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Reviews, Small Business

Kabbage Small Business Loan Review

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

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Kabbage business loans
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Kabbage is an Atlanta-based online lender serving small businesses. Since launching in 2008, Kabbage has loaned more than $5.6 billion to more than 150,000 businesses.

For qualifying borrowers, Kabbage offers financing to cover business expenses from marketing costs to equipment purchases.

Loans come as a revolving line of credit, which means you can pull funds from your credit line at any point. You can borrow as much as you need as long as you don’t exceed the maximum amount, and you only pay back what you borrow.

It’s free to apply for Kabbage financing, and there’s no cost until you start using your funds. But before filling out the online application, find out if Kabbage is the right lender for your small business.

Kabbage financing details

Kabbage provides a line of credit from $2,000 to $250,000 for eligible businesses. You can access your line of credit whenever you need it and take out as much as you want. Repayment terms range from 6 to 12 months.

Each time you draw from your line of credit, Kabbage treats that amount as an individual term loan. Rather than charging interest, a fee is added to your loan amount. You must pay back the loan amount plus the fee in either 6 or 12 months.

Fee rates range from 1.5% to 10% of your principal. Kabbage requires you to pay back part of your total loan amount each month, plus the monthly fee. For a six-month loan, you’d owe one-sixth of your total amount each month. For a 12-month loan, you would pay one-twelfth of your full loan amount each month.

For the first two months of a six-month loan term, your full fee rate would apply. But for the remaining months, your rate drops down to 1.25%.

Here’s an example of the fee you’d pay for a $10,000 six-month loan with a 4% fee rate:

Based on this example, a $10,000 loan would ultimately cost $11,300, as the monthly fees add up to $1,300.

Here’s what you would pay for the same loan amount and fee rate on a 12-month repayment schedule:

On this schedule, the monthly fees add up to $3,150, so you would ultimately pay back $13,150.

Kabbage’s reasoning for the fee schedule is that it gives you simple, proportional monthly payments. Every month, you would pay back an equal portion of your loan principal plus a monthly fee. Kabbage doesn’t charge prepayment penalties, so you could pay off your loan early to save on monthly fees.

Six-month terms require a minimum loan of $500, while 12-months terms require a minimum loan amount of $10,000. Utah-based Celtic Bank funds Kabbage’s financing.

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What businesses are eligible?

Kabbage provides small business loans to business owners with a bit of experience under their belt. To be eligible, you should be in business for at least a year.

You also need to have a minimum of $50,000 in annual revenue or $4,200 in monthly revenue in the last three months. Kabbage analyzes your business performance as a whole when reviewing your application, so there is no minimum credit score requirement.

Because of the minimal requirements, nearly any business could qualify for financing from Kabbage. But Kabbage does not work with nonprofits.

A line of credit can be used to cover a variety of business costs, including payroll, inventory, cash-flow needs or new equipment or staff members. Kabbage tries to make approval decisions quickly, which would be helpful if you need money fast.

This would also be a good option for business owners with minimal funding needs since a loan amount can be as low as $500. If you need a bit of cash to get you through a financial pinch, Kabbage may provide an ideal solution.

The pros and cons

Pros

  • Revolving line of credit allows for flexibility in how you use the funds
  • Credit score not a determining factor in whether you’re approved
  • Fast time to funding

Cons

  • Repayment process and fee structure may be confusing for new borrowers
  • Short repayment terms could be difficult for some
  • Product offering limited to lines of credit

Application process and requirements

Kabbage’s application process is simple and can be completed from a phone or a computer. You would need to submit your revenue data as well as basic personal and business information. Kabbage could review your application immediately and let you know how much funding you qualify for based on your business performance.

Here’s what Kabbage needs:

  • Business checking account
  • Your name
  • Business name
  • Home and business address
  • Business tax ID
  • Social Security number

If your line of credit is smaller than $150,000, Kabbage may be able to automatically verify your business data and bank account and approve you in minutes. But applications for lines of credit exceeding $150,000 need to be manually reviewed and could take longer to be approved, meaning it could be several days before you receive your funding.

Upon approval, Kabbage would reveal your fee rate and loan terms. But you don’t have to start repaying until you borrow funds from your line of credit.

You can access your funds through the Kabbage mobile app or online dashboard page. To withdraw funds, you would input the amount you need and review the repayment schedule. Kabbage would then deposit the funds in your bank account in one to three business days. If Kabbage has a link to your PayPal business account, you could receive your funds in minutes.

