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Nelnet Student Loans Review: Why You Should Take Out A Loan From It

When taking out a loan, it is important to look for the best based on what your needs are. With this Nelnet student loans review, anyone who’s looking for either a private student loan or a student loan refinancing will have an idea of whether the lending company is worth dealing with or not.

Nelnet Student Loans Review

In an article published by Forbes online, it says that as of 2020, student loan debt in the United States has already reached about $1.56 trillion, which was collectively loaned by 45 million borrowers.

With such an increase in number, it is not surprising why student loan debt became the second-highest consumer debt category — next to mortgage debt.

While there could be a lot of different reasons behind the increase, one thing’s for sure, looking at it on a positive way, it says a lot about how people today (especially the young ones) value education that no matter what situations they’re in, they are likely to find ways – in this case, loan money — to be able to pursue education.

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In the country today, there are a lot of lenders around. While some are focused on providing usual types of consumer loans only, others provide student loans.

To be honest, there are a lot of student loan providers in the country today, and when they’re too many, it can get overwhelming sometimes. You know, choosing which one is the best among a sea of options.

One of the existing student loan providers nowadays is Nelnet. Thus, this Nelnet student loans review, which aims to provide all the important details every student loan borrower must know before signing a deal with the lending company.

In particular, we are going to provide answers to the following very important questions:

  • What is Nelnet?
  • What products does Nelnet offer?
  • What do borrowers need to know about Nelnet student loans?
  • Who qualifies for a Nelnet student loan?
  • How to apply for a Nelnet student loan?
  • What are the pros and cons of Nelnet student loans?

WHAT IS NELNET?

Nelnet was founded in 1996. While it does have several offices in different parts of the world, the company is headquartered in Lincoln, Nebraska.

Currently, Nelnet has over 6,500 associates working together to serve various communities and in making their customers’ dreams come true.

Nelnet is known for providing some of the best student loan rates in the country.

The company, primarily known as a student loan servicing company, also provides various services including consumer finance, telecommunications, and K-12 and higher education.

As a student loan servicer, the company works directly with borrowers — helping them, manage, at the same time repay their existing student loans.

Although the loans are owned by the federal government, the lending company contracts with the U.S. Department of Education to handle repayments of federal student loans.

Nelnet Student Loan Servicing is the student loan arm of Nelnet Diversified Solutions.

On its company website, it says that Nelnet operates in four particular business segments, which include the following:

  • Nelnet Business Services – Payment technology, school administration software, and community management solutions for K-12 schools, higher education institutions, churches, and businesses.
  • Nelnet Communications Services – Connects homes and businesses in Nebraska and Colorado with fiber internet, TV, and phone services.
  • Nelnet Diversified Services – Provides customer service for student loan borrowers, technology related to student loan customer service, and outsourcing services for guaranty agencies.
  • Nelnet Financial Services – Private student loans, student loan refinancing, and life and disability insurance to assist students and families.

The company is driven to ensure they get to live by the company mission to serve customers, associates, and communities, and to realize its vision of (as mentioned earlier) making dreams possible.

Meanwhile, if you want to know more about Nelnet student loan servicing, here’s an informative video created by Student Loan Planner. You should check this out:

WHAT PRODUCTS DOES NELNET OFFER?

When shopping for a student loan provider, it is important not just to learn about who and what the company is all about, but also the products and services they offer.

A lender with various options is ideal so as a borrower, you have a lot of choices to choose from. You know sometimes, some borrowers do not even know yet what they actually need until they get to see and understand what the available products are.

With Nelnet, we like the fact that it does offer various services. When it comes to repayment plans, in particular, Nelnet offers borrowers the following:

  • Standard Repayment Plan – This type of repayment plan is the most common plan. With Standard Repayment, what happens is that payments are spread equally all throughout the life of the loan. According to the Nelnet website, the required 120 payments for PSLF should be made under an Income-Driven Repayment Plan. Any payments made under the Standard Plan count toward the required 120 payments. However, it requires full repayment in 10 years, and the borrower would have no loan balance left to forgive.”
  • Graduate Repayment Plan – Unlike the previous one, with this plan, payments increase over time. Payment amounts increase every 24 months until the loan balance is fully paid. This type of repayment plan is ideal for people who are expecting to make more money in the future years. As their salary increases, they become more capable of making payments.
  • Extended Repayment Plan – With this type of plan, borrowers are given more time to repay the loan by allowing you to increase the repayment term on your student loan. It is important to note, however, that while this plan makes monthly payments more affordable, it will take a longer amount of time to pay off the loan (up to 25 years), and that borrowers will technically pay more interest.
  • Income-Sensitive Repayment Plan – This particular repayment plan can be used with Federal Family Education Loans (FFELP). It allows the borrower to adjust the minimum monthly payment based on his or her income for up to five years. However, it is important to note that after five years, the account will defer to either the Standard or Graduated Repayment Plan.
  • Income-Driven Repayment Plan – If you want a more affordable monthly payment, then, this plan is the best option. Your monthly payment amount is tailored to your income. However, to ensure eligibility, the borrower needs to submit his or her income and family size annually.

As you can see, the company has diverse options to choose from, and it all boils down to what you are most comfortable with, needless to say, what you can afford.

WHAT DO BORROWERS NEED TO KNOW ABOUT NELNET STUDENT LOANS?

When looking for the right student loan provider, or any type of loan for that matter, make sure to do your own research. Do not just settle for a lending company because it is popular or because you saw an ad and you think the offer is good.

Always make it a point to check every single detail and compare it to other lenders. By doing so, you are doing yourself a very important favor – ensuring you are signing up with the best deal possible.

There are a few factors to consider when getting student loans, in this case, a federal loan repayment plan. This includes the following items:

  • Interest Rates
  • Loan Amounts
  • Loan Terms
  • Fees
  • Payment options
  • Deferment
  • Forbearance
  • Other Features

Now, let’s get into details —

Interest Rates

It is important to know that unlike other lenders since Nelnet is a federal student loan servicer, the rates they follow are based on federal student loans.

Currently, the interest rate of Direct Subsidized Loans and Direct Unsubsidized Loans for undergraduates is 2.75%. Meanwhile, the interest rate on Direct Unsubsidized Loans is 4.30% for graduate and professional students.

Meanwhile, for current or prospective students who opt for Nelnet private student loans, the company offers such loans through U-fi From Nelnet.

For this particular loan type, fixed-rate student loans start from as low as 4.70% while variable ones from 1.55%.

Loan Amounts

For Nelnet private loans, in particular, loan amounts start at $1,000 and can go as high as $125,000 for undergraduate programs, while $500,000 for graduate medical programs.

Loan Terms

Loan terms vary depending on the borrower’s eligibility, plus the repayment plan used.

Also, if the borrower has obtained the loan from other lenders that use Nelnet as their servicer, the rates as well as loan terms will depend on the lender.

Fees

Apart from interest rates, another important factor to consider when taking out a student loan or a repayment plan is the fees involved. Fees vary from one lender to another, thus, make sure to also look into this when shopping for a lender.

As mentioned earlier, Nelnet is a federal student loan servicer, which means it follows the rules implemented for federal student loans.

In this case, for Direct Subsidized Loans and Direct Unsubsidized Loans, Nelnet charges a 1.059% loan fee.

Payment Options

Once your loan application is approved, payments automatically come next.

Unlike other student loan providers, or in the case of Nelnet, a federal student loan servicer, the company does offer a variety of payment options such as the following:

  • Autopay – By choosing this method, your monthly payment is automatically deducted from your account. This is the most ideal payment method of all as it ensures you will never forget making payments. What’s also good about auto payments is that most lenders offer a lower interest rate when a borrower applies for this payment method.
  • Online Bill Payment (Through Your Bank) – Apart from autopay, another convenient way to make payments is through your bank’s online bill payment service. However, make sure to check with your bank first as some may incur a fee.
  • Multiple Payment Options – Nelnet provides its customers with various options to pay bills — could be through online, via mail, mobile app, or through telephone.

Deferment

Nelnet offers deferment options for borrowers who are going through financial hardship, unemployment, as well as those who opted to go back to school or are currently on active duty military services.

Depending on the borrower’s loan type, he or she may not accrue interest while on deferment.

Forbearance

For those who are working an internship, performing a specific type of community service, or those who are going through financial difficulty, you may check with Nelnet as you may be qualified to postpone payments with forbearance. However, it is important to note that all loans accrue interest while on forbearance that is why it’s highly recommended to pay at least the monthly interest to avoid interest capitalization. Furthermore, forbearance helps resolve delinquency on the borrower’s account.

Other Features

Apart from the above-mentioned factors to consider when considering taking a student loan or a Nelnet repayment plan, the lending company also provides the following additional loan features:

  • Due Date Adjustment – With Nelnet, adjusting payment due dates is possible. This is very helpful for those with multiple loans with different due dates. Just call Nelnet and ask them to adjust the dates to one particular date during the month so you get to pay them all at once.
  • Text Reminders – To ensure you get to pay your monthly payments on time, all you have to do is sign up for text alerts. This helps you keep reminded of your dues.
  • Bundling Similar Loans – Nelnet also allows borrowers to group their loans based on the qualities they have in common.

Contact Information

If by now you already have decided to apply for Nelnet student loans or that you want to know more about the products and services offered by the company, all you have to do is to get in touch with Nelnet through the following channels:

Phone: United States:

United States – 1-888-486-4722 (Service from 8 a.m. to 10 p.m. ET, Monday through Friday)

International – 1-303-696-3625

Mailing Address:

Nelnet

P.O. Box 82561

Lincoln, NE 68501-2561

For California residents

Nelnet

P.O. Box 82578

Lincoln, NE 68501-2578

WHO QUALIFIES FOR A NELNET STUDENT LOAN?

At this point in our Nelnet student loans review, we are going to talk about who qualifies for a student loan for the said lender.

When you are shopping for a student loan provider, it is important to check the qualifications set by the company to ensure you are not wasting time and effort.

With Nelnet, since it is a federal student loan serviced, student loan borrowers are not able to get a loan directly from the company. Instead, the company will service federal student loans that borrowers obtain from the country’s Department of Education.

To put it simply, you need to check and ensure you qualify for a federal student loan from the Department of Education to be able to get the chance of getting a loan from Nelnet.

However, it is also important to take note that usually you do not get to decide who the lender would be. It usually depends on the department.

Anyway, to qualify for federal student loans, all you have to do is fill out a Free Application for Federal Student Aid (FAFSA). The borrower has to fill out the FAFSA for every school year that he or she hopes to get a loan for.

HOW TO APPLY FOR A NELNET STUDENT LOAN?

As mentioned above, student loan borrowers cannot go directly to Nelnet to apply for a loan (unless you are a private student loan borrower).

So, for those who are obtaining a service federal student loans from the Department of Education, all they have to do is to fill out a FAFSA — as mentioned earlier. Again, make sure to fill out the FAFSA for each school year that you hope to get a loan for. Make sure to complete the FAFSA as soon as you can because some sources of federal aid are limited.

Once you complete the FAFSA, you automatically become eligible for need-based loans like Direct Subsidized Loans, wherein eligibility for this type of loan depends on the household income.

When a student loan borrower’s course borrows through the Department of Education, he or she does not have the freedom to choose who the lender will be. Rather, it is the department that will assign you to a loan servicer like Nelnet.

For private student loan borrowers, you may proceed to Nelnet’s company website to kick off your student loan application process.

WHAT ARE THE PROS AND CONS OF NELNET STUDENT LOANS?

This Nelnet student loans review will not be complete without our list of pros and cons. This basically sums up everything about Nelnet student loans. So, here they are —

PROS

  • Multiple Repayment Plan Options – Nelnet provides student loan borrowers with multiple repayment plans depending on what they can and cannot afford — as well as depending on how much you earn on a monthly basis.
  • Forgive Loan Balance – Through the Public Service Loan Forgiveness (PSLF) program or once the borrower has achieved a certain number of student loan payments, the remaining loan balance may be forgiven. This depends on the requirements set by the company.
  • Option for Loan Consolidation – There is an option for loan consolidation with the Department of Education.
  • Forbearance and/or Deferment – Nelnet allows loans to be put into forbearance or deferment if the borrower goes through financial challenges, are in a residency program, or have opted to go back to school.

CONS

  • Borrowers do not get to choose the federal loan servicer, which means it is likely that he or she may not end up with Nelnet. The Department of Education has the say who a borrower’s servicer will be.
  • The company has a lot of consumer complaints in the past that some thought it’s a scam.

FINAL THOUGHTS ON NELNET STUDENT LOANS

To sum it all up, Nelnet, just like other student loan providers out there does have its share of good and bad. While it may have failed a lot of borrowers in the past, the company continues to strive and be better — which perhaps is the reason why it still exits these days.

While we have provided you almost all of the essential information you need in this Nelnet student loans review, at the end of the day, it’s up for you to decide if you think this lender is worth a try or not.

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An In-Depth Wells Fargo Auto Loans Review: What You Need To Know

Taking out a car loan comes with making important decisions. That is why this Wells Fargo auto loans review will provide you some essential details that you must know and should carefully consider before signing any car loan document from the company.

Wells Fargo Auto Loans Review

Based on an Experian study published in March 2020, the American people do already have an existing $1.3 trillion in auto loan debt as of 2019, which is an 81% increase as compared to how much it was back in 2009.

Furthermore, to date, Americans owe more by average as compared to a decade ago. In fact, the average debt is $19,231 already, which has increased by 25% from 2009 as well.

Meanwhile, according to a study by the Federal Reserve, around 35% of American adults rely on an auto loan to pay for car purchases in the same year.

Although the increase of the number of American people taking out a car loan seems to continue this year and the years to come, according to a Finder article, “the percentage of Americans with car loans has actually decreased over the past few years.”

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Nevertheless, one thing’s for sure – Americans do get auto loans to be able to purchase vehicles that they have been eyeing for.

Now, similar to any other loans out there, there are a lot of lending companies or financial institutions that provide auto loans. In fact, the industry is pretty much competitive.

Among the financial institutions that offer auto loans is Wells Fargo. Yes, it is one of the very well-known banks in the country.

But just like what we always say whenever we make reviews, as borrowers, we owe it to ourselves to research before we deal with any lending company or financial institution. It is our responsibility to know the details and be informed to avoid regretting it in the end.

Having said that, in this Wells Fargo auto loans review, we are going to provide you some if not most of the details that we though borrowers need to know before signing any auto loan document from the said financial institution.

In particular, we are going to provide you answers to the following – most commonly asked – questions:

  • What is Wells Fargo?
  • What auto loan products do Wells Fargo offer?
  • What do borrowers need to know about Wells Fargo auto loans?
  • Who qualifies for a Wells Fargo auto loan?
  • How to apply for a Wells Fargo auto loan?
  • What are the pros and cons of Wells Fargo auto loans?

WHAT IS WELLS FARGO?

Wells Fargo and Company or simply known as Wells Fargo is an American multinational financial services company.

While it is headquartered in San Francisco, California, the company does have central offices across the United States.

Based on its market capitalization, Wells Fargo is the world’s fourth-largest bank. More so, it is ranked as the fourth-largest bank in the US based on total assets.

As earlier mentioned, Wells Fargo is a multinational financial services company. It particularly engages in banking, investments, insurance, mortgage, as well as consumer and commercial finance.

Furthermore, the financial institution operates through various segments, which include Wholesale Banking, Community Banking, as well as Wealth and Investment Management, and many more.

The Community Banking segment in particular offers a complete line of financial products for both individual consumers and small businesses, which include checking and savings accounts, credit and debit cards, as well as student, small business, and automobile lending. The latter being our highlight in this review.

By the way, recently, the bank was involved in an auto insurance scandal, which in a way tarnished the bank’s reputation.

If you want to know more about it, and how the company managed such a challenge in their business, watch the video below by The Young Turks:

WHAT AUTO LOAN PRODUCTS DO WELL FARGO OFFER?

