In this Review..
Netcredit is a subsidiary of Enova International. This lender focuses on “underserved” consumers and offers unsecured personal loans $1,000 to $10,000 ($10,500 in California). This makes Netcredit a good choice for those with less than perfect credit without needing to put up collateral to secure the loan.
However, since the lender is taking more risk, the APR for its personal loans tends to be higher than with the average high street lender. While this can make the loan pricier, there are no restrictions on how you use the funds and it does report payment history to two major credit bureaus. The loan rates range from 34% to 155%, you can expect to receive loan funds within one business day.
Since NetCredit is taking more risk, the APR for its personal loans tends to be higher compare other lenders. it may be risky, especially for bad credit borrowers.
APR
34.00%-179.00%
Loan Amount
$1,000 -$10,000
Term
24 to 60 months
Min score
500
NetCredit is an online direct lender that does personal loans in many states in the US. They are based out of Chicago, IL and founded in 2012 by Enova Financial, an international financial company that owns many subsidiaries like NetCredit.
NetCredit specializes in helping borrowers with little experience or bad credit. They are a good alternative to payday loans or cash advances. NetCredit also provides information and tools for borrowers to help them build their credit. They are very transparent about their fees and interest rate ranges in each state. NetCredit looks at a borrower’s full financial picture to see if they can approve them for a personal loan.
NetCredit Loan Pros & Cons
As we know, each lender has its own pros & cons – here are the relevant things we found for potential borrowers:
Pros
- No Fees – NetCredit has no origination, administration, or late fees in most states. Please check your state to see what fees NetCredit may charge . These fees should always be considered in the cost of your loan.
- Flexible Payment Options –NetCredit allows borrowers to make adjustments to the terms to make sure they have a loan that will fit their needs. NetCredit calls it My RightFit Tool™.
- Quick Turnaround Times –NetCredit has a quick process and an easy application. Many borrowers are approved with money in their account by the end of the next business day. They have one of the quickest application processes.
- Education Resources –NetCredit also wants their borrowers to succeed and understand credit. They have created resources for their borrowers to help them gain a better understanding of credit
- Soft Pull Inquiry – NetCredit allows for an initial soft pull inquiry so the borrower can get an idea of the options for which they may qualify. A soft pull does not affect your credit and you will get an idea of the interest NetCredit will charge.
Cons
- Higher interest rates –NetCredit has very high-interest rates for their personal loans. The rates are better than payday loans, but many personal loan providers’ highest rate is NetCredit’s lowest rate.
- Small Loan Amount –NetCredit personal loans only go up to $10,000. If you need more, you’ll have to look to other providers because many surpass that amount.
- Not Available in All States –NetCredit is not available in some states. Please check here to see if your state is available for a NetCredit personal loan.
- Not Same Product Across the Board –Depending on the state, NetCredit could have late and origination fees. Make sure you check the fees before applying and consider them when pricing out your loan
Loan Details
Loan Amount Range | $1,000 -$10,000 |
Interest Rate Range | 34.00%-179.00% |
Term | 6-60 months (depending on state) |
Origination Fee | up to 5%(depending on state) |
Late Payment Fee | $15 (depending on state) |
Returned Payment Fee | None |
Prepayment Fee | None |
Minimum Credit Score | 500 |
1st Payment | 1 to 4 days |
What Can a NetCredit Personal Loan Be Used For?
Due to the high rates for NetCredit loans, this lender should be used for emergencies only. But they do have 6 loan purposes they list on their application: debt consolidation, monthly bills, car repair, medical expenses, moving expenses and “other.”
NetCredit does not offer much information about what their loans are like or if they have any restrictions. NetCredit can be a great tool for rebuilding credit or for the above loan uses when there are no other funding options available.
Application Process
- 1.
NetCredit has a simple and quick application process. Their website has a 4-step process after inputting how much money you need and for what purpose. You fill out an information page about yourself including your name, address, and housing information (whether you rent or own.)
- 2.
Then at the bottom you put in your email address and password to create an account with NetCredit. You then fill in income and employment information along with identifying information such as your social security number and date of birth.
- 3.
NetCredit will do a soft pull to see if you’re eligible for a loan and what options they can offer you.
- 4.
If you would like to move forward, you pick an option with terms that fit your needs. You can then sign loan documents and, in many cases, will have your money in your checking account the next day.
- 5.
In some cases NetCredit will need additional information such as ID, social security card, proof of residence, proof of income, and an active checking account.
Since NetCredit is taking more risk, the APR for its personal loans tends to be higher compare other lenders. it may be risky, especially for bad credit borrowers.
APR
34.00%-179.00%
Loan Amount
$1,000 -$10,000
Term
24 to 60 months
Min score
500
Alternatives Lenders For Consideration
Here are our 3 choices of lenders which can use as a great alternative to NetCredit personal loan:
- SoFi Personal Loan
SoFi has moved away from that business model and moved to a “non-traditional underwriting approach focused on lending to financially responsible individuals. SoFi uses an underwriting model that examines free cash flow, professional history and education in addition to a history of responsible bill payment to evaluate its borrowers.”
SoFi personal loans have no origination or late fees. They also do not have a prepayment penalty so the loan can be paid off early without additional costs. SoFi gives borrowers flexibility in payments and allow you to change payment due dates and do not charge late fees.
- LightStream Personal Loan
This company is an online lender that offers very high loan amounts yet at low interest rates. LightStream is part of the Truist Bank group, formerly the SunTrust Bank. You can use the loan for any purpose, including home improvements, debt consolidation, etc.
LightStream does not charge fees. So, there are no late payment fees, processing fees, or pre payment fees. They even offer $100 to customers if they are unsatisfied with their loan processing experience and are willing to beat competitor’s rates by 0.1%.
If you find a lender offering a better rate than LightStream, the company will offer you a 0.1% decrease to highlight that they are a better option.
Most of the loans have a term of two to seven years, but this may be extended to 12 years for solar financing, home improvement loans, or swimming pool loans.
- Payoff Personal Loan
As its name suggests, Payoff Loans offers debt consolidation for borrowers with good credit. This is solely to repay existing debt, including credit cards.
Although Payoff does not force you to pay your credit card debt, they make this recommendation to keep your finance on track. This includes quizzes to assess your financial abilities and resources to help you reach your financial goals.
According to Payoff, this insight empowers borrowers to continue making smart financial decisions.
NetCredit Loan is Best for..
NetCredit is a great place to go if you need cash quickly for an emergency. It is also great for those with poor credit or limited credit histories. But borrowers do pay for the low lending standards and quick access to cash with high interest rates.
If you need emergency funds and use NetCredit to fill that need, please keep in mind that rates are very high. You can refinance the loan when things settle down or your credit improves through another provider that does not have the same high rates.
If you have okay to excellent credit and do not need cash quickly, you should definitely look at other personal loan providers that offer more competitive rates. Many other lenders also offer soft credit pulls and you can compare their terms with NetCredit.
