San Diego–based Personify Financial offers unsecured installment loans of up to $15,000, with loan amounts and terms varying by state. Its loans are designed for people who may have trouble finding funding with other lenders. While this lender is willing to look beyond credit scores during the application process, annual percentage rates (APRs) are sky-high.
If your credit needs improvement and you’re only looking to borrow a small amount, Personify might be worth checking out.
Pros and cons of Personify personal loans
Here’s a breakdown of some of the benefits and drawbacks of Personify personal loans.
- Options for people with poor credit: Personify checks your credit but doesn’t grant loans based solely on this measurement, which can help if you have a low credit score.
- Loan prequalification: Personify can do a loan prequalification using a soft credit inquiry, which doesn’t affect your credit score.
- No cost to paying your loan off early: If you decide to pay your loan off ahead of schedule, you won’t pay a prepayment penalty. This can help you save on interest costs.
- Can help you build credit: Personify reports your payments to the credit bureaus, so you can focus on making on-time payments to help boost your credit.
- Sky-high APRs: Rates start at 35 percent and go as high as 199.99 percent in some states. An APR on the higher end of this range could cost you thousands of dollars over the life of the loan, so it’s not the best option if you have good credit — many other lenders advertise minimum APRs below 10 percent.
- Personify may access your checking account: During the application process, you must log in to your checking account, which could pose privacy issues.
- Borrowers can’t apply over the phone: You’ll need to apply online, which could be frustrating if you have questions or lack internet access.
- Origination fees: While Personify doesn’t charge an application fee, you may have to pay an origination fee of up to 5 percent of the loan amount.
- Not available everywhere: Personify isn’t available in every state, and you can’t get a loan if you don’t live within the lender’s footprint.
Personify’s unsecured personal loans range from $500 to $15,000 in most states, with terms from 12 months to 48 months. APRs are fixed and range from 35 percent to 199.99 percent, although the exact range depends on where you live.
Here’s a quick look at how APR costs can add up. Let’s say you borrow $5,000 with an APR of 179 percent. With a two-year repayment period, your monthly payments would be $773.32. By the end of your loan term, you’d pay $13,559.68 in overall interest, for a total loan cost of $18,559.68.
The APR, loan amount and loan terms you receive are based on several factors, including your state, credit standing, loan repayment history, income and employment history. While Personify doesn’t advertise a minimum credit score for eligibility, the lender says it’s willing to look at factors besides your credit. Generally, people with higher credit scores get better interest rates. If you end up with a high interest rate, try to pay more every month to chip away at the debt faster and save on interest costs.
Fees and penalties
Personify doesn’t charge a prepayment penalty, so you’re free to pay down your debt early and save on interest. It also doesn’t charge an application fee.
However, the lender does charge a late fee and a fee if there’s not enough money in your bank account for a payment. And depending on your state, you may be on the hook for an origination fee that can reach 5 percent of the loan amount.
The origination fee is taken from the money you receive upfront. So if you borrow $5,000 and you’re charged a 5 percent origination fee, you’ll only receive $4,750. Over the life of the loan term, you’ll make payments (and pay interest) on the entire $5,000. Factor this cost in when calculating the total amount you’re looking to borrow.
How to apply for a loan with Personify
You can complete Personify’s prequalification application online in just minutes. Head to its website and click “Get Started Now.” You’ll enter your name, email address and ZIP code to see your potential loan offers. If you prequalify and decide to officially apply for a Personify Financial loan, here are the steps you can expect to take:
- Enter your full name and address, phone number, date of birth and Social Security number. Tell Personify how much you want to borrow, how you’ll use the loan, your monthly post-tax income and the source of your income. You’ll also provide details about your employer and how often you receive your income.
- Next, give Personify permission to contact you and pull your credit reports.
- Like all lenders, Personify will do a “hard” credit check, which can adversely impact your credit score.
- Personify says that you’ll receive a same-day response on whether you qualify and how much you can borrow, along with your loan terms.
- If you qualify for the loan and accept the loan terms, Personify says that you should receive your funds within 24 to 48 hours.
Personify does offer a support phone number at (888) 578-9546, but you’ll have to fill your application out entirely online.