NetCredit Personal Loan Review
What is 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 … Continue reading NetCredit Personal Loan ReviewThe post NetCredit Personal Loan Review appeared first on MagnifyMoney.
Posted — UpdatedWhat 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.
Terms6 to 60months
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
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
Apple Federal Credit Union
Terms60months
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
Terms24 to 60months
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
Terms24 to 48months
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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