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LoanMart Personal Loan Review

Van Nuys, Calif.-based LoanMart has originated car title loans since 2002. But if you want a loan without using your car as collateral, the company also offers unsecured personal loans. Few consumers, though, will be able to qualify for a personal loan from LoanMart: The company only provides personal loans to residents of the state … Continue reading LoanMart Personal Loan ReviewThe post LoanMart Personal Loan Review appeared first on MagnifyMoney.

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Van Nuys, Calif.-based LoanMart has originated car title loans since 2002. But if you want a loan without using your car as collateral, the company also offers unsecured personal loans.

Few consumers, though, will be able to qualify for a personal loan from LoanMart: The company only provides personal loans to residents of the state of California. Live elsewhere? If you want to take out a loan from this company, you’ll have to turn to a car title loan.

LoanMart personal loan highlights

  • High interest rates: The company’s website says that the APR on personal loans ranges from 60.00%–165.00%.
  • Fast application process: LoanMart says that the application process should take about five minutes to complete.
  • Quick funding: The company says that it can often provide funds within 24 hours.
  • Small loans: The most you can borrow is $3,100.
APR60.00%To165.00%Credit Req.No minimum credit scoreMinimum Credit Score

Terms18 to 30months

Fees$75APPLY NOW Securedon LoanMart’s secure website

LoanMart personal loan details[Chart-LoanMartPersonalLoanDetails] Fees and penalties

  • Terms: 18 to 30 months
  • APR range: 60%-165%
  • Loan limits: $1,500 to $3,100
  • Time to funding: LoanMart says it can provide funds as quickly as 24 hours after approving a borrower's application.
  • Hard pull/soft pull: Going through prequalification doesn't impact consumers' credit scores. Going a step further and completing a full application, however, will. LoanMart will check your credit, resulting in a hard inquiry.
  • Origination fee: $75
  • Prepayment penalty: None
  • Late payment fee: $10, but you can avoid it by signing up for automatic payments. If you’re paying using this method, your APR may be reduced.
  • Other fees: None

[/Chart-LoanMartPersonalLoanDetails]

LoanMart doesn’t disclose much information about its fees on its site. The company says it will disclose all fees clearly when presenting a loan offer to borrowers. Be sure to study your loan paperwork closely to make sure that you aren’t surprised by any fees.

You can change your mind — if you act fast: You’ve signed the paperwork to take out a personal loan from LoanMart. You’ve received your money, too. But the interest rate attached to your loan doesn’t look so good anymore. Fortunately, you can cancel your loan at no charge. You will have to submit a cancellation request within five days of getting your loan and return any funding you did receive.

Eligibility requirements

Minimum credit score: LoanMart does not list any minimum credit scores or debt-to-income ratios on its site. It does say that it will pull the credit of applicants and that approval is subject to the company’s credit standards. The loans, however, are designed for people with less than perfect credit.Minimum credit history: Bankruptcies will be viewed negatively, as will a history of late payments.Maximum debt-to-income ratio: LoanMart does not list a minimum DTI ratio, but it does exclude student loans and medical debt from its calculations.

LoanMart personal loans are only available to residents of California and you must have a bank account to receive funds from LoanMart.

Applying for a LoanMart personal loan

The easiest way to apply for a LoanMart personal loan is online or by speaking with a representative at 1-888-393-5924. By clicking on the “Get Prequalified” button, you’ll bring up a link to a brief application form. The form asks for basic information such as your name, address, cell phone and email. The form also asks how long you’ve lived at your address, your gross monthly income, years you’ve worked at your job and your requested loan amount. You’ll have to provide your birth date and Social Security number, too.

LoanMart will then do what is known as a “soft pull” on your credit. This will not hurt your credit score. But if you do prequalify for a personal loan and you decide to proceed, LoanMart will then run a hard pull of your credit. This could bring your credit score down slightly.

Prequalifying for a LoanMart loan doesn’t mean that you’ve officially qualified for a final loan. LoanMart can still reject your application even if it tentatively prequalified you for a loan. It all depends on what the company finds when it checks your credit and verifies your income.

If LoanMart gives you a final approval, it will deposit your money into your bank account through an ACH transfer. You could see your funds as soon as 24 hours after LoanMart approves your loan.

