LendUp is a direct lender of small cash loans, but it works a little differently than most payday loan companies. Instead of simply lending you money and charging a high interest rate, LendUp offers you a way to make a hard necessity a little more rewarding.
Borrowing money from LendUp works much like a credit card. Once you're approved, you're given a certain amount, and after you've repaid it, plus interest, you may qualify for a larger loan the next time you need money, and you may qualify for a lower annual percentage rate, or APR.
Here's the biggest long-term benefit to LendUp: The company will report your payments to credit agencies. Unlike most payday loan companies in Houston, LendUp doesn't just report to credit agencies if you default; it actually helps you build good credit, too. The best part is that you have the option of allowing LendUp report your payments, which is an important consideration. If LendUp reports your repayment as a credit card, then it may appear as though you were approved for, say, a $1,000 limit credit card, which you then immediately maxed out – a big ding on a credit report. So, if you're low on credit and need more, this could be helpful; whereas, if you have bad credit, you may not want something like this to show up on your report at all.
For your immediate needs, LendUp can be a good choice, and typically the company approves those who qualify within moments. Most funds are available in your account the next business day. As with most payday advance companies, you don't have to have good credit to qualify. LendUp goes a few steps further than the storefront payday loan companies you may be familiar with in Houston. The website includes lots of helpful information on how to rebuild credit, how to best use the LendUp Ladder reward system and, surprisingly, how to find alternatives to taking out a risky payday loan.
The amount of money you'd pay back on a $500 single-payment loan is comparable to storefront payday advance services, so the reason to choose LendUp would be for the extras you get. If you need to take out a multi-payment loan over several months, you end up paying a lower APR, but Credit Access Business (CAB) fees may increase with the amount.
LendUp is an online payday loan service that is transparent with its fees and rates, which is important when you're considering a high-interest short-term loan. What LendUp offers that other Houston payday loan services likely don't is the option to decrease your rates over time if you pay back each loan you take out on time, as well as the option to have the company report your timely repayments to credit agencies.