Business Insider's personal finance team compared NetCredit Personal Loans to the best personal loans and found it to be in need of improvement. Its exorbitantly high APRs and murky fee structure make it less desirable than other options. Additionally, borrowers have opened numerous complaints against NetCredit with the Better Business Bureau.
NetCredit Personal Loans Overview
What Are NetCredit Personal Loans?
NetCredit Personal Loans are a decent option for borrowers who don't have good credit, but you'll pay much higher rates than with other personal loan lenders. It's not a good choice if you want to avoid fees, as NetCredit charges late and origination fees that vary depending on your state. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
Key Features and Benefits
NetCredit has loan amounts between $500 to $10,000 (up to $10,500 in CA). Its term lengths are between six to 60 months. A longer term length means smaller monthly payments — but you'll pay more in overall interest.
You won't be able to get a loan in Colorado, Connecticut, Iowa, Massachusetts, Maryland, Maine, Nevada, New Hampshire, New York, North Carolina, Pennsylvania, Vermont, West Virginia, and Washington DC.
The company's APR range is from 34.00% to 99.99%, depending on your state. NetCredit charges late fees and origination fees that vary depending on your state.
Approved personal loans are generally funded the next business day. If you submit an application before 7:00 a.m. CT Monday through Friday, you may receive your funds the same business day
NetCredit Loan Terms and Rates
Interest Rates and APR
NetCredit charges significantly higher interest rates on its personal loans than its competitors, with a minimum APR of 34.99%, going up to 99.99%.
Compared to other personal loans, NetCredit's interest rates leave a lot to be desired. However, there is no minimum credit score required to apply for a NetCredit personal loan, which could make it a desirable, albeit almost predatory, option for borrowers with bad credit or no credit history.
Loan Amounts and Terms
NetCredit offers personal loans between $500 and $10,000 with loan terms of six to sixty months. Other lends offer loans for as much as $50,000 or even $100,000, so NetCredit is best for those who need a relatively small loan.
NetCredit Eligibility and Application Process
Eligibility Requirements
NetCredit is best for borrowers who want to get a small amount of money quickly and have poor credit. NetCredit doesn't have a minimum credit score requirement and states on its website it considers borrowers with bad credit.
Payments on your personal loan will be reported to TransUnion and Experian, which may help you build your credit score if you reliably pay on time.
Step-by-Step Guide to Applying for a NetCredit Personal Loan
1. Send in your personal information. You'll need to send in basic information, such as your name, address, income, Social Security number and birthday to see what rate you'll get.
2. Review loan offers and pick the one you can afford. After you submit your information, NetCredit will give you different term options. A shorter term length means larger monthly payments — but you'll save more in interest.
3. Accept your loan terms and plan for repayment. After you sign the document accepting your loan terms, your loan will be approved and funded. Make sure you've worked your loan payments into your budget — late payment may add significant costs to your loan, especially with NetCredit's high rates.
NetCredit Fees and Costs
Are There Any Fees?
NetCredit does not charge any application fees, prepayment fees, or insufficient funds penalties. However, missed or late payments may incur a fee if you live in certain states.
You may also incur an origination fee, depending on where you live. If you pursue a personal loan with NetCredit, your loan terms will outline the fee structure that applies to you.
Understanding Origination Fees, Late Fees, and Prepayment Penalties
Origination fees are fees that a lender charges a borrower to process, initiate, and disburse a loan. Not all lenders charge origination fees, but they are fairly common. As one could guess, late fees are fees that borrowers incur for missing a late payment. This fee is often a small percentage of the outstanding balance or a fixed number set by the lender. Prepayment penalties are fees that a borrower can incur for paying off their loan before the end of the loan term. These fees serve the interest of the lender because they encourage borrowers to continue paying interest for longer, as opposed to paying off the loan early.
How NetCredit Compares to Other Lenders in Terms of Fees
NetCredit's fee structure is fairly manageable compared to other lenders, but it's hard to say as each borrower's fees are contingent on their own borrowing situation. Other lenders have more straightforward, universal fee structures that can end up being more costly, but some borrowers may prefer that.
NetCredit Personal Loan Repayment and Flexibility
Repayment Options
You can make loan payments to NetCredit in several ways. Upon applying, you can choose to pay via AutoPay so you don't miss payments. This is also known as recurring ACH. You can also pay via debit card, prepaid card, paper check, money order, or with one-time EFT payments.
Flexibility in Repayment Terms
NetCredit allows borrowers to make early payments, repay their loans in full, and make partial payments. You'll incur late fees if you miss your payment date, but the method by which you pay is very flexible.
NetCredit Loans Customer Experience
User Reviews and Ratings
NetCredit is not currently rated by the Better Business Bureau, a nonprofit organization focused on consumer protection and trust. The BBB evaluates companies based on their responses to customer complaints, honesty in advertising, and transparency in business practices. The BBB is investigating a pattern of complaints before it issues a rating for NetCredit.