Wells Fargo is definitely one of the biggest rather largest auto lenders in the country today.

But although it is known to have a really good reputation when it comes to the products and services it provides, as borrowers, it is important that you still look into the details — in this case, about what particular auto loan products does the company provides.

First and foremost, it is important to take note that starting annual percentage rates (APR) will be based on the lender’s credit scores and the amount of income and debt he or she has.

Wells Fargo offers a variety of auto loan products, which include the following:

  • New Car Financing – This product is available for those who want to buy a new car directly from a dealer. Generally speaking, this does have a fairly low starting APR — somewhere around 4%.
  • Used Car Financing – This product is ideal for people who are either planning on buying a used car from a dealer, or those who are opting to buy from a private car seller. If you choose to buy from a private seller, the ARS is usually around 7%.
  • Lease Buyout Financing – This product is applicable to those who leased a car and eventually decide to keep it by the end of the lease term. If you opt to buy the car instead, the APR usually are close to 4.5%

While it does offer a good variety of auto loan products, unfortunately, Wells Fargo does not offer auto loan refinancing for borrowers who have an existing car loan but are not satisfied with their current rate.

You see, based on the firm’s list of auto loan products, as a car buyer or as a borrower, you really also need to take time to consider what kind of product you will go for. If we are going to base it on APR though, buying a new car does have better rates. But again, the final rates will depend on your qualification, particularly, your creditworthiness.

So, the better your credit score is, the more likely you are to get better rates.

WHAT DO BORROWERS NEED TO KNOW ABOUT WELLS FARGO AUTO LOANS?

As we mentioned earlier, this Wells Fargo auto loans review will provide you with important details you need to know before applying for an auto loan from the firm.

Apart from APR, there is actually more information that you, as a borrower needs to know to avoid confusion or worse, regretting the decision you made.

In particular, we are going to provide you information on the following:

  • Loan Amounts
  • Interest Rates
  • Loan Terms
  • Fees and Penalties
  • Discounts
  • Disbursement of Funds
  • Limitations
  • Other Information

Now, let’s get to it one by one —

Loan Amounts

While it is important to have a specific amount in your head, it is also important to consider the loan amounts offered by the lending company or financial institution you are looking for. By doing so, it helps you reconsider your options, or you can stick to it and just specifically look for a lender that could cater to your needs.

At Wells Fargo, it is important to note that the funding a borrower gets from an auto loan depends on a number of factors including credit score, credit history, as well as the type of car the borrower is eyeing for.

Wells Fargo, however, provides funding that starts from $5,000 and without an upper limit. Please take note, though, that the amount borrowed will depend also on the state you are from.

But technically, compared to other lenders, Wells Fargo definitely has one of the best and most flexible loan amounts.

Interest Rates

Another important thing to factor in when looking for an auto lender is the interest rate. Every lender does have their own rates and qualifications on specific rates.

However, as a general rule, people with high credit scores usually end up having the best rates possible. Meanwhile, borrowers with fair or poor credit score get a higher interest rate.

The company’s auto loan rates usually range from 0% to 11%, with an average of 4.99%. But for your reference, here’s what APR you can expect based on auto loan type:

  • New Car Financing – around 4%
  • Used Car Financing – around 7%
  • Lease Buyout Financing – around 4.5%

Again, as mentioned, the final APR will depend on several factors especially your credit score. Thus, we highly recommend working on having a high or excellent credit score to be able to take advantage of lower rates and other perks.

Loan Terms

Loan terms refer to the length of time you are going to repay the loan. It’s definitely another factor to consider when taking out a loan as you need to gauge if you are able to pay off the loan based on agreed terms.

As compared to other lenders with a lot of loan term options, some even offer long repayment periods, with Wells Fargo, the firm’s auto loans do only offer repayment periods between 60 months and 75 months (average).           

So, if you are looking at repaying on a longer-term, you may then consider other lending companies instead.

By the way, it is important also to keep in mind that if you will opt for long repayment terms, this could probably lead to paying more in interest over the life of the loan as compared to paying it off in a shorter period of time.

Fees and Penalties

Apart from APR, another money-related factor to consider when taking out a loan, or in this case, an auto loan, is fees and penalties.

Although Wells Fargo does not charge early payment fees, which means a borrower can repay the loan any time before it is due without having to worry about such charges, Wells Fargo borrowers could run into potential late fees and a credit score impact if they make a late payment.

In addition, a borrower may have to pay additional charges in specific states because of insufficient funding in his or her account.

Currently, the company decided to halt lending money to most independent car dealerships because of the financial fallout brought by the current COVID-19 pandemic. Just so you know if you are intending to get into this.

Discounts

Being one of the country’s largest auto lenders, it is not surprising that Wells Fargo offers perks.

In particular, the firm offers discounts to borrowers who are already Wells Fargo customers, as well as those in the military.

Disbursement of Funds

If you need quick credit decisions, and fast funding (in as soon as same-day), then Wells Fargo may just be the right match for you.

Yes, the firm could provide you with the amount you need as soon as the same day you applied for an auto loan — provided, of course, you pass all the requirements and qualifications.

Limitations

While some auto lenders may provide funds for any type of vehicle, with Wells Fargo, there are some limitations.

There are certain vehicles that are not eligible for Wells Fargo financing. This includes large commercial-type vehicles (like dump trucks) as well as vehicles that auto manufacturers have already discontinued.

This is very important also when taking out an auto loan. Make sure that the vehicle you are purchasing is eligible for the lender’s auto loan products.

Other Information

Apart from the details and/or information we have already mentioned, Wells Fargo also has another feature that borrowers must look into.

Unlike other auto lenders, the firm allows borrowers to change the due date on your payment loan once over the entire period of the loan. This may come very handy if a borrower fell short on cash one month or that he or she wants to line up the car loan payment due date with his or her paycheck schedule.

To be fair, this kind of feature is not that common among lenders, so, it’s nice to take advantage of it if the need arises.

WHO QUALIFIES FOR A WELLS FARGO AUTO LOAN?

As part of this Wells Fargo auto loans review, we are also going to provide you what you need to be able to borrow money from the firm.

First off, you have to have fair to excellent credit score. Based on Wells Fargo’s Q1 2020 quarterly report, during the first quarter of the year, nearly 34% of auto loans issued by it went to borrowers with FICO scores under 680.

So, if your credit score is somewhere around that, there is a chance that you can also get approved for an auto loan.

Apart from the FICO score, auto loan borrowers must also present a copy of the following financial documents during the application process:

  • Social security number
  • Previous and current residential addresses
  • Employment history and status of current employment
  • Proof of income
  • A statement that details your rent or mortgage payments on your home or apartment

In addition, you will also need to provide details on the vehicle you intend to apply for an auto loan. Details such as the following:

  • VIN
  • Year
  • Make
  • Model
  • Mileage

Similar to other types of loans, when applying for a Wells Fargo auto loan, make sure you are:

  • A U.S. citizen or a permanent resident card holder
  • At least 18 years old (or 19 years old depending on the state)
  • Employed or are self-employed

HOW TO APPLY FOR A WELLS FARGO AUTO LOAN?

At the moment, the only way to apply for a Wells Fargo auto loan is by filling out a credit application with a dealer within the firm’s network. Currently, Wells Fargo does have 11,000 partner dealerships.

Unfortunately, though, a list of their network of dealers is not available on their website, which means borrowers need to call and ask dealers directly if they work with Wells Fargo.

Once you found a dealer that is within the firm’s network, you will then have to fill in an application form that dealers send over to Wells Fargo underwriter for assessment and approval.

It is important to take note that Wells Fargo conducts a hard credit check, which may affect your credit score.

Once approval is granted, expect funding in as soon as the same day as the auto loan application.

WHAT ARE THE PROS AND CONS OF WELLS FARGO AUTO LOANS?

To sum up this Wells Fargo auto loans review, at the same time, to help you make an informed decision, we are also listing down the things that we like and the things that we do not like about Wells Fargo auto loans.

As you know, while the firm has its share of good things, like any other lenders out there, it does have its share of flaws as well. As borrowers, it is important to know it all so you get to consider them when making a decision.

Anyway, here’s our list of pros and cons for your reference:

PROS

  • Wells Fargo does have better rates as compared to other auto lenders out there.
  • The firm can fund your up to 100% of the amount of the vehicle you are purchasing.
  • Fees are included in your monthly payments instead of charging them upfront.
  • Wells Fargo auto loans do not require down payment.
  • It offers discounts to Wells Fargo customers availing an auto loan, as well as those working in the military.
  • It does not have a minimum credit score requirement, which makes it appealing to all types of customers.

CONS

  • You need to go through a dealership within its network in order to avail of a Wells Fargo auto loan.
  • The company website is not as informative as other websites — it does not include a list of partner dealerships.
  • Wells Fargo does not offer a refinancing option.
  • Wells Fargo auto loans are only available for up to 75 months.
  • The company, unfortunately, has been involved in a recent auto insurance scandal that may deter customers from using the bank’s auto loan products.

FINAL THOUGHTS ON WELLS FARGO AUTO LOANS

Wells Fargo may have its share of highs, but, it sure does have its lows as well, which is not surprising. After all, there’s no such thing as a perfect company or auto lender for this matter.

Given all the facts we share, are you considering taking out an auto loan at Wells Fargo?

We do hope that through this Wells Fargo auto loans review, we were able to provide you with all the information you need in order to come up with the right decision.

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How To Use A Line Of Credit And Make The Most Out Of It

Learning how to use a line of credit will allow you to take advantage of it to its full potential. Needless to say, knowing how to use it properly will protect you from making regretful decisions in the future.

how to use a line of credit

In a report published by Experian, it says that “consumer debt in the U.S. has grown 19% since 2009 to its current record high of $14.1 trillion.” Furthermore, it says that while debt in aggregate increased, the same happened to the totals in almost every debt category — with some doubling even.

Based on the same report, mortgage loans remain to be on top of the list with an all-time high record of $9.6 trillion. Next on the list are auto loans, student loans (which doubled in number), as well as credit card debt, and home equity lines of credit (which is a type of line of credit) with balances total to $420 billion. Following on the list are personal loans and retail credit card debt.

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Although compared to other debt types, the report says that “HELOCs have increased by at least double-digit percentages in the past decade.“

There could be a lot of reasons or factors to consider for the increase, but one thing’s for sure, more and more people are getting lines of credit. We thought, perhaps one of the reasons why is the fact that a line of credit has a lower interest as compared to credit cards, which is its major competitor as they function almost the same. Another reason could be the flexibility, as well as the fact that like personal loans, you can basically use it for almost anything.

While there are so many reasons to like about lines of credit, we highly recommend that before you even get into one, you better learn and understand how it actually works, and how to effectively use it.

As borrowers, it is our responsibility (we owe it to ourselves, anyway) to be knowledgeable about things (in this case, about lines of credit) before we even get into it — After all, the last thing we want is to get into trouble or to regret our decisions, right?

So, if you want to know more about the line of credit and how to use a line of credit, then this one’s for you.

In particular, we are going to share with you some of the most asked questions regarding lines of credit, which include the following:

  • What is a personal line of credit?
  • How does a line of credit work?
  • What are the different types of lines of credit?
  • How to use a line of credit?
  • How to apply for a line of credit?
  • Where to get a line of credit?

WHAT IS A LINE OF CREDIT?

A line of credit or simply a line of credit refers to a type of loan that is similar to a credit card in the sense that a borrower has a specific loan amount of money that is comparable to a credit card limit. That money can be used for any purpose, as needed.

Similar to personal loans, generally, lines of credit are unsecured, which means a borrower does not need collateral to get one. However, just like any other unsecured loans, most likely a borrower must have at least 700 credit scores plus a good history of repaying debts to ensure approval.

Just like personal loans and credit cards, a line of credit can be used for almost anything like home renovations, vacation, purchasing expensive furniture, as well as paying for medical bills and educational fees.

While you can spend your line of credit for almost anything you want, it is important to note that you must not exceed the approved line of credit or you might just be in trouble paying the loan off.

A line of credit, like any other type of loan, does have its share of highs and lows. It has its own set of risks, which could really end up costing a good amount of money if not handled well. Meanwhile, one of the major good things about it is that borrowers do not get charged for any unused amount.

HOW DOES A LINE OF CREDIT WORK?

Now that you already know what a line of credit is all about, let’s talk about how it actually works.

Unlike a typical loan or other types of loans, a line of credit gives borrowers access to a set amount of money that they can borrow or use when the need arises. What is good about is that you do not pay any interest until the borrower actually uses the money.

Lines of credit are available both for personal and business use, which makes it also a good choice among business owners when they need some financial backup.

With regards to personal lines of credit though, they are usually unsecured. As mentioned earlier, unsecured loans mean collateral is not needed to ensure the approval of the loan. However, having a good or excellent credit score is required.

Depending on the lending company, some lines of credit come with fees like annual fees, and there are limitations set when it comes to the amount of money you can borrow.

Once you have qualified for a line of credit, what happens is that you will have a set time frame, which is also known as “draw period”. During this time, you can draw money from the account. The draw period can last up to several years depending on the lender.

Again, depending on the lending company or financial institution, you may be issued with special checks or a card to use, or the company may transfer the money you need to your checking account once you are ready to borrow money. It’s best to check with your desired lending company first before getting one.

Moreover, as mentioned, you won’t be charged for any interest until you actually borrow money from your line of credit. Once you did, the interest will begin to accrue, and you will then have to pay at least the minimum payments required. Once you pay, the amount will be added back to your line of credit.

However, once your draw period ends, you will have to enter the repayment period, which means you will have a set time to repay the remaining balance.

While making payment at a minimum looks like a good option, please know that you actually are paying more by doing so. Thus, we highly recommend paying off what you need to pay off in time to avoid wasting money.

WHAT ARE THE DIFFERENT TYPES OF LINES OF CREDIT?

Before we even talk about how to use a line of credit, another important thing that you should know is the different types of lines of credit.

Yes, there are a few of them, which include:

  • Personal Lines of Credit
  • Business Lines of Credit
  • Home Equity Line of Credit (HELOC)

Now, allow us to tell you more about each type —

Personal Lines of Credit

Personal lines of credit basically allow any individual borrowers to use the money for any personal expenses like big purchases, home repairs, vacation, medical bills, weddings, and other significant life events, and others. A personal line of credit may also be used to consolidate higher-interest debts.

If you want to learn how to use a personal line of credit per se, here’s a very informative video by MonkeySee:

Business Lines of Credit

Obviously, this type of line of credit is designed for businesses. A business line of credit can be useful to get a business off the ground. This can be used to fund business-related expenses like paying vendors, payroll, paying tax bills, as well as in purchasing inventory.

A line of credit may also be helpful for those businesses that are just starting out as it can be used to create a more consistent cash flow, which can cover unexpected expenses.

Home Equity Line of Credit (HELOC)

HELOC is actually a popular type of line of credit especially for those whose home is worth more than their mortgage.

Unlike personal lines of credit though, HELOC is secured. Your home automatically becomes collateral. Since it is a secured loan, the line of credit is usually higher, and the interest rates lower. Also, borrowers may also gain tax benefits if HELOC is used to fund home improvements.

HOW TO USE A LINE OF CREDIT?

While we can run down a long list of how to use a line of credit, we’d rather provide you with some of the most significant tips on how you can make the most out of this type of financing.

First, plan ahead of time. As part of the planning process, you must see to it that the money you will get from a line of credit will only be used for significant purchases. Do not get a line of credit for small purchases. It’s not worth it. Instead of a line of credit, better use your savings for small purchases.

Second, shop and compare. We thought this one’s a very important tip. When opting to use a line of credit for certain expenses, make sure to shop around first and compare before settling for a specific lender. Doing so will allow you to choose the best deal possible.

Third, know and understand the terms of the agreement. When we say terms of the agreement, this includes knowing and understanding draw periods, when you have access to the money, as well as making interest-only payments.

