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Personal Loans

6 Personal Loans that Accept Cosigners or Co-Borrowers

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

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When you need to borrow money but don’t want the uncertainty of credit cards, a personal loan is one option to consider. Personal loans can be useful in many circumstances, whether you want to consolidate high-interest debt, finance home improvements or cover an unexpected expense.

But if you don’t qualify for a loan on your own, or are only seeing high-cost offers from lenders, applying for a personal loan with a cosigner or co-borrower could help. Here’s a closer look at what it means to be cosigner or co-borrower, and lenders that permit them.

What is a cosigner and a co-borrower?

A cosigner and co-borrower can increase your chances of loan approval. Lenders will take their financial information, such as their credit score, income and debt-to-income (DTI) ratio into account when determining loan approval. Having an additional party responsible for the loan decreases the lender’s risk.

Although the terms cosigner and co-borrower sound similar, however, there are differences:

  • Co-borrowers (also called joint borrowers) share and repay a debt together. In general, they share rights to the money they jointly borrow or the property or services they purchase with those funds.
  • Cosigners (also called guarantors) let you use their good credit and income on your loan application. But the intention is for you alone to repay the money you borrow and your cosigner may not share rights to the money or the things you buy with it.

In both cases, cosigners and co-borrowers accept legal responsibility to repay the debt. The loan usually shows up on the credit reports of both parties as well, potentially hurting or helping the credit scores of everyone involved depending on how you manage the account.

Differences between a cosigner and co-borrower
CosignerCo-borrower
What it isCosigners agree to guarantee loans you can’t qualify for alone, but they may not share legal rights to the things you purchase with the money you borrow. Co-borrowers, like spouses or business partners, agree to manage an account together and often share equal rights to the things purchased with the loan.
How it affects repaymentThe primary borrower is generally responsible for repayment, but the cosigner is legally liable for the debt as well. Both borrowers are responsible for repaying the loan.
What happens if you defaultBoth parties are liable for the debt. Both of your credit reports and scores may suffer damage.Both borrowers are liable for the debt. Both of your credit reports and scores may suffer damage.

Personal loan companies that accept cosigners or co-borrowers

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Company
APR*
Repayment term
Min Loan Amount
Max Loan Amount

3.99% - 19.99%*

with AutoPay

24 to 144*

months

$5,000

$100,000

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 3.99% APR with a term of 3 years would result in 36 monthly payments of $295.20.
SoFi

5.99% - 18.28%*

24 to 84

months

$5,000

$100,000

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on LendingTree’s secure website

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Fixed rates from 5.99% APR to 18.28% APR (with AutoPay). SoFi rate ranges are current as of October 5, 2020 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

7.99% - 29.99%

24 to 60

months

$7,500

$40,000

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on LendingTree’s secure website

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The loan terms presented are not guaranteed and APRs presented are estimates only. To obtain a loan you must submit additional information and documentation and all loans are subject to credit review and our approval process. The range of APRs is 7.99% to 29.99% and your actual APR will depend upon factors including your credit score, usage and history, the requested loan amount, the stated loan purpose, and the term of the requested loan. To qualify for a 7.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $12,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you also qualify for the lowest rate available. All loans are made by Cross River Bank and MetaBank®, N.A., Members FDIC.

10.68% - 35.89%

36 or 60

months

$1,000

$40,000

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18.00% - 35.99%

24 to 60

months

$1,500

$20,000

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on LendingTree’s secure website

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Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $400. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes.

Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.

Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Florida: $8,000. Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. Texas: $8,000. West Virginia: $14,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

Up to 35.99%

12 to 60

months

$1,000

$25,000

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on LendingTree’s secure website

LightStream

  • Allows cosigners? No
  • Allows co-borrowers? Yes

LightStream, the online lending division of SunTrust Bank, offers no-fee personal loans That means: No origination fee, no application fee and no prepayment penalties for paying off your loan early.

Although LightStream doesn’t list a minimum credit score requirement, they do note that their loans are available for consumers with good credit. And the lender allows people to apply for their loans with a joint applicant.

Is LightStream right for you? Borrowers looking for larger loan amounts or competitive APRs may find LightStream to be an attractive choice for personal loans. But LightStream requires applicants to have good credit to qualify for a loan. So, if your credit or your co-borrower’s credit isn’t in the good to excellent range, you might not be eligible for the lowest rates or highest loan amounts advertised.

