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Axos Bank Reviews: Checking, Savings, CD, Money Market and IRA Accounts

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Axos Bank’s checking account options

Rewards Checking

This account gives you the potential to earn decent interest, but you’ll have to meet several conditions to get the full APY.
APYRequirements to Earn APY
0.42%

Meet one of the following conditions:

  • $1,000 or more in direct deposits per month

  • 10 transactions per month with a debit card ($3 minimum for each)

  • Use debit card an additional five times ($3 minimum for each)

0.83%

Meet two of the above conditions

1.25%

Meet each of the above conditions

  • Minimum opening deposit: $50
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: Unlimited
  • Overdraft fee: None

The Rewards Checking account is good for those who use their debit card often on purchases since the more it’s used, the more interest that can be earned. But it’s also geared toward those customers who make several sizeable direct deposits on a monthly basis, as that is another condition that needs to be met to receive the highest interest rate.

When you open an account, you will need to deposit a minimum of $50, but you don’t need to worry about getting charged a fee for not holding a minimum amount on a monthly basis. This checking account gives you the potential to earn a relatively high interest rate, but you’ll have to meet three requirements to earn the maximum. And the rates are variable, so they can fluctuate.

How to get Axos Bank’s Rewards Checking account

You can apply online for the Rewards Checking account. You will need to create an account and provide some basic information, such as your name and Social Security number. Within a few minutes, you will be informed about whether you have been approved.

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Essential Checking

This account does not offer interest but has some added perks when it comes to fees and reimbursements.
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: Unlimited
  • Overdraft fee: None

This checking account does not earn interest but can be a good option for those looking for a basic checking account with funds that can be accessed when needed.

There are no fees associated with the Essential Checking account. Customers also do not need to worry about holding a minimum monthly balance to keep the account open.

How to get Axos Bank’s Essential Checking account

Customers can apply online and get a decision within minutes. You will need to create an account by choosing a username and password. Once that is complete, you will be able to apply for the Essential Checking account by providing some basic information, including your Social Security number and valid identification.

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CashBack Checking

You have the potential to earn cash back with this account, but you’ll need to keep a minimum balance.
Cash BackMinimum Balance to Earn Cash Back
1.00% cash back$1,500
0.50% cash backLess than $1,500
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: Unlimited
  • Overdraft fee: Website doesn’t specify overdraft fee amounts but states Axos Bank can close your account

Axos Bank’s CashBack Checking account may be a good choice for shoppers who frequently use a debit card and want to get rewarded for their spending.

Customers need to maintain a minimum balance if they want to earn the most cash back. If your balance falls below $1,500, you’ll only earn 0.50% cash back.

This interest-bearing account comes with the bonus of unlimited check-writing ability. You can receive starter checks for free, but only when ordered upon opening your account.

Note that you can only earn up to $2,000 in cash back each month. If you can responsibly manage a credit card and pay off the balance in full each month, you may be better off with a cashback rewards credit card that earns a higher rate.

How to get Axos Bank’s CashBack Checking account

Apply for the CashBack Checking account online by providing your name and Social Security number. If you are a new applicant, you will need to create an account to start your online application. The entire process, including receiving a decision, should only take about 15 minutes.

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Golden Checking

High interest rates, zero fees and other perks help sweeten the deal for customers 55 and up.
APY Minimum Balance to Earn APY
0.20% Variable$0.01
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: Can receive up to $8 per month
  • Overdraft fee: None

Axos Bank’s Golden Checking account is for customers 55 and older. It’s ideal for those who want high interest rates without any fees attached.

The account also caters to those who use personal checks more often than ATM withdrawals. There are no limits to how many checks you can write per month, and customers receive free checks every six months.

This checking account earns a variable rate, which means it can change over time. But you can start earning interest no matter your account balance.

How to get Axos Bank’s Golden Checking account

Apply for the Golden Checking account on Axos Bank’s website, making it quick and easy to find out if you qualify. You will need to provide some information such as your Social Security number and a valid ID. As with other checking accounts with this bank, you’ll need to create an account to get started. You’ll be able to get a decision in a few minutes.