The account where you choose to deposit your funds is also the account from which Kabbage will withdraw your payments. Kabbage automatically withdraws payments each month, unless you manually make a payment from your Kabbage dashboard.

You could also get a Kabbage Card, which allows you to access your line of credit like you would with a regular credit card. However, rather than having minimum payments as you would with a traditional credit card, using the Kabbage Card would create a structured repayment period.

Kabbage would need to mail the card to you to be activated before you can begin using it. The Kabbage Card is accepted anywhere Visa is accepted.

The fine print

Funding may not always be fast. Although Kabbage advertises fast time to funding, there are instances when it could take several days to receive funding. If there are errors during the sign-up process, funding may be delayed. Additionally, Kabbage may need to send you micro-deposits as a security precaution to confirm your bank account.

Be prepared for changes. The financing is subject to review and change. This could include reductions or increases in your line of credit or pricing, or the elimination of your credit line altogether.

Check your loan agreement. Each time you draw from your credit line, a separate loan is issued for the individual amounts. Each amount will have a separate loan agreement spelling out the repayment schedule for that particular withdrawal. Be sure to check the agreement each time you take out funds.

The bottom line

All types of small businesses can apply for Kabbage financing. And because Kabbage doesn’t have strict credit requirements, business owners with less-than-perfect financial history could be approved for funding. Kabbage’s application and approval process are also fast. If your business has immediate cash needs, this may be the right solution for you.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Melissa Wylie
Melissa Wylie |

Melissa Wylie is a writer at MagnifyMoney. You can email Melissa at [email protected]

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Reviews

Review of Green Dot Unlimited Cash Back Bank Account

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

Get rewarded for your spending with the Green Dot Unlimited Cash Back Bank Account. The account earns unlimited 3% cash back earned from online or in-app purchases, but unlike most cashback programs, this one prevents you from enjoying your earned rewards immediately. The catch: You can only access and redeem your cashback rewards if your account is in good standing a year after registration. In addition, there is a $7.95 monthly fee, although it’s simple to get around the fee.

While you wait for your account registration anniversary, you can use this account’s other features to your advantage. For one, Green Dot Bank can get you your paycheck up to two days in advance through direct deposit. You can also use the 3%* APY Green Dot Bank High-Yield Savings Account to stash and grow your money.

Green Dot doesn’t have any branch locations of its own, so it relies heavily on its app and participating stores to offer its services to customers. This makes it slightly tricky for users who need quick and easy ATM access.

Read on to learn more about the FDIC-insured Green Dot Unlimited Cash Back Bank Account and its rewards requirements, fees and fine print.

How does the Green Dot Unlimited Cash Back Bank Account work?

 

The Green Dot Unlimited Cash Back Bank Account’s biggest draw is the unlimited 3% cash back earned from online or in-app purchases. There’s no limit to how much cash back you can earn, so long as you’re using your card for online and in-app purchases (there’s more on how Green Dot identifies those purchases in a section below)

Getting access to your cash back is a little trickier, however. While you’ll see the cash back earned on each purchase reflected almost immediately, you’ll have to wait for each anniversary of your account registration to redeem the funds. On each anniversary date, you can transfer your cash back rewards into your Unlimited Cash Back Bank Account. Your registration date is the date you actually register your card no matter where you got it, either at a store or online.

On your registration anniversary, your account must be in good standing. This means it must have a positive balance and cannot be blocked or flagged for any reason. If you have a negative balance, you must bring it to a positive balance before you can redeem your rewards.

Depositing cash into your Unlimited Cash Back Bank Account is also a little unorthodox, as Green Dot doesn’t have any of its own branches or ATMs. To deposit cash, you need to visit a Green Dot participating retailer, including CVS pharmacies and Walmart stores. Cash deposits are free when you initiate the deposit on the Green Dot app and complete them at a retail store. You can also initiate a cash deposit by swiping your Green Dot debit card at a participating retailer, who may charge a cash deposit fee of their own.

As for withdrawals, you can locate free ATMs through the bank’s app. Otherwise, you’ll face an out-of-network ATM fee, in addition to a potential ATM owner surcharge.