SoFi

  • Allows cosigners? No
  • Allows co-borrowers? Yes

While SoFi is mostly known for their private student loans and student loan refinancing options, this company also offers personal loans. SoFi personal loans are available for people in every state except for Mississippi, and they allow co-borrowers on the same loan application.

One big benefit of personal loans from SoFi is their lack of fees. The company doesn’t charge an origination fee for their personal loans nor do they charge prepayment or late fees. SoFi even has a program that lets you pause your loan payments if you lose your job.

Is SoFi right for you? SoFi offers competitive APRs on personal loans compared with many other lenders. But your financial history, credit score and DTI ratio will influence the rate and terms you’re offered, if you qualify for financing. On the bright side, SoFi makes it possible to see if you could get approved for a loan without a hard inquiry on your credit report.

FreedomPlus

  • Allows cosigners? No
  • Allows co-borrowers? Yes

FreedomPlus focuses on borrowers with less-than-stellar credit. Loan amounts are offered up to $40,000 and your repayment terms may span up to 60 months. FreedomPlus does charge an origination fee from 1.99% - 4.99% of your loan amount, but they don’t charge penalties if you pay your loan off early.

FreedomPlus doesn’t list an exact minimum credit score to qualify. But FreedomPlus does allow co-borrowers on their loan applications, which can make it easier to qualify if you do not have the income or credit to qualify on your own.

Is FreedomPlus right for you? FreedomPlus doesn’t offer the lowest APRs or fees among these personal loan lenders. But if your credit isn’t in excellent condition, it may be worth filling out an application to review your borrowing options.

LendingClub

  • Allows cosigners? No
  • Allows co-borrowers? Yes

LendingClub is not a lender but a peer-to-peer loan marketplace. Through the LendingClub marketplace, you can apply for personal loans – either on your own or with a co-applicant – from other individuals who agree to invest in the platform.

Personal loans through LendingClub are offered for up to $40,000 for debt consolidation, home repairs, emergency expenses and many other purposes. APRs can be on the low side provided you have good or great credit since the lender’s lowest advertised rates start at 10.68%. However, LendingClub’s minimum credit requirements are Not specified. With joint applications, your combined DTI ratio must be less than 35%.

Is LendingClub right for you? Loans through the LendingClub platform may work well for borrowers who are looking for smaller amounts. But LendingClub does state that borrowers who pay the lowest rates have a high credit score, a lengthy and successful credit history, and a low DTI. If you don’t think you or your co-borrower can meet these requirements, you may want to shop around for other personal loan options.

OneMain Financial

  • Allows cosigners? No
  • Allows co-borrowers? Yes

OneMain Financial has higher APRs than some of their competitors. Loan amounts are offered between $1,500 and $20,000 and repayment terms are available for 24 to 60 months.

OneMain Financial extends personal loans to borrowers with fair credit who may not be able to get a loan elsewhere. It also allows borrowers to apply for a loan with a co-borrower, which could help you qualify for a lower APR if your credit is poor. You may even be offered a secured personal loan if you otherwise may not qualify. (A secured loan is backed by collateral, such as savings or your car. If you default, the lender can seize the collateral.)

It’s important to note, however, that you will have to visit a physical OneMain Financial branch to close on your loan. The lender has locations in each state with the exception of:

  • Alaska
  • Arkansas
  • Connecticut
  • Massachusetts
  • Rhode Island
  • Vermont

Is OneMain Financial right for you? Although OneMain Financial doesn’t offer the lowest APRs on personal loans, the lender may be worth considering if your credit and your co-applicant’s credit needs improvement. Just be sure you’re comfortable visiting a physical branch to close your loan, if you qualify, before you fill out an application.

Mariner Finance

  • Allows cosigners? Yes
  • Allows co-borrowers? Not specified

Mariner Finance allows individuals to apply for a personal loan with a cosigner. The company offers APRs as high as 35.99% depending on your creditworthiness, but it doesn’t list a minimum credit score to qualify. Like Mariner Finance, you may be offered a loan backed by your vehicle.

While Mariner Finance does have looser requirements to qualify for their loans, it’s important to note that they only operate in 24 states:

Mariner Finance: States they operate in
AlabamaIllinoisNew JerseyTennessee
CaliforniaKentuckyNew YorkTexas
DelawareLouisianaNorth CarolinaUtah
FloridaMarylandOhioVirginia
GeorgiaMississippiPennsylvaniaWashington
IndianaMissouriSouth CarolinaWisconsin

Fees can vary on personal loans from Mariner Finance as well, so make sure to read the fine print and understand them before you move forward with one of their loan options.