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First Checking

Teens will like an interest-bearing checking account tailored for them. Co-owners can rest easy with the account’s built-in transaction limits.
APY Minimum Balance to Earn APY
0.25%$0.01
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: None
  • ATM fee: Fees in place once $12 in monthly reimbursements are met
  • ATM fee refund: Up to $12 in fee reimbursements each month
  • Overdraft fee: None

Teens ages 13 to 17 can only have this account with an adult co-owner. The account can be ideal for teens who want to learn how to manage their own money while earning interest on their deposits. Parents may welcome the account’s limitations.

Teens cannot write checks and have daily transaction limits. They can only withdraw up to $100 each day, while the account limits daily point-of-sale transaction to $500. A limit on fees also helps make this checking account a win.

How to get Axos Bank’s First Checking account

Customers can be offered Axos Bank’s First Checking account only when the main account holder requests it. The application process can be done online, but the applicant must be 18 or older. The joint owner of this account will need to apply as the “primary owner,” and the teen applicant will apply as the “secondary joint owner.” An online account will need to be created if one is not already made, and a decision will be made within minutes.

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Second Chance Checking

With fees to pay, daily transaction limits and no interest to earn, this checking account is a hard sell.
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: $6.95 if you have direct deposit set up; otherwise, it’s $8.95
  • ATM fee: Yes, depending on the ATM being used; there are daily limits, such as only being able to withdraw $310 and only spending $500
  • ATM fee refund: None
  • Overdraft fee: $25

If you want a checking account and can’t get a more traditional alternative, the Second Chance Checking account may be an option. You do receive a free debit card — but not without a lot of shortcomings. When compared to the top five second-chance bank accounts, it requires a slightly higher minimum deposit to open. Like some of its top competitors, it provides optional overdraft protection if desired.

As with other second-chance bank accounts, there are daily transaction restrictions to watch out for and monthly maintenance fees to consider. Another big drawback is this checking account doesn’t earn you any interest.

How to get Axos Bank’s Second Chance Checking account

Unlike Axos Bank’s other checking accounts, you can’t apply for a Second Chance Checking account online. You will need to speak with a bank representative by calling the customer service number at 888-502-2967 to see if there are any other options before you can apply for Second Chance Checking.

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How Axos Bank’s checking accounts compare

Axos Bank offers relatively high interest rates. Its Rewards Checking account made our list of the best online checking accounts. But to earn the highest interest rate with a checking account at Axos Bank, you need to meet several spending and saving requirements with the Rewards Checking account.

Another thing we like about Axos Bank’s checking accounts is the usually low minimum deposit. While other banks may require a hefty deposit to open a checking account, Axos Bank usually doesn’t. Often, there is no required deposit at all.

Axos Bank’s savings account options

High Yield Savings

The interest earned can be great, but the heavy transaction limits are not.
APY Minimum Balance to Earn APY
1.30%$0.01
  • Minimum opening deposit: $250
  • Minimum balance to earn APY: 1 cent
  • Monthly account maintenance fee: None
  • ATM fee: Yes, depending on the ATM being used
  • ATM fee refund: None
  • Overdraft fee: $25

Axos Bank’s High Yield Savings account may be good for those who are looking to earn interest on their money without dealing with a lot of unwanted fees. Customers don’t have to worry about paying a monthly maintenance fee, for example, nor do they need to be concerned about a minimum balance requirement.

What they do need to keep an eye out for are the various transaction limits, such as on purchases, withdrawals and transfers. Due to Regulation D — which sets federal requirements on deposit accounts — the bank may charge a fee, close the account or convert the account to a checking account if customers go over the withdrawal limit.

How to get Axos Bank’s High Yield Savings account

Opening a High Yield Savings account with Axos Bank is relatively simple. The entire application can be completed online. You’ll need to create a bank login if you’re a new user by providing basic information.

