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LoanMe Personal Loan Review

Posted August 7, 2018 2:47 p.m. EDT

What is LoanMe?

If you live in one of nine U.S. states and you need a quick infusion of cash, you might consider working with the company LoanMe, based in Anaheim, Calif. This lender provides personal loans in amounts from $2,600 to $100,000 to residents of Arizona, California, Delaware, Idaho, Kentucky, Missouri, New Mexico, South Carolina and Utah.

LoanMe, which has been in business since 2013, promises to provide your funds quickly if you are approved — and deposit your funds in your bank account in as little as three to four hours.

There is, however, a catch — you’ll have to pay high interest rates. The company charges rates that can run as high as 185% in some states for sub-prime loans. In addition, the fees can go up to 33% of your loan amount, depending on where you live, how strong your credit is and whether you own a home.

LoanMe personal loan highlights

  • Quick lending. LoanMe claims applying for a loan through its website is a quick process that takes about five minutes to complete. If you are approved for a loan, LoanMe might be able to deposit your funds in your bank account in as few as three to four hours.
  • No prepayment penalties. You won’t face any penalties if you pay off your LoanMe personal loan before the end of its term. That’s good, because LoanMe charges high interest rates and you’ll want to pay your loan off as quickly as possible.
  • You’ll pay more if your credit score is low. LoanMe charges different interest rates and fees depending on borrowers’ credit scores. If your score is low — anything under 645, according to LoanMe — you can expect to pay far higher loan fees and interest rates.
  • You can change your mind in California. LoanMe does provide its “No Worry Guarantee” to California residents. If you decide within seven days that you no longer want a loan through the company and return the full loan amount, LoanMe will waive all interest and fees, no questions asked. This protection is available only to residents in California.
APR16.88%To35.16%Credit Req.Varies

Minimum Credit Score

Terms180

months

Fees$500

APPLY NOW Secured

on LoanMe’s secure website

LoanMe personal loan details

[Chart-LoanMePersonalLoanDetails]

Fees and penalties

  • Terms: 180 months for prime loans and 84 months for non-prime borrowers
  • APR Range: 16.88% to 35.16% for prime loans and 97.32% to 184.36% for non-prime
  • Loan amounts: $2,600 to $100,000
  • Time to funding: Three to four hours after approval
  • Soft-pull/hard-pull: If you pre-qualify it will not affect your credit score. Once you are pre-qualified, LoanMe will check your credit, which means you’ll have an inquiry on your credit reports.
  • Origination fee: Loan fees vary by credit score and state, typically ranging from 17% to 33%. In some states, LoanMe charges flat fees of up to $500.
  • Prepayment fee: LoanMe does not charge fees for paying off your loan early.
  • Late payment fee: $15 if you pay 15 days or more after your due date.
[/Chart-LoanMePersonalLoanDetails]

Taking out a loan with LoanMe is far from inexpensive. That’s because the company charges such high interest rates and origination fees.

For example, say you live in California and you have a FICO score of 720 or higher and you own a home. Your fee will be 17% of your loan amount and your maximum APR will be 13.33% for a loan term of 180 months. If you live in California, your FICO score is 645 to 719 and you are not a homeowner, your fee will be 33% of your loan and your interest rate will be 22.9% — for a maximum APR of 35.16% for a loan with a 180-month term.

Loans get especially expensive if your credit score is under 645. LoanMe says that if you live in California and you borrow $10,600, your loan fee will be 33%, your interest rate will be 74% and your maximum APR will be 97.86% for a loan with an 84-month term.

Fortunately, LoanMe doesn’t charge prepayment penalties. If you take out a loan with the company, it makes financial sense to pay it off as quickly as you can to save on interest.

Applying for a personal loan from LoanMe

Applying for a personal loan from LoanMe is a simple process. You can call a customer service representative at 844-956-2663 or you can apply directly online by clicking the “Get Pre-Qualified” button on the home page.

If you apply online, LoanMe will request your name, address, phone number, email address and monthly income. The form will also ask if you are a homeowner and if you are currently or ever have been enrolled in a credit counseling or a debt-settlement program.

With this basic information, LoanMe will pre-qualify you for a loan. If you agree to move forward, the company will pull your credit and verify your income to see if you can afford the monthly payments.

To qualify for a loan, you’ll need to submit a bank statement and proof of income. You must also be at least 18 with a valid form of identification. Once you are approved, LoanMe can fund you in three to four hours by making direct deposit in your checking account.