Lastly, make early payments as much as possible. By making early payments, you get to cut down on future interest payments. But of course, ideally, you pay off whatever amount you used as soon as you can. That way, you can save a couple of bucks as compared to just paying the interest or the minimum amount required.

HOW TO APPLY FOR A LINE OF CREDIT?

Similar to other types of loans, to be able to get a line of credit, you have to look for a lending company or financial institution that fits best your requirements, and then, apply.

As usual, prior to giving approval for a line of credit, the lending company will assess and examine your creditworthiness. Generally, this will be based on your credit history, as well as your income.

Just like in any other type of loan, proving your creditworthiness is the most crucial part, but if you do have a really good record, plus you have a stable job with a good income, then, this should not bother you at all.

As soon as the lender gets to assess that you are worthy of a line of credit approval, then, funds will immediately be released (the number of days that will take before you receive the funds will depend on the lender).

Meanwhile, while preparing your application for a line of credit, consider taking the following steps to ensure approval of your loan application:

  • Review your credit report with all major credit bureaus through AnnualCreditReport.com.
  • Make sure to complete and/or update your financial record including your taxes, mortgage payments, etc. Also, make sure you have all your licenses as well as permits, and if you are registered correctly with both the local and federal governments.
  • Compare rates and other important loan details among lenders to ensure you get the best rate possible.

WHERE TO GET A LINE OF CREDIT?

At this point, you already know what a line of credit is, how it works, what you need to get approved of it, and of course, how to use a line of credit.

The next thing you need is where to actually apply for a line of credit.

One thing’s for sure – there are a lot of options out there. There are a lot of lenders providing a line of credit options.

Today, though, we are going to provide you with some of the industry’s best. This includes:

  • Wells Fargo
  • SunTrust
  • Bank of America
  • OnDeck
  • Navy Federal

Wells Fargo

Wells Fargo is one of the most popular banks in the country. Yes, it does offer lines of credit along with its other loan products.

At Wells Fargo, the bank provides lines of credit amounting from $3,000 up to $100,000, which makes it ideal for borrowers who need more line of credit.

When it comes to rates, the bank has very competitive rates that range from 9.50% up to 21% APR. Based on the record, at least 15% of the bank’s approved applicants qualify for the lowest rate available.

While the bank does not charge a balance transfer fee or cash advance fee, it does charge borrowers with a $25 annual fee.

If interested, you may apply online and get a reply soonest.

SunTrust

SunTrust is also a very popular financial institution in the country, and yes, they do offer a revolving line of credit, too.

At SunTrust, they provide a line of credit that amounts up to $250,000, and can even go as high as $500,000 for Private Wealth Management clients.

The lending company does not require collateral, and it does not charge application or annual fees as well.

However, the borrower must meet the minimum asset requirements, which amounts to at least $100,000.

Furthermore, SunTrust gives a 0.25% interest rate discount to those who pay through automatic deduction from a SunTrust account.

Similar to Wells Fargo, interested applicants may apply for a line of credit online, too. Expect that a decision is made within just a few minutes.

Bank of America

Bank of America is actually the best choice when it comes to HELOCs. The bank offers a low and very competitive home equity line of credit plus it provides several other benefits to borrowers.

The bank offers a special intro APR at only 1.74% for the first 12 months. Eventually, the rate increases to 3.65%, which still is very competitive.

Furthermore, Bank of America does not charge application, annual and closing fees, or any other additional costs as if a borrower wants to convert a variable-rate balance to a fixed-rate loan.

Also included among the perks it provides is that once an initial withdrawal is made when you open your account, you will automatically get a 0.10% discount for every $10,000 withdrawn.

OnDeck

OnDeck line of credit is ideal for small businesses. The lending company charges APR that starts from 10.99%, and borrowers can apply for a line of credit that could go as high as $100,000.

Such amount is very flexible and could cover various small business financing needs, which include bridging short-term cash flow setbacks, as well as financing growth opportunities.

Furthermore, what’s nice about OnDeck’s line of credit is that it does not charge any fees. More so, the company’s online application process may be done in as fast as 10 minutes.

Navy Federal

One thing we like about Navy Federal Credit Union is the fact that it allows HELOC borrowers to borrow money up to 95% of their property’s equity with a 20-year draw period, and a 20-year repayment period.

Navy Federal, similar to other lending companies in our list, does not charge any origination, application, annual, or inactivity fees as well.

Another thing to like about Navy Federal HELOC is that it offers a 0.25% rate reduction for borrowers who opt for automatic payments. Furthermore, the credit union will also handle most of the closing costs, which include settlement, notary fees, as well as a title search.

FINAL THOUGHTS ON HOW TO USE A LINE OF CREDIT

When it comes to financing needs, there is no such thing as one size fits all. That is why there are a lot of options available out there.

Line of credit, in particular, though is a good option if a borrower is going through challenging times – struggling in paying off bills, as well as a short-term dip in income. It is also ideal for those who have small businesses and need funds to help keep it going, to finance improvements, or even to start anew.

The line of credit is very flexible compared to other types of loans. It can be used for almost any purpose. Needless to say, it only accrues interest for the amount used.

Is it the right one for you? Well, if your needs fall under what we have discussed, then, the answer could be a yes.

Just keep in mind the tips we share on how to use a line of credit and you will surely be guided to ensure you do not use this type of loan for the wrong reasons.

Categories
Investment Apps and Websites

PersonalLoans.com Review: Your Guide To A Seamless Online Loan Transaction

The best personal loan is the one that offers financial certainty by having fixed rates, repayment timetable, as well as fixed monthly payments. With this PersonalLoans.com review, we are going to share with you important information on how this online loan marketplace helps you find the best personal loan option possible.

PersonalLoans.com review

In an article published by The Washington Post online, it says that as of the end of 2019, there are more than 20 million Americans who have taken out personal loans. Based on the said report, according to Equifax, personal loans in the United States are up to more than 10% of how it was a year before.

Apparently, experts were surprised by the increase in the number of Americans taking on so much personal loan debt in spite of the fact that at that time, the country’s “economy looks healthy and paychecks are growing for many workers”.

In the same article, it says that according to Experian, the average personal loan balance is $16,259, which is almost similar to that of credit card debt.

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While there are a lot of factors to consider, one of the things that experts see as a major reason for the surge is the increasing number of financial technology or FinTech companies out there. FinTech companies operate mostly, if not entirely online, which makes loan transactions easier and more convenient.

Another factor for the rise of personal loans is the fact that this type of loan is unsecured, and can be used for almost any purpose.

Based on the current personal loan trend, experts believe that the number of personal loans will continue to increase this year and the years to come. Well, if we may say, given also the current situation in the country and in the world (in general), most likely, more people will rely on personal loans to get through.

Now, as mentioned, there are a lot of online lending companies out there. But apart from that, there are also a lot of online loan marketplaces that connect borrowers to the right lenders, making things even more convenient for consumers.

One of the online loan marketplaces is PersonalLoans.com. For sure, in one way or another, you have already heard of it or perhaps even encountered it online while you were searching for online lenders.

There is so much to learn about when it comes to online loan marketplaces, in this case, though, there is a lot to learn about PersonalLoans.com – particularly, how you can fully take advantage of the services it offers.

With that said, in this PersonalLoans.com review, we are going to provide you answers to some of the most commonly asked questions about this online loan marketplace.

Specifically, we are providing you answers to the following questions:

  • What is PersonalLoans.com?
  • How does PersonalLoans.com work?
  • Why use PersonalLoans.com?
  • What do borrowers need to know about PersonalLoans.com’s personal loans?
  • Who qualifies for a personal loan at PersonalLoans.com?
  • How to apply for a personal loan via PersonalLoans.com?
  • What are the pros and cons of using PersonalLoans.com?

WHAT IS PERSONALLOANS.COM?

First and foremost, let’s know more about the company itself — PersonalLoans.com.

Launched in 2017 and based in Roosevelt, Utah, PersonalLoans.com is an online lending portal that connects borrowers to the right lending company. Yes, PersonalLoans.com is not a direct lender rather an online loan marketplace that borrowers can take advantage of especially if they want to save time and energy from doing the search themselves.

PersonalLoans.com offers consumers with various services, which include peer-to-peer, bank, as well as installment loans.

Similar to other personal loans out there, personal loans offered by the company can be used for anything. Borrowers can use it for major purchases, medical procedures, home improvement, taxes to vacations, as well as debt consolidation, and many more.

PersonalLoans.com does have a wide range of participating lenders. This allows them to provide a lender for every type of customer.

Through this online lending portal, borrowers can get personal loans of up to $35,000 over a term of 6 years maximum without having to leave your home or exert too much time searching where to get a loan from. Needless to say, PersonalLoans.com may be able to help you get funding in as soon as one business day.

As we go through this PersonalLoans.com review, you will learn more about how it actually works, and how you, as a borrower, can take full advantage of this online lending platform.

HOW DOES PERSONALLOANS.COM WORK?

As mentioned, PersonalLoans.com is not a direct lender. It is an online loan marketplace. It acts as a middle-man between the borrower and lenders.

Being an online loan marketplace is actually an advantage since PersonalLoans.com can give borrowers the ability to get loan quotations from different financial institutions or lending companies with just a single application.

Once you have already submitted an application, participating lending companies will then pull your credit report, and depending on your credit type, lenders may accommodate loans for credit scores ranging between fair to excellent. Borrowers with poor credit history, however, may still try as there might be other lenders that could accommodate your loan application.

When it comes to determining which lenders and loan programs will work best for a borrower, PesonalLoans.com uses a particular algorithm. By using such an algorithm, choices are narrowed down to those who offer programs that will fit based on the borrower’s loan request or requirements.

While disbursement of funds will depend on the lender, PersonalLoans.com may provide funding for as soon as one business day.

WHY USE PERSONALLOANS.COM?

With so many options out there — direct lenders included — why use PersonalLoans.com?

One thing we like about this online loan marketplace is that it provides a straightforward process of requesting and signing up for a loan that fits best a borrower.

Apart from that, PersonalLoans.com is completely free. You can use it without having to worry about being charged for a service fee or something similar.

Surely, lenders may charge you fees and penalties, but using PersonalLoans.com alone, you won’t. That is why we highly recommend this as a tool where borrowers can shop and compare by simply sending one application.

Furthermore, PersonalLoans.com also has other features that make it stand out from other online loan marketplaces. These features include:

  • PersonalLoans.com is a member of the Online Lenders’ Alliance (OLA), which means the company commits to fair and honest consumer practices. More so, it means that the company is required to comply with all federal laws and regulations, as well as ensure the protection of its customers from fraudulent acts, and other illegal threats online. It is also expected to deliver the best user experience possible.
  • It offers flexible terms, which is precisely one of the reasons why the company rises to the top of the lending portal ladder.
  • The company offers a variety of loan options that consumers can choose from. Borrowers can choose from peer-to-peer loans, bank loans, or installment loans.

WHAT DO BORROWERS NEED TO KNOW ABOUT PERSONALLOANS.COM’S PERSONAL LOANS?

This PersonalLoans.com review is useless if we will not tackle some of the most important loan aspects or details, which include the following:

  • Personal Loan Options
  • Loan Amounts
  • Interest Rates
  • Fees
  • Loan Terms
  • Repayment Options

Before you even head on to the PesonalLoans.com portal and apply for a personal loan, make sure to know about these details first to ensure you won’t waste time and effort. The last thing you want is to send your application only to find out that the company cannot cater to your personal loan requirements.

With that, let’s tackle these items one by one:

Personal Loan Options

While there are a lot of online loan marketplaces out there, most of them offer one loan option only. With PersonalLoans.com, the online lending portal provides borrowers three personal loan options: peer-to-peer loans, bank loans, or installment loans.

Similar to other personal loans, the ones offered by the company are unsecured loans, which means, borrowers, do not need collateral to be able to acquire a loan.

Meanwhile, just in case you want to know more about unsecured personal loans, here’s a very helpful guide from The Smart Investor:

Furthermore, these loan options may be used for various reasons (almost anything) like for home improvement, medical emergencies, vacation, wedding or any special life events, repair of a vehicle, and many more.

Loan Amounts

When looking for a personal loan lender, it is important to have a specific amount in mind already. This helps narrow down your search, or in this case, narrow down the choices.

While loan amounts vary from one lender to another, at PersonalLoans.com, they offer loans provided by the company’s network of lenders that amounts from $1,000 up to $35,000. This makes it an ideal choice for people who are looking at borrowing money within that range.

Interest Rates

Another important factor that borrowers need to consider when getting a loan is the interest rate. As much as possible, you look for a lender that offers the lowest interest rate as this helps you save a couple of hundred or thousand dollars.

At PersonalLoans.com, though, most personal loans (offered by their lenders) have an interest rate that ranges between 5.99% for borrowers with pleasing credit score and income profiles, and 35.99% for those with unattractive or low credit scores. 

Fees

As mentioned earlier, using PersonalLoans.com is free of charge. However, its network of lenders may charge various types of fees (the fees and the amount vary from one lender to another).

In most cases, lenders may charge an origination or application fee, which basically covers administrative services. This fee is usually based on a percentage of your total loan amount. Usually, though, it ranges from 1% up to as high as 8% of your loan amount.

Furthermore, some lenders may also charge late fees. While most do not charge prepayment penalties, some may also do.

Thus, it is important to check your loan documents for these charges so you won’t get surprised along the way.

Loan Terms

Again, when it comes to loan terms, it varies depending on the lender. But generally, PersonalLoans.com network of lenders offer loan terms that range from 3 months up to 6 years.

Repayment Options

As we have said, since PersonalLoans.com is just a platform used to connect borrowers and lenders, in terms of repayment options, it also differs from one lender to another.

However, to give you an idea, some lenders offer a bi-weekly repayment option, while others on a monthly basis.

WHO QUALIFIES FOR A PERSONAL LOAN AT PERSONALLOANS.COM?

At this point in our PersonalLoans.com review, we are going to provide you information about the requirements you need to meet in order to be able to avail of a personal loan from the company’s network of lenders.

While every lender does have their own set of requirements, generally speaking, lenders look for the following:

  • Must have at least 580 credit score
  • Must be a U.S. citizen or a permanent resident card holder
  • Must have stable employment (borrower could be employed, self-employed, or receiving a pension, or could have Social security or any other forms of government benefits)
  • Must earn at least $2,000 a month (could be higher depending on the loan amount a borrower is requesting, and other factors like monthly house payment, debts being paid, etc.)

In addition, to qualify for a loan through PersonalLoan.com you will also need the following requirements:

  • Must be at least 18 years old (or 19 years old depending on the state you are from)
  • Must have proof of citizenship like Social Security number or legal residency
  • Must own a checking account

HOW TO APPLY FOR A PERSONAL LOAN AT PERSONALLOANS.COM?

So, now you already know what PresonalLoans.com is all about, how it works, as well as the qualifications you need in order to be able to acquire a personal loan via this online loan marketplace.

Now, the question is how to actually apply for a personal loan via PersonalLoans.com?

To answer this question, here’s a step-by-step guide for your reference:

STEP 1: Submit a Loan Request Online

Go to the PersonalLoans.com website, and look for the online request form. The form is basically the same as any other online lending portals out there.

You will be asked to provide standard information including your name, email address, phone number, zip code, as well as your birthdate and military service status (if applicable).

You will also need to provide loan information like how much money do you need to take out for a loan, why you are requesting for a loan, and what kind of credit you have at the moment.

Furthermore, your state ID number or your driver’s license will also be asked, as well as your security number, and the type of bank account you are going to use for the loan.

STEP 2: Receive Loan Offers from Lenders

In just a few minutes, you will receive loan offers from actual lenders. That’s actually what we like about online portals. They revert quickly as compared to traditional banks.

STEP 3: Check and Review, and Accept Loan Terms

At this point, you will have to check and review the loan offers. Compare them side by side to be able to choose the best one for you.

Once you have decided, it’s time to accept terms. By the way, make sure to review thoroughly — check every single detail, and make sure you understand all of them to avoid problems in the future.