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Second Chance Savings

Score a free ATM card — but not without daily ATM transaction limits that need to be followed.
APY Minimum Balance to Earn APY
0.25%$0.01
  • Minimum opening deposit: $50
  • Minimum balance to earn APY: 1 cent
  • Monthly account maintenance fee: None
  • ATM fee: $1
  • ATM fee refund: No
  • Overdraft fee: $25

This second-chance account may be tempting due to its interest rate and low fees, but there are limitations on how much of your money you can access each day. Customers are only allowed to withdraw up to $310 per day and spend up to $500 each day. On top of that, there are transaction limitations with transfers made online and by phone for both non-bank and Axos Bank accounts.

Because of federal Regulation D, the bank can charge a fee if you go over six transfers per month. If you keep exceeding this limit, the bank may convert your account.

How to get Axos Bank’s Second Chance Savings account

If Axos Bank’s Second Chance Savings account is of interest to you, you will need to speak with a bank representative to apply. Customers are not able to apply for Second Chance Savings without speaking to a representative to decide if this is the best option if you do not qualify for another type of savings account.

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How Axos Bank’s savings accounts compare

When compared to the best online savings accounts, Axos Bank’s savings accounts have rates that are on the low side. For example, American Express National Bank’s Personal Savings account offers a 1.70% APY, while Vio Banks’ High Yield Online Savings account allows you to earn 1.85% APY. Axos Bank’s High Yield Savings account only allows you to earn 1.30% — and that’s the highest of its two saving account offerings.

But the bank is on par with the minimum deposit requirements offered elsewhere. Some of the best offerings out there today require a minimum deposit of $50 to $100, and that’s on the lower scale, coming close to what Axos Bank requires. Of course, there are also other banks and credit unions that ask for $10,000 or more, while others don’t ask for anything upfront. Axos Bank has some bonuses to consider, too, including free ATM cards, similar to those ranking high on the list.

Axos Bank’s CD rates

Certificates of Deposit

High interest earnings, guaranteed returns and flexible terms all help make for a lucrative investment.
TermAPY
3 months0.55%
6 months0.75%
12 months1.01%
24 months1.20%
36 months1.30%
48 months1.40%
60 months2.00%
  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $1,000
  • Early withdrawal penalty: Half of the interest slated to have been earned if matured

There are a lot of advantages to opening a CD with Axos Bank. Customers can earn high interest (with longer terms) and see guaranteed returns. Customers also have the flexibility to choose their own terms. A bonus includes free interest transfers that are made electronically. There are also no fees to set up the account or to maintain it.

One major downside is that you have to wait until the CD matures until you can withdraw any portion of your funds. If you don’t abide by these regulations, you can be faced with a penalty.

How to get Axos Bank’s Certificates of Deposit

To get started, create a username and password on the bank website. You will then be prompted to supply some standard information, such as your Social Security number and a valid photo ID. A decision can be made in a few minutes, so you’ll know if you’re approved right away.

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How Axos Bank’s CD rates compare

Axos Bank’s CD rates are low when compared to the best CD rates. The minimum deposit requirements are near the middle of the leading companies on our list, but they still average on the higher side.

But Axos Bank’s CDs allow more flexibility with its terms, unlike top competitors that only allow you to choose from fixed terms.

Axos Bank’s money market account options

Axos Bank’s High Yield Money Market

You have the potential for earning interest, but not without a few drawbacks.
APYMinimum Balance to Earn APY
1.05%$0.01
  • Minimum opening deposit: $1,000
  • Minimum balance to earn APY: 1 cent
  • Monthly account maintenance fee: None
  • ATM fee: Depends on the ATM used
  • ATM fee refund: None
  • Overdraft fee: $25

Axos Bank’s High Yield Money Market account might be a solid option for those who have money with which they want to earn interest. Other positives include check-writing abilities and the use of a debit card.

But if you’re looking to earn a tad more interest, the bank’s High Yield Savings account might be a good alternative. It offers a 1.30% APY, which is slightly higher than what can be earned with this money market account.

Federal Regulation D has specific transaction requirements per month. Failure to follow those rules can be subject to excess withdrawal fees and possible account closure.

How to get Axos Bank’s High Yield Money Market account

Applying for a High Yield Money Market account with Axos Bank is simple because it can be done online. Create an account to get started and then fill out the application form with your basic information, such as name and Social Security number, to see if you are approved.

