About Company
The Changed app offers a distinctive approach to managing your finances by rounding up your everyday purchases and channeling the spare change towards paying off your loans. Beyond facilitating loan payments, the app also serves as a tool for saving money. It's important to note, however, that the savings account within Changed doesn't accrue interest. Users may want to explore the option of transferring their funds to a high-yield savings account for better returns.
While the app provides a novel method to save money and expedite debt repayment, it comes with a monthly cost of $4. Despite this fee, it's worth considering that you could set up comparable automated transfers independently, directing funds to your savings and debt accounts at no additional cost.
Nevertheless, the Changed app has its merits, offering a unique and automated way to enhance your savings and work towards a faster debt payoff.
Key Features
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Credit Score Monitoring. The app provides users with the valuable ability to monitor their credit scores. This feature empowers individuals and businesses alike by offering insights into their credit health, and facilitating informed financial decisions.
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Versatility with Various Loan Types. One of the standout features of the Changed app is its compatibility with a diverse range of loans. Whether you have student loans, personal loans, or business-related loans, the app is designed to streamline the process of managing and repaying different types of debts.
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User-Friendly Interface. The Changed app prides itself on its user-friendly interface. Navigating through the application is intuitive and straightforward, ensuring that users can easily access and utilize its features without unnecessary complexity.
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Applicability to Individuals and Businesses. Another noteworthy aspect of the Changed app is its inclusive approach. It caters to both individual users and businesses, acknowledging the varied financial needs of its user base. This adaptability makes it a versatile tool for a wide range of users, from students managing their loans to businesses optimizing their financial strategies.
Pros and Cons
Pros
Cons
How Does Changed Work?
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Download the App and Create a Profile. Begin by downloading the Changed app and creating a personalized profile. This step establishes your presence within the app and sets the stage for linking your financial accounts.
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Link Your Loans and Bank Accounts. Connect your loans and bank accounts to the Changed app. This allows the app to access the necessary information to round up your everyday purchases and channel the spare change toward your financial goals.
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Roundup Your Accounts and Boost Your Savings. With your accounts linked, the Changed app starts rounding up your everyday transactions to the nearest dollar. The accumulated spare change is then directed toward boosting your savings. This innovative approach helps you effortlessly contribute to your savings goals.
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Save and Repay Debt. Utilize the Stash My Cash feature to work towards your savings goals. Simultaneously, automate payments toward your debt with the Payoff feature. Tailor your approach by splitting your savings between building an emergency fund and paying off debt, optimizing your finances for a future with less debt.
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Automated Debt Payoff. Experience the satisfaction of watching your debt shrink as Changed automates small savings into debt payoff progress. Once your Payoff account accumulates $50 in savings, a payment is automatically made towards your debt. Track the impact of each payment on your time to debt freedom and interest savings.
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Stay Informed. Stay informed about your financial journey with Changed. The app provides a snapshot of your progress, showcasing all payments made, savings accumulated, and the status of your credit. Receive personalized recommendations to optimize your savings and debt payoff strategy, empowering you to reach your financial goals.
Cost
Changed is free to download, and if you opt for an annual plan, it comes with a simple fee starting at $4 per month.
This fee serves to cover various costs associated with the service. It not only facilitates the movement of your money and the processing of payments but also ensures the secure storage of your funds in a personal FDIC-insured bank account. This added layer of security contributes to the overall reliability of the Changed app.
By investing just a few bucks a month, you have the potential to save thousands of dollars, significantly shorten the repayment period of your loan, and diminish the need to allocate extra funds for payments. It's a cost-effective solution that can make a substantial impact on your financial well-being.
For users seeking even more debt payoff power, Changed offers additional plans such as Plus and Premium. To explore these options, simply navigate to "My Profile" in the app and select "Manage Subscription" to learn more about the features and benefits associated with each plan.
Types of Debt Settled by Changed
Changed is designed to manage different types of loans, with a primary focus on student debt. While it caters to a variety of loan types, its features are particularly well-suited for individuals dealing with student loan debt. The app's functionalities are tailored to assist users in optimizing their financial strategies and repayment plans, making it an effective tool for those seeking to address and manage their student loan obligations.
