NetCredit is a subsidiary of Enova International, Inc., which is headquartered in Chicago and has been in operation for 10 years. Enova is one of the largest licensed lenders in the United States, but be aware that it also owns payday lending companies like CashNetUSA with abysmal customer reviews. NetCredit’s interest rates can be very high compared to the competition, and it issues loans in only 14 U.S. states.
NetCredit could be helpful for someone with poor credit who is looking to build up their score or for someone who needs up to $10,000 of flexible spending money. If you live in one of the 14 states NetCredit serves and you can’t qualify for a loan elsewhere, NetCredit could be a better option than a payday loan.
How Net Credit stacks up
- Low credit score requirement
- No prepayment penalty
- Relatively quick turnaround
- Exceptionally high interest rates
- Not available in every state
- Only offers personal loans
What’s interesting about NetCredit
If you have a low credit score and are looking to raise it, NetCredit does report to the two of the major credit bureaus. A loan through NetCredit could be suitable for anyone working on building up their credit with on-time repayment. Nonetheless, there are other options out there with lower interest rates, such as a credit builder loan with a local bank.
Another useful feature is its flexible loan usage. NetCredit doesn’t dictate how you can use the money, and it doesn’t charge many of the small fees that other lenders do. It also has short or long payoff periods personalized for your needs. If you can’t qualify for a loan anywhere else, you might be able to get what you need out of NetCredit. NetCredit is also relatively quick to approve a loan — within one to three business days — but so are many other lenders.
Things to consider
The biggest thing to consider before taking out a loan with NetCredit is the high interest rate. The lowest possible interest rate through NetCredit is on par the upper rate of other banks, and a NetCredit rate can go up to four times that. Be sure to do the math to figure out how much the loan will cost you before agreeing to it.
Additionally, NetCredit doesn’t allow co-signers on loans. Not having a co-signer means you will be liable for repaying the debt on your own. Even if you face an unforeseen sickness or accident that leaves you unable to pay your bills, you will be held responsible. Not having a cosigner might not be an option for some borrowers.
NetCredit offers personal loans up to $10,000 (or $10,500 in Arizona). Each loan is subject to state law, so you may or may not pay an origination fee depending on where you live. However, NetCredit doesn’t charge fees on applications, prepayment, or non-sufficient funds. Nonetheless, you may be charged a $15 late fee if you don’t make a payment within 10 days of the due date.
Repayment periods can be anywhere from 6 to 60 months. Your fixed interest rate depends on your credit history, the amount of money borrowed, and the length of the repayment period — and the rate can be very high. Through NetCredit, the APR sits anywhere from 34% to 155%. This APR is much higher than competitors, which have an average from 5% to 36%. Unless your credit score is lower than 580, you would be able to find much better rates elsewhere.
NetCredit doesn’t offer mortgage loans. If you’re in the market for an online mortgage, try Quicken Loans or SoFi. Quicken Loans is the biggest mortgage lender out there, and it offers quick approval and reasonable rates. SoFi is also very fast to get approved, and it offers 30- and 15-year loan options.
NetCredit also doesn’t offer mortgage refinancing. Nevertheless, customers looking to save money by refinancing their mortgage have many options available. A great external option is LoanDepot. The company has experience with over $70 billion in mortgage refinancing, and its online process is easy.
For anyone looking for a more traditional option, Chase Bank could be a good bet. It offers in-person assistance in over 22 US states, plus over-the-phone and online services.
Home equity loans & HELOCs
NetCredit doesn’t offer home equity loans or home equity lines of credit (HELOCs). However, PNC Bank and BB&T could be two great alternatives. PNC Bank has an array of different home equity loans and HELOCs that come with online management tools that help borrowers determine a reasonable repayment plan.
BB&T offers flexibility as well as a discounted interest rate for the first year, along with the option to switch a HELOC balance to a fixed-rate loan.
NetCredit doesn’t have a car loan option, but there are many external options out there. If you prefer a well-known bank, check out Capital One. You can qualify for preapproval through Capital One’s Auto Navigator program.
If you prefer to avoid the bank altogether, try Carvana. You can apply for a loan directly through the Carvana website — plus pick out your car and have it delivered from the comfort of your couch.
The final word
Who would be a good fit for a NetCredit personal loan? Anyone who can’t qualify for a personal loan elsewhere — because of a low credit score or other nicks on your record — could get approval by NetCredit. As long as you don’t need a cosigner on your loan agreement, NetCredit could work for you. Additionally, customers looking for flexible funds could be suited for a NetCredit loan.
Who would want to pass on NetCredit? Customers with good to excellent credit scores (above 580) will want to try a different loan first. You will likely be able to find a much lower interest rate through other lenders.