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How Axos Bank’s money market account compares

This company’s money market account offers much lower rates than those with the best money market rates. Some of the top institutions offer 1.85% and higher, while Axos Bank’s APY weighs in at only 1.05%. Many of these top offerings don’t require a minimum deposit and some only need $100 or $250 to open an account, while Axos Bank requires $1,000. But there are also those on the list with high rates that require a large sum of money upfront, such as $10,000 to $25,000, making Axos Bank’s requirement appear relatively small.

Axos Bank’s IRA account options

IRA CDs

Interest is compounded daily, making for ultimate earning potential — but not without a large deposit.
TermAPY
12 months0%
18 months0.70%
36 months0%
  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $1,000
  • Early withdrawal penalty: Half of the interest earned if the money was left the entire duration of the term

Axos Bank’s IRA CDs can be ideal for those looking for interest compounded on a daily basis to help funds grow and see returns that are consistent. The interest rates are determined based on the length of the CD term.

One negative with these CDs is the minimum deposit that requires customers to deposit a decent chunk of cash upon opening the account.

How to get Axos Bank’s IRA CDs

If you’re interested in applying for Axos Bank’s IRA CDs, you can do so online. The prompts are easy to follow, asking you first to create an account with the bank, followed by providing your Social Security number and a valid photo ID on your application. You will be able to know if you are qualified within a few minutes.

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How Axos Bank’s IRA CD rates compare

When looking at the best IRA CD rates, Axos Bank doesn’t even compare. The bank’s rates are low compared to the best offerings out there. Further, its minimum deposit requirement is similar to that of leading competitors. That means it may be a good idea to look elsewhere if you are interested in securing the best rate for an IRA CD.

IRA Savings

A lower minimum deposit and no monthly fees can help make up for lower interest rates.
APYMinimum Balance to Earn APY
0.15% Variable (Tier 1)$250 - $1,000
0.70% Variable (Tier 2)$1,000 or more
  • Minimum opening deposit: $250
  • Minimum balance to earn APY: $250
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: None

Axos Bank’s IRA Savings account does have a minimum deposit, but it is less than some other account options, including on its IRA CDs. To earn 0.15%, you will need at least $250 in your account. Once your account hits $1,000 or more, you will then graduate to earn 0.70% APY.

Returns are consistent and interest is compounded daily, allowing for plenty of earning. It is variable, so it can fluctuate.

Excess withdrawal fees can be accounted for with certain savings accounts, due to federal Regulation D, which can cause a bank to charge a fee, close an account or convert an account to a checking account if a customer goes over the withdrawal limit. But Axos Bank’s website does not specify whether there is an excess withdrawal fee for the IRA Savings account.

How to get Axos Bank’s IRA Savings account

Customers interested in applying for Axos Bank’s IRA Savings account can do so online. The website is easy to follow and provides simple instructions on how to get started. You’ll begin by creating an account. Then you’ll complete an online application form to see if you are eligible for the IRA Savings account. You should receive a decision a few minutes after you complete your application.

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Overall review of Axos Bank’s banking products

Axos Bank offers some solid banking products that often don’t have lots of unwanted fees. Another positive is the flexible terms that some of the products come with, allowing the customer to choose the length that works best for them.

But Axos Bank doesn’t usually provide the highest interest rate, especially when compared to its competitors, so the earning potential is there but not great. So, if you’re like many and want to earn the highest interest rates you can, it may be wise to search elsewhere.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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Auto Loan

How Much to Put Down on a Used Car

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

what to look for when buying a used car
iStock

A brand-new car might sound appealing, but may not always be the best financial option. That’s where used cars can come in. Used cars can be much more cost-efficient than new cars because they are just that: used, not new. And while you may not be the first person to own the car, you’ll likely find that an older model, say a 3- to 5-year-old car, can still offer high-quality tech and safety options that you’d find from something that’s brand new. Another good reason for a used car? You may get a chance to own a car that you normally wouldn’t be able to afford if you were buying it new.

Plus, used cars are great values for customers. Since a car’s depreciation usually happens within the first year, that means it has likely already taken place with used cars. In most cases, a new car can lose more than 20% of its value as soon as it leaves the lot. And nowadays, many modern cars can run for well beyond 100,000 miles, sometimes even longer.

