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Investment Apps and Websites

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.

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Investment Apps and Websites

Personify Financial Personal Loans Review: Is It The Right Lender For You?

In this Personify Financial personal loans review, we’ll share with you why this lending company is a good option among people with less-than-stellar credit.

Personify Financial Personal Loans Review

Online lending companies have become popular over recent years. In fact, the online lending companies have grown and have become one of the go-to places of people in need of money. Well, we thought the popularity is because it’s easier and more convenient to apply for loans with them. Needless to say, funds are easily provided (most online lenders send funds in as soon as within the day of a loan application).

In an article published by CNBC online, it says that according to TransUnion, the unsecured personal loan market hit an all-time high in 2018, “surging 17 percent year over year to $138 billion“.

With the increase, experts believe that one of the major factors that affected it is the existence of digital-first financial technology (fintech) companies.

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Based on the report, in 2018 alone, “fintech companies issued 38 percent of all U.S. personal loans“. Meanwhile, traditional bank’s share was down to 28 percent, as credit unions are also down to 21 percent.

You see, digital technology has indeed changed even the way people borrow money. Well, for sure you, too, will agree that digital or online lending companies have really made loaning money easier and more accessible.

The online lending industry is growing, and experts believe it will continue to grow in the coming years. With so many options around, sometimes it can get a little intimidating and overwhelming to choose one.

Now, among the many options available, Personify Financial is one of them.

Having said that, we are going to do a Personify Financial personal loans review, which we hope will serve as your guide as you make a decision as to where to borrow money from when the need arises.

To be guided, we are going to tackle the following:

  • Who is Personify Financial?
  • Why choose Personify Financial?
  • What do you need to know about Personify Financial personal loans?
  • Who qualifies for a Personify Financial personal loan?
  • How to apply for a Personify Financial personal loan?
  • What are the pros and cons of Personify Financial?

Before we head onto with our review, here’s a quick personal loan 101 first by MoneyCoach in case you need to refresh your memory:

WHO IS PERSONIFY FINANCIAL?

Before anything else, borrowers need to know at least a little about the lending company they are eyeing for. Getting to know who Personify Financial, for this matter, is important to know how credible the company is especially since they work entirely online.

As a borrower, you also need to ensure that you are dealing with a legit and credible company to avoid wasting time and effort.

Having said that, here are a few things you need to know about Personify Financial —

Personify Financial is an online lender known for specializing in smaller loans. The company aims to provide financial assistance to borrowers who have a poor credit history. But of course, that means getting charged for up to a triple-digit APR.

Personify Financial offers personal loans with no collateral requirements to eligible borrowers. Thus, it makes it even more ideal for people who badly need cash but do not have collateral to serve as a loan guarantee.

The company’s personal loans are offered by Applied Data Finance, LLC, which is a direct lender that was founded in 2015 and based in San Diego, California.

To date, Personify Financial is available in 26 states across the United States of America. However, the company is headquartered in Dallas, Texas.

WHY CHOOSE PERSONIFY FINANCIAL?

On their website, Personify Financial claims that they are “different,” and here are some of the reasons they provided:

  • The company ensures borrowers of a simple and fast online loan application process. With people now being on-the-go, and busy with a lot of things, Personify wants to ensure that you only need a little of your time to be able to finish the whole loan application process. Since it’s online, you can do it anywhere and anytime you want.
  • Although the process was made easier and quicker, rest assured that the company does complicated calculations as well as comparisons to see if they can help borrowers with the amount of money they need.
  • The company is not only open for high-credit customers, but also to those who have a less-enticing credit score. So, if you are someone who’s in need of funds but does not have a good credit score, Personify may just be the right partner for you.
  • Personify guarantees borrowers that while other lenders may consider just a few pieces of information, Personify does look at many and make sure that they get to see the borrower’s whole financial story.
  • Personify Financial uses powerful technology to be able to provide outstanding service to customers.
  • Unlike other online lenders, borrowers are assured that with Personify Financial they get to deal with real people and not loan-bots.