Unlimited Cash Back Bank Account features

  • Earns unlimited 3% cash back on eligible online or in-app purchases
  • Get your paycheck up to two days earlier with ASAP Direct Deposit™
  • Links to 3%* APY Green Dot Bank High-Yield Savings Account
  • No overdraft fees

Along with its competitive cash back rate, another big perk of banking with Green Dot Bank is that you can get your direct deposit paychecks up to two days in advance. Typically, employers deposit paychecks into employees’ banks two days before actual payday. So instead of letting your paycheck sit in the Automated Clearing House (ACH) limbo, where payments like these are processed, Green Dot deposits your paycheck on the same day the bank receives it. Exact timing and availability of your direct deposit will depend on when your employer submits your payment information and deposit verification.

Also included with the Green Dot app is the Green Dot Bank High-Yield Savings Account. There is no fee, and the account earns 3%* APY on balances up to $10,000. Once you’ve redeemed your cash back rewards and deposited them into your Unlimited Cash Back Bank Account, you can then transfer those funds into your High-Yield Savings Account for better savings.

As you’ll read below, the Unlimited Cash Back Bank Account is rife with fees, depending on how you use your account and manage your money. But a certain perk of the account is its lack of overdraft fees. So when you make a purchase that your balance cannot cover, Green Dot will decline the transaction, but they won’t charge a fee like most other banks do.

Unlimited Cash Back Bank Account fees and fine print

Unlimited Cash Back fees
Unlimited Bank Account purchase — online $0
Unlimited Bank Account purchase — in store$1.95 or less
Monthly fee$7.95, waived when you spend $1,000 or more in the previous monthly period
Deposit cash with Green Dot app & participating locations$0
Direct deposit$0
Out-of-network ATM withdrawal$3 per transaction
Teller cash withdrawal$3 per transaction
Out-of-network ATM balance inquiry$0.50
Foreign transactions3% of total transaction amount
Paper checks (pack of 12 checks)$5.95

There are quite a few fees to keep an eye out for when you have a Green Dot Unlimited Cash Back Bank Account. For starters, note that there is a fee when you open the account in a store. You can easily avoid this fee by opening the account online instead.

The account charges a $7.95 monthly fee. This can be waived when you spend at least $1,000 in the previous monthly period. This excludes transactions like ACH payments or prepaid card purchases. This may be easier if you do much of your shopping online, since you’re more likely to reach the minimum balance. If you’re betting the cash back you earn will offset this monthly fee, you’d have to spend $3,180 in a year to earn enough to pay off a year’s worth of the monthly fee. Plus, you’d have to wait for each anniversary to take advantage of that cash back bonus.

It also helps to keep your account activity online. You can initiate the deposit through the Green Dot app then depositing cash at a participating retailer at no charge. However, if you want to deposit cash without the app by swiping the debit card at a participating retailer, then the retailer may charge a service fee for cash deposits. Note that direct deposits are free.

As for the fine print, there is some room for error when it comes to determining which purchases are eligible for the 3% cashback. Green Dot identifies online and in-app purchases through unique merchant category codes (MCC) and “other identifying information,” according to the Green Dot website.

However, Green Dot acknowledges that sometimes online or in-app merchants use an MCC that does not properly identify themselves as online or in-app. On Green Dot’s part, the bank states that it “does not determine which MCC a merchant chooses to classify itself as and has no way of changing a merchant’s identifying information.” So if merchant misidentification is the case, your purchase won’t register as online or in-app and won’t earn 3% cash back.

Cash back also does not apply to airline tickets or to products and services that are redeemable for cash, such as gift cards, online funding of accounts, credit card cash advances, P2P funding, prepaid cards, money orders and traveler’s checks.

Opening an Unlimited Cash Back Bank Account

You can open an Unlimited Cash Back Bank Account either online or in-store at Green Dot participating retailers. When you open an account online, you’ll need to provide your full name, address, email address, phone number, Social Security number and date of birth. If you open an account in store, you’ll need to register your new debit card online or through the Green Dot app. There, you’ll need to provide your personal information.

Who is the Green Dot Unlimited Cash Back Bank Account best for?

The Green Dot Unlimited Cash Back Bank Account seems to be a better option for those who aren’t chasing a quick reward. Green Dot requires you to wait a year after account registration to redeem your cash back rewards, which may not be much of a reward for some. It’s more of an added perk than a real primetime feature since you have to wait so long.

The Unlimited Cash Back Bank Account may also be better for those who are tech savvy enough to manage their accounts largely online and in the app. Accounts are more easily opened and registered online and even cash deposits work best when done through the app.

That said, this account could be a potential hassle who want the ease and speed of ATM access. Green Dot requires you to visit a participating store to deposit cash, whether you use the app or not. For many, navigating a physical store just isn’t as convenient. When it comes to withdrawals, it may be difficult to find a free ATM nearby in order to avoid the out-of-network ATM fee.