STEP 4: Receive Funds

Once you have reviewed and accepted the loan offer, the lender, through PersonalLoans.com will then disburse the approved loan amount. While the process of disbursement depends on a lender to lender basis, it could be deposited to your account in as soon as one business day.

WHAT ARE THE PROS AND CONS OF USING PERSONALLOANS.COM?

This PersonalLoans.com review, similar to other reviews we made will not be complete without our list of pros and cons of the things that we like and do not like about the company’s services.

Without anything further, here are PersonalLoans.com highs and lows:

PROS

  • It’s free. PersonalLoans.com is absolutely free. Imagine using a platform that makes searching for a lender easier without having to pay a single cent. That is simply amazing, right?
  • High Loan Amount – While loan amounts vary from one lender to another, most of the lenders within the network of PersonalLoans.com offer personal loans up to $35,000.
  • Multiple Lenders – In just one application, you get to enjoy various loan offers from the company’s network of lenders — there are a lot of them composed of banks and credit unions.
  • Soft Credit Pull – PersonalLoans.com allows you to apply using a soft credit pull, which does not affect your credit score.
  • Low-Interest Rates – This, however, is applicable only to those with excellent credit scores.

CONS

  • Not a Direct Lender – Unfortunately, PersonalLoans.com only acts as a middle-man that connects borrowers to lenders, and vice versa.
  • All-Online Application – Since the platform is only available online, this may be an issue for non-tech savvy customers.
  • Disclosure of Significant Personal Information – Since PersonalLoans.com is an online loan marketplace, you basically are sharing personal information with an unknown number of lenders, which may be a little risky.

FINAL THOUGHTS ON PERSONALLOANS.COM REVIEW

To sum it all up, PersonalLoans.com is ideal for people who want to borrow money but have no time to look for a lender by themselves. It’s perfect for people who want to save time by sending just one application form to a number of lenders.

While the company is a good fit for borrowers with decent or excellent credit scores, it may not be that ideal for those with fair or low credit records.

Do you find yourself using an online loan marketplace such as PersonalLoans.com after learning about it?

Hopefully, through the information we share in this PersonalLoans.com review, we are able to provide you a good option when it comes to getting a personal loan using online lending platforms such as PersonalLoans.com.

Categories
Investment Apps and Websites

J.G. Wentworth Mortgage Review: Understanding What’s In It For You

This J.G. Wentworth mortgage review will provide you the vital information you need to know before you even sign a loan document with the company. This will help you understand every single detail about the product that they offer to help you come up with an informed decision in the end.

JG Wentworth Mortgage Review

In a data published by the Economic Research of the Federal Reserve Bank of St. Louis, it states that as of the third quarter of 2019, the United States has a nearly $29.2 trillion total value of real estate owned by individual.

Meanwhile, the country, as of 2019 does have a total mortgage debt of $10.5 trillion, which means Americans do have $18.7 trillion in home equity.

Mortgage debt is one of the topmost types of loans in the country today, and experts believe the number of people getting mortgages will not decrease this year and in the years to come.

Well, that is not surprising because people, at the end of the day, want to have a home they can call their own. That is why it does not matter if they loan the money from the bank, or any other lending companies, for as long as they get to have their own space.

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Now, just like any other types of loans, there are a lot of lending companies and/or financial institutions out there providing mortgage to individuals who need it.

With so many options, it can really get overwhelming sometimes. So, to help you trim down your options, today, we are going to do a J.G. Wentworth mortgage review.

J.G. Wentworth may not be as popular as other lenders out there, but this company definitely has what it takes to compete with other big names in the industry. Of course, it is not perfect, and we’ll tell you more about that as we go along with our review, but it’s worth checking out.

So, to keep you on track, we are going to particularly share information with you based on the following questions:

  • Who is J.G. Wentworth?
  • What kind of mortgage does J.G. Wentworth offer?
  • What do borrowers need to know about J.G. Wentworth mortgage?
  • Who qualifies for a J.G. Wentworth mortgage?
  • How to apply for a J.G. Wentworth mortgage?
  • What are the pros and cons of J.G. Wentworth mortgage?

WHO IS J.G WENTWORTH?

J.G Wentworth may not be a household name like its competitors, but it surely is, as we have said earlier, something to look into if you are planning to get a mortgage.

J.G Wentworth was founded in 1991 as a merchant bank. Yes, it’s been there for a long time now. From a tiny group, it has grown to a company with 600 employees to date.

Furthermore, the company offers a variety of products and services, which include personal loans, prepaid credit cards, as well as signature structured settlements, which is actually what the company is known for.

If you want to learn more about J.G. Wentworth’s structured settlement payments, you may check the below video created by the company:

From what it already offers, J.G Wentworth added mortgages into its product offerings in 2015. They did so after the company has acquired WestStar Mortgage Inc.

Based on the Consumer Finance Protection Bureau (CFPB) data, J.G. Wentworth Home Lending per se has originated more than 14,000 loans in 2015 alone.

Moreover, it has been found to have funded more than $10 billion in loans since its birth.

J.G. Wentworth offers various loan types such as conventional lending options, VA, USDA, and FHA loans.

If you are planning to buy a house and loan the money from J.G. Wentworth Home Lending, the company is currently headquartered in Woodbridge, Virginia. It has offices in 14 states, and can also be reached online.

WHAT KIND OF MORTGAGE DOES J.G WENTWORTH OFFER?

As a borrower, in this case, a mortgage borrower, it is important to know more about the different kinds of mortgage that lenders offer. This way, you get to learn and choose which fits you best.

If you are planning or looking at getting a mortgage from J.G. Wentworth, know that the company offers a number of options to choose from.

J.G. Wentworth offers several options not just for conventional loan customers, but also those with ow-to-moderate income and lower credit scores.

For your reference, here’s what you can expect from J.G. Wentworth:

  • Fixed-Rate Mortgage
  • Adjustable-Rate Mortgage
  • Federal Housing Administration (FHA) Loan
  • U.S. Department of Agriculture (USDA) Loan
  • Veteran Affairs (VA) Loans
  • Refinance

Now, let’s discuss each option further —

Fixed-Rate Mortgage

J.G. Wentworth’s fixed-rate mortgage is ideal for borrowers or home buyers who prefers to have predictable monthly payments. A fixed-rate mortgage means your principal, as well as the interest rate, won’t change over the course of the loan term. Usually, this type of loan is popular among homebuyers who plan to stay put for a long time.

For this type of mortgage, J.G. Wentworth offers 15-year or 30-year loan terms.

Adjustable-Rate Mortgage

This type of loan literally “adjust” over a period of time. In this case, the interest rate will change after an initial fixed-interest period.

Normally, ARMs adjust the interest rate once a year once the initial period expires. Some homebuyers prefer this type of mortgage loan because of lower initial interest rates.

This type of mortgage is ideal for those who plan to sell the property after a few years. This helps you save the most on interest payments.

For this particular type of loan, the company offers three, five, or seven-year loan terms.

Federal Housing Administration (FHA) Loan

This type of mortgage is ideal for homebuyers who have a not-so-attractive credit history. Furthermore, this is also ideal for first-time homebuyers who do not usually qualify for a conventional loan.

For FHA loans, borrowers are given the option to pay only a 3.5% down payment, instead of the typical 20%.

U.S. Department of Agriculture (USDA) Loan

This particular loan type was created for borrowers or home buyers with low or moderate incomes who wish to have a home of their own in rural areas.

USDA loan does not require down payments, and it also offers lower fees and rates as compared to other types of loans out there.

Veteran Affairs (VA) Loans

Veteran Affairs (VA) Loans are specifically designed for current and former members of the U.S. Armed Forces, National Guards, as well as Reserves, and select spouses.

According to J.G. Wentworth, the company specializes in this type of loan.

Similar to USDA loans, VA loans do not require down payment as well. More so, it also does not include private mortgage insurance, and it comes with competitive rates. 

Refinance

The company features the federal government’s Home Affordable Refinance Program (HARP).  Borrowers may apply for HARP only if they are not behind on their mortgage loan, closed on their loan before March 2009, and a few other qualifying factors. 

WHAT DO BORROWERS NEED TO KNOW ABOUT J.G WENTWORTH MORTGAGE?

When borrowing money from a bank, a credit union, or an online lender, always make it a point to check every single detail possible. As we always say, make sure to shop around and compare features – at least three different lenders – to be able to choose the best option that fits your personal preference, and of course, your financial capabilities.

At this point in this J.G. Wentworth mortgage review, we are going to look into the following details:

  • Loan Amounts
  • Interest Rates
  • Loan Terms
  • Fees and Penalties
  • Collateral Requirements
  • Availability

Loan Amounts

When looking for a mortgage lender, make sure to take into consideration the loan amount they offer. Make sure they are able to provide how much you actually need for the house you are eyeing to buy.

Also, considering this factor will help trim down your options, at the same time, will help ensure you won’t waste a time and effort.

With J.G. Wentworth, the company provides mortgage that ranges from $0 up to $765,600. Surely, every type of mortgage product does have a specific loan amount range. Thus, we highly recommend checking out directly with J.G. Wentworth how much they lend on a particular product.

Interest Rates

Another very important thing to factor in is the interest that the lender charges. This will help you determine if you are capable of paying off the loan or not.

When shopping for a mortgage lender, ideally, you should look for the company that charges the lowest rate possible. That way, you get to save a lot of money.

Unfortunately, J.G. Wentworth does not provide specific rates or at least rate range. On their website, however, it says, “Your mortgage interest rate is personalized just for you.”

To put it simply, the company customizes the rates depending on certain factors — your credit score included.

If you want a rate quote from the company, you may do so by providing them minimal information, which in return will be the basis of what your possible rates could be. Once you have completed this process, and you find the rates within what you are hoping for, then you are given the option to proceed with the formal application online.

Loan Terms

Loan terms refer to the length of time the borrower has to repay the loan. With J.G. Wentworth, loan terms vary depending on the product or service.

For your reference, see the below table:

Type of Mortgage Loan Terms
Fixed-Rate Mortgage 15 years, 30 years
Adjustable-Rate Mortgage 3 years, 5 years, 7 years
Federal Housing Administration (FHA) Loan Not Stated
U.S. Department of Agriculture (USDA) Loan Not Stated
Veteran Affairs (VA) Loans Not Stated
Refinance Not Stated

When it comes to loan terms, keep in mind that as a general rule, the longer the loan term is, the higher the interest rate will be. Meanwhile, a shorter loan means more money saved.

Fees and Penalties

Another factor to consider when shopping for a mortgage lender is the fees and penalties.

With J.G. Wentworth, once you are approved of a mortgage loan, you will then have to coordinate a closing date and continue with your loan officer until you get to finalize the details of the home purchase.

During the time of closing, borrowers are required to pay closing costs plus additional fees.

Borrowers need to set aside about 3% to 5% of the home price to cover fees like the origination fee, as well as other charges.

The loan officer should be able to discuss as well as breakdown all the fees you will be charged off to ensure you won’t get surprised with any fees and charges.

To give you an idea, according to NerdWallet, J.G. Wentworth charges an origination fee, which comes at a flat rate of $795 for most loan types. However, if you are a Costco member, or if you are willing to join, you will be able to avail of a much lower origination fee, which amounts to as low as $275.

Collateral Requirements

All mortgage loans that J.G. Wentworth offer are all secured loans, which means collateral is needed to be able to acquire an approval (apart from other requirements, of course). Like in any other mortgage lenders though, the house you purchase using the loan automatically becomes the collateral, which means in case of default payment, the company acquires the property.

Availability

J.G. Wentworth mortgage loan is available in every state and DC except Hawaii, Idaho, Missouri, Nevada, and New York.

As mentioned earlier, the company has various offices in different states, which include Arizona, Connecticut, Florida, Georgia, Iowa, Kansas, Maryland, Michigan, New Hampshire, New Jersey, North Carolina, Pennsylvania, Texas, and Virginia.

WHO QUALIFIES FOR A J.G WENTWORTH MORTGAGE?

At this point in our J.G. Wentworth mortgage, we are going to share with you the qualifications set by the company for those planning to do mortgage with them.

When you apply for a J.G. Wentworth mortgage, it is important to note that one of the major factors they consider is your credit score.

If you do not have a pleasing credit score, we highly recommend checking out other lenders or if you are not in a hurry, work on getting the best credit score as possible.

Having a high credit score means being able to avail of the best rates the company can offer, which in return will allow you to save thousands of dollars over the course of the loan.

Although the company does not display credit requirements upfront on its website, normally, the rule of thumb is to have around 700 FICO score to be able to qualify for a conventional loan. While 620 credit score is required as a minimum for some government-backed loans.

To be sure, again, we highly recommend calling J.G. Wentworth to know if you qualify for a mortgage with them.

Apart from the credit score, the company will also factor in the borrower’s employment history. Borrowers need to have at least two years of proof of employment. The proof would be your W-2s and pay stubs. If self-employed, additional documents will be required to prove your income.

Furthermore, the lender will also analyze your savings to ensure that you are able to cover the down payment required (which is usually 20%).

Another factor that the company takes into consideration is the debt-to-income ratio of the borrower.

All these, again, must be assessed to see if you are qualified for a mortgage at J.G. Wentworth.

HOW TO APPLY FOR A J.G WENTWORTH MORTGAGE?

This time around, you already know a lot of things — important things — about J.G. Wentworth mortgage.

Now, it’s time to talk about how to actually apply for a mortgage with J.G. Wentworth.

Initially, you have to check your qualifications, which include your checking your credit score as it affects a lot in the approval or non-approval of your loan application.

If you are with the required credit range, you may now opt to choose how to apply for a loan — you can either do it in person by visiting any J.G. Wentworth’s physical locations near you, or by filling out a form online that will provide you with a quote estimate, at the same time, give you the option to apply online.

Similar to any other mortgage application, you will be asked to provide your personal and financial information such as your address, Social Security number, as well as contact information. If you have a co-borrower, he or she needs to provide the same type of information as well.

As your application progresses, you will also be asked to provide employment details like tax returns and pay stubs, as well as your bank information.

By providing this information, the lender gets to verify your ability to afford monthly mortgage payments and the down payment as well.

After all the processes, the lender will then decide if you pass the qualifications, and then give you approval.

Once approved, as mentioned earlier, you will then have to coordinate a closing date and continue with your loan officer until you finalize the details on purchasing the property.

WHAT ARE THE PROS AND CONS OF J.G WENTWORTH MORTGAGE?

Similar to other reviews we made previously, this J.G. Wentworth mortgage review will not be complete without our list of pros and cons. This, hopefully, will help you determine if the lending company is the right one for you.

PROS

  • Provides various mortgage options including government choices like FHA, VA, and USDA (all these are ideal for low-income residents who want to be homeowners).
  • Have in-person offices in 14 states, which makes it ideal for non-tech savvy customers.

CONS

  • Unfortunately, the lending company is not licensed to operate in all 50 states.
  • Unlike other lenders that offer an online application process, J.G. Wentworth is not as cohesive.
  • The company charges various fees, which include the origination fee.
  • The lending company does not provide so much information particularly on rates on their website.

FINAL THOUGHTS ON J.G WENTWORTH MORTGAGE REVIEW

To sum it all up, J.G. Wentworth’s mortgage has its own highs and lows. Just like any other lending companies out there, it has its share of good and bad.

While it is ideal for people with high credit scores, it is also worth taking a chance for those low-income individuals who want to have a property of their own.

Do you fall into any of the brackets the company attends to?

Keep in mind, that while this J.G. Wentworth mortgage review provides you with all the essential information you need, and while we can recommend it to you, at the end of the day, the decision lies on you and your capability to repay the loan.

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Investment Apps and Websites

SunTrust Bank Auto Loans Review: The Best Auto Lending Company For You

While there are a lot of auto loan options out there to help finance your dream car, in this SunTrust Bank auto loans review, we are going to provide you essential information to help you understand why it’s one of the auto lending companies you should take into consideration to get a loan from.