Apart from the above-mentioned characteristics that make Personify Financial different from other online lenders, here are a few more why you should choose the company over many others:

  • It provides fast access to cash. Depending on the case of your application, you can get your money in as quickly as within 1 business day.
  • Borrowers with a credit score of as low as 560 can apply for a loan. Yes, Personify is a good option among borrowers with poor credit. But of course, expect a high-interest rate in return (which is not surprising because it’s a general rule in the lending industry).
  • No prepayment fee, which means if a borrower wants to pay off the loan earlier than the maturity date, he or she may do so without having to worry about getting charged with a prepayment fee.

WHAT DO YOU NEED TO KNOW ABOUT PERSONIFY FINANCIAL PERSONAL LOANS?

So, now that you already know what Personify Financial is all about, and consider rather choose them over other online lenders, it’s time to look into the different factors of a Personify Financial personal loan.

At this point in our Personify Financial personal loans review, we are going to specifically give you detailed information regarding the following aspects of a personal loan:

  • Loan Amounts
  • Uses
  • Interest Rates
  • Loan Terms
  • Funding
  • Fees
  • Prequalification
  • Availability
  • Customer Service

All of the above-mentioned are very important in your decision-making. Thus, make sure to take note of the information provided.

Loan Amounts

Before anything else, it is important that you already know in mind how much money you need. That way, it’s easy to forego of choices on your list by the amount of loan they offer alone.

Now, for Personify Financial personal loans, the company can lend money of as low as $1,000 up to $10,000 max.

However, it is important to note that loan amounts vary from one state to another. Thus, it is important to check on that, too.

Uses

Personify Financial personal loans can be used pretty much for anything like home improvements, special purchases, weddings, or other similar life events, debt consolidation, medical expenses, unexpected expenses, and other similar purposes.

Interest Rates

Another important factor that you need to consider when borrowing money from lending companies is the annual percentage rate or APR they charge.

At Personify Financial, the company offers a personal loan product that ranges from 35% APR up to 199% APR. The APR, though, will depend on several factors like the borrower’s credit score, as well as his or her area of residence.

Now, although technically, Personify Financial is not a payday loan, the interest rate can still get that high as compared to other online lenders. Again, certain factors have something to do with that. Keep in mind also that the personal loans they offer are unsecured loans, which means the company does not require collateral as a guarantee.

Loan Terms

To ensure that you are able to pay off the loan, make sure to also look into the repayment terms that a lending company offers.

At Personify Financial, personal loans have terms that range from 12 up to 36 months.

The good thing about longer terms is that borrowers have more time to pay off with less monthly payment. However, this may mean a higher interest rate as well.

Meanwhile, paying it off sooner means lower interest. So, make sure to think about that as well.

Funding

Once approved of a Personify Financial personal loan, disbursement of money is done within one to two business days.

Fees

Personify Financial does not charge both application and prepayment fees. However, it does charge origination and late fees.

For the origination fee, the charge depends on the state. It ranges from 0% up to 5% of the loan amount. What Personify does is that they automatically deduct the fee from the loan about before disbursing the money to the borrower.

With that, borrowers must ensure that the fee is taken into account when deciding how much they will borrow from the company.

As with late payments, it is not clearly stated how much the company charges, but they do.

To avoid getting charged for late fees, make sure to always have enough money in your account.

Prequalification

Unlike other online lending companies, Personify Financial allows borrowers to apply for prequalification. They may complete a soft credit inquiry, which basically means the borrower’s credit score will not be affected.

If the borrower prequalifies, he or she will be able to see the estimated loan rate as well as loan terms that he or she might be approved for.

Availability

Currently, Personify Financial is available in 26 states in the US. These are as follows:

Alaska, Alabama, Arizona, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Mexico, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, Washington

Customer Service

If you have questions regarding Personify Financial personal loans, you may reach them at 1 (888) 578-9546.

You may also send them an email through their website, and through mailing at PO Box 208417, Dallas, Texas 75320-8417.

WHO QUALIFIES FOR A PERSONIFY FINANCIAL PERSONAL LOAN?

In this Personify Financial personal loans review, we are also going to tackle the qualifications the company has when it comes to those applying for a personal loan.

Knowing the qualifications set by the company is important so borrowers can self-assess. By doing so, he or she gets to save time and effort, too.

As mentioned earlier, Personify Financial is open to personal loan borrowers with a credit score of at least 560 up to 750.

