Lendly Review: Fast Loan-Matching But Not Great Option
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- Min. Amount
- $1,000
- Max. Amount
- $2,000
Our verdict
While Lendly offers quick cash to borrowers with bad credit, its steep APRs and limited availability make it not worth it for most borrowers.
Lendly is not a direct lender but rather connects borrowers to third-party service providers, Pinwheel and Argyle. Lendly offers small personal loans ranging from $1,000 to $2,000 with quick funding, often within 24 hours. However, borrowers must be on a payroll system to qualify, as repayments are automatically deducted from paychecks. While Lendly is accessible to those with poor credit, APRs can be extremely high, around 225% on average. Plus, its loans are only available in certain states. With extremely high interest rates, limited availability and no accreditation with the Better Business Bureau (BBB), we urge borrowers to look elsewhere for a loan.
Pros
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Quick loan approval and fast funding
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No credit check required for eligibility
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No prepayment or origination fees
Cons
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Extremely high APRs
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Limited state availability
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No prequalification with a soft credit check
Is Lendly Legit?
Lendly is a legit provider that has been around since 2019. Lendly promises that “All information that is entered online is only transmitted over the internet using an encrypted form directly to encrypted data services, where it can only be accessed and used to serve that customer per our privacy policies.”
While Lendly has not faced major scandals or security concerns, it is not accredited by the BBB.
Where Lendly falls short
While Lendly can be a viable option for quick cash, its high fees, low maximum loan amounts and limited repayment options mean there are better loan options that offer quick loans like Lendly. Here are a few drawbacks to consider before applying for a Lendly personal loan.
- Extremely high APRs. One of Lendly’s main drawbacks is its high interest rates. Although Lendly’s APR may be lower than some payday loans, which can exceed 400%, Lendly’s typical rate hovers around 225%. This rate is significantly higher than cash advance app alternatives like EarnIn, which offers payday advances up to $750 at no cost.
- Low maximum loans. Lendly caps its loans at $2,000. Upstart personal loans are a good alternative if you have bad credit but want to borrow more than $2,000 with better interest rates.
- Limited availability. Lendly loans are only available in 22 states.
- No preapprovals. Lendly’s loan applications may impact credit scores, as it conducts a hard credit check, unlike some competitors that offer a preapproval process using a soft pull.
What makes Lendly shine?
Lendly shines in a few areas. Its quick application process, automatic payment system, flexible credit assessment and support for credit building can make it appealing to borrowers. That said, it’s important to weigh the benefits against the drawbacks before taking out a loan from Lendly.
- Fast application and funding process. Lendly streamlines the loan application experience, allowing you to complete the online form in just five minutes. Most applicants receive a decision within 24 hours, and funds can be deposited into your account as soon as the next business day after submitting the necessary documents.
- Can help borrowers build credit. Lendly reports payment history to credit bureaus, such as Equifax, Experian and TransUnion. So, you can improve your credit score by consistently making on-time payments.
- Applicants with any credit score may qualify. People with less-than-perfect credit can still qualify for a loan, provided they have a stable job and can set up payroll direct deposits.
