Backed Review Summary: Backed offers personal loans of up to $25,000 for 1 to 3 years, with APRs ranging from 2.90% to 15.99%. The company’s name stems from the important role “backers” play in their loan process. A backer is pretty much the same thing as a co-signer, but there is one key difference. Backed notifies backers immediately after a missed payment and gives them 15 days to bring the account back to good standing before charging a late fee. According to Backed, co-signers traditionally don’t get notified until the main accountholder is 30-days past due.
While Backed encourages backers if you want the highest approval odds and the lowest rates, it’s also possible to apply for a loan by yourself. Backers must have a 720+ credit score. People applying by themselves need a 660+ credit score. And if you have a backer, your score can be a lot lower.
To get a loan from Backed, you also need to live in one of the six states the company operates in right now: New York, New Jersey, Florida, West Virginia, Arkansas and Arizona. Below, you can find more information on their terms and see comparable offers from other lenders.
Backed Personal Loan Terms
|Loan Amount||$3,000 - $25,000|
|Origination Fee||0.8% - 2 %|
|Minimum Credit Score||N/A*|
|Loan Purpose||Debt Consolidation, Home Improvement, Big Purchase|
|Time to Receive Loan Money||N/A|
Backed Loan Interest Rates & Fees
Backed personal loans have a remarkably low interest rate range, going from 2.90% to 15.99%. The better your credit score and income, the lower your rate will be. Having a “backer,” or a co-signer, with better credit and/or income than you can also help you qualify for lower rates. Backed offers fixed-rate personal loans. In other words, your rate won’t change during the payoff period.
Backed does charge an origination fee of 0.8% to 2.0%. But that’s a much lower range than most lenders with origination fees charge. Backed also charges a late fee of $20, but only if you’re 15 days late on making a payment. Backed does not charge a fee for paying off a loan earlier than required.
Backed Personal Loan Requirements & Application Info
Backed only offers individual personal loans to people who have credit scores of 660 or higher and earn at least $18,000 per year. You must also have “no recent derogatory item,” such as a late payment, on your credit report. However, if you want to have a “backer” (co-signer) on your loan, you may be able to get approved if you have a score lower than 660 and/or an income of less than $18,000. The backer will need to have at least a 720 credit score and an income of at least $50,000.
Personal loans from Backed are only available in six states: NY, NJ, FL, WV, AR and AZ. However, that only goes for the main holder of the loan. Backed accepts backers who live in any state. To take out a loan with Backed, you need to be at least 18 years old and a U.S. citizen or permanent resident with a Social Security number.
Backed does have a pre-qualification process that will let you know if you’re likely to get approved for a loan. You’ll just need to enter some personal information, but it won’t lead to a hard pull of your credit and won’t hurt your credit score. Backed only does a hard pull when you actually apply. You can apply for a Backed personal loan online.
Backed Personal Loan Reviews & Transparency
WalletHub searched for objective information on Backed’s reputation by checking with the Better Business Bureau and consulting the Consumer Financial Protection Bureau complaints database. However, neither were able to provide any information.
- Better Business Bureau: The BBB says they don’t have enough information to rate Backed, Inc. Backed apparently has not responded to their requests for information.
- WalletHub: WalletHub gives Backed personal loans 4/5 stars.
Backed’s personal loan terms are easy to find online. And Backed is very clear about what credit score it takes to qualify. They could be more transparent by disclosing minimum income requirements.
Backed Personal Loans vs. Popular Competitors
Marcus by Goldman Sachs
|APRs||N/A||5.99% - 18.28%||6.99% - 19.99%|
|Loan Amounts||$3,000 - $25,000||$5,000 - $100,000||$3,500 - $40,000|
|Loan Terms||N/A||24 - 84 months||36 - 72 months|
|Minimum Credit Score||N/A*||Fair*||Good*|
WalletHub’s rating of Backed personal loans was based on seven categories containing 23 distinct metrics. Read on to see all the categories and a full explanation of all the factors we looked at.
- APR: WalletHub looked into Backed’s lowest and highest interest rates. We also checked whether Backed’s APRs are fixed-rate or variable-rate.
- Requirements: Our editors found out Backed’s credit and income requirements to qualify. We also researched if you need to be a U.S. citizen and what kind of identification you need to have.
- Loan amounts: We checked what amounts of money you’re able to borrow from Backed, and the time periods available to repay your loan.
- Fees: WalletHub looked into whether Backed charges any major fees on their personal loans.
- Application process: Our editors learned how to pre-qualify and what methods are available for applying. We found out how long it takes to get a loan approved and funded, and whether you can apply with a co-signer.
- Transparency: This category included how transparent Backed was about both how to get approved for a loan and what rates and fees their loans have.
- Customer satisfaction: We checked with the BBB, CFPB and WalletHub’s users to find out information on Backed’s reputation.