No, LoanMe does not offer credit-builder loans, but the company does offer personal loans. LoanMe personal loans are available to applicants that have a bad credit history, which will help you build credit if you use the loan responsibly.
If you’re set on getting a credit-builder loan, there are some options available from other companies. Most major banks and credit unions do not offer them, however.
Yes, LoanMe does a hard inquiry when you apply for a loan. This credit report inquiry will likely drop your credit score by about 5 to 10 points, but you'll be able to get back on track with a few months of on-time payments.
LoanMe's hard inquiry will stay on your credit report for two years, but it won't affect your credit after one year, and the impact may subside before then. To see how your individual credit score may be affected by a hard inquiry, you can use the … read full answercredit score simulator on WalletHub.
It's worth noting that some people may be uncertain about whether LoanMe does a hard inquiry because there's only a soft inquiry during the pre-qualification process. Soft inquiries do not impact your credit score. But that's just the first step, and a hard inquiry is required when you officially apply.
If not having a hard inquiry is important to you, lenders that don't do a hard pull at all include OppLoans and Integra Credit.
To apply for a LoanMe personal loan, first check for pre-qualification and decide which way you will apply (online or by phone), then enter your personal and financial information on the application. Next, verify the accuracy of the information, submit the application and wait to receive a decision.
Check for pre-qualification.Pre-qualification is a way to check your approval odds and potential rates before applying for a LoanMe personal loan. It doesn't hurt your credit. You can check for pre-qualification on the LoanMe website or WalletHub's pre-qualification tool.
Decide which way to apply.You can apply for a LoanMe personal loan online or by phone. Applying online is the best way because it typically offers the fastest decision.
Enter your personal information on the application.LoanMe requires the following personal information on the application: your full name, date of birth, email address, phone number and home address .
Enter your financial information on the application.LoanMe requires the following financial information on the application: your monthly income.
Double check the application for accuracy.To ensure that your LoanMe personal loan application gets processed as quickly as possible, make sure that all the information is correct and complete before you submit it.
Submit your application.LoanMe will typically provide a decision on your application within 1 to 2 business days both for approval and funding.
If you are approved for a LoanMe personal loan, you will generally receive the funds within 1 to 2 business days both for approval and funding after approval. After that, it's your responsibility to make monthly payments until you have fully paid back your loan, including interest.
Yes, a LoanMe personal loan does affect your credit score, both when you apply and during the entire time that you are paying the loan off. Initially, a LoanMe personal loan will affect your credit score in a negative way, but the long-term impact can be very positive, assuming you repay the loan on schedule.… read full answer
How a LoanMe Personal Loan Affects Your Credit Score
Hard pull: When you apply for a LoanMe personal loan, LoanMe will do a hard inquiry into your credit history, which will temporarily drop your credit score by about 5-10 points in most cases.
Increased debt level: Taking out a LoanMe personal loan will naturally increase the amount of debt that you have. Since your debt level is one of the components of your credit score, you can expect that to have a negative impact initially.
Account diversity: One positive way that getting a LoanMe personal loan can impact your score right away is by adding more diversity to the types of accounts you have open. Your "credit mix" is one of the components of your credit score, and the more types of accounts you have, the better - as long as you handle them responsibly.
Payments: The biggest factor in how a LoanMe personal loan affects your credit score is whether you pay on time. If you make on-time payments, your score should steadily increase as a result. If you pay late or fail to make payments altogether, you can expect your credit score to drop.
The bottom line is that while a LoanMe personal loan does affect your credit score, most of the way that your score changes depends on how responsible you are with the loan. If you'd like to estimate how certain actions might affect your credit score, you can use WalletHub's free credit score simulator.
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