Is Mariner Finance right for you? Rates on Mariner Finance personal loans are high compared with other lenders. But, if you have credit challenges, you might still be able to qualify for financing. You can check your potential loan offers with a soft inquiry that will not affect your credit score. So, there’s no downside to reviewing your options.

How to ask someone to be a cosigner or co-borrower

There are several reasons you might want to ask a friend, relative or partner to be cosign or co-borrower on your loan. Adding another person to the loan – especially someone with solid credit and income – could make it easier to satisfy a lender’s qualification criteria. However, you and the person you’re asking need to take risks into account before signing on the dotted line, namely that you’ll be equally responsible for the debt and suffer any consequences should you fail to repay.

When asking someone to be a cosigner or co-borrower, follow these tips:

  • Have an honest conversation: Share information about your income and current expenses. You should prove that you can afford repayment, and the cosigner or co-borrower should know what it means to sign on to the loan.
  • Agree on how the funds will be used: Whether you’re splitting up funds or will keep the full amount of the loan for your own expenses, you both should know precisely how the money will be spent.
  • Decide on a backup plan: You and the other party should know what to do if you begin to struggle financially. For example, a cosigner may agree to pick up payments until you get back on track, and you can later pay them back for the missed payments.
  • Consider an exit strategy: Research how to have a cosigner taken off a loan, for example. Signing on to a loan can be a multiyear commitment.

Beware services that let you hire a cosigner

Just because you need a cosigner doesn’t mean you’ll be able to find a friend or relative who’s willing to help you out. But you may find companies online that offer to connect you with potential cosigners for a fee. Once you connect with a “professional cosigner,” you can discuss hiring the individual for an additional cost.

Online cosigning services are often a waste of money and may even put you at risk for identity theft if you share personal information with strangers. Companies that offer such services are also known for making big promises online but often failing to deliver the services they advertise.

If you need a personal loan but don’t have a cosigner or co-borrower, you can explore loans for bad credit borrowers.

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Up to $50,000

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News

Multi-Level Marketing and Military Families: How to Spot a Scam

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

Written By

Being a military spouse isn’t an easy job. Non-enlisted spouses deal with difficult realities that many Americans don’t understand, from frequent relocation to defacto single parenting during deployment periods. That makes earning an income while caring for a family — especially one with young children — extremely difficult.

With challenges like these, it’s no wonder the unemployment rate among military spouses is 13%. That’s more than three times as high as the unemployment rate among civilian men and women.

Enter multilevel marketing businesses, or MLMs for short, that promote the opportunity to make money selling products directly to others. On the surface, their flexibility and built-in community may seem like a godsend to military spouses looking to bring in some extra cash. But are they all they’re cracked up to be?

How MLMs work

Besides selling your own products, MLMs involve recruiting others to join your team and sell products to the people in their circles as well. With most MLMs, you get a portion of your team member’s profits when someone joins your sales network. As the process repeats itself and your team members recruit sales networks of their own, you may continue to get a piece of the profit from everyone who signs up underneath you.

You can probably name several MLMs, also called network marketing companies, off the top of your head. There are the classics, like Tupperware, Amway, Avon and Mary Kay, along with newcomers like Beachbody, LuLaRoe and Rodan + Fields.

Yet although MLMs have been around for decades (or centuries — Avon was founded in 1886), they’re often a poor investment of your time and money. An AARP Foundation study reveals that 74% of people reported making no money or losing money as a result of their involvement with an MLM. (Investing your cash in a high-yield online savings account would actually be a safer bet, statistically.)

Why MLMs are so popular with military families

Military families in particular are often targeted by direct-selling consultants. Sometimes, this comes from a genuine desire to help military families that are looking for an additional source of income, suggested Anthony Kirlew, financial coach at Fiscally Sound.

Yet others believe the intentions of MLM recruiters may be more sinister. “Military wives are an easy target [for MLMs],” said Melissa Blevins, founder of Perfection Hangover, a small business website geared toward women, “because they’re seeking community, purpose and ways to stay busy and make money while their husbands are deployed.”

MLM recruiters often approach women (military wives or otherwise) with promises to solve the problems they’re facing. For example, a recruiter may show you a flexible way to earn extra cash (often lots of it) with a work schedule that fits your busy life. Plus, if you move, you don’t have to start over. You can take your direct-selling business with you.

