Navigating Financial Hardship: How LendingPoint Can Help

Navigating Financial Hardship: How LendingPoint Can Help

Financial challenges can arise unexpectedly, but they don’t have to derail your financial future. At LendingPoint, we’re committed to supporting our customers through good and challenging times. Whether you need short-term assistance or a long-term solution, our dedicated team is here to help you explore payment relief options tailored to your needs.

Beyond immediate relief, it’s important to understand how financial decisions impact your credit and future opportunities. Besides the potential impact to your credit score and ability to access other credit and loan products such as credit cards and car loans, many employers consider credit reports in their hiring process, making staying informed and proactive about managing your financial obligations even more essential.

Payment Relief Options

Contacting us early can make a significant difference if you’re facing temporary financial difficulties. We offer relief programs to help you maintain financial stability and protect your credit. Whether you need assistance for a month or longer, options may be available to reduce your payment burden and help prevent adverse credit reporting.

To avoid a negative mark on their credit report, we strongly encourage customers to contact us once they realize they may have a challenge making their payment(s). Our relief programs may provide substantial payment reductions during periods of hardship caused by medical expenses, job loss, federal emergencies, or other life events.

Understanding Debt Settlements

Debt settlement is a last-resort option that reduces the total balance you owe but has long-term consequences. Settled accounts are reported to credit bureaus, which can negatively impact your credit score for up to seven years.1 Additionally, any forgiven debt could be considered taxable income2, meaning you may owe taxes on the amount forgiven.

Before considering a settlement, it’s important to weigh the financial and credit implications carefully. Learn more about debt settlement risks here: Experian – Debt Settlement Risks.

Debt Management Companies: What You Should Know

Debt management companies claim to negotiate reduced balances with multiple lenders, but results vary, and there is no guarantee of success. Lenders and creditors are not obligated to work with these companies, and fees for their services can add up. If you’re considering working with a debt management company, research its reputation, review customer feedback, and understand its fee structures. Some organizations charge hidden fees that can increase your financial burden rather than alleviate it.

Charge-Offs: The Long-Term Impact

A charge-off occurs when a lender writes off a delinquent debt as a loss. However, this does not mean the debt is forgiven—you are still legally responsible for the outstanding balance. Charge-offs are reported to credit bureaus and remain on your credit report for up to seven years, potentially impacting your ability to obtain new credit.

Understanding the charge-off process can help you make informed financial decisions. Learn more about how charge-offs affect your credit here: Experian – Charge-Offs.

Take Control of Your Financial Future

If you’re experiencing financial hardship, communicating with your lender as early as possible is the best course of action. At LendingPoint, we believe in working directly with our customers to find solutions that help minimize long-term consequences while providing relief without unnecessary additional costs.

Contact us today to discuss your options.

(888) 969-0959

MemberServices@LendingPoint.com

Sources:

  1. https://www.experian.com/blogs/ask-experian/how-long-do-settled-accounts-remain-on-a-credit-report/
  2. https://www.irs.gov/taxtopics/tc431

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USA PATRIOT Act Notice: Important Information About Procedures for Opening a New Account

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.

* Applications submitted on this website may be funded by one of several lenders, including: FinWise Bank, a Utah-chartered bank, Member FDIC; Coastal Community Bank, Member FDIC; and LendingPoint, a licensed lender in certain states. Loan approval is not guaranteed. Actual loan offers and loan amounts, terms, and annual percentage rates ("APR") may vary based upon LendingPoint's proprietary scoring and underwriting system's review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees up to 10% may apply depending upon your state of residence. Upon final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. Loans are offered from $1,000 to $36,500, at rates ranging from 7.99% to 35.99% APR, with terms from 24 to 72 months. Minimum loan amounts apply in Georgia, $3,500; Colorado, $3,001; and Hawaii, $2,000. For a well-qualified customer, a requested loan of $10,000 by LendingPoint over a period of 48 months that has an APR of 24.99% with an origination fee of 10% may have a payment of $331.52 per month. (Actual terms and rate depend on credit history, income, and other factors.) Customers may have the option to deduct the origination fee from the disbursed loan amount if desired. If the origination fee is added to the financed amount, interest is charged on the full principal amount. The total amount due is the total amount of the loan you will have paid after you have made all payments as scheduled.

* Applications submitted may be funded by one of several lenders including First Electronics Bank, a Utah-chartered bank, Member FDIC; Coastal Community Bank, Member FDIC; and LendingPoint, a licensed lender in certain states. Loan approval is not guaranteed. Minimum loan amounts apply in Georgia, $3,500; Colorado, $3,001; and Hawaii, $1,500. Upon final underwriting approval to fund a loan, said funds are often available the next non-holiday business day. Actual loan offers and loan amounts, terms and annual percentage rates (“APR”) may vary. Loans are offered from $500 to $10,000 (loan amount maximum based on MCC codes), at rates ranging from 7.99% to 35.99% APR, with terms from 24 to 48 months. For example, for a well-qualified customer, a $5,000 purchase will have a 90-day promotional period with no interest, a 3% fee, and $100 monthly payments. After the promotional period, a remaining balance will be a 24-month term loan, and $263.72 monthly payments with an overall APR of 26.54%.

**Minimum initial transaction of $1,000 in Alabama, Idaho and Iowa.

1. Alimony, child support, or separate maintenance income need not to be revealed if you do not wish to have it considered as a basis for repaying this obligation.

2. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning FinWise Bank is the FDIC Consumer Response Center, 1100 Walnut Street, Box #11, Kansas City, MO 64106. The federal agency that administers compliance with this law concerning Coastal Community Bank is the Federal Reserve Consumer Help Center, P.O. Box 1200, Minneapolis, MN 55480. The federal agency that administers compliance with this law for LendingPoint is the Federal Trade Commission, Equal Credit Opportunity, Washington, DC 20580.

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