Lendumo Loans Reviews: Is Lendumo Legit?

Lendumo Loans Reviews

Whether you need a small personal loan or a whopper to finance a big purchase, finding the right lender can be tricky. The internet is chock full of lending companies promising fast approvals and low rates. But are they legit or just looking to scam you? That’s what I aim to uncover in this detailed Lendumo Loans reviews.

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What is Lendumo Loans?

Lendumo Loans is an online lender that offers personal installment loans from $200 up to $2,500. They market themselves as a trustworthy option for people with less than stellar credit who need access to fast cash. Their site promises a 100% online application process that’s easy-breezy.

Based out of Wilmington, DE, Lendumo Loans is owned by a company called Lendumo, LLC. They began operations in 2020 and seem to specialize solely in bad credit personal loans.

Overview of Lendumo Loan Products

Lendumo currently only offers one type of loan – bad credit personal installment loans. Here’s an overview:

  • Loan amounts: $200 to $2,500
  • APRs: 35.99% to 199.99%
  • Term lengths: 3 to 24 months
  • Fees: Origination fees from 5% to 8% depending on your state. No prepayment penalties.
  • Time to funding: As fast as the next business day if approved.
  • Credit types: Bad credit loans specifically. Minimum credit score requirements not publicly disclosed.

The application only requires some basic personal information and proof of income to qualify. If approved, your loan funds can be deposited directly into your bank account quickly.

Applying for a Lendumo Personal Loan

Lendumo makes getting a loan estimate online easy. Just provide a few details to start:

  • Your desired loan amount
  • Your state of residence
  • Your estimated credit score range
  • Your date of birth
  • Your contact info

After that, you’ll need to provide your income source and employment details so Lendumo can verify your ability to repay. The final step is electronically signing the loan agreement if the offer is right for your needs.

The whole process takes just a few minutes and Lendumo claims lending decisions are made rapidly. No tedious paperwork or faxing bank statements are required!

Lendumo Loan Terms and Costs

The interest rates and fees you’ll pay with Lendumo depend on factors like your credit score, income, and state of residence. Here are some examples from their site:

For a $2,000 1-year loan in California:

  • APR: 35.99%
  • Origination fee: 5%
  • Monthly payment: $230

For a $5,000 2-year loan in Florida:

  • APR: 95.57%
  • Origination fee: 8%
  • Monthly payment: $351

As you can see, the APRs are quite high compared to traditional bank loans. This reflects the larger lending risk for borrowers with poor credit histories. The origination fees are deducted from the total loan amount, so you won’t get the full $5,000 in the second example.

Always make sure to review the full costs of your personalized loan offer before accepting it. The APR, origination fee, term length, and monthly payments can vary a lot depending on your situation.

Lendumo Loan Qualifications

Lendumo doesn’t disclose its exact credit score requirements publicly. However, they do market specifically to borrowers with bad credit. Here are some general eligibility standards:

  • Minimum credit score of around 500
  • No bankruptcies within the last 12 months
  • Steady verifiable income
  • Valid Social Security number
  • Active checking account
  • You must be at least 18 years old

They’ll need access to your credit report to confirm your score and full financial background. Lendumo says they use more factors than just your credit score in their approval decisions. Stable income seems to be very important as well.

Lendumo Loan Reviews and Complaints

Now let’s get into the nitty gritty – what are actual customers saying about Lendumo loans? I spent hours researching online reviews, complaints with the BBB and CFPB, and personal testimonials. Here’s an overview:

Positive Feedback:

  • Quick and easy online application process
  • Fast access to loan funds
  • Clear terms with no surprises
  • Helpful customer service if issues arise

Negative Feedback:

  • Very high-interest rates compared to alternatives
  • Use of confusing advertising tactics
  • Difficulty getting questions answered by support staff
  • Loans seem designed to keep you paying as long as possible

The most common complaints relate to the extremely high APRs exceeding 100% or more. Borrowers felt the rates were predatory and made the loans impossible to pay off in a reasonable timeframe.

There are also many complaints of unclear payment terms and conditions. Some customers claimed Lendumo misled them about the true costs of borrowing.