SunTrust Auto Loans Review

According to a Finder report, “Americans had $1.3 trillion in auto loan debt in 2019,” which is an increase of 81% since 2009, according to an Experian study published in March 2020.

Furthermore, in the same Finder’s report, it says that American people who get auto loans owed more on average compared to that of a decade ago. By end of 2019, American auto loan borrowers owed $19,231 on average — a 25% rise from 2009.

In addition, according to a study by the Federal Reserve, it was found that around 35% of American adults rely on car loans to pay for or buy their vehicles in 2019 alone.

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Based on the experts’ view, the number of auto loans shows no sign of slowing down. In fact, experts project that it will continue to rise in the year and the years to come.

This assumption is not surprising at all especially with the recent events in the country and in the world, more and more people will definitely aim to buy their own vehicle to get them around – providing them ease and safety transportation service.

Now, as the demand when it comes to auto loans increases, more and more lending companies are opening its doors to auto loan borrowers as well. One of them is SunTrust Bank through LightStream.

For those who do not know, LightStream is an online lending division of SunTrust that offers auto loans for both new and used sealer purchases, as well as refinancing, lease buyouts, private party purchase, classic cars, and unsecured loans for borrowers with a good or excellent credit score.

In this SunTrust Bank auto loans review, we are particularly going to answer some very important questions that borrowers usually ask. This includes the following:

  • Who is SunTrust?
  • What is SunTrust LightStream?
  • What auto loan products are offered by SunTrust LightStream?
  • What do borrowers need to know about SunTrust Bank auto loans?
  • Who qualifies for a SunTrust Bank auto loan?
  • How to apply for a SunTrust Bank auto loan?
  • What are the pros and cons of a SunTrust Bank auto loan?

WHO IS SUNTRUST?

Headquartered in Atlanta, Georgia, SunTrust Bank is an American bank holding company. It is the largest subsidiary of SunTrust Banks, Inc., having an asset of $199 billion as of March 31, 2018.

In 2019, SunTrust Bank merged with a fellow regional bank, which is the BB&T. Both of them created a new bank called Truist, which is currently positioned as the country’s sixth-largest bank, having a combined asset amounting to a total of $442 billion.

Although the two banks merged, both retained their own branding as well as products, which is why SunTrust still exists.

Now, SunTrust Bank offers a wide variety of banking products, as well as lending, credit cards, mortgages, and wealth management. Among the products offered by SunTrust Bank is an auto loan, which is offered through LightStream.

The bank also offers unusual perks to its customers in 10 southeastern states and the District of Columbia. As of the last quarter of 2016, SunTrust Bank had 1,400 bank branches and 2,160 ATMs in the U.S.

WHAT IS SUNTRUST LIGHTSTREAM?

As mentioned earlier, SunTrust Bank offers a wide variety of products and services, which include auto loans through LightStream.

LightStream is the online division of the bank, which makes providing loan services to customers easier for SunTrust Bank.

LightStream offers a full spectrum of auto loans to borrowers with very attractive credit and equally healthy finances.

The online lending division of SunTrust bank offers a variety of auto loan products for private party purchases, new and used dealer purchases, lease buyouts, refinancing, as well as classic cars and unsecured loans.

The SunTrust LightStream auto loan is specifically ideal for borrowers with good or excellent credit with a “background of solid financial management,” those who want to get an immediate response to their auto loan application (as LightStream gives a decision as soon as a few hours after filing of an auto loan application), and those who want maximum flexibility (because LightStream does not have any restrictions on car make, model as well as mileage).

Meanwhile, if you want to know more about LightStream auto loans, check the video below by Honest Finance. He shares a very insightful review, and we thought you got to check this out:

WHAT AUTO LOAN PRODUCTS ARE OFFERED BY SUNTRUST LIGHTSTREAM?

Again, as mentioned, LightStream is SunTrust online division, which caters to auto loans.

One thing that LightStream is popular is that it offers a variety of auto loans to its customers.

Customers may choose on the following auto loan options:

  • New Dealer Purchase
  • Used Dealer Purchase
  • Private Party Purchase
  • Refinance
  • Lease Buyout
  • Unsecured Auto Loans

We just want to point out that LightStream’s classic car option does not have any restrictions on make, model, age, or mileage.

Furthermore, unsecured auto loans basically mean your car will not be used collateral in case of default payments.

In addition, you can use SunTrust LightStream auto loans to refinance, as well as buy out a lease, and even to finance an RV or a motorcycle purchase.

By its list of products offered alone, as compared to other auto lending companies, SunTrust definitely has an edge. It’s safe to say that their line-up of auto loan products is well-thought-out. They ensured everything is covered, and that they have a product that fits every kind of auto loan borrower – leaving no room to look elsewhere.

WHAT DO BORROWERS NEED TO KNOW ABOUT SUNTRUST BANK AUTO LOANS?

As we always say, when eyeing for a loan – whether it be an auto loan or not – it is important to shop and compare. Look around and see what auto lenders offer. Compare their loan offers before making a decision, before sealing the deal.

By doing so, you get to choose the best deal possible – leaving no room for regrets. Well, as borrowers, the last thing you want is to realize you actually cannot afford to pay off the loan, which means, you might end up broke or in a bad light.

With that said, as part of our SunTrust Bank auto loans review, we are going to share with you some of the most vital information regarding what they offer.

In particular, we are going to share with you information on the following aspects:

  • Loan Amount
  • Interest Rate
  • Loan Terms
  • Refinancing Options
  • Fees and Penalties
  • Collateral

Now, let’s discuss the items one by one to give you clarity and a better understanding of what to expect with SunTrust Bank auto loans —

Loan Amount

When borrowing money from a bank or any lending company or financial institution for that matter, make sure you have already determined the amount of money you need to purchase the vehicle. That way, you get to save time and energy – focusing only on banks or lending companies that offer loan amounts based on how much you need.

SunTrust Bank, through LightStream, offers loan amounts from as low as $5,000 up to $100,000.

Compared to other lending companies and financial institutions offering auto loans, SunTrust’s LighStream definitely has one of the highest loan amounts.

So, if you are looking at borrowing money within this range, SunTrust’s LightStream is definitely a good fit for you.

Interest Rate

Another very important thing that every borrower needs to consider when getting an auto loan is the interest rate or the annual percentage rate charged by the lending company or the bank. This will help you gauge if you are able to pay off the loan or not. Needless to say, this helps you determine if the loan is worth it or not.

Take note that every financial institution has its own rate – thus, the importance of shopping/looking around and comparing before anything else.

For your reference, here’s how much SunTrust’s LightStream charges for auto loans depending based on loan category:

  • New dealer purchase – 3.49% to 8.34%
  • Used dealer purchase – 3.49% to 8.34%
  • Private party purchase – 4.99% to 9.19%
  • Refinance – 3.49% to 8.34%
  • Lease buyout – 4.99% to 9.19% (with autopay discount)

The interest rate varies depending on certain factors like your credit score or creditworthiness, your location, loan amount, loan terms, etc. So, if you want a concrete detail, it is best to check with SunTrust’s LightStream as soon as you can.

As we have mentioned, SunTrust Bank offers unusual perks. One of them is that if you have been offered a lower rate by another lender, what SunTrust does is that it will offer .10% points less than the rate that you have been approved for. Of course, the evidence must be submitted.

In addition to SunTrust Bank auto loan perks, if a borrower sets up auto pay, he or she gets an additional 0.50% off from LightStream.

Loan Terms

Another important thing to factor in when deciding where to borrow money from is the loan terms or the length of time you are going to repay the loan.

Every lender has its own loan terms. As for SunTrust’s LightStream auto loans, the loan terms are flexible. The minimum length of borrowing is 24 months, while it can also be as long as 84 months.

However, like in any other type of loan, the lengthier the loan term is, the bigger the interest becomes. Meanwhile, if you opt to repay the loan as soon as possible, you definitely can enjoy a lower interest charge.

Refinancing Options

As mentioned earlier, SunTrust Bank through its online division, LightStream, offers a variety of auto loan options, which include refinancing.

Yes, you can borrow money from LightStream intended to help pay off any existing auto loan.

Fees and Penalties

Some lenders may offer lower rates, but they charge a lot of fees and penalties, which can be burdensome for borrowers. Imagine paying off an interest plus fees and penalties.

Anyway, as a borrower, you also need to take into consideration the fees and penalties charged by the lender before making any concrete decision.

At the end of the day, you want to save as much money as possible, right? An auto loan is useless if you are paying way more than what you are supposed to pay.

What we particularly like about SunTrust Bank auto loans is that they do not charge an origination fee, late payment fee, as well as prepayment penalties. On the latter, it means you can repay the loan in full anytime you want before the scheduled end of the term without having to worry about prepayment penalties.

Collateral

Unfortunately, the auto loan offered by SunTrust Bank’s LightStream is only applicable to borrowers with good or excellent credit. Those with unattractive or poor credit score may consider looking for other auto loan providers.

Now, SunTrust Bank auto loans can either be secured or unsecured. Secured auto loans mean your vehicle automatically becomes the collateral of the loan, which means, in case of default payment, the bank has all the right to get the vehicle from you.

Meanwhile, with SunTrust’s unsecured loans, the company requires borrowers to have an excellent credit score. According to the bank, borrowers must have the following to get approval for the unsecured auto loan:

  • Minimum of five year’s substantial credit experience in different credit account types
  • Excellent payment records, with no delinquencies or record of bankruptcies
  • Proven ability to save money

WHO QUALIFIES FOR A SUNTRUST BANK AUTO LOAN?

Borrowers, it is important to know that every lending company or financial institution have their own set of requirements or qualifications.

These requirements or qualifications are set to make the approval of auto loan applications easier.

Ideally, before anything else, borrowers must first and foremost check the requirements set by the lender to help save time and effort.

As for SunTrust Bank auto loans, please take note of the following requirements or qualifications:

  • Must have a good or excellent credit score (at least 660 to qualify for lowest rates and most lenient terms)
  • No delinquencies or record of bankruptcies
  • Must have a proven ability to save money
  • Must have sufficient income to cover debts
  • Must have at least five years of credit history
  • Must own a variety of account types

In addition, you must of course be of legal age and a U.S. citizen or a permanent residence cardholder to be able to obtain a SunTrust auto loan via LightStream.

HOW TO APPLY FOR A SUNTRUST BANK AUTO LOAN?

At this point in our SunTrust Bank auto loans review, we are going to talk about how to actually apply for an auto loan at SunTrust Bank.

Following below step-by-step guide will definitely help make the auto loan application easier.

First, go to the SunTrust Bank website, and choose the type of loan you want to apply for — in this case, it’s auto loan — and then, click “Apply Now.” You will then be directed to the LightStream loan application portal.

Second, fill in all the details required to process your auto loan application. At this point, you have to indicate whether it’s an individual or a joint application. You will also be asked to input your desired loan amount and the loan term that you prefer. Once done, click, the “Next” button.

Third, fill in your personal information, which includes your contact details, place of residence or address, citizenship, work status, as well as your annual income, monthly housing costs, and your assets. When done, click the “Next” button.

Fourth, create a user ID and input your preferred password to be able to access your account. Then, choose a security question and answer. This enables you to access your account in the future.

Lastly, confirm your application details, and then submit them.

Please note that SunTrust Bank may provide funding for you as soon as the same day of your application provided you review and sign loan documents by 2:30 p.m. Eastern time, provide your bank details, and have completed the verification procedures.

By the way, SunTrust provides a satisfaction guarantee. In case, however, you are not happy with your loan experience with the company, the lender will give you $100 in return.

WHAT ARE THE PROS AND CONS OF A SUNTRUST BANK AUTO LOAN?

This review will not be complete if are not going to share with you what we like and what we do not like about SunTrust Bank auto loans.

Without anything else to say, here’s our list of pros and cons of SunTrust Bank auto loans:

PROS

  • It provides a variety of auto loan options, which include dealer or private party purchases, refinancing, classic car loans, and lease buyouts.
  • Fast auto loan processing, which allows borrowers to receive funding in as soon as the same day of the loan application.
  • Offers some of the best auto loan rates in the market today — definitely cheaper as compared to its competitors.
  • Beats competing for APR offers by offering a 0.10% points off (with conditions).
  • Does not charge an origination fee, late payment fee, as well as prepayment penalties.

CONS

  • It only caters to borrowers with strong credit.
  • It does not offer a phone or email application process, which could be an issue for non-tech savvy borrowers.
  • It has very strict requirements for auto loan approval.

FINAL THOUGHTS ON SUNTRUST BANK AUTO LOANS REVIEW

To sum it all up, SunTrust Bank auto loans through LightStream offers great deals. It comes with perks such as a rate match guarantee, as well as a customer satisfaction guarantee. Needless to say, the bank offers one of the lowest rates in the industry today.

Unfortunately though, qualifying for a SunTrust auto loan can be quite daunting. It has very stringent requirements. Unless you have very good credit, and you meet all the qualifications set, then, there should be no problem at all.

So, do we recommend SunTrust auto loans?

With everything we have shared in this SunTrust Bank auto loans review, we definitely say, yes, we do recommend it especially to borrowers with excellent credit records. They definitely will benefit a lot from it.

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Investment Apps and Websites

5 Best Payday Loan Alternatives That Offer Lower Rates

While payday loans can be very accessible especially during financial emergencies, the rates can get really overwhelming. Thus, we are going to share with you some of the best payday loan alternatives to help you get through with immediate financial needs.

best payday loan alternative

In a report published by the Economic Research of the Federal Reserve Bank of St. Louis, it says that there are as many as 12 million American people who use payday loan every year.

In the same report, it says that collectively, American borrowers spend as much as “$9 billion every year on payday loan fees“. Furthermore, it states that “On average, the fee for a payday loan is $55 for a two-week loan, and the typical $375 loan will incur $520 in fees because of repeat borrowing.”

If you come to think about it, the numbers are huge! Well, it is huge! That is why it is important for borrowers to fully understand first what they are getting themselves into (in this case a payday loan) before getting into it.

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While payday loans can be very helpful especially when you badly need cash, the thing is, it hurts. Paying it off hurts.

So, with that in mind, we thought of providing several other options in lieu of a payday loan. These choices are definitely low in terms of rates and charges, which is ideal especially if it’s an emergency situation and you do not have enough resources to pay off a huge loan (huge because of charges and fees).

But, before we give you our list of some of the best payday loan alternative, we are going to share with you first a couple of important information about the payday loan so you get to fully understand why a payday loan can get a little dangerous rather scary.

In particular, we are going to give answers to the following commonly asked questions:

  • What is a payday loan?
  • How does a payday loan works?
  • How much does payday loan charges?

WHAT IS A PAYDAY LOAN?

We keep saying this every time we make reviews on banks, credit unions, and other lending companies. Borrowers, it is your responsibility to research and knows more about the products and services, as well as the companies that you are dealing with. This is to avoid regretting anything in the future.

As borrowers, we owe it to ourselves to research and know our options before we sign any loan documents. Make it a point to shop around and compare products and services, as well as the corresponding features to ensure you get to land on the best deal possible.

Now, at this point, we are going to talk about what a payday loan is all about.

According to Economic Research of the Federal Reserve Bank of St. Loius, payday loans are defined as follows:

“It is a type of alternative financial service that provides fast cash to cover emergency situations or help pay a borrower’s expenses from one paycheck to the next. These unsecured loans have a short repayment period and are appropriately called “payday loans” because the duration of a loan usually matches the borrower’s payday schedule. A balloon payment—full amount of the loan plus fees—is generally due on the borrower’s next payday after the loan is made.”

Furthermore, it says that normally, payday loans amount to $500 or less. Also, it usually comes due within two to four weeks after the borrower has received the loan.

It is also important to note that the loan terms vary depending on the borrower’s pay schedule or how many times he or she received his or her income, which means, the terms could be a week, two weeks, or in some cases in a month.