The car-buying process for purchasing a used car is similar to the process for buying a new car, but you may wonder how much you should put down on a used car since it will be more affordable. Let’s take a closer look at how much to put down on a used car (and how it might compare with new cars) below.

What is a down payment on a used car?

When you buy or lease a car (both new and used), you’ll likely need to put money down first to help show the lender or dealer you’re financially committed. A down payment also serves other functions as well; it helps determine how much you’ll pay each month and what your interest rate on an auto loan might be (if applicable).

The math works out like this: The larger your car down payment, the better the interest rate and the lower the monthly payments will be on that vehicle.

So just how much should you put down? The average down payment on a new car is around 20-30%, which is more than used cars. The reason is because the depreciation in new cars happens in the first year, so you’ll likely need to put down more to help offset that hit.

Used cars on the other hand, don’t need as much of a down payment. In fact,most down payments for a used car range anywhere from 10-20% with a current average of about 11% of the car’s selling price, according to Ronald Montoya, a consumer advice editor at Edmunds, the car-buying site.

How to calculate how much you should put down on a used car?

Knowing how much you can afford to put down on a used car is pretty crucial to your finances. That’s why it’s important to only take on a car you can afford. Take a hard look at your finances to help determine how much you’re able to pay each month and how much you can put down. One way to go about this is by using online tools, such as MagnifyMoney’s auto affordability calculator. Here, you can plug in your how much you’d like your monthly payment to be and how much you’re willing to put down. Once you put in that information, you can get an estimate of how much you can afford on a car at its estimated value. Auto loan calculators can also help determine your estimated monthly payments on a new car loan if you choose to go that route, which is discussed in more detail later on.

Putting more down on a used car can help save you in the long run as it can help lower your monthly payment and provide a better interest rate. If you can’t put down the typical 10-20% of the car’s value, it might be wise to keep shopping around for a less expensive vehicle. You may also want to inquire with your lender about getting a possible lower interest rate loan.

What does ‘low down payment,’ ‘no down payment’ or ‘zero down payment,’ mean?

If you’ve been shopping around for a car, whether used or new, there’s a good chance you’ve heard the terms “low down payment,” “no down payment” or “zero down payment.” But what do they mean and how do they differ from one another? Let’s break each term down to get a better idea of what these down payment options mean and how they might work (or not work) for you.

What does low down payment mean?

A low down payment is a certain amount of money you put down to help reduce the money you’re borrowing. In years prior, anything less than 20% was considered a low down payment. Today, the average down payment for a used car is 10.9%. Anything below that may be considered on the low side, but usually a down payment within 1-5% range is typically a low down payment.

Pros of low down payment

  • Since you’re putting something down (even if it’s on the low side), you may get a lower monthly payment or interest rate than if you didn’t put anything down at all
  • Possibly shorten the term of your loan than if you didn’t put anything down
  • Shows the lender you are committed to the purchase

Cons of low down payment

  • It may only be a low down payment, but you still have to come up with the cash
  • You may not be putting down enough money to get the best monthly payment or interest rate

What does no down payment or zero down payment mean?

Zero or no down payment means you do not put any money down on the used car you’re buying. Unlike with a low down payment, you won’t have to put any money forward but you’ll have higher payments to worry about.

Pros of no down payment or zero down payment:

  • There is no down payment to come up with
  • Keeps more money in your pocket

Cons of no down payment or zero down payment:

  • Since you’re not putting anything down at all, you’ll likely have a higher monthly payment
  • Possible higher annual percentage rate (APR)
  • You may invest in something that is out of your price range because it was enticing without a down payment
  • Usually only offered to those with a credit score of 700 or higher
  • Your loan can go upside down, which means you’ll owe more on your car than what it is worth

Where do you find low or no down payment used cars?

Unfortunately, there’s no one-stop shop to find low or no down payment used cars. You’ll likely have to do a little digging on your own. You can start by going online to search for dealerships in your area and possible lenders to work with for an auto loan that offers the features you are looking for. Once you find a dealership or lender you’d like to work with, you’ll then be able to contact them directly to apply and determine a proper financing plan for your individual needs.

