NetCredit: What You Need To Know About
If you are struggling with bad credit, chances are your options of getting personal loans are quite limited.
Your bad credit, in this case, makes it difficult for lenders to trust your ability to pay back the loan without defaulting on repayments.
They’ll, therefore, reject your loan application or lend to you at very high interest rates. Usually, the high interest rate is meant to cover the risk.
Fortunately, NetCredit, unlike other lenders, will allow you access personal loans, but at triple digits interest rates.
Read on, and you’ll learn everything you need to know about NetCredit personal loans.
An overview of NetCredit
NetCredit is an online lender operating in Chicago with several branches in over 14 states in the United States.
They specialize in providing unsecured, short-term personal loans to borrowers struggling with bad credit. Usually, the loan term varies depending on the state, but the typical term for their loans is 6 months to 5 years.
To get a personal loan from NetCredit, you’ll submit your request by filing the loan application form online.
NetCredit will then look at your financial state, and put other factors into consideration before approving your loan request.
Since NetCredit works with borrowers with bad credit, they charge high interest rates compared to your traditional lenders to cover the risk of delinquency.
How it works
Borrowing is entirely online
Before submitting your loan application, you’ll need to check if you qualify for a loan. You don’t have to worry because this pre-qualification step does not affect your credit score in any way.
You will be approved for a loan depending on the state you come from, your current financial status, your income and credit history.
If you qualify for a loan, they’ll decide on a loan amount that suits you depending on the above factors. You, however, have the liberty of accepting the amount offered or taking less.
The loan process is quite fast, and if your loan application is approved, you can receive the funds in your bank account as soon as the next business day.
Should you change your mind about borrowing, NetCredit offers you the flexibility of returning your loan within one or two business days through their ‘my choice guarantee’.
With NetCredit, you also get the opportunity of building your credit scores as you pay your loan. Usually, your consistent and timely loan repayments are reported to Transunion and Experian.
With this lender, you don’t have to worry about prepayment penalty since you will not be charged for clearing off your loan before the scheduled date. You, therefore, can pay off your loan without incurring more expenses.
Positive features about NetCredit
Taking personal loans from NetCredit allows you to enjoy the following benefits:
- You can borrow irrespective of your bad credit – NetCredit is specially designed for borrowers with struggling credit.
- A fast turnaround time – you don’t have to wait for weeks or months to be approved for a loan. Their loan process is quite fast, and if approved for funding, your bank account will be credited with the loan amount on the same business day.
- Helps you build your credit history – by paying on time consistently, you’ll improve your credit because NetCredit reports your timely payment to the two credit bureaus – TransUnion and Experian.
- NetCredit offers financial education – you can get informative articles on how to manage your finances and gain financial stability on their pages.
- No origination fees – you don’t have to pay any amount to get a loan from NetCredit.
- You choose how to repay your loan – you’ll enjoy the flexibility of paying your loan without any fixed rate restrictions. You can even decide to clear off the loan amount before the scheduled time without any penalties.
The not so good stuff about NetCredit
- They are only available in 14 states. You’ll need to check if you are eligible before applying.
- Triple digits interest rates – unlike other traditional lenders who’ll charge around 36% for bad credit personal loans, NetCredit will charge as high as 155% for their loans.
- Negative customer reviews – some clients complain that NetCredit debited their accounts without informing them. In some cases, they took double payments.
- Poor customer services – their customer care representatives are rarely available, and getting hold of one when you need help is difficult.
- Small loan amounts – if you plan to finance a huge event like a wedding, this is not the lender for you. NetCredit offers its customers small loan amounts.
How to qualify for a loan from NetCredit
To be eligible for an online loan from NetCredit, you’ll have to produce some basic personal information when filling out the loan application form.
Below are some of the conditions you’ll need to meet to be eligible for funding:
- Your credit score has to be 550.
- You must be a permanent resident or U.S. citizen.
- You should be 18 years old.
- Have a consistent and stable source of income.
- Have an open and active checking account.
Required personal information:
- You’ll need to produce pay stubs, SSL benefits as proof of income.
- Your SSN, driver license as proof of identity.
- Paid bills or old mains as proof of residence.
Step by step loan application from NetCredit
Below is a step by step procedure of how to apply for a personal loan from NetCredit
- On NetCredit’s website, fill out the loan application form and state your desired loan amount and purpose then click check eligibility.
- Create a NetCredit account by filling in your email and name then fill out your personal information such as address and phone number.
- Provide your employment information, Social security number, and date of birth.
- Before clicking step 3, make sure you read and agree to the terms and conditions of NetCredit.
- Check the loan amount you qualify for in step 3 and choose the terms that suit you most.
- If approved, sign the loan agreement form and wait for the funds to be credited in your bank account as soon as the next business day.
It’s important to note that checking if you are eligible for a loan on NetCredit’s website does not affect your credit score.
NetCredit’s cost of borrowing
The cost of borrowing varies from state to state and will largely depend on your current financial situation, credit score, and your total loan amount.
If for example, you take out a loan of $1,000 payable in 60 months at an interest rate of 155%, you are likely to part with thousands of dollars as interest compared to the person borrowing the same amount at a fixed rate of 36% payable in 12 months. That goes to show that NetCredit is quite exorbitant.
When approved for a loan, you’ll get a list of interest rates charged per state, and that will enable you to choose what works best for you. Carefully examine the rates before signing the loan contracts.
Also, be sure that you can pay the loan back as missed payments will affect your credit scores and cost you more due to the penalties charged and the accrued interests.
Is NetCredit a legit lender and what do past clients say about them?
NetCredit is a legit online lender and has measures in place to ensure that your personal information is safe from hackers.
Although they have an A rating from the BBB, many clients have complained about how they conduct their business. The complaints are mainly from people who were upset about not being approved for loans, the high interest rates, and money being debited from their accounts without their consents.
Some customers, however, believe that they are a transparent lender and their loan process is quite fast compared to other lenders. You should, therefore, take the mixed reviews with a grain of salt since some of them are written by extremely upset or happy individuals.
Before taking out a loan, it’s important to:
- Compare different lenders depending on the interest rates charged on their loan products.
- Be sure you can pay back the loan before signing the loan agreement form since late or missed payments will negatively affect your credit scores.
- Ensure that you read the terms and conditions before closing the deal because an oversight may cost you when you start repaying your loan.
NetCredit is a legit online lender allowing borrowers with struggling credit to access personal loans from over 14 states in the U.S. It’s important to note that their interest rate is quite high compared to your traditional lenders.
Therefore, before taking a loan with them, make sure you can comfortably pay back the loan. Late payments may negatively affect your credit scores. The beauty of taking out a loan with them is that you can quickly grow your credit ratings because they report your regular payments to the credit bureaus.
On a scale of 1-10, we’d say NetCredit is a lender worth considering.