Pros and cons of a LoanMe personal loanEvery financial product comes with pros and cons. Review and consider those associated with a LoanMe product:

[Chart-loanMeProsAndConsDetails]

Pros:

Cons:

  • Quick funding. If you’re approved, you can expect the money to be in your bank account in as few as three to four hours.
  • Lower credit scores. Even if your credit score is low, you can qualify for a LoanMe personal loan. The company does loan money to borrowers with credit scores under 645.
  • Fixed payments. Because LoanMe offers personal loans with fixed interest rates, you know exactly what you must pay each month.
  • HIgh interest rates. Borrowing money here isn’t cheap. LoanMe charges interest rates as high as 184.36% for sub-prime borrowers with lower credit scores.
  • High origination fees. LoanMe charges origination fees that can be as high as 33% of your loan amount.
  • Applying can hurt your credit score. After you pre-qualify for a loan, LoanMe will check your credit. That will result in an inquiry on your credit reports, which could lower your credit score. This inquiry will remain on your credit report even if LoanMe ultimately rejects your application.
[/Chart-loanMeProsAndConsDetails]

Who is the best fit for a LoanMe personal loan?

Because of high interest rates and fees business owners should use loans from this company as a last resort. If you take out a personal loan with LoanMe and carry it to full term, you will end up paying far too much in interest.

LoanMe gives this example: Say you live in California and your FICO score is 560. If you were approved a loan for $10,600, you’d get an interest rate of 74% and an origination fee of $2,500 for an APR of 97.32%. You’d receive $8,100 into your bank account — your original loan amount minus the $2,500 origination fee — and be required to make 84 monthly payments of $657.98 each. This means that if you take the full 84 months to pay back the loan, it would cost you more than $55,270 in total.

Clearly, the best fit for a LoanMe personal loan is a business that needs a quick infusion of emergency cash but that will be able to pay back the loan as quickly as possible to avoid interest charges. If you can’t pay back what you borrowed quickly you’re probably better off searching for an alternative.

Alternative personal loan options

Upgrade

Online lender Upgrade offers personal loans for up to $50,000 with a far lower APR range of 6.87% to 35.97%. The lender does not charge prepayment penalties. If you want the lowest APR, you will have to sign up for autopay. If you do, Upgrade will automatically withdraw your monthly payment from your bank account. Upgrade can send funds to your bank account via an ACH deposit within one business day.

You can repay your Upgrade personal loan in terms that range from 36 or 60months. The loans do come with an origination fee of 1.00% - 6.00% of the loan amount and you’ll pay a late fee of up to $10 if you fail to make your full payment within 15 calendar days of your due date.APR6.87%To35.97%Credit Req.620

Minimum Credit Score

Terms36 or 60

months

Fees1.00% - 6.00%

LEARN MORE Secured

on 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.

Avant

Avant offers personal loans from $2,000 to $35,000. You can apply online and sign your contract online, too. If you are approved, Avant can deposit your funds into your bank account on the next business day. Avant APRs range from 9.95% to 35.99% and loan terms range from 24 to 60 months. Avant does charge an administrative fee, which ranges up to 4.75%.APR9.95%To35.99%Credit Req.Varies

Minimum Credit Score

Terms24 to 60

months

FeesUp to 4.75%

LEARN MORE Secured

on LendingTree’s secure website

Avant branded credit products are issued by WebBank, member FDIC.

Avant has helped over 600,000 customers by providing access to over $3.5 billion in personal loans. Whether you need to improve your home, make a major purchase, or consolidate your debts into one simple monthly payment, Avant may be able to provide you access to the funds you need as soon as next business day! ‡For Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33.

Marcus by Goldman Sachs®

Marcus by Goldman Sachs® is a good alternative if you need a personal loan because the company does not charge fees for its personal loans. Its APRs are reasonable, too, ranging from 6.99% to 24.99%. The fine print, however, it spells out that only the most creditworthy borrowers qualify for the lowest rates — and that rates will usually be higher with longer-term loans. Loan terms range from 36 to 72 months and you can borrow up to $40,000.APR6.99%To24.99%Credit Req.Varies

Minimum Credit Score

Terms36 to 72

months

FeesNo origination fee

LEARN MORE Secured

on LendingTree’s secure website

Marcus by Goldman Sachs® offers personal loans for up to $40,000 for debt consolidation and credit consolidation. ... Read MoreWith APRs ranging from 6.99% to 24.99%, they offer one of the best personal loan options that is available from a traditional lender. While Goldman Sachs Bank USA has been around for over a century, Marcus is a completely online, streamlined experience that lets you complete your application and submit all of the needed documents from your computer.Read Less

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