2020 NetCredit Review – Personal Loans
NetCredit Review Summary: NetCredit offers personal loans of $1,000 to $10,000 to people of all credit levels, even those with bad credit. But their relaxed approval requirements are supported by high APRs: 36% to 65%.
NetCredit’s rates are cheaper than those of so-called “payday lenders,” which can charge 400% or more interest. They’re also longer-lasting, as rather than paying out of your next paycheck, you’ll have to pay your loan off within 6 to 60 months. But despite being a lot better than payday lenders, NetCredit is worse than most other personal loan providers. In addition, NetCredit only offers loans in 14 states, so most people in the U.S. can’t even apply.
People with fair credit or better should definitely not apply for NetCredit personal loans. And people with bad credit can likely find better deals elsewhere, such as at their local credit unions. Below, you can see how NetCredit ranks in three key categories: Terms, Requirements & Application, and Reviews & Transparency.
NetCredit Personal Loan Terms
|APRs||36% - 65% (varies by state)|
|Loan Amount||$1,000 - $10,000|
|Loan Terms||6 - 60 months (varies by state)|
|Origination Fee||1% - 5% (varies by state)|
|Late Fee||$10 - $15 (varies by state)|
|Minimum Credit Score||Bad*|
|Minimum Income||Not disclosed|
|Time to Receive Loan Money||1 - 3 business days|
NetCredit Interest Rates & Fees
Category Rating: 1.7/5
NetCredit interest rates can be as low as 36% or as high as 65%. That’s far more costly than a normal personal loan, on which lenders typically don’t charge above 36%. The reason NetCredit’s interest rates are so high is that their loans are targeted to people with bad credit, which is riskier compared to only offering loans to people with higher credit scores. Still, there are other lenders, such as local credit unions and a few major online lenders, that will provide loans with much lower rates to people with bad credit. NetCredit has fixed APRs, so the rate won’t vary over time.
NetCredit doesn’t charge a fee for paying a loan off early. So if you take out a loan from them, you should pay in full as soon as possible to avoid as much interest buildup as you can. NetCredit may charge an origination fee, depending on the state where you reside. This fee can be 1% to 5%, and applies only to loans with APRs below 36%. For example, loans in California do not have origination fees because their minimum APR is 36%. The origination fee will be subtracted from the initial loan amount you receive, when applicable.
NetCredit will also charge a fee for late payments, but the amount differs by state. They may have additional fees depending on the state, too.
NetCredit offers decent loan sizes, with up to $10,000 in funding. They gain points for their long payoff timeline, which can be up to 60 months. But since their loans are so expensive, NetCredit doesn’t score very highly when it comes to annual percentage rates.
NetCredit Requirements & Application Info
Category Rating: 3/5
According to NetCredit representatives, there are no minimum credit or income requirements for approval. NetCredit will look at your overall financial picture when making a decision, and they may accept borrowers who have bad credit. NetCredit gets good marks for being available to people of all credit scores.
One other area where NetCredit scores well is by having pre-qualification with a soft credit pull. You can pre-qualify with NetCredit before submitting an application, which will allow you to see what rates you might get if approved, without hurting your credit. After that, you’ll have a chance to submit an application, where NetCredit will actually pull your credit. But the only way to apply is online, and you can only apply by yourself, not with a co-applicant.
Unfortunately, NetCredit has limited availability in general. Applicants for a NetCredit loan will need to be at least 18 years old and a U.S. citizen or permanent resident with a Social Security number. And you can only apply if you live in a state where NetCredit operates. Those states are: AL, CA, DE, GA, ID, IL, MO, NM, ND, SC, SD, UT, VA and WI.
NetCredit Reviews & Transparency
Category Rating: 4.5/5
- Better Business Bureau: NetCredit (NC Financial Solutions, LLC), receives a score of A+ but is not accredited. Their parent company, Enova International, Inc., has an A rating and is not accredited.
- Consumer Financial Protection Bureau: Enova International, Inc., the parent company of NetCredit, has 25 personal loan complaints with the CFPB. Many have to do with NetCredit’s extremely high interest rates and high payment amounts. Enova International has always responded in a “timely” fashion.
- WalletHub: NetCredit has a user score of 4.3/5, showing that most customers are satisfied.
- Transparency: NetCredit’s website does list their rates and fees, but you must check them on a state-by-state basis. NetCredit could be clearer about the overall ranges. It’s helpful that NetCredit has a pre-qualification tool, but the fact that they’re vague about overall minimum requirements isn’t great.
NetCredit Personal Loans vs. Popular Competitors
|APRs||36% - 65% (varies by state)||99% - 199%||185% - 349%|
|Loan Amounts||$1,000 - $10,000||$500 - $10,000||$500 - $3,000|
|Loan Terms||6 - 60 months (varies by state)||Up to 36 months||8 - 30 months|
|Minimum Credit Score||Bad*||None*||Not disclosed*|
In order to provide the most accurate review of NetCredit personal loans, WalletHub used 17 key metrics grouped into three overall sections: Terms, Requirements & Application, and Reviews & Transparency. We rated each section on a scale of 0 to 5, with 5 being the best, and then averaged the scores of the three sections to produce an overall rating for the loan.
- The “Terms” section includes information about how expensive the loan is, including rates and fees. It also takes into consideration how much consumers can borrow and how quickly they must pay it back.
For companies where APR and fee ranges differ greatly by state, we used data from the most populous state serviced by the company. For NetCredit, that is California.
- The “Requirements & Application” section examines how easy it is to apply for a loan and how long it takes to receive the money. It also looks at exactly who is eligible to apply.
- The “Reviews & Transparency” section measures the loan provider’s reputation as well as how clearly the lender discloses its terms and requirements. This takes into account user reviews and information from watchdog organizations.
The average of these three scores reflects how close a loan offer is to WalletHub’s definition of a 5-star loan. For more information, please read WalletHub’s full methodology.
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