Other Personal Loans
Risks Associated With a Debt Settlement Program
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Credit Score Impact. One of the significant risks of debt settlement is the potential negative impact on your credit score. As you negotiate to settle your debts for less than the full amount owed, your loan provider may report these settlements to credit bureaus, leading to a derogatory mark on your credit report.
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Accrued Fees and Interest. During the debt settlement process, interest and fees on the outstanding debt may continue to accrue. As negotiations take time, the total amount owed may increase, offsetting some of the intended savings from settling the debt.
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Tax Implications. Forgiven debt through a settlement may be considered taxable income by the Internal Revenue Service (IRS). This means that you could be required to pay taxes on the amount of debt forgiven, leading to potential financial consequences.
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Incomplete Settlements. Not all loan servicers may agree to settle, and some may refuse to negotiate. If a certain student loan servicer doesn't participate in the settlement, you could end up with incomplete debt resolution, leaving you with ongoing financial challenges and potential legal issues.
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Impact on Future Credit. Even after completing a debt settlement program, the negative impact on your credit may persist for several years. The record of settled debts can stay on your credit report, affecting your ability to secure favorable interest rates on loans, obtain new credit, or even impact employment opportunities.
Reliability
Changed Inc. operates as a financial technology company, distinct from a traditional bank. The reliability of Changed is reinforced by its partnership with Evolve Bank & Trust, a Member FDIC. While Changed itself is not a bank, it collaborates with Evolve Bank & Trust to provide deposit accounts.
The funds held within Changed accounts are FDIC-insured, offering an additional layer of security for users. It's important to note that FDIC insurance is subject to applicable limitations and restrictions when funds are deposited into your account. This arrangement contributes to the overall reliability and safety of the financial services offered by Changed.
Loans like Changed
OppLoans
OppLoans is a notable financial service provider that offers consumer loans varying from $500 to $4,000. They expedite the funding process to ensure that approved applicants receive the necessary funds promptly, which is advantageous for those dealing with immediate financial concerns. OppLoans offers adaptable repayment conditions, giving customers the choice between 9, 12, and 18-month loan terms. This adaptability allows borrowers to opt for a repayment plan that matches their financial ability, ensuring a seamless and manageable loan journey.
Rise Credit
RISE Credit is a reliable online lender that provides loans up to $5,000. They have a streamlined application procedure, allowing borrowers to have funds transferred to their accounts as early as the next business day. They present the flexibility of choosing a payment schedule that fits with the financial preferences of the customers, although some state-based restrictions might apply. A notable feature of RISE Credit is its 5-Day Risk-Free Guarantee, which permits borrowers to revoke their loan and return the principal with zero fees or interest within the given period. Additionally, RISE Credit grants customers complimentary access to their credit score and credit monitoring alerts through Credit Score Plus, offering valuable financial insight.
OneMain Financial
OneMain Financial stands as a distinguished and enduring lender, offering personal loans that range between $1,500 to $20,000. Boasting a century’s worth of experience in the financial sector, they have garnered the trust of a vast customer base. Their loan terms include fixed rates and fixed payments, offering a predictable and manageable repayment scenario to borrowers. OneMain Financial emphasizes personalized service, ensuring that the distinct needs of each customer are addressed. With a widespread network of approximately 1,400 branches, they provide easy access and convenience for individuals in search of financial aid.
Universal Credit
Universal Credit requires applicants to have a minimum credit score of 560, thus excluding those with no credit history. It is appealing for its credit-enhancement features, making it suitable for individuals with fair or poor credit looking to better their scores. Providing larger loan amounts than Oportun and next-day funding upon approval, it emerges as a solid choice for significant, urgent financial needs. Universal Credit extends its loan services across all 50 states and Washington, D.C., offering a wide geographical coverage.
Editorial Opinion
Important
How to Choose a Lender
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Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.
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Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.
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Carefully review all the terms and conditions of your payday loan contract.
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Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.
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Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
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Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.