Common Praises and Complaints
Customers have complained that the business approved them for loans they didn't apply for and performed credit checks on them without them applying for loans. Some customers also say they've been unable to reach customer service.
Customer Support and Service Quality
In response to these complaints, NetCredit said the unauthorized loan approvals were resolved through its identity theft and fraud review process. NetCredit pointed to short staffing as a reason for slow customer support times and said it is engaged in "aggressive recruiting and hiring" to solve the problem.
You may not feel comfortable borrowing from NetCredit given its history with customer complaints — but make sure to reach out to friends and family who may have borrowed from the lender to get a more complete picture of its services.
NetCredit Personal Loan Alternatives
NetCredit Personal Loans vs. Fig Personal Loans
Both NetCredit and Fig are slightly lower-cost alternatives to payday loans, many of which have interest rates around 400%. However, you'll still pay a much higher interest rate with these three than you would with a traditional personal loan lender.
Fig Loans and NetCredit both don't have credit score minimums. Other companies, like LightStream personal loans and SoFi personal loans, have high minimum credit scores — though they do offer lower interest rates.
Read our Fig personal loans review.
NetCredit Personal Loans vs. OppLoans Personal Loans
Neither company has a minimum credit score to qualify for its personal loans. If you have a poor credit history, they might be a good option if you've been denied by other companies.
NetCredit has a rate range of 34.00% to 99.99%, depending on your state, while OppLoans has a higher rate of 160.00% to 195.00%.
OppLoans' terms range from 9 months to 18 months, depending on the state you live in. NetCredit has a wide range of loan terms, from six to 60 months.
Read our OppLoans review.
NetCredit Personal Loans Pros and Cons
Advantages
- Low minimum loan amount. You can borrow as little as $500 from NetCredit in some states, which may make it a perfect option if you only need a bit of cash to tide you over.
- Fast funding. You'll usually get your money the next business day after your loan is approved. If you send in your documents before 7 am, you may even get your money the same business day.
Disadvantages
- Doesn't operate in every state. Residents of CO, CT, DC, IA, MA, MD, ME, NV, NH, NY, NC, PA, VT, and WV aren't eligible for a NetCredit loan.
- Recent history of customer complaints. Customers have complained NetCredit approved them for loans they didn't apply for and performed a credit check on them without them applying for a loan. The customers also allege being unable to reach customer service.
- Late fees. These fees vary by state. Find the late fees for your state.
- Origination fees. These also vary by state, and in some states NetCredit doesn't charge an origination fee at all. See if your state charges an origination fee.
- Low maximum loan amount. You're only able to borrow $500 to $10,000 (up to $10,500 in CA) with NetCredit. Other personal loan lenders may offer up to $50,000 or even $100,000 to qualified borrowers. If you need a larger debt consolidation loan, you'll want to look elsewhere.
- High APR range. NetCredit's minimum interest rate is at the top of the range for most other personal loan lenders, and its maximum APR far exceeds some of the better alternatives for personal loans.
34.00% to 99.99%, depending on your state
$500 to $10,000 (up to $10,500 in CA)
- Low minimum loan amount
- Quick funding
- Low maximum loan amount
- Significantly high APRs
- Not available in every state
- Late fees
- Origination fees
- Loan amounts between $500 to $10,000, or up to $10,500 in CA
- Loan term lengths between six to 60 months
- Loans unavailable in CO, CT, DC, IA, MA, MD, ME, NV, NH, NY, NC, PA, VT, and WV
- Customer service available via email and phone
NetCredit Personal Loan FAQs
What are the main benefits of a NetCredit Personal Loan?
The main benefits of a NetCredit Personal Loan include fast funding, flexible loan terms, and a straightforward online application process. NetCredit also offers various loan amounts, making it suitable for various financial needs.
How do NetCredit Personal Loans compare to other personal loans?
NetCredit Personal Loans offer manageable fees and flexible terms. Unlike some traditional lenders, NetCredit considers factors beyond just credit scores, making their loans accessible to a broader range of borrowers.
Are there any fees associated with NetCredit Personal Loans?
NetCredit charges origination fees, which vary depending on the borrower's location, creditworthiness, and loan terms. Potential late fees and other charges may also apply, so it's important to review the loan agreement for specific details.
Does applying for a NetCredit Personal Loan affect my credit score?
NetCredit performs a soft credit check when you first apply, which does not affect your credit score. However, if you proceed with the loan, a hard credit check will be conducted which does impact your credit score.
Who is eligible for a NetCredit Personal Loan?
To be eligible for a NetCredit Personal Loan, you must be a US citizen or permanent resident, be at least 18 years old, and meet income criteria. Specific requirements may vary, so it's best to check NetCredit's official website.
Why You Should Trust Us: How We Rated NetCredit
We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating you see is the weighted average of a loan's scores across seven different categories. Loan rates, terms, and fees are weighted the most heavily, while customer support and company trustworthiness account for a smaller part of NetCredit's final score.
See our full personal loan-rating methodology for more details on how we assign ratings.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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