With the strong presence of technology and the internet, over the years lending companies have already offered payday loans online as well, which makes it even more accessible to borrowers anytime and anywhere they may be.

By the way, as mentioned, a payday loan is an unsecured loan (like most personal loans are), which means a borrower needs not any collateral to be able to borrow money from a lending company or a financial institution.

HOW DOES A PAYDAY LOAN WORKS?

So, now you already know what a payday loan is all about. This time, let’s talk about how it actually works.

Since payday loans are unsecured loans (needless to say, they are easily accessible kind of loan), which means lending companies do not require collateral, borrowers must expect high levels of interest.

Payday loans are considered as predatory loans because of having such a reputation for charging extremely high interest as well as added fees.

Generally, payday loan providers are small credit merchants. They usually come with physical locations where borrowers can apply and at the same time, get an approval of the loan. However, with the advent of technology, some payday loan services are already available online through online lenders.

To be able to apply for a payday loan, borrowers must be able to provide paystubs or pay slips coming from their employers, which shows their current levels of income.

Normally, payday lenders base the loan principal on a percentage of the borrower’s predicted short-term income. In some cases, though, lenders also look into the borrower’s credit score, as well as his or her credit history, which means a hard credit pull will be conducted during the loan application process that could affect the borrower’s credit score.

By the way, before you even look for a payday lender, make sure that your state allows it. In the United States, as of 2020, there are 12 states already as well as the District of Columbia that have banned payday loans. The 12 states are composed of Arkansas, Arizona, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, North Carolina, Vermont, and West Virginia.

HOW MUCH DOES PAYDAY LOAN CHARGES?

Borrowers, you better read this. Of all the details about payday loans, this probably is the most important of all.

We have already mentioned that payday loans charge high-interest rates or we better say extremely high-interest rates.

For your reference, payday lenders can charge up to 500% in annual percentage yield (APR). Although most states have usury laws that limit interest charges for up to approximately 35%, when it comes to payday lenders, they fall under exemptions. Thus, they get to charge more.

Payday loans are regulated and governed by individual states. However, some states outlaw payday loans of any kind, which means borrowers need to be very careful.

BEST PAYDAY LOAN ALTERNATIVES

Let’s face it. Sometimes we are caught in unexpected situations when we badly need cash but do not have enough. Thus, some of us resort to getting payday loans even if the interests are high just to be able to get through.

The thing is – there are actually a lot of other options around where you can borrow money and have the funds just when you need it.

Now, before we move on to our list of best payday loan alternatives, here’s a video of what MagnifyMoney suggests. We thought you should check this out.

Having said that, here are five best payday loan alternative borrowers must look into:

  • Credit Cards
  • Paycheck Advance
  • 401(k) Loan
  • Family and/or Friends
  • Fast Personal Loans

CREDIT CARDS

First on our list of best alternatives for a payday loan is a credit card. Compared to payday loans, credit cards have much lower interest rates and APR. Furthermore, credit cards have added flexibility, which can be very helpful among borrowers.

Usually, when you get a payday loan, if you have excess money, regardless if you still need it or not, you still have to pay for it. As with credit cards, you only pay the amount you borrow.

If in case you badly need cash, you can also avail a credit card cash advance. Although this option can be quite expensive, it definitely is much cheaper as compared to how much you are going to pay if you go for a payday loan.

In most cases, issuers charge a percentage of the advance as a fee, which is normally around 5%, with a minimum of $5 up to $10.

When opting for this option though, the key is to pay off the advance right away. Otherwise, the balance may just get out of control, which is something that you surely would not like, right?

Also, please take note that when you cash advance using your credit card, the interest would usually begin accruing right away, which is not the case when you use it for purchases or balance transfers.

PAYCHECK ADVANCE

Another possible option instead of getting a payday loan is an advance on your paycheck — that, of course, will depend on your company.

Unfortunately, not all companies offer these types of loans. While for those who do, the terms usually vary from one company to another.

To be sure, before you even think about getting a loan elsewhere, check your company first if they offer paycheck advance, and of course, make sure to check the terms as well.

As we always say, it is important to know the details to avoid any surprises. While surprises are usually exciting that is not the case when it comes to money matters, in this case, a loan.

401(K) LOAN

When everything else fails, you may also consider taking a 401(k) loan. Ideally, you should not take anything from your retirement account, but if worse comes to worst, then a 401(k) loan is a valid choice.

The thing about borrowing against your 401(k) is that it does not incur any taxes for as long as you follow all the rules. The rules include repaying the loan as scheduled or in full if you resign from your current employer.

Furthermore, 401(k) loans do not require any credit check. Also, when you pay for the loan, you pay interest back to your own account. Not bad, right?

The key when it comes to 401(k) loan is that you pay off the loan within the year. The sooner, the better so it would only have very minimal impact on your account.

The downside of this though is that your employer may not allow you to make new contributions until you are able to repay the loan, which can affect the progress of your retirement fund.

CREDIT UNIONS

Another best payday loan alternative is borrowing money from credit unions. Credit unions do usually offer lower interest rates among their members. Needless to say, they are open to both borrowers with unattractive and excellent credit scores.

However, to be able to borrow money from credit unions, you have to first and foremost, be a member of the union. Otherwise, you won’t be able to avail of any of the products and services it offers.

Now, how to qualify for a payday alternative loan?

In addition to the information we have already provided, as a borrower, you must also look into the qualifications for a payday loan alternative.

For your information, there are two types of payday alternative loans (PAL) a borrower can apply for. These are PAL I and Pal II.

To be able to qualify for PAL I, a borrower is required to join a qualified credit union. He or she must be a member of the union for at least a month before he or she can apply for a loan.

Meanwhile, for PAL II, there are no restrictions.

Now, to be sure what your credit unions offers, call or email them as soon as you can.

FAST PERSONAL LOANS

Last, but definitely not the least on our list is fast personal loans.

It is one of the best payday loan alternatives out there. It basically is much like that of a credit card. This type of loan does not require collateral, and can definitely be less expensive as compared to payday loans.

Most fast personal loan lenders have processes set up so disbursing of funds to borrowers can be done via depositing in the borrower’s account either on the same day of loan approval or the following business day.

As compared to payday loans, most fast personal loans give borrowers much longer repayment terms. Some would even last for months or years — depending on certain factors like the amount of money borrowed.

While some companies are stricter when it comes to requirements particularly credit scores, other lending companies are willing to work with borrowers that have unattractive credit.

Some of the best fast personal loan lenders are:

  • Lightstream – This lending company provides loans amounting to $5,000 up to $100,000. Thus, making it ideal for borrowers who need a large amount of money. This unsecured personal loan can be used for various reasons. However, please note that your purpose of the loan may affect the rate that the company may charge you.
  • OneMain Financial – OneMain Financial offers loans of up to $20,000. The lending company is ideal for borrowers who need same-day funding. While the company allows a larger amount of personal loans, it, however, requires collateral for that option. Generally, people who qualify for unsecured have much higher APR as compared to those with secured loans. Also, it is important to note that exact rates and limits vary depending on the borrower’s resident state, credit profile, as well as borrowing needs.
  • RISE Credit – RISE Credit is ideal for borrowers with bad credit and could hardly get a personal loan from other lenders. The downside though is that RISE charges quite high rates that span from 50% up to 299%. In addition, RISE Credit offers lower loan amounts as compared to the other options we provided. However, when it comes to repayment terms, the company offers repayment of the loan from 4 months up to 26 months (depending on the state you are in), which is desirable than those that offer repayments within just a couple of weeks.

ADDITIONAL OPTION: FAMILY AND/OR FRIENDS

If you want to avoid fees and charges, as well as huge interest rates (or if you want not to pay any interest at all), considering borrowing money from family or friends.

To be honest, your family and friends should be the first ones on your list during financial emergency situations. Why? Because most of the time, when you borrow from family or friends, they do not charge you for anything. All you need is to pay back the money in full (or depending on the terms you have agreed on).

If you looked around and found no one from among your family and friends to lend you money, then, that is the only time you check out the next possible option.

The thing about borrowing money from a family member or a friend though is that your relationship is at stake if you are unable to pay off the loan. So, unless you know in yourself that you will pay off or that you are capable of paying off the loan, then go ahead and consider this option. Otherwise, jump into the next option on your list.

FINAL THOUGHTS ON BEST PAYDAY LOAN ALTERNATIVE

Life is full of surprises, do you agree? Unfortunately, sometimes it involves money.

We are sometimes caught in situations when we badly need money to get through it, and it is during those times when we rely on lenders. We rely on companies or people who would let us borrow the money we need.

One of the popular go-to places of people in need of immediate funds is payday lenders. Yes, even if payday loans charge extremely high rates, some people would go for it thinking they have no other options left when in fact – there are other options available out there.

As mentioned above, people in need of cash as soon as possible can check out other means such as using credit cards, paycheck advance (if their company allows it), 401(k) loan, family and/or friends, and lastly, through fast personal loans.

Given the options we provided, have you already chosen a payday loan alternative where to borrow money from in case of financial emergencies?

Just keep in mind that while payday loans are tempting, you better check out other options – the best payday loan alternative to be exact.

Categories
Investment Apps and Websites

Prosper Personal Loans Review: What You Need To Know About This P2P Lender

While there are a lot of peer-to-peer lending companies out there to choose from, finding the best can be a little challenging. Thus, this Prosper personal loans review will provide you vital information you as a borrower should check out to see if this company is the one you are looking for.

Prosper personal loans review

According to an article published by Investopedia, one of the most popular finance blogs out there, peer-to-peer lending or P2P lending allows individuals to acquire loans directly from other individuals without having to go through a financial institution to act as the middleman.

Those websites that facilitate P2P lending has greatly increased its adoption over time as an alternative financing method.

Furthermore, P2P lending, which is also known as “crowd lending” or “social lending” has been there since 2005, according to the same article. Over the years, it has grown wide, and has established a crowd of competitors, which includes companies like Lending Club, Peerform, StreetShares, Upstart, and of course, Prosper.

RELATED ARTICLES:

Upstart Loans Review: How It Leveled Up The Online Lending Game
Upgrade Personal Loans Review: Is It The Right Online Lender For You?
LightStream Personal Loans Review: The Best Online Lender For You

Meanwhile, in a report by IBIS World entitled, “Peer-to-Peer Lending Platforms in the US Industry Trends (2014-2019),” it says that “over the five years to 2019, peer-to-peer (P2P) lending platforms have evolved from a handful of start-ups to an industry worth $2.0 billion. In particular, the P2P Lending Platforms industry has reached a mature stage of growth as leading platforms have taken their companies public, reached profitability, and formed industry associations.”

With how the P2P is right now, it seems to be the next big thing in the financial industry. That’s a wild assumption, but really, with how the industry is performing, it is not surprising to surpass other forms of lending in the future.

Now, as mentioned, there are a lot of P2P companies now. Some of them have earned popularity in the online lending industry. One of them is Prosper, which is today’s main highlight.

We believe that borrowers need to know what’s in store for them before dealing with any lending companies, in this case, a P2P lending company.

Thus, in this Prosper personal loans review, we are going to provide answers to some of the most commonly asked questions, such as the following:

  • Who is Prosper?
  • What are the different personal loans offered by Prosper?
  • What do borrowers need to know about Prosper personal loans?
  • Who qualifies for a Prosper personal loan?
  • How to apply for a Prosper personal loan?
  • What are the pros and cons of Prosper personal loans?

WHO IS PROSPER?

Prosper was launched in 2005. It is a peer-to-peer lending company that allows regular individuals to invest small amounts of money to cover other people’s loans. As borrowers repay the loan, the investors get their money back with an interest.

Prosper is a leader when it comes to peer-to-peer lending. It was the first of its kind to provide a platform where individuals can borrow money from what companies or people provide.

The lending company offers personal loans for almost any reasons like home improvement, vehicles, and weddings and other important life events, maternity expenses, small businesses, as well as debt consolidation.

Since its inception, the company says it has already originated over $16 billion worth in loans to more than 980,000 individuals.

Prosper is ideal for individuals who are considered as high-risk borrowers. These are borrowers that are most likely to be declined by traditional banks and credit unions because of low or poor credit score. However, as always, high-risk borrowers must expect to pay much higher interest compared to those with good or excellent credit scores.

Furthermore, Prosper offers an easy and fast application process. Borrowers can easily find out if they qualify and get estimates on what their possible rates will be.

If you are hoping for same-day funding, though, Prosper may not be the ideal lender for you. Since it’s a P2P lending company, it means loans are paid by many investors. Thus, funding will not be disbursed immediately just like how other online lenders do it.

If you are interested to know more about Prosper, then, it’s best to continue on.

Meanwhile, if you want to know more about how to get a personal loan at Prosper, check the below video by Houston McMiller:

WHAT ARE THE DIFFERENT PERSONAL LOANS OFFERED BY PROSPER?

Generally speaking, all of Prosper loans come with a fixed interest rate — that includes their personal loan options. Since the rates are fixed, borrowers need not worry about changes in the rates like how it is for variable interest rates. The rate is basically just the same all throughout the life span of the loan.

So, if you are up for a fixed interest rate personal loan, then, perhaps Prosper is the one you are looking for after all.

WHAT DO BORROWERS NEED TO KNOW ABOUT PROSPER?

Every time we make reviews, we always make it a point to remind our readers, particularly those planning to borrow money from lending companies to always make time to know more, learn more about the company and the products and services they offer.

We also highly encourage borrowers to always shop and compare loan features to be able to get the best deal possible. As much as possible, avoid getting into a loan proposal without comparing it to other lending companies as you might just regret in the end.

When it comes to borrowing funds, being impulsive is never an option. Sometimes, if not most of the time, impulsive borrowers end up regretting where they put themselves into.

Anyway, to help you understand more what we are trying to say, at this point of our Prosper personal loans review, we are going to give you the following very important details:

  • Loan Amounts
  • Interest Rates
  • Loan Terms
  • Loan Fees
  • Disbursement of Funds
  • Personal Loan Features
  • Refinancing Options

Loan Amounts

As we always say, before you even shop around for lending companies, make sure to determine already how much you need to borrow. This way, you get to save time and energy. Instead, you just focus on lenders that have offer loan amounts that are within what you need.

By the way, just a quick tip. When determining the amount of money you will borrow, as much as possible, stick to that amount only. Do not be tempted to go overboard or — again — you might just regret it in the end.

Moving on, Prosper lets borrowers borrow amounts ranging between $2,000 and $40,000. Having said that, Proper makes an ideal choice for people who need a little large amount of money.

Please note that most personal loan lenders do not allow borrowers to borrow more than $25,000, which, again, makes Prosper a good choice for those who need more.

Interest Rates

The interest rate charged by lenders is another deciding factor. In fact, it’s one of the major factors that borrowers need to consider before signing any loan document.

Interestingly, Prosper looks into a borrower’s credit history, income, as well as other factors in assigning a borrower a particular rating (A, A, B, C, D, E, or HR). The rating is used to determine the interest rate.

Similar to other lenders out there, borrowers with excellent credit scores are eligible for lower rates — as low as 7.95%. Meanwhile, high-risk borrowers or those with low or poor credit scores may face higher interest rates — as high as 35.99%.

If you are going to compare the rates though to other banks and payday lenders, the interest rate Prosper charges to high-risk borrowers is still a good deal.

Loan Terms

Loan terms refer to how long a borrower needs to pay off the loan. It is also another important deciding factor especially if you think you cannot afford to repay the loan in the short-term.

With Prosper’s personal loans, the company offers borrowers loan term options of either three or five years. Yes, that’s definitely short compared to other lenders out there.

Loan Fees

Some borrowers usually overlook fees charged by lending companies that sometimes they are surprised to learn that they are charged for this and that. That is why we always make it a point to remind borrowers to make sure not to miss this detail.

Ideally, it would be nice to find a lender that does not or does not have that many fees.