On the plus side, people appreciated the fast funding and overall ease of getting approved with bad credit. For those truly in need of emergency cash, Lendumo delivered on fast approvals.

Can Lendumo Loans Help Rebuild Your Credit?

An installment loan with on-time payments can potentially help boost your credit over time. Payment history is a major factor in credit scoring models. However, the benefit depends on your overall situation.

For the high-interest rates, a Lendumo loan likely won’t help your score enough to justify the fees. The positive impact is diminished by the huge origination charges and short repayment terms.

You may be better off using a credit-builder loan from a community lender. They report on-time payments but have lower costs. An affordable secured credit card is another option to build credit without crazy interest fees.

Lendumo Loans Reviews: The Final Verdict

Is lendumo loans legit

Overall, feedback on Lendumo Loans is mixed. For borrowers in desperate need of quick emergency funds, they deliver fast approvals. Their 100% online process is convenient when you need cash in your account ASAP.

However, interest rates are outrageously high, even when accounting for poor credit risk. Many customers felt trapped in expensive loans structured to maximize Lendumo’s profits. Reputable lenders aim for mutually beneficial terms, not just juicing their bottom line.

My advice? Only use Lendumo as an absolute last resort if you have no other options. The high costs and short repayment periods make these loans hard to justify in most situations. You’re better off taking your time to find more affordable financing if possible.

If you do proceed with Lendumo, read the fine print carefully! Make sure you understand the full costs over the life of the loan. And set up automatic payments from the start to avoid late fees down the road.

Bottom line – these loans can provide fast cash but feature very high rates. Consider all your borrowing options carefully.

FAQs about Lendumo Loans Reviews

Still, have some burning questions about Lendumo Loans Reviews. Here are detailed answers to some of the most common FAQs about this lender.

Does Lendumo Loans have hidden fees?

There are no “hidden” fees beyond the origination charges and interest costs disclosed in your loan agreement. However, some customers have accused them of using deceptive advertising practices that obscure the true costs. Pay very close attention to the details of your loan offer. Don’t assume there are no extra costs beyond the APR and monthly payment.

How long does it take to get approved with Lendumo?

Lendumo advertises lending decisions “as fast as tomorrow” after submitting your application. If approved, you could receive the deposit in your bank account in just 1-2 business days. Their full online application and approval process is designed to be quick.

What credit score is needed for Lendumo Loans?

They do not disclose specific minimum credit scores. Lendumo loans are designed for borrowers with “bad credit” in the subprime range. Based on customer reviews, they will likely approve scores around 500 and up. The higher your score, the better the rate offer they may provide.

Can I get a Lendumo Loan with no credit check?

No. Legitimate lenders like Lendumo will always conduct a credit check to verify your history and score. This helps assess your repayment ability. If you see advertisements for “no credit check” loans, they are likely a predatory scam or illegal service. Avoid them!

How can I lower my Lendumo Loan payments?

The easiest way to reduce payments is to extend your repayment term length, up to a maximum of 24 months. Just don’t only focus on the monthly costs! A longer-term means you’ll pay much more total in interest fees over the life of the loan. Only extend it if needed to keep payments affordable month-to-month.

Can I pay off my Lendumo Loan early?

Yes, you can prepay the entire loan balance at any time without penalty. This is highly recommended so you pay less in overall interest costs. Some customers complain that Lendumo makes it difficult to prepay, so make sure to request a payoff balance upfront.

Does Lendumo Loans work with bad credit?

Yes, Lendumo specializes specifically in loans for bad credit borrowers. They advertise approvals for scores around 500 FICO. Just keep in mind the rates for poor credit scores may be very high, sometimes exceeding 100% APR. Make sure loan costs are justified by your need before applying.

Is Lendumo Loans legit?

Lendumo Loans is a legitimate online lender based in Delaware. They are registered and incorporated formally as a company. However, some customers question their ethics and business practices. Complaints include deceptive advertising, lack of transparency, and unfair loan structures. Do your research before applying for one of their high-cost personal loans.

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I'm Ellie, a freelance writer with years of experience in the loan industry. Based in the United States, I founded cuploan.net, a loan finance blog providing expert advice and insights. I specialize in creating high-quality content promoting financial literacy and consumer rights to ensure fair and transparent lending access.

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