Apart from the credit score, the company also look into the following qualifications:

  • The loan applicant must be at least 18 years old or the state minimum (whichever is higher)
  • Must be at least a permanent resident or green card holder

Furthermore, personal loan applicants must be able to provide the following documentation:

  • An active and valid personal checking account
  • Recent pay stubs
  • Proof of citizenship or residence permit

You see, that’s all they need to assess your personal loan application. True to their promise of an easy and quick personal loan application process.

HOW TO APPLY FOR A PERSONIFY FINANCIAL PERSONAL LOAN?

As mentioned earlier, Personify Financial does have a prequalification process, which can be done in just a few minutes.

To do the prequalification process, all you have to do is head on to the company website, and then, hit the “Get Started Now” button. You will then automatically be directed to the prequalification page wherein you will be asked to enter the following information:

  • Name
  • Email Address
  • Postal Address

If you pre-qualify and decide to pursue a personal loan application at Personify Financial, here are the steps to follow:

1. Fill out the online application form.

You will be asked to provide information like your name and address, your phone number, date of birth, as well as your Social Security number. You will also be asked to indicate the amount of money you will borrow, the purpose of the loan, as well as your monthly post-tax income, and your source of income.

Furthermore, you will also be asked to provide details about your employer and how often you get your income.

2. Allow Personify Financial to get in touch with you and pull your credit reports.

Personify Financial will ask your consent if they can contact you and pull your credit report to first, validate your identification, and to check your credit history and see what the company can offer you in terms of the loan amount, etc.

3. Personify Financial will conduct a hard credit check.

In relation to the above, once you have given consent, the company will proceed to do a hard credit check, which can adversely impact your credit score.

4. Wait for a reply from Personify Financial regarding the status of your personal loan application.

According to Personify, they will send a same-day response regarding your qualification, as we well as the amount of money you can borrow, and the loan terms.

5. If the loan is approved, receive your funds within 24 to 48 hours.

One thing that Personify promises is that once your loan application is approved, the disbursement of funds will be automatically processed so you get the money within one business day or up to two business days.

WHAT ARE THE PROS AND CONS OF PERSONIFY FINANCIAL?

Of course, this Personify Financial personal loans review will not be complete without sharing with you the pros and cons of dealing with this lending company.

This list will definitely help every borrower come up with an informed decision as you can compare it to other online lending companies out there.

PROS

  • Personify Financial makes a good option for people with a poor credit score. While other lending companies rely on the borrower’s credit score when making decisions on a personal loan application, Personify does not grant loans based on it alone. Thus, making it an option for people with not so good credit or no credit at all.
  • It does offer a loan prequalification. A prequalification helps a lot for borrowers to have an idea about the possibility of getting approved for a personal loan. The good thing about the prequalification process is that it only does a soft credit check, which means it won’t affect a borrower’s credit score.
  • It does not charge a prepayment fee. Unlike other online lending companies, Personify Financial lets borrowers pay off the loan as soon as they can without having to worry about getting charged with a prepayment fee.
  • It helps borrowers build credit. Personify Financial reports every payment made to the credit bureaus, which makes it ideal for those who want to build a good credit score.
  • Funding is disbursed within one to two business days. This may not be unique to Personify, but this makes it one of the lending companies borrowers can go to if they need cash immediately.

CONS

  • The annual percentage rate could go as high as 199%. Unfortunately, for those with bad credit, your interest rate could go as high as 199%. But the actual rate does not rely on that alone, as factors like the amount of loan, terms, and location are also considered.
  • Borrowers have no other means to apply but online. This should not be an issue at all, to be honest, unless of course, you have problems with internet access.
  • The company charges origination and late fees. Origination fee can go as low as 0% up to 5% depending on the state you’re in. Meanwhile, late payments are also charged.
  • Personify Financial is only available in 26 states. Unfortunately, the availability of Personify is limited. Makes sure to check the list we provided earlier to know where it operates.

FINAL THOUGHTS ON PERSONIFY FINANCIAL PERSONAL LOANS REVIEW

Personify Financial has definitely had everything that borrowers can expect from an online lending company.

Now, with all the information we provided, do you think Personify is the right online lending company for you?

To end this Personify Financial personal loans review, we have to say that with all the information we gathered, this lending company is definitely a good option especially for borrowers who are either problematic or need to work on their credit.