Each finance plan will vary depending on the lender and the car. One thing to remember: Interest rates are usually higher with used cars because they are riskier for lenders to invest in. Because older cars can break down and owners sometimes decide to stop paying for a broken car, the lender considers this a reason for borrowers to potentially default on their loan. Also note, any car over seven years old can be even harder to get a loan on.

Depending on the lender, you may have the option to apply for a low or no down payment directly on your application or you may discuss this once you are approved for the loan.

Credit history plays a significant role in buying any car, especially a new one. However, when it comes to used cars, you’ll likely only need a good to normal score.

For those who have poor credit, some consider a buy here, pay here dealership. These dealerships can possibly help finance your car when you might not be able to do it otherwise but be cautious, says Ronald Montoya. An option like this may be more costly and is not usually recommended. These dealers tend to sell older cars for much more than they are worth, with too high interest rates. And while you’ll be able to build up your credit if you choose to do business with this type of dealership, you should know that they don’t always report to the credit agencies. That means, you can be making all your payments on time without your credit score improving. If your credit is bad and you don’t have a lot of extra money to spend, you may want to work on raising your score first.

How do you finance a used vehicle?

Now that you have decided on getting a used car, you may be wondering how you’ll be able to finance it. If you’re like many and don’t have extra cash stored away to help buy your car in full, you may need some financial help.

Once you have figured out how much you want to spend on a used car, located the right vehicle for you, figured out what kind of down payment you can provide, it’s time to shop for lenders. An auto loan can help finance your ride by offering you a way to pay for the car with monthly payments. You’ll want to shop around for different lenders to find one that can offer you the best annual percentage rate (APR), which is determined by your credit history and the price of the car you’re looking to purchase. Car loan terms can vary depending on the lender and your credit, but tend to range from around 5 to 6 years. However, a 60-month loan term is ideal because you’ll have five years to finance your car rather than six, which is usually more feasible for most people. And since it’s only five years, you likely won’t grow tired of your car in that amount of time, as opposed to if you had the car for a longer period. Keep in mind, the loan term will depend on how old your car is; with an older car, you may want to try to get a shorter term.

And terms that are longer? These usually come with a higher monthly payment. When you find a potential lender, you’ll need to apply for an auto loan, which can be done online. Once you provide information on your income, employment, and the car you’re interested in, the lender will notify you whether or not you are approved.

Leasing a used car may also be an option. With a lease, the lender will determine your monthly payments by looking at what the car is selling for compared with its overall value. Interest rates on leasing used cars can be higher than with new cars but the terms (which vary with each individual) are usually the same as with new cars. Plus, at the end of your lease you have the option of purchasing the used car (just like with a new one) if you so choose.

The bottom line

Buying a car can be a financial strain. However, used cars can be a cheaper option while still providing you with some decent wheels. In order to get the best bang for your buck, you’ll likely need to put money down on a used car. Putting money down is a good way to save money because it will lower your monthly payment. If you’re looking to save more on your monthly payments, it might be a good idea to put more down if your finances permit. It’s important to only do what you can afford and to take a good look at your finances before making any final decisions.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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Personal Loans

LendingPoint Personal Loan Review

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

APR

9.99%
To
35.99%

Credit Req.

585

Minimum Credit Score

Terms

24 to 48

months

Origination Fee

0.00% - 6.00%

SEE OFFERS Secured

on LendingTree’s secure website

LendingPoint is an online lender that targets borrowers with fair credit, and allows borrowing up to $25,000.... Read More

LendingPoint personal loan details
 

Fees and penalties

  • Terms: 24 to 48 months
  • APR range: 9.99% to 35.99%
  • Loan amounts: $2,000 to $25,000
  • Time to funding: After the final approval, funds can be transferred as quickly as the next business day.
  • Hard pull/soft pull: LendingPoint conducts a soft pull when you first apply for a personal loan quote. After you review the loan offer(s) and select one, a hard pull will then be done to move forward with the final loan approval process.
  • Origination fee: 0.00% - 6.00%, depending on your state of residence and credit history.
  • Prepayment fee: None
  • Late payment fee: Not specified

Many lenders are strict about how many loans you can have at one time, sometimes maxing out at one per borrower. However, LendingPoint may allow you to take out two loans at once, depending on your current loan’s standing and your overall credit history. Being able to take out another personal loan can be helpful if a new financial issue comes up, such as an unexpected home repair, where you need more funds than your current loan can’t cover.