Lendly loan details
| Minimum credit score/credit range | Borrowers with any credit score may qualify |
| APR | The APR for an average loan is around 225%, though Lendly does not disclose specific interest rates online. |
| Loan amount | $1,000 to $2,000 |
| Terms | Loan terms vary, though typically, repayment terms are 26 bi-weekly payments, and bi-weekly payments can vary between 20 and 52 weeks. |
| Approval turnaround | Funds are typically deposited into your bank account by the next business day. However, it could take up to three business days, depending on your bank. |
| Availability | Available in: Alabama, Alaska, Arizona, Arkansas, Delaware, Florida, Idaho, Indiana, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Montana, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, Wisconsin, Wyoming |
| Fees | No prepayment fee No origination fee |
| Other fees | Florida residents are subject to a Documentary Stamp Tax. Thirty-five cents per $100 or portion thereof (or $3.85 for a $1,000 loan) will be added to your loan amount if your loan application is approved and funded. |
Lendly contact info
| Phone number | 888-853-6359 |
| Customer service hours | Weekdays: 9 a.m. to 10 p.m. ET Weekends: 9 a.m. to 6 p.m. ET |
| theteam@lendly.com | |
| X, formerly Twitter | N/A |
| N/A |
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How to qualify for Lendly
Lendly focuses on your employment and income rather than just your credit score, making it accessible to a range of borrowers. Here’s what you need to qualify:
- No minimum credit score required, but credit history is considered
- Proof of income and bank account information
- Steady employment, as your repayments are automatically deducted from your payroll provider
- US citizen or a permanent resident/green card holder
- Driver’s license or a valid government-issued photo ID
- Active personal checking or savings account
- Be 18 or the age of majority in your state
How to apply
Applying for a Lendly loan is a straightforward process completed entirely online. To see the rates and terms you qualify for, however, you’ll need to submit a formal application, as Lendly does not offer a prequalification option.
Here is how to apply to Lendly:
- Complete the online application. The application takes 5–10 minutes and requires basic personal and employment information.
- Submit your application. After filling out the form, Lendly reviews your information, and you’ll typically receive a decision within 24 hours. If eligible, you’ll receive an email and/or a text notification. You can also check your eligibility by logging into the customer portal at lendly.com/login.
- Receive your funds. Once approved and your information is verified, funds can be deposited into your bank account as soon as the next business day.
- Manage your loan. You can monitor your loan and make payments by logging in to the customer portal. If needed, you can pay off the loan early without penalty. Typically, your repayments are automatically deducted from your paycheck.
How Lendly compares to other lenders
What is the Finder Score?
The Finder Score crunches 3+ types of short-term loans across 65+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're comparing the best short-term loans for all credit types, you can see how each short-term loan stacks up against other short-term loans with the same borrower type, rate type and repayment type.
Lendly reviews and complaints
| BBB accredited | No |
|---|---|
| BBB rating | B |
| BBB customer reviews | 1.05 out of 5 stars, based on 31 customer reviews |
| Trustpilot Score | 4.7 out of 5 stars, based on 7,572 customer reviews |
| Customer reviews verified as of | 22 October 2024 |
Lendly has a number of mixed reviews. Positive reviews on Trustpilot highlight how easy and quick the application process is. Borrowers find that their funds come through easily, which has especially helped during emergencies. Some borrowers appreciate the convenience of payroll deduction for repayments, which helps them stay on track without having to manage the payments themselves.
On the other hand, complaints center on issues like high interest rates and unclear communication regarding loan terms. Customers on the BBB raise concerns about customer service, noting difficulties in resolving issues or getting timely responses from support. Additionally, some reviews mention feeling misled by the promotional materials, particularly regarding how much the loan would end up costing.
What do people on Reddit say?
Frequently asked questions
Does Lendly approve bad credit?
Yes, Lendly considers applicants with less-than-perfect credit. Instead of relying heavily on credit scores, it focuses on employment history and the ability to repay through payroll deductions. However, the loan’s high APR can make it a costly option even if you’re approved.
How long does it take to get approved by Lendly?
Lendly’s online application process is quick, often providing a decision within 24 hours. Once approved, funds are typically available as soon as the next business day, depending on your bank’s processing times.
What type of loan is Lendly?
Lendly offers small personal loans, typically up to $2,000, designed for borrowers who need quick access to funds. These loans are paid back through automatic payroll deductions, which help ensure timely payments. Lendly itself is not a lender but rather works with third-party services.
Does Lendly perform a hard credit pull?
Yes, Lendly conducts a hard credit inquiry when you apply for a loan. Unlike many lenders, it doesn’t offer the ability to prequalify with a soft credit check, which means applying affects your credit score.
How are loan payments made through Lendly?
Repayments are made through automatic deductions directly from your paycheck, using your employer’s payroll direct deposit system.
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