Lendumo Review: Fast Cash But Very Expensive
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- Max. Amount
- $2,500
- Turnaround time
- As soon as the same day
Our verdict
This lender offers fast funding, but interest rates are well into the triple digits, and it’s had multiple lawsuits against it.
Lendumo is a “commercial enterprise and instrumentality” of the Lac du Flambeau Band of Lake Superior Chippewa Indians. It offers short-term loans up to $2,500, with funding usually as soon as the next business day. It also has a rewards program for clients in good standing that can be redeemed in gift cards or put towards your loan. But it has very poor reviews on its Better Business Bureau (BBB) page, and customers complain about rates as high as 700%.
Best for: People who need fast funds in an emergency, can’t qualify for other loans and can repay quickly.
Pros
-
Easy application process
-
Funds as soon as the next business day
-
No minimum credit score to qualify
Cons
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Triple-digit interest rates
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No transparency about its rates
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Poor customer reviews on BBB
Is Lendumo legit?
Is it legitimate to charge anywhere from 400% to 700% for a loan? Most would agree that rates this high are not reasonable. Sure, Lendumo offers fast funding on small loans, but many customers said it didn’t reveal its actual rates until after they signed the loan agreement.
Lendumo also has multiple class-action lawsuits filed against it for using predatory lending practices and charging interest rates that are illegal in most states. If you need money in an emergency and have bad credit, you’re better off going with a payday loan than risking a loan with this lender.
Where Lendumo falls short
Lendumo doesn’t disclose its interest rates on its website, but reviews say rates range from 400% to 700%+. Plus, many customers say they weren’t made aware of the rates up front and ended up paying back anywhere from three to five times what they originally borrowed. It seems clear this lender is preying on vulnerable people who need a loan fast but have trouble getting one from other sources. You may be better off looking for a loan like Lendumo that offers the perks of fast funding without the sky high rates.
What makes Lendumo shine?
There’s not much to recommend about this lender. Even dissatisfied customers seem to agree that funding was fast, but that’s probably not a good enough reason to take out such an expensive loan. Unless you’re having a big emergency — and know you can repay the loan fast — we can’t recommend taking out a loan with Lendumo. Even then, you could look for an emergency loan with better rates.
Overall, it’s best to consider other forms of short-term financing, or loans that offer quick financing to borrowers with less-than-stellar credit, like Lendumo, but without the extremely high cost.
Lendumo product details
| Minimum credit score/credit range | No minimum |
| APR | Undisclosed |
| Loan amount | Up to $2,500 |
| Terms | Undisclosed |
| Approval turnaround | As soon as the same day |
| Availability | Not available in: Arkansas, Connecticut, Illinois, Maryland, Massachusetts, Minnesota, New Mexico, New York, Pennsylvania, Vermont, Virginia, West Virginia, Wisconsin |
| Fees | $30 late fee $30 NSF fee |
| Other fees | Not stated |
Lendumo contact info
| Phone number | 877-558-1999 |
| Customer service hours | 9 a.m. to 5 p.m. CT (days not specified) 24/7 – Live chat |
| customerservice@lendumo.com | |
| X, formerly Twitter | N/A |
| N/A |
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How to qualify for Lendumo
Lendumo lists these basic requirements to qualify for a loan:
- Receive regular income
- Be at least 18 and a US citizen
- Have an active checking account
- Not be a military member or dependent of an active military member
How to apply
Follow these steps to apply for a loan with Lendumo:
- Fill out the online application.
- Verify your information by phone or online.
- Review and e-sign your documents.
- Receive funds as soon as the next business day.
It doesn’t appear that Lendumo requires a hard credit check to qualify for loan approval.
How Lendumo 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.
Lendumo reviews and complaints
| BBB accredited | No |
|---|---|
| BBB rating | NR |
| BBB customer reviews | 1.04 out of 5 stars, based on 98 customer reviews |
| Trustpilot Score | 4.6 out of 5 stars, based on 12,264 customer reviews |
| Customer reviews verified as of | 22 October 2024 |
Lendumo has very poor reviews on the BBB, earning 1.04 out of 5 stars. Customers complain of rates as high as 700%, predatory lending practices, poor customer service and difficulty making extra payments. We only found one good (three-star) review on the BBB, saying they got fast cash at a high rate but paid it off quickly and would use the lender again.
The company has a surprisingly high rating on Trustpilot — with almost 80% of reviewers giving a five-star rating — even though the bad reviews are so bad. Still, positive comments included an easy approval and funding process and friendly customer service members. Bad reviews on Trustpilot had essentially the same complaints as reviewers on the BBB.
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Lacey Finder
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