The targeting of military families has a lot to do with the transient nature of military service, said Peter Marinello, vice president of the Direct Selling Self-Regulatory Council for Better Business Bureau (BBB) National Programs. “I think the military community is very vulnerable to direct-selling opportunities and a lot of different kinds of scams.”

This frequent relocation can also lead to loneliness among military spouses, and MLMs offer to help those who are seeking new friendships. But Blevins, who had her own negative experience selling for Beachbody, warned the friendships you make when you join an MLM may not last once you stop participating, and you run the risk of losing your existing friends if you start bombarding them with sales pitches.

The difference between a legitimate opportunity and a scam

You’ll find people who are superfans of multilevel marketing programs and others who despise MLMs as a whole. Perhaps the truth lies somewhere between these two extremes.

Marinello confirmed, “There are a lot of good MLM opportunities out there. They are not all scams.” But they require due diligence before signing up. To properly vet an MLM, Marinello suggests reading income disclosures to “see who’s making money [and] at what level.” You should also review compensation plans and rely on outside resources to help shape your decision.

If you want to learn more about a specific direct selling organization, the following ideas may help:

  • Check with your state attorney general for complaints before signing up for any networking marketing opportunity.
  • Search online to see if any lawsuits have been filed against an MLM before joining — such as the FTC’s settlement with Herbalife or the more recent lawsuit brought against LuLaRoe by the Washington state attorney general.
  • Talk to former consultants or search online for the opinions of people who once joined a particular MLM but ultimately left.
  • The BBB Institute for Marketplace Trust sponsors the Military & Veterans Initiative — a program designed to help veterans, servicemembers and their families avoid scams.
  • The Direct Selling Self-Regulatory Council (DSSRC), a collaboration between the BBB and the Direct Selling Association (DSA), is another solid resource to use when vetting MLMs.

How to spot a pyramid scheme

Some MLMs are pyramid schemes in disguise. A pyramid scheme may look like a legitimate network marketing opportunity on the outside. But there are key distinctions that could waste both your time and your money if you fall for it.

  • You don’t earn money by selling a legitimate product or service.
  • You’re trained to focus primarily on recruiting new team members underneath you.
  • Financial statements from the company either (a) are not available or (b) show that the MLM earns most of its money from recruitment instead of sales.
  • The commissions you earn come primarily from money paid by new team members themselves, not outside sales.

Working for an MLM is not a quick fix to your financial struggles

The reality doesn’t always live up to the hype where MLMs are concerned. Some MLM participants are quick to over-promise your chances of success in an effort to add a new team member to their network.

In reality, most people who join MLMs don’t earn the enormous sums of money often advertised by salespeople. AARP’s study found that nearly 21 million Americans have participated in an MLM. Yet only 7% earned over $10,000. Fewer than 1% earned more than $100,000.

Even those who do manage to make some money through MLMs may have to work much harder to earn that income when compared with other jobs. A MagnifyMoney survey finds that the vast majority of multilevel marketing participants earn less than 70 cents an hour.

Kirlew also advised approaching MLMs with the right mindset. “While MLM’s are pitched as a great way to earn extra income, people should know it’s not like a part-time job, but rather a part-time business.”

“If someone has a need for immediate income,” he continued, “I would recommend a part-time job and not an MLM.”

Most businesses don’t succeed — including MLMs — Kirlew pointed out. “The extra added pressure of trying to meet short-term financial goals is usually not a good combination with starting a new business.”

If you’re already in debt because of an MLM investment or other financial missteps, there are a number of tools you can use to improve your situation. This guide detailing financial resources for veterans in debt is a great place to start.

Seven red flags to look for before joining a multilevel marketing team

  1. Beware of MLMs that require a hefty buy-in. If you’re asked to put up a large upfront amount to join, Kirlew said it could be a sign of a scam.
  2. An aggressive sign-up pitch is cause for concern. Kirlew advised looking out for “high-pressure sales tactics to get you to sign up” when you’re considering an MLM. If someone tells you to “act now” or lose out on an opportunity, you should probably walk away.
  3. Proceed with caution if a company won’t buy back unused products. If you purchase product to stock your inventory and don’t sell it all, some MLMs offer to buy your unused product back. Mary Kay, for example, will repurchase product at 90% of the original cost for up to one year after purchase. MLMs that won’t rebuy your unused products should be avoided.
  4. Watch out for companies that require you to continue purchasing inventory after your sign up. The Federal Trade Commission (FTC) warns if you have to buy more products than you can sell in order to stay active in an MLM, you should hang on to your money.
  5. When an MLM focuses on recruitment, not sales, it could be a sign of trouble. Marinello said, “Anytime you hear a sales pitch that’s recruitment heavy and not focused on selling the product, I’d be very wary.”
  6. If a company promises a huge return on your investment, be on guard. Extravagant income claims made by a salesperson, particularly in the social media space, may be a warning sign, Marinello advised.
  7. You should also be on guard if an MLM company promises “miracle cures” for buyers. The FTC recommends avoiding any companies that make claims of “miracle ingredients” or “guaranteed results” where health products are concerned.

