NetCredit personal loans review: High interest rates for small loans

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In a Nutshell

NetCredit offers personal loans with high interest rates and small loan amounts. If you can’t qualify for other types of traditional lending, NetCredit may be a good option — but make sure to compare rates before you make a final decision.

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Pros Cons
Potentially fast funding High interest rates
No prepayment penalty There may be an origination fee, depending on where you live
Prequalification tool Not available in all states

What you need to know about a NetCredit personal loan

NetCredit is a Chicago-based branch of Enova International Inc. It focuses on small personal loans for people who may not qualify for traditional lending through banks or other large, traditional lenders. The company will evaluate your larger financial picture, considering more than just your credit scores.

If approved, you can generally borrow between $1,000 and $10,000. NetCredit is an online lender that can deposit your loan funds into your bank account quickly, usually within a couple of business days.

High interest rates

NetCredit’s annual percentage rates, or APRs, tend to be higher than those offered by many other personal loan lenders. Depending on your finances and where you live, the APR you’re offered may even reach triple digits. Even NetCredit’s lowest rates are high compared to some other lenders.

When you’re considering a loan from NetCredit, it’s important to keep in mind that the National Consumer Law Center considers 36% to be the upper limit of an affordable interest rate.

A mixed bag of fees

NetCredit doesn’t charge application or nonsufficient funds fees. It also won’t charge you a prepayment penalty if you want to pay off your loan early.

But you may be charged an origination fee, depending on where you live. This fee covers the cost of the application process and is deducted from your total loan proceeds.

And if you miss a payment, you may get hit with a late fee, which also varies by state.

Loans for less-than-perfect credit

NetCredit uses its own underwriting model designed to consider financial factors beyond credit scores. According to NetCredit, “your eligibility is determined by looking at your broader financial picture -— not just your credit score.”

But according to the company’s annual report from 2018 filed with the SEC, many of its loans go to people with credit scores that are “near prime.”

Learn more about credit score ranges

While you may be eligible for a NetCredit loan even if you have bad credit or fair credit, it’s important to consider other options. For example, think about using a credit card you already have, since the average credit card interest rate is lower than the lowest rates NetCredit offers.

A closer look at NetCredit personal loans

Here’s what else you should know about a loan from NetCredit.

  • Availability — As of June 2020, NetCredit was doing business in 37 states. States where the lender does not operate include: Colorado, Connecticut, Iowa, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New York, North Carolina, Pennsylvania, Vermont and West Virginia.
  • Educational resources — If you want to know more about personal loans or your finances, NetCredit provides educational resources on its website, including budgeting tools and educational courses.
  • Credit reporting — NetCredit will report your payment history to two of the three major consumer credit bureaus. If you’re making your payments on time and in full, this may help you build your credit.
  • Loan cancellation — If you believe you’ve made a mistake by applying for a NetCredit personal loan, NetCredit’s My Choice Guarantee gives you a window to cancel your loan. You have until 6 p.m. Eastern time on the business day after funding to rescind the loan and return the funds.

Who a NetCredit loan is good for

NetCredit offers smaller loan amounts, so this lender may be good for you if you need an emergency loan for car repairs or another unexpected bill. If you don’t qualify for other traditional loans, NetCredit is a viable lending option to consider.

If you’re approved, your loan might be deposited into your bank account within one business day.

A NetCredit personal loan may also be a good fit if you plan to pay off your loan early, since there’s no prepayment penalty. With NetCredit’s high interest rates, paying off your loan early can also help you save money on interest.

If you have good credit, you’re better off considering other lenders if you want a personal loan — you may be more likely to qualify for a loan with lower interest rates than NetCredit offers.

How to apply with NetCredit

If you want to apply for a NetCredit loan, you can first see if you prequalify. NetCredit will run a soft inquiry that won’t affect your credit scores. Note that prequalification isn’t a guarantee of approval and you may be offered different terms after completing a full application with NetCredit.

You can apply for a NetCredit personal loan directly from its website. The entire application process should only take a few minutes to complete.

Here’s what you can expect from the application process.

1. Set up an account. You’ll provide NetCredit with some basic information, including your address, desired loan amount, phone number and the purpose of the loan. Then, you’ll create an account using your email and selecting a password. If your state isn’t eligible, the application process will stop there.

2. Add income info. If your state is eligible, you’ll provide your income, date of birth, Social Security number and employment information.

3. Check your eligibility. If you qualify, NetCredit will provide various loan term options to choose from. If you’re not happy with the term options, you can select the “Modify Loan Details” button to adjust your personal loan offer within the available options.

4. Select a loan offer. If you’re satisfied with the personal loan offer, you can choose the loan and repayment terms that fit your budget and financial goals.

If a NetCredit personal loan isn’t right for you, consider these alternatives

  • Avant: An Avant personal loan may be a good option if you want a larger loan amount.
  • Best Egg: Best Egg offers competitive interest rates for people with good credit.

About the author: Ashley Chorpenning is a personal finance writer and content creator. In addition to being a contributing writer at Credit Karma, she writes for solo entrepreneurs and Fortune 500 compani… Read more.