheet at work. Once you are deemed a “trustworthy“ borrower, Earnin is able to give cash advances of up to $500! Once you are approved by the app (process usually takes about 2 days), you can start getting cash immediately… free of charge! Get started with Earnin here.
Read more: Earnin app review
Dave offers cash advances of up to $75. After you sign-up, they will ask you some basic questions and connect to your bank account. It is not uncommon be asked to provide additional verification information. After getting approved, you can request money as many times as you wish. Dave charges a $1/ month subscription fee and in some instances transaction fees (up to $5 for a loan of $75).
Read more: Dave app review
HonestLoans is a great alternative to LendUp. After asking you questions and gathering some background information about you, it will let you know the best lender for the amount of money (between $100-$2,500) you need.The process takes only a few minutes. The only thing you need to make sure is to read the terms and conditions of the loan you’re taking. You can check out their website here.
In this article, we reviewed apps that can provide you with alternatives to apps like LendUp. We hope that this review of different overdraft and personal loan apps will help you choose the best options for you.
Enjoy this throwback video on Lendup Loans
1 Sample Borrow & Grow Plan: Amount Financed: $7,000 ($3,500 accessed up front and $3,500 locked in savings), APR: 24.99%, Finance Charge: $3,318, Total of Payments: $10,318, Payment Schedule: 85 biweekly payments of $120 and one final payment of $118. The payment schedule spans 40 months.
2 Advertised rates and terms will be subject to change without notice. Your actual APR and other loan terms will be shown to you as part of the online application process.
3 If you check your offers, SeedFi issues a soft credit inquiry, which does not impact your credit score and is not visible to creditors. If you select a SeedFi loan offer and continue with your application, SeedFi will issue a hard credit inquiry, which may affect your credit score. Personal loans and banking services provided by SeedFi’s bank partner, Cross River Bank, Member FDIC.