Pros and cons of a LoanMart personal loan[Chart-LoanMartPersonalLoanProsAndCons] Pros:

Cons:

  • Unsecured: Because you do not put up any collateral for this loan, you won’t lose your house or car should you fall behind on your monthly payments. If you do choose to take out an auto title loan with LoanMart — which is available to residents outside the state of California — be aware that if you do fall behind on payments, you could lose your vehicle.
  • Fast payments: Once your loan is approved, your funds will be deposited into your bank account quickly.
  • No prepayment penalty: The earlier you pay off your loan, the less interest you’ll pay on it.
  • High interest rates: If you don’t pay your loan off early and instead carry it to full term, you could pay an exorbitant amount in interest.
  • Limited availability: LoanMart only offers personal loans to borrowers living in California. You can apply for a title loan from LoanMart but remember, you’ll be putting your car up as collateral. LoanMart could take your vehicle if you can’t make your monthly payments.
  • Not the best reputation: LoanMart has experienced legal problems in the past. In 2013, Wheels Financial LLC — which does business as LoanMart — settled a case with the California Department of Business Oversight in which the company was accused of violating the state laws governing finance lenders. The department said that Wheels Financial filed a false report, compensated unlicensed employees for soliciting or accepting loan applications from borrowers, performed unlicensed brokering in Illinois and failed to properly maintain its books.

[/Chart-LoanMartPersonalLoanProsAndCons]

Who’s the best fit for a LoanMart personal loan?

If you live in California and you need quick cash but don’t want to risk losing your car or home, you might consider an unsecured personal loan from LoanMart. Just be careful: If you can’t pay off the money you borrow early, you will pay a lot in interest.

A better choice might be to shop around with other online or brick-and-mortar lenders. Even if you don’t have a strong credit score, you might be able to find a lender that is willing to loan you money at a lower interest rate.

Alternatives to a LoanMart personal loan

Prosper

APR6.95%To35.99%Credit Req.640Minimum Credit Score

Terms36 or 60months

Fees2.41% - 5.00%LEARN MORE Securedon LendingTree’s secure website

Advertiser Disclosure

Prosper is a peer-to-peer lending platform that offers a quick and convenient way to get personal loans with fixed and low interest rates. ... Read MoreThe interest rate you receive is determined by their own proprietary “Prosper Rating.” You can qualify for a loan with average credit and there are no prepayment fees, but your origination fee can be expensive, depending on your Prosper Rating.Read Less

For example, a three-year $10,000 loan with a Prosper Rating of AA would have an interest rate of 5.31% and a 2.41% origination fee for an annual percentage rate (APR) of 6.95% APR. You would receive $9,759 and make 36 scheduled monthly payments of $301.10. A five-year $10,000 loan with a Prosper Rating of A would have an interest rate of 8.39% and a 5.00% origination fee with a 10.59% APR. You would receive $9,500 and make 60 scheduled monthly payments of $204.64. Origination fees vary between 2.41%-5%. APRs through Prosper range from 6.95% (AA) to 35.99% (HR) for first-time borrowers, with the lowest rates for the most creditworthy borrowers. Eligibility for loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All loans made by WebBank, member FDIC.

Prosper is a peer-to-peer lender, meaning loans are funded through individual investors. You may still be eligible for a loan through Prosper even if you have a debt-to-income ratio of up to 50%, which is higher than many other lenders. Your interest rate and origination fee will vary depending on the strength of your credit. Like LoanMart, Prosper also doesn’t charge prepayment penalties, so you can pay off your loan early without facing any additional charges.

LendingClub

APR6.16%To35.89%Credit Req.600Minimum Credit Score

Terms36 or 60months

Fees1.00% - 6.00%LEARN MORE Securedon LendingTree’s secure website
LendingClub is a great tool for borrowers that can offer competitive interest rates and approvals for people with credit scores as low as 600.... Read More The loan application process is done online and only takes a few minutes to complete without hurting your credit. The loan processing time can take a while and you might not get approved if you have missed payments in the past.Read Less

LendingClub is another online lender, one that offers personal loans up to $40,000. Your APR will vary depending on your credit rating, how big of a loan you want and how much money you already owe to other creditors. It also does not charge prepayment penalties.

Upgrade

APR6.87%To35.97%Credit Req.620Minimum Credit Score

Terms36 or 60months

Fees1.00% - 6.00%LEARN MORE Securedon LendingTree’s secure website

Loans made through Upgrade feature APRs of 6.87%-35.97%. All loans have a 1% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay. For example, a $10,000 loan with a 36 month term and a 17.97% APR (which includes a 5% origination fee) has a required monthly payment of $343.28. Upgrade is available in all states except: Connecticut, Colorado, Iowa, Massachusetts, Vermont, West Virginia.

Online lender Upgrade provides personal loans of up $50,000 and also charges no prepayment penalties. You can pay back your loan in 36 or 60 months. If you want to qualify for the lowest APR, you will have to sign up for autopay, which means Upgrade will automatically withdraw your monthly payment from your bank account. If you are approved for a loan, Upgrade will send funds to your bank account through ACH deposit within one business day.

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