The bottom line

While some MLMs may offer the flexibility and community military spouses crave, don’t make any rash decisions and do your homework. Kirlew also advised that you trust your gut instincts before signing up.

“If something doesn’t feel right,” Kirlew said, “it is either not right or not right for you.”

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Personal Loans

Finova Financial Personal Loan Review

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

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Finova Financial
APR

18.00%
To
30.00%

Credit Req.

Varies

Terms

12 to 24

months

Origination Fee

Varies by state

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on LendingTree’s secure website

Advertiser Disclosure

Terms and Conditions Apply. FINOVA RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet Finova's underwriting requirements. A borrower cannot be an active-duty service member of the U.S. Armed Forces (or a covered dependent under the Military Lending Act). Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and terms are subject to change at any time without notice and are subject to state restrictions. To check the rates and terms you qualify for, Finova conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull. Finova is an equal opportunity lender.

Finova Financial personal loan details
 

Fees and penalties

  • Terms: 12 to 24 months
  • APR range: 18.00% to 30.00%, varies by state. It’s unclear if these rates include all finance fees.
  • Loan amounts: Varies based on state, vehicle and monthly income
  • Time to funding: As soon as the same day
  • Hard pull/soft pull: Soft Pull to check your rates and terms. Hard pull if you choose to submit a full application.
    Origination fee: Varies by state
  • Prepayment fee: None
  • Late payment fee: Not Specified
  • Other fees: $25 credit investigation fee, $75 DMV lien fee, filing fee of $0 to $75 (depending on state), document stamp tax (depending on loan amount)

Eligibility requirements

  • Minimum credit score: As long as you own your car outright and it has enough equity to fund your loan, you should be able to get approval.
  • Minimum credit history: No minimum, but borrower cannot currently be in bankruptcy.
  • Maximum debt-to-income ratio: Not specified.

To secure a personal loan with Finova Financial, one of the most important requirements that applicants will have to meet is the owning of a vehicle. This vehicle must be in the borrower’s name, have a car title that is lien-free and have comprehensive and collision insurance. Borrowers are not required to obtain Finova’s voluntary debt cancellation addendum, but should a borrower not be able to provide proof of insurance, this is mandatory.

In addition to the vehicle requirement, applicants will need to be U.S. citizens who are at least 18 years old and residents of Arizona, California, Florida, New Mexico, South Carolina or Tennessee. They cannot be active-duty service members and must have verifiable income.

Applying for a personal loan from Finova Financial

Applying for a Finova Financial personal loan is simple. The process is fairly quick, and begins with a short form on Finova’s homepage to determine if interested parties prequalify for a loan. At this stage, Finova only requests the applicant’s name, phone number, email and information about their vehicle, including the make, model and mileage.

Upon submission of this information, applicants will be informed of the probability of being approved for a loan. Once the results from the prequalification process are reviewed by the applicant, the application can be completed by logging into their account.

At this point, applicants can request a loan, which will involve their Social Security number as well as details regarding residency, vehicle and requested loan amount. After this, they will be able to schedule a time to speak with a Finova Financial representative. During this call, the representative or specialist will evaluate and review the applicant’s vehicle, monthly income and residency information.

Applicants will then need to send in various documents for verification purposes, including photos of their vehicle. There will also be two forms: one for the lien that will be placed on the title of the vehicle and a power of attorney. They will need to be signed and sent back along with the title for the vehicle. When all signed forms have been returned, borrowers will be able to receive their funds the same day via MoneyGram.