In all, the Green Dot Unlimited Cash Back Bank Account seems to hold a lot of promise. But there’s a few hoops to jump through to earn rewards and use the account efficiently that detract from the eye-catching 3% cash back.

*Rate accurate as of August 21, 2019

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lauren Perez
Lauren Perez |

Lauren Perez is a writer at MagnifyMoney. You can email Lauren here

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Reviews

Fitness Bank Savings Review

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

Fitness Bank’s savings account option

Fitness Savings Account

This unconventional savings product offers customers the chance to earn an outstanding APY when they are physically active. The daily average number of steps you took in the previous month determines the APY you earn on your account balance. The table below outlines the five earning tiers that this bank currently offers:
APY Tiers*Minimum Balance to Earn APYSteps Required
0.50%$1000-4,999
1.25%$1005,000-7,499
1.75%$1007,500-9,999
2.50%$10010,000-12,499
3.00%$10012,500+

If you are a US citizen age 65 or older, you qualify for a different rate schedule:

APY Tiers*Minimum Balance to Earn APYSteps Required
1.25%$1000-4,999
1.75%$1005,000-7,499
2.50%$1007,500-9,999
3.00%$10010,000+
  • Minimum opening deposit: $100
  • Minimum daily balance to earn APY: $100
  • Monthly account maintenance fee: $10, waived by maintaining the minimum daily balance.
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $40

These rates truly are outstanding if you live an active lifestyle. The first month, everyone gets highest APY regardless of number of steps they take. After that, your APY will be assigned based on your daily average number of steps over the course of the prior month. Needless to say, if you don’t live a very active lifestyle, or if you have a health condition that would prevent you from meeting the step requirements, this may not be the best account for you.

This bank charges a $10 monthly maintenance fee if you don’t maintain a minimum average daily balance of $100. If you’re not confident you can maintain this minimum, you may want to look at a checking account rather than a savings account — keep in mind, however, that Fitness Bank only offers a savings account. If you meet the minimum balance requirement, the monthly maintenance fee will be waived.

This savings account does not come with an ATM card or checks. You are limited to six certain withdrawals and/or transactions per month, per Regulation D, which is enforced by the federal government, although banks do have some flexibility in allowing more than six per month in certain cases. At Fitness Bank, if you make more than six withdrawals per month you will be charged a $10 fee for each additional withdrawal.

If you want to go above and beyond achieving the highest APY available from this account, you can join one of Fitness Bank’s challenges. Every month, there is a step challenge where you can compete with all other participating Fitness Bank members to get the highest number of average daily steps. Top competitors will be awarded with prizes at the end of the month. You can also set up challenges just for your family or friend group, or for a group of employees participating in a workplace challenge.

How to get Fitness Bank’s savings account

Opening a savings account at Fitness Bank is a straightforward process. The bank boasts account setup will take you less than two minutes.

You’ll fill out a quick online application, supplying basic information like your name, address and Social Security number, along with documentation of your driver’s license or passport. Then you’ll need to provide funding information, namely your bank account number, credit card or debit card.

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How Fitness Bank’s savings account compares

This bank offers phenomenal rates. At the time of writing, they offer the highest savings account rate in the market — if you can rack up the steps needed to earn it. In addition, you will have to be comfortable doing your banking 100% online with this savings account. You will not receive a checkbook or ATM card – all of your withdrawals and deposits will be completed via electronic transfer. If you’d prefer ATM access or the ability to visit a physical branch, Fitness Bank is not the right match for you.

The minimum deposit required to open and maintain an account without incurring a monthly maintenance fee isn’t outrageous. But you can find savings accounts offering somewhat competitive rates without these requirements. And to repeat, you’ll have to meet the step requirements; if that challenge goes unfulfilled, the advantages of saving with Fitness Bank wane. Its rates get progressively less competitive the fewer steps you take.

Overall review of Fitness Bank’s banking products

This bank offers a unique financial product aimed at promoting wellness. Its minimum balance and deposit requirements are fairly average for the industry, as are its fees. While its offerings are fair and get more generous as you take more steps, you will likely find better rates elsewhere if you cannot realistically meet these specific fitness standards. If you can, though, you’re in for some of the best rates on the market.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Brynne Conroy
Brynne Conroy |

Brynne Conroy is a writer at MagnifyMoney. You can email Brynne here