NetCredit, a subsidiary of Enova International, offers unsecured personal loans ranging from $1,000 to $10,000, or up to $10,500 in California. 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 ultra-pricey, but on the upside, NetCredit doesn’t restrict how you can use the loan funds, doesn’t charge certain fees and reports payment history to major credit bureaus. That can help you gradually improve your credit if you consistently make on-time payments. Here’s how to know whether these loans are a good fit for you.
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 34 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.
NetCredit offers loans that range from $1,000 to $10,000 in most states, although Californians may be able to borrow up to $10,500. Depending on the state, loan terms range from six to 60 months, and borrowers may qualify for fixed APRs between 34 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 your loan off early. This allows you to pay your loan off 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.
How to apply for a loan with NetCredit
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 birth date
- 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. CST Monday through Friday and 9 a.m. to 5:30 p.m. CST Saturday and Sunday.