Pros and cons of a Finova Financial personal loan

Pros:

Cons:

  • Poor credit accepted: Bad credit likely won't hold you back from securing a Finova Financial loan as long as you own your vehicle and aren’t in bankruptcy.
  • Prequalification: Applicants can review rates before submitting a full loan application, which may then require a hard pull on your credit.
  • Funding time: Once approved for a loan and all documents and forms are signed and returned, borrowers may receive their funds the same day.
  • Funding and payments via MoneyGram: Loan funds are sent to customers via MoneyGram (which may be inconvenient if you prefer a checking or savings account). Monthly payments can also be made online or at one of more than 30,000 MoneyGram locations.
  • Collateral: Applicants are required to use their vehicle as collateral. The vehicle must have prepaid comprehensive and collision insurance with a deductible of $500 or less. The website doesn’t mention any deductible requirement for California borrowers.
  • Additional fees: There are multiple fees borrowers may have to pay. In addition to an origination fee, borrowers may also be charged credit investigation fees, DMV lien fees and more.
  • Availability: Only residents of Arizona, California, Florida, New Mexico, South Carolina and Tennessee can apply for a loan.

Who’s the best fit for a Finova Financial personal loan?

For those with poor credit but who own their car outright, a Finova Financial CLOC may be a good fit, especially if you need cash right away. Finova may be able to provide funding the same day as your approval. But there are other lenders who offer loans for those with bad credit that don’t require a car title as collateral.

Finova Financial consumer reviews

When it comes to online reputation, Finova Financial has a lot of ground to make up. The four-year-old lender has received 17 consumer complaints in the last three years. It currently has an F rating with the Better Business Bureau and is not accredited with the organization.

Finova Financial earned 3.7 out of 5 stars from customers who reviewed its services on LendingTree (Disclaimer: LendingTree is the parent company of MagnifyMoney).

Finova Financial FAQ

You have to own the vehicle and have a lien-free title to be eligible for a loan from Finova Financial.

You need to be a minimum of 18 years old and have a valid driver’s license.

Currently loans are only available to residents of six states — Arizona, California, Florida, New Mexico, South Carolina, and Tennessee.

Yes, you may be charged an origination fee, a credit investigation fee, a documentary excise tax, or a filing fee.

You have 12 to 24 months to repay your loan.

No. There are no prepayment penalties or fees.

You only have to purchase this addendum to receive a loan if you do not provide adequate proof of required insurance.

Alternative personal loan options

LendingClub

APR

10.68%
To
35.89%

Credit Req.

Not specified

Terms

36 or 60

months

Origination Fee

2.00% - 6.00%

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on LendingTree’s secure website

LendingClub is a great tool for borrowers that can offer competitive interest rates.... Read More

A loan through peer-to-peer lender LendingClub may be a good alternative to consider. Unlike a Finova Financial personal loan, collateral is not required, and loan amounts range from $1,000 to $40,000.

What stands out about LendingClub is that after checking their rates, applicants may receive more than one loan offer, leaving them to choose the one they believe is the best fit for them. Funding can take up to seven days and there is an origination fee that potential borrowers will want to consider before applying for a loan.

OneMain Financial

APR

18.00%
To
35.99%

Credit Req.

Not specified

Terms

24 to 60

months

Origination Fee

1.00% - 10.00%

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on LendingTree’s secure website

Advertiser Disclosure

OneMain Financial offers quick turnaround times and you may get your money the same day... Read More


Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $400. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes.

Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.

Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Florida: $8,000. Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. Texas: $8,000. West Virginia: $14,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

OneMain Financial offers loans from $1,500 to $20,000. Applicants can check rates prior to completing an application and if everything looks good, they can also apply for a loan online within minutes.

Applicants will have to speak to a specialist in order to secure a loan. They will have to visit a local OneMain Financial branch to have their identity, employment and income verified, as well as their collateral, if it is required for the loan. Having to visit a branch can be a drawback, but an added bonus for borrowers who select this lender is the OneMain Financial mobile app that makes payments fast and convenient.

LendingPoint

APR

15.49%
To
35.99%

Credit Req.

585

Minimum Credit Score

Terms

24 to 48

months

Origination Fee

0.00% - 6.00%

SEE OFFERS Secured

on LendingTree’s secure website

LendingPoint is an online lender that targets borrowers with fair credit, and allows borrowing up to $25,000.... Read More

A LendingPoint personal loan may be good for borrowers who have fair credit and need between $2,000 and $25,000. Potential borrowers can check rates prior to filling out an application, and if they are approved for a loan, funds are made available to borrowers by the next business day. An origination fee may be applied, but the process of securing a loan with LendingPoint is quick and simple, which can prove to be helpful when borrowers need funds sooner rather than later.

Get Personal Loan Offers
Up to $50,000

$

Won’t impact your credit score