In the case of Prosper, however, borrowers need to be reminded that the lending company has charges a few fees, which include the following:

  • Origination Fee – 2.41% to 5%
  • Late Fee – $15 or 5%, whichever is greater
  • Insufficient Funds Fee – $15

If we may say, this is most likely where Prosper fails, because to be honest, there are a lot of other lenders out there that offer no fees or very minimal fees.

However, similar to other lenders, Prosper does not charge prepayment penalties, which means you can pay your loan in full any time before the loan’s maturity date without having to worry about being charged.

Disbursement of Funds

If you are looking for a lender that disburses funds immediately or within one business day, then, Prosper may not be the one for you.

Once your personal loan application is approved, you will be asked to set up your banking details, and expect funds to be deposited in your account within a few days.

Before you even get disappointed with this, please be reminded that Prosper is a P2P lending company, which means, funds will be coming from a company or individual investors, and that the company needs to respect the time these investors need to disburse the amount being loaned.

Personal Loan Features

To give you a summary of some of the most features of Prosper personal loans, refer to the list below:

  • The company provides a prequalification option, which in any way won’t affect your credit score.
  • Prosper allows a joint application, which means borrowers can have co-signers for a loan to ensure more chances of personal loan approval.
  • The lending company offers a flexible monthly due date.
  • It does not have a prepayment penalty, which means you can pay off your loan early.
  • Prosper personal loans can be used for multiple reasons like medical expenses, debt consolidation, home improvements, weddings, and anything else you need.
  • Prosper allows you to make money through investing. If you have spare cash, you can make more money by paying for portions of other people’s loans. When borrowers pay back the loan, you will acquire your money back plus interest. The amount of interest you will earn depends on the interest rates of the loans you opted to contribute to.

Refinancing Options

Unfortunately, Prosper does not offer personal loan refinancing at the moment. So, if you are considering this in making a decision, then, Prosper may not be the right lending company for you.

WHO QUALIFIES FOR A PROSPER PERSONAL LOAN?

This Prosper personal loans review will not be complete if we are not going to share one of the most important information a borrower needs to know — qualification requirements.

To qualify for Prosper personal loans, you must be able to meet the following requirements:

  • A FICO credit score of at least 640 (average is 717)
  • A maximum debt-to-income ratio of 50%
  • Must have no bankruptcies in the year prior to the application of the loan
  • Must have seven or less credit bureau inquiries in the last six months
  • Must have at least three open trades on your credit report

In addition, although Prosper did not indicate a specific annual income requirement, based on records, the average annual income of those approved for Prosper personal loans is $89,000.

Of course, similar to other lending companies, borrowers must also be:

  • A U.S. citizen or a permanent resident holder
  • At least 18 years old (or 19 in other states)

If you fit in all of the above-mentioned requirements, then, that means you qualify for a personal loan at Prosper.

HOW TO APPLY FOR A PROSPER PERSONAL LOAN?

Initially, you have to go through the prequalification process to check if you qualify for a Prosper personal loan or not. If you do, you may now proceed in completing your online personal loan application.

Depending on the information you provided, Prosper might contact you for more information particularly on the following:

  • Employer
  • Income
  • Credit History

Please note that the added screening process could take a few days to be able to complete before an approval is made.

Since Prosper is a P2P lending company, expect that your application will go through to investors who are looking for people to invest their money into. This process is also the reason why approval can take a while at Prosper.

Furthermore, since the money that you will borrow will come from investors, there could be a chance that while Prosper may have approved your loan, but if the investors or lenders do not agree to the terms, you may end up not getting your loan.

So, yeah, it is safe to say that there is a risk involved when dealing with a P2P company.

Anyway, once approved, as mentioned earlier, you will be asked to set up a bank account where the funds will be disbursed once approved and funded.

WHAT ARE THE PROS AND CONS OF PROSPER PERSONAL LOANS?

This Prosper personal loans review will not be complete without us listing down the things to like and not to like about it.

This basically is a summary of the things that borrowers need to consider before dealing with Prosper.

So, here’s what we found —

PROS

  • Minimal Credit History Requirement – Unlike other lending companies out there, Prosper approves personal loans even to borrowers with fair or poor credit history. More so, the company needs no bankruptcies within the last year, a debt-to-income ratio that’s less than 50%, and less than five credit inquiries over the last six months prior to the loan application. In addition, you will need to prove you have a source of income to repay the loan.
  • Allows Joint Applications – While some lenders do not allow co-signers, Prosper does allow you to ask a dependable friend or relative to co-sign the loan. Make sure though that your co-signer does have a good or excellent credit history for better rates.
  • Prequalification Process – Prosper do have a prequalification process, which allows you to see what to expect in terms of rates and loan amounts. Since the process will only do a soft inquiry, it won’t absolutely affect your credit score.
  • Allows Two Loans at Once – At Prosper, once you have already paid off at least six months of your initial loan, you can already take out a second loan provided that both loans will not exceed $40,000.

CONS

  • Charges Many Fees – Unlike other lenders, Prosper charges quite a few fees, which include an origination fee, late fee, as well as insufficient funds fee.
  • Limited Repayment Terms – Prosper only offers repayment terms of either three or five years, which, compared to other lenders is quite limited.
  • High Maximum APR – The maximum APR of Prosper is 35.99%, which is quite high compared to other lending companies.

FINAL THOUGHTS ON PROSPER PERSONAL LOANS REVIEW

To sum it all up, Prosper may be an ideal choice for those who have a fair or poor credit history. However, similar to other lenders, borrowers with such kind of credit score must expect a higher interest rate that could go as high as 35.99%.

Since Prosper is a P2P lending company, which means individual or company investors are the ones funding the loans, funds are not easily disbursed. It takes time, which makes Prosper not ideal for those who need cash quickly.

Similar to other online lending companies as well as traditional lenders, Prosper has its share of pros and cons or good and bad. It’s all up to you to decide if you are up for it and what it offers, or you want to look for other options.

But, hopefully, this Prosper personal loans review was able to give clarity to some of your questions, and help you come up with a decision – whether to go for Prosper or not.

Categories
Investment Apps and Websites

Upgrade Personal Loans Review: Is It The Right Online Lender For You?

With so many direct lenders around, it could get overwhelming to choose one. Thus, this Upgrade personal loans review will provide you the essential information you need in order to consider getting one from this lending company.

Upgrade personal loans review

In the United States, personal loans continue to rise. In fact, according to the Chamber of Commerce, the total outstanding personal loan debt in the country is $143 billion, while there are 21.1 million outstanding personal loans.

Personal loans continue to be one of the major types of loans with the highest number of borrowers, needless to say, the amount of money disbursed.

Furthermore, in a report by The Washington Post, based on data from Equifax, personal loans in the country are up more than 10% compared to 2018.

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LightStream Personal Loans Review: The Best Online Lender For You
Personify Financial Personal Loans Review: Is It The Right Lender For You?
Upstart Loans Review: How It Leveled Up The Online Lending Game

The increase in the number of Americans getting personal loans is quite a surprise among experts especially at a time when “the economy looks healthy and paychecks are growing for many workers”.

However, some experts believe that the “rapid growth in personal loans in recent years has coincided with a FinTech explosion of apps and websites that have made obtaining these loans an easy process that can be done from the comfort of one’s living room.”

More so, the report says that according to TransUnion, “FinTech companies account for nearly 40 percent of personal loan balances, up from just 5 percent in 2013.”

While there could be a number of probable reasons why there is a rapid increase in personal loans in the country, as mentioned, one of the factors that experts look at is the birth of financial technology companies wherein Upgrade is one of them.

Yes, Upgrade is an online direct lending company, which means, people, can easily borrow money anytime, anywhere they want to. Since we are talking about personal loans, it means, people can use it for almost anything –

So, as the title implies, we are going to particularly check out what Upgrade has to offer particularly when it comes to personal loans.

To help you understand better and learn more about the lending company, in this Upgrade personal loans review, we are going to particularly answer some of borrowers’ most commonly asked questions, which include the following:

  • Who is Upgrade?
  • What are the personal loans offered by Upgrade?
  • What do borrowers need to know about Upgrade personal loans?
  • How to qualify for an Upgrade personal loan?
  • How to apply for an Upgrade personal loan?
  • What are the pros and cons of Upgrade personal loans?

WHO IS UPGRADE?

Based in San Francisco, California, Upgrade is a direct online lending company that was launched in 2017.

The company offers personal loans, as well as a line of credit, which is known as the Upgrade Card.

Apart from the company’s headquarter in San Francisco, Upgrade also has offices in Montreal, Phoenix, as well as in Chicago.

Since its inception, as stated on its website, Upgrade has already received loan applications from more than 10 million people. If you come to think of it, that’s a huge number given the fact that the company has only been around for almost three years.

There have been over $3 billion in loans issued already from Upgrade’s partners including Pentagon Federal Credit Union, Blue Ridge Bank, and Cross River Bank.

While Upgrade is a good choice among those with good credit, it may also be an ideal choice for those with fair credit scores as the lending company has a low borrowing minimum. However, as a general rule, borrowers with fair or not-so-perfect credit scores are likely to be charged with a higher annual percentage rate (APR), a couple of fees, as well as a lower maximum loan amount.

Furthermore, Upgrade makes sure to live by its mission to reduce fees through its low-cost credit products. Also, Upgrade strives to help educate customers about their finances by offering education alongside credit monitoring. Both may help consumers improve their credit scores as time goes by.

Apart from loan products and services, Upgrade envisions of offering mobile banking services in the future.

Before we proceed with our Upgrade personal loans review, here’s one from The Smart Investor, which we thought is very insightful and might be very helpful for you as well. Click the play button below to watch the whole thing:

WHAT ARE THE PERSONAL LOANS OFFERED BY UPGRADE?

When looking for a lending company to borrow funds from, it is important to take into consideration learning about the loans it offers. In this case, the type of personal loans Upgrade offers.

At the moment, Upgrade is only offering two types of personal loans. One is fixed-rate personal loans, and the other is personal lines of credit.

For reference of those who hardly know what these are, here’s a brief explanation:

  • Fixed-Rate Personal Loans – This refers to a loan where the interest rate does not change on the whole duration of the loan. Unlike variable-rate loans, this allows borrowers to accurately predict their payables.
  • Personal Lines of Credit – This, meanwhile, refers to a loan that functions like that of a credit card as the borrower is given a specific loan amount of money that he or she can use for any purpose as needed.

WHAT DO BORROWERS NEED TO KNOW ABOUT UPGRADE PERSONAL LOANS?

When getting a personal loan, there are a lot of factors that borrowers need to consider. It’s not as if you get a loan proposal and you just immediately sign because you badly need money. Although some do it that way (especially during desperate times), ideally, borrowers should shop and compare personal loan features.

Similar to other reviews we made, at this point in our Upgrade personal loans review, we are going to look into the following loan details to help you come up with an informed decision:

  • Loan Amounts
  • Interest Rates
  • Loan Terms
  • Loan Fees
  • Co-Signer Option
  • Disbursement of Funds
  • Personal Loan Features
  • Refinancing Options

Loan Amounts

First and foremost, borrowers need to have a specific amount in mind before shopping around for a lender. That way, they get to filter their search — only focusing on companies that cater to the amount they need.

With Upgrade, the online lending company offers personal loan amounts from $1,000 up to $35,000. While it’s not as huge as what other online lending companies offer, it still within the average loan amount that a lot of lenders offer these days.

Interest Rates

Another important factor that borrowers need to consider when shopping and comparing options is the interest rate being charged by the lending company. This gives borrowers an idea of how much they will pay in the whole duration of the loan.

Similar to other lending companies, the APR charged by Upgrade to borrowers will depend on certain factors, particularly the borrower’s creditworthiness.

Depending on your qualifications, you may be charged a smaller or a higher fixed interest rate.

Upgrade charges fixed interest rates that range from 7.99% to 35.97%.

As mentioned, the company does not offer variable rate APR.

Loan Terms

Loan terms, also known as repayment terms pertains to the duration of the loan or the time length when the borrower needs to pay off the loan.

With Upgrade personal loans, borrowers can repay the loan either for 36 months or 60 months.

For some borrowers, this factor may also be considered when deciding whether to borrow from the lending company they are eyeing for or not. Borrowers may compute and see if they can manage to pay off the loan either in 36 or 60 months.

Loan Fees

Another factor that needs to be considered when borrowing money from lending companies is the fees involved.

With Upgrade, while it does not charge prepayment penalties, which means a borrower can fully pay the loan off even before the scheduled end date of the loan without being charged with a prepayment penalty, Upgrade does have a couple of other fees to watch out for. This includes the following:

  • Origination Fee – The lending company charges an origination fee that ranges from 2.9% up to 8% for all personal loans.
  • Late Payment Fee – The lending company charges $10 for late payments after a 15-day grace period.

Co-Signer Option

Fortunately, Upgrade allows borrowers to have co-signers to their loan applications. However, borrowers need to ensure that their co-signers have good or excellent credit scores to ensure the approval of personal loan applications.

Disbursement of Funds

If you need access to borrowers’ funds right away, Upgrade might just be a good choice for you.

Once you have already chosen a personal loan offer and then, your application is approved, borrowers can expect funds to be disbursed by Upgrade within one business day only.

However, in some cases, it could take up to four business days before borrowers get to access the money.

Personal Loan Features

Just to keep everything clear and for your reference, Upgrade offers these particular personal loan features:

  • Borrowers need to have good or excellent credit scores to get approved
  • The lending company offers a personal loan of up to $35,000
  • Upgrade has no hidden fees, which means whatever amount is handed to you, that’s it
  • Upgrade personal loans can be used basically for almost anything and everything
  • Unlike other lending companies, Upgrade is not available in all 50 states

Refinancing Options

For borrowers who are looking at a refinancing option with Upgrade, unfortunately, the lending company does not offer one. That means you may instead look for another provider if you badly need one.

HOW TO QUALIFY FOR AN UPGRADE PERSONAL LOAN?

To be honest, one of the most important information that a borrower must look into before anything else is the qualifications set by the lending company.

Knowing the requirements means being able to self-assess if you are going to get approved should you apply or not.

If you are planning to get a personal loan at Upgrade, you must ensure you get to meet the following requirements:

  • Must have at least 620 credit score
  • Must be a U.S. citizen or a permanent resident card holder
  • Must be at least 18 years old in most states (or 19 in states with a higher minimum age requirement)
  • Must have a valid email address
  • Must own a verifiable bank account
  • Must have at least $800 minimum monthly free cash flow
  • A maximum debt-to-income ratio of 60%

In addition, although the company has no minimum annual income set, based on records, most of Upgrade personal loans applicants earn more than $30,000 a year.

Also, while Upgrade personal loans are available in most states in the U.S., it is not available for borrowers living in Iowa, Vermont, and West Virginia.

HOW TO APPLY FOR AN UPGRADE PERSONAL LOAN?

Upgrade provides an easy online loan application process, which includes the ability to check rates with a soft pull on your credit that won’t affect your credit score.

To begin the process, all you have to do is go to Upgrade website, and click the “Get Started” button wherein you will be asked to provide basic information such as the following:

  • Name
  • Address
  • Date of Birth
  • Individual Annual Income
  • Additional Annual Income

You will also be asked to provide a valid email address and your preferred password as the system will automatically create your Upgrade account. By providing the above information, you get to check your credit line. Again, as mentioned, there is totally nothing to worry about as this won’t hurt your credit score.

By the way, for self-employed individuals, Upgrade may need more documentation from you, which may include but are not limited to the following documents:

  • Two years of tax returns
  • Form 1040 Schedule C
  • Recent bank statement(s)

Also, please note that by checking your credit line and creating an account with Upgrade, it is not tantamount to an obligation to accept a loan.

Once you are provided with loan options such as your maximum loan amount and interest rate, you can either push through with the loan application or decline.

If you are happy with the loan options provided, you may proceed by selecting an offer, which also means, Upgrade will be allowed to conduct a hard inquiry on your credit to fully process your loan application.

Please note that the hard inquiry will temporarily impact your credit score. Depending on your case, the company may ask for additional information or documentation.