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Investment Apps and Websites

Avant Loan Review: How It Fairs In the Online Lending Industry

This Avant loan review will give you the information you need in order to determine whether or not this online lender is the right one for you. Furthermore, this review will help you understand what Avant is all about and what it does really to help people seeking financial assistance especially in times of emergencies.

Avant loan review how it works

We cannot run away from unfortunate financial situations. Sometimes, life will suddenly put you in circumstances that are beyond your control, and end up needing more cash than what you already have. While some people are fortunate enough to have savings to pull them through the hard days, others don’t. Thus, the need for lending companies — to borrow money, particularly for immediate needs.

There are so many online lending companies out there. In fact, too many that you will end up getting overwhelmed as to which one to choose.

One of the companies, though, that offers online lending services is Avant. Today, we are going to highlight and specifically talk about it – particularly on what it is all about, what products does it offer, and how it works.

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Before we proceed to discuss about Avant, here’s an interesting fact about the loan market in the country.

In an article published by CNBC, it says that the financial technology or fintech (where Avant belongs) companies currently make up 38% of the personal loan market in the US. This is higher by 5 percent from five years ago. The data was provided by TransUnion.

This data shows that Americans today run to up and coming fintech firms instead of going to traditional banks to loan money from.

Furthermore, the article stated data still from TransUnion that the “unsecured personal loan market hit an all-time high last year, surging 17 percent year over year to $138 billion.” This, according to the report, is because of the rise of digital financial technology companies.

Well, to be honest, how can you not get into this when online lending companies make borrowing money so much easier than traditional lenders like banks.

Anyway, so going bank to Avant, which, as mentioned, is one of the many successful online lenders out there, we are going to look into it deeper. Specifically, we are going to tackle some of the most common information any borrower would want to know about this fintech institution.

Some of the things we are going to discuss are as follows:

  • What is Avant?
  • What Avant’s key features are?
  • How to apply for Avant personal loan?
  • What are the different types of personal loans offered by Avant?
  • How much is Avant’s loanable amount?
  • What is Avant’s APR?
  • What is Avant’s loan terms?
  • How to qualify for an Avant loan?
  • What are the fees and charges involved?
  • Does Avant have a refinancing option?
  • How is Avant’s customer service?
  • What are the pros and cons of using Avant?

AVANT AT A GLANCE

Before anything else, here’s quick information regarding Avant. This will help you have an idea of what Avant offers to borrowers like you, at the same time, what you can expect from the company.

Name of Lender Avant
Loanable Amount Minimum: $2,000 Maximum: $35,000
Minimum Credit Score Required 580
APR 9.95% to 35.99%
Amount of Time to Receive Funds Within one business day

By the above data alone, perhaps you already have an idea of whether Avant is perfect for you or not. However, we recommend you go over everything first before making a decision. After all, it is just a glimpse of the entire thing that Avant offers/provides.

WHAT IS AVANT?

Avant is tagged as one of the largest online lending companies that focuses on consumers with low credit scores. It is has been contracted with Webank, which is an FDIC-insured financial institution to act as the originator of the company’s personal loans.

Founded in 2012, this Chicago-based company has already issued over 800,000 personal loans.

As mentioned, Avant aims to provide financial assistance to the “typical middle-class American consumer,” according to Adam Hughes, the company’s president.

Although most of its customers have credit scores ranging from 600 to 700, Avant requires a minimum credit score of 580 only.

Based on what it offers, we got to say that Avant is an ideal personal loan for those people with bad to fair credit scores.

Meanwhile, some of the consumer-friendly features that Avant offers include transparency of rates and fees, flexible payment options (which includes the borrower’s ability to add or change payment), and soft credit checks for pre-qualification.

Apart from a personal loan, which is our focus on today’s review, Avant also offers credit card options.

WHAT AVANT’S KEY FEATURES ARE?

Avant’s personal loan offers a few features, which include customer service support, as well as the Avant app.

The former, we will discuss further in the latter part of our Avant loan review.

Meanwhile, with regards to the Avant app, it is available for both Android and iOS phone users. You can use the app to do actions such as:

  • Tracking upcoming payments
  • Viewing payment history
  • Receiving notifications regarding your account details
  • Viewing of payoff quotes
  • Making additional payments

Based on the ratings received by the app from both Android and iOS users, the Avant app seems to be very well received.

