Here's a breakdown of some of the benefits and drawbacks of NetCredit personal loans.
- Loans for people with poor credit
- Flexible loan terms
- Not available in all states
- High APRs
- No co-signers
NetCredit, a subsidiary of Enova International, offers unsecured personal loans ranging from $500 to $20,000, although minimums and maximums vary widely by state. Because the Chicago-based online lender focuses on people who are “underserved” by traditional lenders, you may qualify with less-than-stellar credit, and you won’t have to put up collateral to take out a loan.
However, because the lender is taking on more risk, annual percentage rates (APRs) tend to be higher than average. That can make NetCredit loans pricey, but on the upside, NetCredit doesn’t restrict how you can use the loan funds or charge certain fees. The company does report payment history to major credit bureaus, which can help you gradually improve your credit if you consistently make on-time payments.
|Loan amount||$500 to $20,000|
|APR||19.9% to 155%|
|Minimum credit score||Not specified|
|Time to receive funds||As soon as one business day|
Pros and cons of NetCredit personal loans
Here are a few benefits and drawbacks of NetCredit to keep in mind before taking out a personal loan.
- Loans for people with poor credit: NetCredit doesn’t advertise a minimum credit score and is geared toward people who are “underserved” by traditional lenders, so it may be a good option if you’ve had trouble being approved for a loan in the past.
- Flexible loan terms: While terms vary by state, NetCredit’s personal loans come with repayment terms of anywhere from six to 60 months.
- Not available in all states: While NetCredit offers personal loans in 36 states, you won’t be eligible for a personal loan if you live outside of its footprint.
- High APRs: NetCredit’s openness to people with poor credit does mean that it charges higher-than-average APRs, from 19.9 percent to 155 percent in some states.
- No co-signers: If you’re looking to apply for a joint loan, NetCredit is not the right choice for you.
In most states, NetCredit offers loans that range from $1,000 to $10,000, though some states offer as little as $500 and as much as $20,000. Depending on the state, loan terms range from six to 60 months, and borrowers may qualify for fixed APRs between 19.9 percent and 155 percent. Loan terms are based on your state, income, credit history, loan amount, requested monthly payment amount and loan term.
Applicants typically find out whether they’re approved within the same business day, though it could take up to three business days if the lender needs more information. Once approved, you may receive the funds in your bank the next business day.
NetCredit follows state-specific lending laws, which limit interest rates and control origination fees, so its terms and offerings will vary in each state. Applicants must be at least 18 years old (19 in Alabama and Delaware and 21 in Mississippi).
Borrowers can get a loan in these states: Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington, Wisconsin and Wyoming.
Fees and penalties
NetCredit won’t charge a prepayment penalty, which is a fee for paying off your loan early. This allows you to pay off your loan as soon as possible and limits the amount of interest you’ll pay. You also won’t pay any application fees or nonsufficient fund fees. But depending on your state, you may have to pay an origination fee of 5 percent of the loan amount. The money will be taken out of your loan proceeds, which reduces the amount you receive.
Depending on the state, you may also pay a late-payment fee of up to $25 or 5 percent of the unpaid amount.
NetCredit offers an online tool that lets you check your eligibility for a loan without creating a hard inquiry on your credit report. Simply click the “Check Your Eligibility” button on its website, then share some basic personal information:
- Your name and birthdate.
- The amount you’d like to borrow.
- The loan purpose.
- Whether you own or rent your home.
- Your home address and email address.
NetCredit then will conduct a “soft” credit check, which won’t impact your credit rating. If you’re preapproved, you’ll then fill out an online application that asks for more details:
- The purpose of the loan.
- Employment and income details.
- Full address and previous addresses.
- Social Security number.
- Ideal loan amount and repayment term.
If approved, you’ll receive a loan offer with a monthly payment amount and terms. If you don’t like the offer you get, you can request a higher or lower monthly payment amount or repayment period. However, keep in mind that you’ll accrue more in interest charges by taking lower payments over a longer term.
Before finalizing your loan, NetCredit, like all lenders, will do a “hard” credit check, which can temporarily ding your credit score by a few points.
If you have questions during the loan application process, NetCredit operates a customer support line at 877-392-2014. Business hours are 8 a.m. to 8 p.m. CT Monday through Friday and 9 a.m. to 5:30 p.m. CT Saturday and Sunday.
How Bankrate rates NetCredit
|Availability||4.8||NetCredit has a quick funding timeline and a low minimum loan amount. It loses points only for its lack of transparency around eligibility requirements.|
|Affordability||3.3||Because NetCredit caters to borrowers with poor credit, its APRs are much higher than those of standard loans.|
|Customer Experience||5.0||NetCredit operates an entirely online application, with customer representatives available by phone seven days a week.|
To evaluate lenders, Bankrate considered categories of availability, affordability and customer experience. Availability included factors like time to get a loan, required income and credit score and loan amounts. Affordability included factors such as fees and APR. Customer experience included factors such as online access, customer support and app availability.
NetCredit received the ratings it did partly because of its low loan minimum amount, fast approval time, high APR and online access for account management.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.