Now, once done with the inquiry, the lending company will then proceed with a decision for your loan application. If approved, you will then have to review and accept your loan, as well as sign necessary loan documents.

As mentioned earlier, once your loan application is approved, expect your funds to be disbursed electronically to your bank account of choice within one up to four business days.

WHAT ARE THE PROS AND CONS OF UPGRADE PERSONAL LOANS?

Similar to other reviews we made in different lending companies in the past, this Upgrade personal loans review will not be complete without us tacking the pros and cons of getting an Upgrade personal loan.

This, we hope, will help borrowers have clarity when it comes to what to expect on Upgrade’s personal loans, at the same time, be able to make an informed decision in the end.

Having said that, below are some of the major thing to like and not to like about Upgrade personal loans:

PROS

  • Payment Flexibility – The lending company lets borrowers change the payment date to fit their monthly budget, which is not common among other lenders.
  • Allows Co-Signers – Upgrade lets borrowers apply for a personal loan with a co-signer provided that the co-signer has a good or excellent credit score to ensure approval of the loan. The general rule when it comes to lending applies to have a co-signer, which means if your co-signer does have a good credit score, the likely you are to have a better interest rate. Unfortunately, co-signers are for personal loans only. It does not apply for personal lines of credit applicants.
  • Prequalification Option – Unlike other online lending companies, Upgrade does provide a prequalification process, which allows borrowers to check rates and loan amounts. It conducts a soft pull on the borrower’s credit, which does not impact his or her credit score at all.
  • Quick Disbursement of Funds – Similar to a lot of online lending companies, Upgrade also provides funding for as soon as one business day after getting approved of a personal loan. Otherwise, expect to have access to the funds within four business days.
  • Loans for Less-than-Perfect Credit – Although Upgrade is known to provide loans for a good or excellent credit score, the company is also ideal for borrowers with not so perfect credit. Although of course, having such credit standing means a higher interest rate.

CONS

  • Fees – Although Upgrade does not charge prepayment penalties, it does charge origination (amounting to 2.9% to 8%) and late fees ($10).
  • Less Competitive APR – To be honest, other online lending companies do have better APR as compared to what Upgrade offers. Upgrade charges 7.99% to 35.97% APR depending on your creditworthiness.
  • Average Loan Amount – Upgrade offers personal loans of up to $35,000 only, which means, if you need more than that, you may need to find other options.

FINAL THOUGHTS ON UPGRADE PERSONAL LOANS REVIEW

Upgrade is an online lender that provides fairly affordable personal loans as well as lines of credit to consumers who have decent credit scores or even way better. However, Upgrade may or may not be the best option depending on your needs.

As you know by now, we have provided some of the things we like and we do not like about Upgrade, which means, based on that list, it shows that it may or may not fit certain types of borrowers.

As we always say, ideally, it is always best for borrowers to shop and look around and compare before deciding where to borrow money from to be able to get the best deals possible.

With Upgrade, based on the information we shared, we thought it’s best for people with good or excellent credit scores who need money worth not more than $35,000. Otherwise, other lending company may be ideal for you.

How about you? How do you find Upgrade? Did it meet your expectations?

Well, we hope that through this Upgrade personal loans review, we were able to provide you all the essential information you need as you make an important financial decision.

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Upstart Loans Review: How It Leveled Up The Online Lending Game

One thing we can assure you — this Upstart loans review will provide you the essential information you need to be able to gauge whether it is the right online lending company for you or not.

Upstart loans review

In a 2019 report published by CNBC online, it says that personal loans in the United States increased to a record-breaking $138 billion that year. One of the reasons behind the surge, experts believe, is the advent of financial technology or more popularly known as fintech companies.

In the same report, it says that currently, fintect companies comprise 38 percent of their personal loan market, which is up from just 5 percent five years ago at the time according to data presented by TransUnion.

Well, fintech companies are known to be more convenient, easy, simple, needless to say, quick to provide cash. These factors definitely have triggered the rise of people using it to borrow money from instead of a typical financial institution like traditional banks and credit unions.

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With almost everything going online, it’s expected already that online lending companies will be a hit. Well, given the factors we mentioned a while ago, who would not give in into that, right?

Now, as mentioned, there are a lot of online lending companies out there to choose from, and the number is expected to rise more in the coming years, which makes fintech really competitive. No wonder why fintech companies have their respective ways or ideas on how to make each of them attractable to borrowers.

One of the companies that we thought has managed to play the game right and made steps ahead from other online lending companies is Upstart. Having been built by founders who were once was part of the ever famous, phenomenal, Google, well, what do you expect, right? It got to be something really good.

Are you excited to know more about Upstart?

Well, hang in there as we are going to provide you some of the most essential information every borrower needs to know. In particular, we are going to provide answers to the following questions:

  • Who is Upstart?
  • What are the different personal loans offered by Upstart?
  • What do borrowers need to know about Upstart personal loans?
  • Who qualifies for an Upstart personal loan?
  • How to apply for an Upstart personal loan?
  • What are the pros and cons of Upstart personal loans?

WHO IS UPSTART?

We always say this, first and foremost, borrowers need to make time to get to know the lending company they are eyeing for before dealing with them. It is important to research about them, get to know them, so you get to establish how credible the company is, plus the reputation they have when it comes to the business or industry they’re in.

Learning about the lending company will also help build trust and confidence on the borrowers’ part, knowing that should he or she encounters unexpected circumstance during the life span of the loan, he or she is assured that the company has programs to help them up.

Anyway, having said that, here’s a short overview of who Upstart is and what the company does:

Upstart was founded in 2012 by former Google executives. With founders having such background, it is not surprising that Upstart leveled up its game in the online lending industry.

The company provided consumers a unique experience being the first-ever online lending platform to use artificial intelligence to automate the whole lending process. Upstart goes the extra mile to offer loan products and services to a wider range of consumers.

Since the birth of the company, Upstart has already originated $3.2 billion in loans, and that 60 percent of which have been automated.

Furthermore, while other online lenders or even traditional lending companies focus on the borrower’s FICO score when approving a personal loan application, Upstart, meanwhile, uses their advanced technology to look way beyond the borrower’s credit score in quantifying the risk involved.

Based on the calculations, the company believes that lenders using a more intuitive credit model may be able to approve twice as many borrowers without having increased defaults, which is the usual concern among lenders.

As with consumers, Upstart was able to offer high-quality personal loan options that come with low rates as well as fair terms particularly to borrowers with unattractive credit.

To date, Upstart has earned mostly good reviews from its users. Well, with so much promise based on the information we provided so far, having good reviews is not surprising at all.

Now, before we continue with our Upstart loans review, here’s one from How To Get An 800 Credit Score LLC, which we thought is an informative resource you may want to check:

WHAT ARE THE DIFFERENT PERSONAL LOANS OFFERED BY UPSTART?

One feature that keeps Upstart ahead, rather set apart from its competitors is its borrowing flexibility.

According to Upstart, as advertised, their personal loans can be used for any occasion. Some of which are as follows:

  • Pay off credit cards
  • Start or expand a business
  • Pay medical bills
  • Make a large purchase
  • Relocate
  • Travel
  • Athletic training
  • Make home improvements
  • Other

In addition, borrowers can also use an Upstart personal loan to cover educational expenses (pay for college or graduate school, take a course or boot camp) as well as in paying off existing student loans. This feature, however, is not applicable in California, Connecticut, Illinois, Washington, or Washington, D.C.

WHAT DO BORROWERS NEED TO KNOW ABOUT UPSTART PERSONAL LOANS?

By now, you already know what Upstart is all about and the personal loans it offers. At this point in our Upstart loans review, we are going to look deeper into the details.

In particular, let’s get to the following one by one:

  • Loan Amounts
  • Interest Rates
  • Loan Terms
  • Loan Fees
  • Disbursement of Funds
  • Personal Loan Features
  • Refinancing Options

Loan Amounts

Before anything else, borrowers need to determine how much they actually need. Next, is to check the lending company they are eyeing for if the amount they have in mind is within the range of the lender’s loan amounts. Doing this will definitely help trim down your options, needless to say, will help save time and energy.

Anyway, for Upstart, the lending company provides personal loans to borrowers amounting from $1,000 up to $50,000.

Considering that many other lenders usually lend up to around $30,000 only, Upstart’s loan amount range is definitely ideal for people who need a larger amount of cash.

Interest Rates

When deciding where to borrow money from, another important consideration that a borrower needs to look into is the annual percentage rate for the loan. The APR varies from one lending company to another, so, it’s best to really shop around and compare.

With Upstart, the company provides fixed interest rates ranging from 8.13% up to 35.99%. Of course, as a general rule, the APR will depend on the qualification of the borrower. The more attractive your credit records are the better rates. Otherwise, the higher the rates will be charged.

Unfortunately, as of June 2020, Upstart does not offer variable rate loans to borrowers.

Loan Terms

Loan terms refer to the length of time you are required to pay off the loan. Lending companies have varying loan terms.

As for Upstart, repayment terms come in two options — three years and five years.

If you are a borrower, consider this factor as well before applying for a personal loan at Upstart. If you think you are capable to pay off the loan within the above-mentioned terms, then, go ahead and submit your loan application. Otherwise, if you think you cannot afford to repay the loan in 3 to 5 years, then consider other lenders out there.

Loan Fees

While there are a lot of good things about Upstart, as the saying goes, nothing is perfect.

When it comes to fees, this probably is where Upstart is beat by its competitors.

Getting a personal loan through Upstart may come with a few fees attached, which borrowers need to be prepared of.

The potential costs include the following:

Origination Fee – Unlike other online lending companies, Upstart charges an origination fee that ranges between 0% and 8% of the loan amount. The fee will come directly out of your loan proceeds. So, better take that into consideration when deciding the loan amount you are going to borrow.

Late Payment Fee – Upstart charges 5% of the monthly past-due balance or $15, whichever is greater. Late fee is charged to your account once you are more than 10 days past your payment due date.

ACH Return or Check Refund Fee – The company charges $15 for ACH or check returned due to insufficient funds. Take note that Upstart considers each payment attempt to be a separate transaction, which means you will be charged $15 each time your payment fails.

Paper Copies – If you prefer paper copies of your records, you will be charged a one-time fee of $10.

The good thing though is, if you wish to pay off the loan sooner than expected, you can definitely do so without being charged with a prepayment penalty.

Disbursement of Funds

Do you need the money as soon as possible?

If your answer is yes, then Upstart may be the right online lending company for you. The company is a good fit for those who need fast access to the money they borrow.

According to Upstart, 99% of the company’s approved loan applicants receive their loan proceeds as soon as one business day after accepting their loans.

For the fast funding to be possible though, borrowers need to accept their loan by 5 pm EST, except on weekends and holidays.

Meanwhile, if you plan to use the loaned amount for educational purposes, please note that there is a three business day waiting period as required by federal law.

Personal Loan Features

We figured there are three Upstart personal loan features that borrowers need to know. These are:

  • Online Application
  • Soft Initial Credit Inquiry
  • Second Loan

Online Application

Upstart is an all-online lending platform, which means there are no other ways to apply for a loan but online.

The online process, however, makes it easier for loan applicants as they can apply anywhere, anytime they want.

For borrowers who prefer loan applications done either over the phone or in-person, this may not work for you.

Soft Initial Credit Inquiry

Similar to most lenders, Upstart lets borrowers see if they prequalify for a loan, at the same time, check the possible rate through a soft credit inquiry process.

Do not worry as such a credit check will not affect your credit score. It will not appear on your credit reports at all.

Now, should you accept the rate and decide to continue on with an official application, the company will then perform a hard credit inquiry, which could potentially affect your credit score temporarily.

Second Loan

What’s nice about Upstart is that even if you already have an existing loan with them, you may still be able to acquire a second loan. However, to qualify for the second loan, you must be able to meet the following criteria:

  • The last six monthly payments you had must have been made on time.
  • You should have no more than one outstanding loan with Upstart.
  • The total of both the first and second loans should not be higher than $50,000.

Refinancing Options

As mentioned earlier, Upstart personal loans can be used for almost anything, which includes refinancing other debts.

However, Upstart specifically note that borrowers can use the loan proceeds only for the following reasons:

  • Paying off student loans
  • Paying off credit card debts

WHO QUALIFIES FOR AN UPSTART PERSONAL LOAN?

Knowing the qualifications set by Upstart is key to learn if you can apply for a personal loan is not.

Of course, this Upstart loan review will not be complete without us providing you with the right information.

To qualify for an Upstart personal loan, you must be able to meet the following requirements:

  • Must have a permanent street address in the U.S. (unless active duty military)
  • Live in a state other than West Virginia or Iowa
  • Must be at least 18 years old in most states or at least 19 in Alabama and Nebraska
  • Must have a valid email account, name, date of birth, and Social Security number
  • Must have a valid U.S. bank account
  • Must have at least 620 credit score (in most states)
  • Must earn an annual income amounting to at least $12,000
  • Must have a full-time job or offer starting in six months, a regular part-time job or another source of regular income
  • Should not have a recent bankruptcy or outstanding delinquencies

If you pass all the requirements set, then, it’s time to work on your loan application process.

HOW TO APPLY FOR AN UPSTART PERSONAL LOAN?

Once you are ready to pursue a formal personal loan application with Upstart through its online platform, all you have to do is proceed to Upstart’s online portal.

You will have to first get “pre-qualified for a loan” through their interface. This can be done after the following information is submitted:

  • Name
  • Income
  • Employment details
  • Address
  • Phone number
  • Email address

Once the system says you are prequalified, you may not decide whether you like the loan terms offered or not. Now, if you are happy with the terms, you may now proceed by completing the application process.

Additional information such as the following will be required:

  • Social Security number
  • Employment verification
  • Academic credentials
  • Bank statements

If the personal loan application is approved, you will immediately receive an instant notification verifying your new loan details. Upstart also provided an option for borrowers to have their loan funded with an automatic deposit in their bank accounts. Funds are disbursed as soon as the next business day.

WHAT ARE THE PROS AND CONS OF UPSTART PERSONAL LOANS?

This Upstart loans review will not be complete without our list of what to like and what not to like about the personal loans offered by Upstart.

Having said that, here’s what we found —

PROS

  • Borrowing Flexibility – Unlike some lenders that are restrictive when it comes to where borrowers can use the money, Upstart personal loans lets you spend your loan for almost anything.
  • No Prepayment Penalty – While some lenders charge prepayment penalties, Upstart lets you pay off the loan as soon as you can without having to worry about being charged with a prepayment penalty.
  • Fast Fund Disbursement – As stated by Upstart, 99% of their loan applicants were able to access the funds in just one business day after they have accepted their loans. However, those who are using the money for education-related expenses, as required by the federal law, funds will be disbursed after three business days.
  • Bigger Loan Amount – Upstart lets you borrow up to $50,000, which is definitely bigger as compared to other lenders out there.

CONS

  • Fees and Charges– While it does not charge prepayment penalties, Upstart comes with a lot of fees, which borrowers need to be prepared of.
  • No Secured or Co-Sign Option – Unfortunately, if you are looking at having a co-signer for the loan, Upstart does not have an option for that.
  • High Average APR for Three-Year Loan – APR for a three-year loan can go as high as 20%. The APR can in fact, equal to monthly payments of $35 per $1,000 you borrow.
  • High Maximum APR – Compared to other lenders that offer personal loans to fair credit borrowers, Upstart has a high maximum APR.

FINAL THOUGHTS ON UPSTART LOANS REVIEW

Surely, Upstart leveled up their game by being the first online lending platform to use artificial intelligence to automate the whole lending process. Needless to say, the company has definitely provided consumers a very convenient lending platform.

While there are a lot of things or features to like about Upstart personal loans, it does have its share of downsides, too, which is normal. Nothing is perfect, remember?

To end this Upstart loans review, we hope that you got all the information you need in order to come up with a final decision about getting a loan from Upstart or consider looking out elsewhere. Yes, the decision is all yours now.