Borrowers should stay away from sky-high APRs
NetCredit, which is owned by Enova International, Inc., a Chicago-based online lender, offers personal loans to all credit profiles, even those with low credit scores. NetCredit has a partnership with Republic Bank & Trust Company in certain states. The bank approves and underwrites loans, while NetCredit provides services. NetCredit products may have high annual percentage rate (APRs), a short loan term, and an origination charge. NetCredit is a last-resort option for people who cannot get personal loans elsewhere. However, NetCredit’s maximum APR exceeds 150% in some states. This makes it difficult to recommend NetCredit as a lender.
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Enova, NetCredit’s parent company, and Republic Bank & Trust Company are both on the National Consumer Law Center’s high-cost renta-bank loan watchlist for their involvement in predatory lending. You should fully understand the monthly and loan term costs before you apply for these loans. You’ll likely get better terms and rates with other lenders on our best personal loan or best personal loan for bad credit.
How to Get a Personal Loan?
Although personal loans are a fast way to borrow money when you’re in dire need, it is important to fully understand their operation and how to use them. Do your research to compare rates with different lenders before you apply for a personal loan. Your credit score, income and loan amount will determine the loan terms you receive.
It is important to determine whether a loan you are applying for is secured or unsecured. Unsecured loans require collateral to be secured. A secured loan can use an asset such as a house, savings account or car as collateral. Although secured loans offer lower interest rates than unsecured loans, they are more risky because you could lose your collateral if the loan is not paid on time.
Alternatives to Personal Loans
A personal loan is a good option to help pay large expenses. However, it is not the only option. There are other options than personal loans:
Home equity loans, home equity lines of credit (HELOC), and cash-out refinances are all options. You can build equity as a homeowner by paying off your mortgage principal, or waiting for the value of your home to rise. You can then use your home as collateral to get a loan using your home equity loan, HELOC or cash-out refinance. These loans may offer lower rates than an unsecured personal loan because they are secured. It also means that your home could be at risk if payments are not made on time.
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Do I need a NetCredit loan?
For those in dire need of quick cash, NetCredit personal loan can be a last resort option. However, there are other options.
The NetCredit personal loan rates are high, as well as a possible origination fee and short repayment terms. This all increases borrowing costs. Although NetCredit loans do not qualify as payday loans, they are high-cost short-term loans that can last up to your next paycheck. However, the NetCredit APRs are much higher than the 36% threshold that the National Consumer Law Center considers predatory lending.
Alternatives to a netCredit loan
Even if you have poor credit, there are other options than the NetCredit personal loans for borrowing money. These are some options to a NetCredit personal loan:
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Personal loans for people with bad credit. Other lenders offer personal loans to people with bad credit at lower APRs. Many lenders offer an option to instantly check your rate without asking for hard credit information. This allows you to shop around to get the best rate.
How do I Qualify to Receive a NetCredit Loan?
NetCredit claims it assesses the borrower’s financial picture and not only their credit score to determine their eligibility. Although it isn’t clear exactly what this means, NetCredit says that it looks at other data, such as the borrower’s employment history and residence history, when reviewing a loan application. This information is in addition to the credit reports.
Borrowers must meet the following requirements to be eligible for a personal loan from NetCredit:
In Alabama and Delaware you must be at least 19 years of age, in Mississippi 21 and in all other states 18 respectively.
- A valid personal checking account is required.
- Maintain an active email account
- A verifiable source for income.
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How to apply for a NetCredit loan?
Due to the high APRs, we don’t recommend that you take out a NetCredit Loan. If you have considered all the pros and cons and are still willing to move forward, you can verify your eligibility for a personal loan through NetCredit. While you will need to provide some personal information (name, address, date of birth and age), NetCredit will not perform a credit check until you apply for the loan.
