Business

NetCredit Personal Loan Review

Posted July 16, 2018 9:21 a.m. EDT

What is NetCredit?

NetCredit is a subsidiary of Chicago-based Enova International Inc., which launched its online business in the U.S. in 2004 and added NetCredit in 2012. Enova also offers CashNetUSA consumer loans to subprime borrowers and small business loans through The Business Backer and Headway Capital.

NetCredit is aimed at “near-prime” borrowers, meaning you can qualify for its unsecured personal loans even with poor credit and won’t have to put up any collateral to gain approval. Because NetCredit must follow state-specific lending laws, which limit interest rates and control origination fees, its terms vary from state to state.

NetCredit personal loan highlights

  • No prepayment penalties. There is no fee for paying off your loan early. This allows you to get rid of your debt as quickly as possible, and limits the amount of interest you will pay long term.
  • High interest rates. The maximum interest rate on a NetCredit personal loan can be as high as 179.00%, though that max is lower in some states (155% in Wisconsin versus 59% in Georgia). The 179.00% rate is high, especially considering that Enova customers have credit scores between 500 and 680. If you have a score of 580 or better, shop around as it’s highly likely that you can get lower rates elsewhere.
APR34.00%To179.00%Credit Req.500

Minimum Credit Score

Terms6 to 60

months

Fees0.00% - 5.00%

LEARN MORE Secured

on NetCredit’s secure website

NetCredit personal loan details

[NetcreditPersonalLoanDetails]

Fees and penalties

  • Terms: 6 to 60 months
  • APR range: 34.00%-179.00%
  • Loan amounts: $1,000-$10,000
  • Time to funding: 1-4 business days
  • Hard pull/soft pull: Soft Pull
  • Origination fee: 0.00% - 5.00%
  • Prepayment fee: None
  • Late payment fee: $10-$15. In some states, you will be charged 5% of your late payment if that would be less than the $10-$15 fee. This fee will be charged if you’re 10 or more days late in most states, though in some states you’ll get a grace period of up to 15 days.
  • Other fees: None
[/NetcreditPersonalLoanDetails]

If you joined active-duty military after taking out a NetCredit personal loan, you may be eligible to have your interest rate reduced under the Servicemembers Civil Relief Act (SCRA). This law requires lenders to reduce the rate of interest on installment agreements to 6% if the loan was taken out prior to entering active duty. You may also qualify for SCRA protection if you are the dependent of an active-duty servicemember.

Because of the Military Lending Act that governs consumer loans obtained by active-duty servicemembers, Enova says certain loans may be unavailable to military families.

Eligibility requirements

  • Minimum credit score: The average Enova customer has a credit score between 500 and 680.
  • Minimum credit history: Enova looks at credit score when evaluating potential borrowers but says key factors it considers are income, length of employment and how long you have lived at your current address.
  • Maximum debt-to-income ratio: Enova will consider outstanding debts when considering loan applications.

NetCredit only issues loans to residents of the following 14 states:

  • Alabama
  • California
  • Delaware
  • Georgia
  • Idaho
  • Illinois
  • Missouri
  • North Dakota
  • New Mexico
  • South Carolina
  • South Dakota
  • Utah
  • Virginia
  • Wisconsin

Applying for a personal loan from NetCredit

To get started on your NetCredit personal loan, you will first have to check your eligibility. During this stage of the process, you will be asked for basic identification information like your name, address and Social Security number. You’ll also have to provide information about how much you’d like to borrow, and the income with which you plan to repay the loan. NetCredit will do a soft pull on your credit to check eligibility; a soft pull does not affect your credit score.

You’ll immediately find out if you were deemed eligible. You’ll then be able to select the loan term and sign a loan agreement. Many borrowers have their final agreement approved the same day, but if NetCredit needs you to provide supporting documentation or additional information, the process could take up to three days. At this point, NetCredit will do a hard pull on your credit, which may lower your score. Once your final agreement is approved, your funding should be available the next business day.

Pros and cons of a NetCredit personal loan

Pros:

Cons:

  • Quick financing. As long as you submit any requested documentation or information in a timely manner, your loan may be funded as soon as the business day following final loan approval.
  • Low minimum credit score requirement. While meeting the minimum credit score requirement is just one factor in the approval process, the fact that Enova will dip as low as 500 in certain cases ups your odds of approval.
  • Standard fees. Though NetCredit does charge an origination fee for residents of some states, this practice is fairly standard. It is notable that they do not charge a prepayment penalty, or any other punitive fees outside of late fees.
  • High rates. NetCredit charges extremely high rates given their credit requirements. If you’re at the higher end of Enova’s average customer credit score, it’s highly recommended that you do some comparison shopping as you are likely to find a better offer somewhere else.
  • Limited availability. Currently, NetCredit only operates in 14 states.
  • Origination fee. Depending on the state you live in, you may be charged an origination fee, which will reduce the amount you can borrow.

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

If you have a credit score hovering around 580 or lower and cannot get approved anywhere else, NetCredit may be a match for you. Be sure to carefully consider if taking out the loan is worth it, though. With such high interest rates, you may be better off delaying whatever purchase you’re making and saving the money up yourself.

Alternative personal loan options

At the very least, comparison shop. There are lenders out there who work with scores below even the 580 mark, and they do so with lower interest rates.

Apple Federal Credit Union

APR9.24%To16.99%Credit Req.560

Minimum Credit Score

Terms60

months

FeesNo origination fee

APPLY NOW Secured

on Apple Federal Credit Union’s secure website

Apple Federal Credit Union offers a variety of benefits that are included with their personal loans, including no early payoff penalties, lump-sum funding, fixed rate payments and maximum loans amounts of $50,000.... Read More They offer an easy application process that also features a quick turnaround time on getting your loan. Read Less

A good place to look for lower rates is at credit unions. Apple Federal Credit Union offers personal loans to those with credit scores of 560 or above. While there is no origination fee, the term can potentially be longer, up to 60 months. Membership is restricted to those who live in certain parts of Virginia, attend certain schools or colleges there or are employees of “select employer groups.”

OneMain Financial

APR16.05%To35.99%Credit Req.Varies

Minimum Credit Score

Terms24 to 60

months

FeesVaries

APPLY NOW Secured

on OneMain Financial’s secure website

If you have a credit score below 600, OneMain Financial is one of the few lenders that you can use to get a personal loan.... Read More They offer quick turnaround times and you may get your money the same day if you apply before noon with check or prepaid debit card option. ACH transfers take one to two business days. Interest rates are higher than other online lenders, especially for those with excellent credit, and you will need to visit a branch to get your loan.Read Less

OneMain Financial is another lender that works with those on the lower end of the credit scale with rates far lower than NetCredit. Like NetCredit, OneMain takes more than credit score into account when evaluating potential borrowers.

LendingPoint

APR15.49%To35.99%Credit Req.585

Minimum Credit Score

Terms24 to 48

months

FeesFee Varies

LEARN MORE Secured

on LendingTree’s secure website

LendingPoint offers personal loans for a wide variety of reasons, including paying for home repairs, consolidating credit card debt, or to make a large purchase. Their online process can help you to quickly apply for a personal loan, get qualified, and receive funding. While their interest rates can be higher than others, they do offer fast approval and can transfer funds to your bank account in 24 hours.

LendingPoint prides itself on serving those with lower credit scores. Though its website says customers have credit scores in the 600s, Chief Marketing Officer Mark Lorimer says customers may qualify with scores as low as 585. To top it off, terms are 24 to 48 months, potentially making the term as long as NetCredit’s with a dramatically lower interest rate.

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