LendingPoint’s personal loans may be used for many different financial reasons. Whether you need to cover an upcoming home renovation, fund a car purchase or pay off a medical bill your insurance won’t cover, a personal loan from LendingPoint can help. These personal loans can also be used to help consolidate your debt and refinance your credit cards.

Eligibility requirements

  • Minimum credit score: 585
  • Minimum credit history: LendingPoint looks at your overall financial potential to help determine whether you’re a good candidate for a personal loan, but it will only consider those who can show income of at least $20,000 a year.
  • Maximum debt-to-income ratio: Not specified.

All borrowers must be at least 18 years old and reside in one of LendingPoint’s 49 designated states (as stated above, LendingPoint doesn’t operate in West Virginia) or the District of Columbia. Borrowers are encouraged to show consistent employment history for at least the past 12 months and must have a bank account.

Applying for a personal loan from LendingPoint

To begin the application process with LendingPoint, you’ll first need to provide basic background information, such as your name, date of birth, Social Security number, and annual income. This is the pre-approval process that can generate one or more loan offers in minutes.

If you choose one of the offers and agree with the terms and rates, you will then need to provide any additional information and documents LendingPoint may request, including your driver’s license, bank statements (with voided check) and proof of income. Once all documents have been received and reviewed, a final loan approval can happen in a few hours, and your funds can possibly be distributed to your bank account within the next business day.

Pros and cons of a LendingPoint personal loan

Pros:

Cons:

  • No prepayment penalty. If you decide to pay off your loan before your term is up, LendingPoint will not charge you a prepayment penalty.
  • Fast approval and funding. Many borrowers are pre-approved for a personal loan within a few minutes and approved for the actual loan within hours. Borrowers can receive funds in their bank account as soon as the next business day, upon approval and receipt of additional documents.
  • Works with borrowers with various different credit scores. LendingPoint provides personal loans to borrowers with a range of credit scores, even those with poor credit.
  • Bankruptcy is not grounds for automatic disqualification. Borrowers with a discharged bankruptcy of 12 months or more can still apply for a personal loan with LendingPoint. Your credit history, income and discharged bankruptcy timeframe will all be determining factors.
  • No joint or cosigner loans. Some lenders allow you to have a cosigner with a higher credit score in order to qualify for a better personal loan rate. That is not the case with LendingPoint’s personal loans, as they are based only on your individual credit history.
  • Fluctuating payment schedule. Your monthly due date may change because LendingPoint usually uses a 28-day payment cycle.
  • Higher interest rates. LendingPoint may work with borrowers with fair credit, but that can mean higher interest rates when compared with other lenders.
  • Origination fee. Many lenders don’t charge an origination fee for personal loans, which is why LendingPoint’s possible charge of up to 6.00% can be off-putting.

Who’s the best fit for a LendingPoint personal loan

If you have low to fair credit and meet the income requirements, LendingPoint could be a good option, especially if you need funds fast. The lack of a prepayment penalty is a plus, but other lenders offer lower rates, even for those with less than ideal credit.

Still, it’s always a good idea to search and compare personal loans before making a final decision. Shop around to find the best personal loans with a rate and term that’s ideal for your financial needs, while also keeping an eye out for any fees associated with a loan, including origination fees. LendingPoint may be the best fit for you, but you should take some time to compare with others to know for sure.

LendingPoint consumer reviews

A company’s rating on the Better Business Bureau is a good indicator on the way it handles its overall business. A major plus for LendingPoint is its A+ rating on the BBB. It has also been accredited with the BBB since 2014.

LendingPoint also flourishes on LendingTree’s website (Disclaimer: MagnifyMoney is owned by LendingTree), boasting an average of 4.5 stars from its 68 reviews. Customer service and responsiveness have both scored 5-star ratings, and 90% of customers would recommend LendingPoint to others.