WHAT ARE THE DIFFERENT TYPES OF PERSONAL LOANS OFFERED BY AVANT?

Avant offers two major products – Personal Loans and Credit Cards. Today, however, we are focusing on the former – thus, the reason why it’s Avant loan review, obviously.

With regards to the Avant loan product, the company allows applicants to apply for personal loans for a number of reasons, which include:

  • Relocation Expenses
  • Debt Consolidation
  • Home Improvement Projects
  • Car Repairs
  • Vacations
  • Major Life Events (such as a wedding)

As you can see, Avant is pretty much flexible in terms of reasons for loaning money. You can basically borrow for any reason – as long as you can pay the amount you borrow, of course.

HOW TO APPLY FOR AVANT PERSONAL LOAN?

The application process is pretty simple. First, it involves a soft credit inquiry. This is done so the company can check what sort of terms you are qualified for. After this, you will be asked to submit a full application.

To give you a glimpse of the whole process, here are the things that you will be asked to do:

Fill out the initial application online. You will be asked to provide personal information like your address, Social Security number, the reason for the loan, income details, as well as the amount of money you are loaning for.

Review loan offers provided. Once you have selected, you will be asked to agree and create an Avant online account before proceeding to the next step.

Verify personal information. Before submitting the required documents, you will be asked to verify your personal information. A number of questions will be asked to prove your identity.

Provide required documentation. This includes documents like your contact details of your employer, as well as your proof of income.

Upon approval of your loan, you will be asked to sign your loan agreement. Once done, expect to receive your loaned money within the next business day or two via bank transfer.

Interested to know more about how you can avail of a loan from Avant? Here’s a video from Houston McMiller where you can get more ideas from. Just click the play button to watch the video:

HOW MUCH IS AVANT’S LOANABLE AMOUNT?

Avant personal loans generally anywhere between $2,000 and $35,000, which we find fair enough for a fintech company like Avant.

Meanwhile, it is also important to note that the actual loan amount varies from one state to another — depending on your state laws.

WHAT IS AVANT’S APR?

For this Avant loan review, we are also going to share with you the company’s annual percentage rate or APR. This will definitely help you in deciding whether Avant is ideal for you according to what you can afford (in terms of paying debts),

Anyway, Avant has fixed-rate loans with APRs that range from 9.995% up to 35.99%. The APR depends on the duration or length of your personal loan. Please note though that the rate mentioned does not include yet the administration fee that costs up to 4.75%.

It is also worth sharing that the best APRs go to those borrowers with good credit history. Although Avant is open for borrowers with not-so-good credit standing, they also lend money to people with good credit history.

WHAT IS AVANT’S LOAN TERMS?

Also, part of this Avant loan review is checking or looking into this online lender’s lending terms.

Avant offers unsecured loans, which amounts from $2,000 up to $35,000. However, minimum loanable amounts vary from one state to another depending on the state laws as we earlier mentioned.

Generally, the terms you qualify will depend on the state where you live, as well as your creditworthiness. Avant’s loans come with repayment terms, which range from 24 to 60 months. But, like any other lenders out there, you are absolutely free to pay off your loan anytime you want — as early as you can. Unlike other online lenders out there, Avant does not charge a prepayment fee.

The good thing about paying off your loaned money early is that it will help decrease the amount you will have to pay in interest over the term of your loan.

By the way, approved loan applications receive their money within the next business day or two.

HOW TO QUALIFY FOR AN AVANT LOAN?

Of course, like any other Avant reviews out there, we are also going to share with you one of the most important aspects of borrowing money — the qualifications or requirements.

The online application with Avant is very simple to follow. However, you have to be prepared with the documents you need when applying for a loan. These documents include:

  • Personal information (such as address, phone number, email, and Social Security number)
  • Monthly net income
  • Monthly housing payments
  • Loan amount
  • Credit score
  • Loan reason

Before we move on, allow us to give highlight the credit score requirement. It is important to take note that Avant does not list an across-the-board minimum credit score requirement. In fact, the company states that credit scores are considered in context with the borrower’s overall financial profile.

