About NetCredit
NetCredit is a licensed financial company based in Chicago and established in 2012. NetCredit's parent company is Enova International. In some states, Republic Bank & Trust Company operates as the company's partner for loans underwriting and approval.
The lender has many options offering personal loans and credit lines online, with a constant interest rate over the loan term and equal monthly installments. NetCredit is known for its mission to make credit accessible to middle and lower-class consumers. NetCredit loans are not exclusive but are available to any applicant with a stable and demonstrable source of income. It is possible to receive a loan on the first business day.
NetCredit products suit most people with bad credit, no property which can be used as collateral, and no co-signers. Most of the financial company's customers urgently need funds and are ready to pay higher annual percentage rates.
Pros and cons of NetCredit
NetCredit is an online lender with several advantages that distinguish the company from traditional lenders. Among the pros can be noted:
Availability for clients with poor credit. There is no need to have good credit to pre-qualify for a NetCredit loan. The borrower should only have a minimum credit score of 500, but in some cases, the minimum credit score for personal loans can downsize up to 0. According to the company's principle, people are more than numbers. The company will decide whether to originate the loan under the financial profile.
High amounts. There is an option to get a huge loan amount of up to $10.000 within a single business day. However, an applicant needs to have a decent source of income to get the highest amount with the lowest interest.
Easy money. It is possible to receive money the same day you apply for the loan. All you need to do is apply before 7:00 am, accompanied by the required documents.
No co-signer or collateral is needed. NetCredit personal loans are affordable and unsecured. Only the borrower themself is responsible for the loan.
However, some people consider NetCredit loans their last option for several reasons. Among the disadvantages can be mentioned:
High annual percentage rate (APR). Such personal loans may be unaffordable for some customers. When considering a NetCredit loan, it's important to note that typically, personal loan APRs are between 6% and 36%, and the National Consumer Law Center considers 36% to be the upper limit of an affordable interest rate. NetCredit loan is recognized as a high-cost loan for its high APR of up to 155%.
Loan terms vary by state. The other disadvantage of this type of personal loan is its unavailability in most states.
High origination fee. Up to 5% if the interest rate is 36% or less.
Late payment fee. For the payment delay of 15 days, the company's client can be obliged to pay $25 or 5% of the payment due.
Loan terms and conditions
NetCredit personal loans refer to unsecured personal loans, which means no collateral is required. Such loans can be originated in Utah, Idaho, Alabama, Georgia, Illinois, Delaware, Missouri, Virginia, Louisiana, Wisconsin, New Mexico, North Dakota, and South Carolina. Loan terms may significantly differ from one state to another because of the difference between the laws of each state.
For instance, the minimum loan amount in Georgia ($3,100) is three times higher than in Arizona ($1,000). Still, the APR for Georgian NetCredit personal loans is less (34% – 59% compared to 34,99% – 99.99% in Arizona and 34% – 155% in Idaho.
Borrowers can obtain loans ranging from $1,000 to $10,000, with APRs ranging from 34% to 155%. Very few personal lenders offer such high loan amounts. The minimum term is six months, and the maximum duration is 60 months (5 years).
Also, the company offers lines of credit that lets the borrower withdraw as much cash as he needs at any point in time and pay it back on his timeline. Remember that NetCredit interest rates for lines of credit are variable. Floating rates fluctuate depending on a special index or an underlying benchmark interest rate.
Funding a loan
The process of getting a personal loan takes between 1 and 3 days, but it is possible to receive the money the next day if the request was made from Monday to Thursday. You need to provide accurate information by completing the form and submitting the required documents instantly.
Then NetCredit will conduct a soft credit check. This process won't affect the borrower's credit score. The next step after the preapproval is filling out an online application that asks for more details like the loan purpose, address, Social Security number, current income, and employment. The lender does not have any restrictions on how borrowers can use their loan funds. Also, at this step, borrowers should indicate their ideal loan amounts and repayment terms.
If the application for a NetCredit personal loan is approved, the borrower will receive a loan offer with information about the monthly payment amount and terms. If the borrower is unsatisfied with his personal loan, he can submit a request for other loan options, including a higher or lower monthly payment amount or repayment period. Before funding a loan, NetCredit conducts a hard credit check, which can temporarily affect credit score, as the borrower's payment history is reported to major credit bureaus.