In general, the reviews for LendingPoint on LendingTree praise the company’s customer service, noting the “personable” and knowledgeable” representatives and that the overall experience was a “fast” and “easy” process.

“The costumer service is top notch!” said reviewer Christopher from Oldsmar, Fla. “Fast, easy, just be on your computer when you’re talking with you rep and they just walk you right through everything!” Fellow Floridian Anna from Saint Augustine thanked LendingPoint and said that she “appreciated the quick, personal and no hassle process.”

Customers also appreciated how “fast” and “convenient” it was to receive their funds from a LendingPoint loan. Several other customers said they would or already have recommended LendingPoint’s services to a friend, as well.

See all LendingPoint customer reviews on LendingTree here.

LendingPoint FAQ

LendingPoint offers personal loans to borrowers who need financial help to pay for a major purchase, such as a new home appliance or wedding, or to help consolidate debt. LendingPoint’s personal loans can reach up to $25,000 with terms of 24 to 48 months.

You can use your personal loan for many financial reasons, anything from home improvement tasks to debt consolidation, medical bills and even vacations.

You may be able to change your due date by contacting the lender directly five business days before your bill is due.

Yes, you are allowed to make an extra payment on your loan if you choose to. You can also pay off your loan early without any penalty fees.

You must have an annual income equal to at least $20,000 which can include funds from your job or elsewhere, such as retirement.

In order to qualify for a personal loan with LendingPoint your credit score can be anywhere from 585 all the way to 850.

No. LendingPoint doesn’t charge a fee to use its online application.

Yes, you can set up AutoPay so your payments are automatically deducted from your checking or savings account each month.

Alternative personal loan options

Peerform

Peerform
APR

5.99%
To
29.99%

Credit Req.

600

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

1.00% - 5.00%

Even with a credit score of 600, you still might be able to secure a loan through Peerform. ... Read More

Peerform offers lower fixed rates ranging from 5.99% to 29.99% with loan amounts starting at $4,000 and maxing out at $25,000; terms are between 36 or 60 months.

Similar to LendingPoint, there are no prepayment penalties should you want to pay off your loan in advance, but there may be an origination fee that varies from 1.00% - 5.00%. There are other fees to consider with Peerform as well — these include late fees,check processing fees and unsuccessful payment fees, all of which can range around $15 each.

LendingClub

APR

6.95%
To
35.89%

Credit Req.

Not specified

Terms

36 or 60

months

Origination Fee

1.00% - 6.00%

SEE OFFERS Secured

on LendingTree’s secure website

LendingClub is a great tool for borrowers that can offer competitive interest rates.... Read More

Peer-to-peer lender LendingClub offers loans up to $40,000, which is good for those looking to borrow more money. However, you will likely have to wait a little longer to receive the funds — LendingClub’s earliest distribution is within 7 business days.

There are no prepayment penalties, but LendingClub charges an origination fee of anywhere from 1.00% - 6.00%, and you could also be charged a check processing fee or late payment fee. Credit history, the loan amount and any other outstanding debt are some of the factors used to determine the APR, which usually ranges from 6.95% to 35.89%.

OneMain Financial

APR

18.00%
To
35.99%

Credit Req.

Not specified

Terms

24 to 60

months

Origination Fee

1.00% - 10.00%

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

OneMain Financial offers quick turnaround times and you may get your money the same day... Read More


Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. The lowest APR shown represents the 10% of loans with the most favorable APR. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes. Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.

Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Florida: $8,000. Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. Texas: $8,000. West Virginia: $7,500. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

OneMain Financial has issued loans for more than 100 years and, similar to LendingPoint, can have money in your hands within the next business day after final approval. Loan amounts are from $1,500 to $20,000 with an APR range of 18.00% to 35.99%.

Borrowers are eligible for terms of 24 to 60 months, depending on your credit and financial history and any other debts you may have. Credit score requirements vary and all personal loans have fixed rates and payments without any prepayment penalties. You may be able to get a loan offer within minutes when you apply online but will need to meet with a loan specialist in person for final approval.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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