Avant, however, mentioned it on their website that while they are not particular with a specific credit score, most of their approved loans have credit scores that range from 600 up to 700.

Going back to the requirements for borrowers, here are a few more:

  • Must be at least 18 years of age
  • Have a valid identification
  • Have access to a bank account that is accepting ACH (or electronic) transfers

Once your loan is approved, Avant has an online calculator that displays a chart with individualized options, which includes fixed monthly payments for various loan lengths, as well as its corresponding interest rate.

You will then have to select a repayment option. Once done, you will see the details, which include the total amount of the loan, the subtracted application fee, as well as the total amount deposited into your bank account.

To complete the transaction, you will need to sign your loan electronically. You will also be asked to provide your bank information where the loaned money will be deposited. You can choose either automatic monthly debits or remotely created checks.

Please note though that while checking your loan options won’t affect your credit score, it will, however, urge Avant to do a hard credit check, which may affect your credit score.

WHAT ARE THE FEES AND CHARGES INVOLVED?

Another important thing that you need to consider as a borrower is the company’s fees and charges. As a borrower, you do not want to get surprised by fees and charges, right?

Having said that, here are some of Avant’s fees and charges/penalties:

Avant charges an up to 4.75% administration fee (this goes with your loan amount)

A late fee amounting to $25, plus an additional $15 if you do not have enough money in your bank account to cover your monthly installment/payment

Apart from the above-mentioned fees and charges, nothing else follows. If you come to think of it, Avant has very few fees and charges as compared to other online lenders out there. This perhaps is one of the reasons why the company has earned its spot in the online lending industry.

DOES AVANT HAVE A REFINANCING OPTION?

According to Avant, some of their customers may be eligible to refinance their loans for a higher loan amount. More so, they can have it on a possibly reduced rate.

However, to qualify for loan refinancing, you have to make payments for at least six months on your loan.

HOW IS AVANT’S CUSTOMER SERVICE?

As mentioned, Avant is an online lender. Thus, it is normal that borrowers or customers look into their customer service support. This is to ensure that should they encounter problems or concerns or have questions regarding their loans, they have someone to talk to.

Good thing, Avant do have a few options with regards to customer service support. Borrowers may get in touch through their email support, or make a call during office hours (including weekends) from 7 in the morning until 8 in the morning (CST).

While they cannot claim they’re the best in this aspect, the company says they continue to improve their response time and overall customer service support.

WHAT ARE THE PROS AND CONS OF USING AVANT?

Our Avant loan review will not be complete without us sharing with you our list of pros and cons.

Here are some of the highs and lows that we found on Avant so far:

PROS

  • Low minimum credit score requirement
  • Refinancing option available
  • Offers flexible payment options
  • Very efficient mobile app (It allows you to see your payment history and manage upcoming payments. Needless to say, it is highly rated on both Apple App Store and Google Play.)
  • No prepayment penalties
  • Ability to receive funds quickly

CONS

  • Does not offer to co-sign or secured loan option
  • Does not offer direct payment to creditors intended for debt consolidation
  • High APR caps compared to its competitors
  • Charges fees like late payment dishonored payment, as well as administration fees
  • Low maximum borrowing amount compared to other online lenders

FINAL THOUGHTS ON AVANT LOAN REVIEW

There are a lot of online lenders out there, and to be honest, with so many options out there, it is really hard to pick one. However, if you are someone whose credit history is on the sketchy side, we have to say that Avant could be your perfect choice.

As we have mentioned earlier, the company offers more competitive rates compared to other lenders who cater to customers in the fair credit category.

While we Avant has its share of imperfections, the highs overpower them. For one, we like the fact that you can get your loaned money as quickly as one business day. Also, we like how efficient the Avant app is, which allows you to manage your personal loan anytime, anywhere.

Again, Avant is ideal for those with sketchy credit history. If you are someone with good credit score though (pertaining to those with 700 and above credit score), Avant personal loan may not work for you that well given the fact that it has mandatory fees plus high minimum APR. Compared to its competitors, they’re quite more expensive.

Having said all that, do you find yourself loaning through Avant? Do you think you and Avant are a perfect match?

To sum up our Avant loan review, the company is perfect for those with low credit history. They are the ones who will benefit the most from Avant. As for those with good credit score standing, you may opt to find a better choice elsewhere.