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Personal Loans, Reviews

Pave Review: Personal Loan for Minimal Credit History

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.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

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Pave is no longer lending. All existing loans will continue to be serviced. If you are looking for a personal loan, you can visit our review (updated monthly) of the best personal loans.

PAVE personal loans seeks to answer the plight of the young: how do you get access to affordable funding with limited credit history? If you’re a millennial in need of financial backing for higher education, to pay off debt, or even to start your own business, chances are you have found financing to be a challenge.

Enter Pave

Pave personal loans were designed specifically for people early in their careers. Its underwriting takes into account hundreds of factors beyond the traditional credit score in order to gauge an individual’s future potential. 

Pave grants loans of up to $25,000 in 24 to 36 months, with a personalized, enhanced, very non-traditional underwriting process to individuals who may not traditionally have access to the financing they need.

By the same token, Pave offers risk adjusted returns to its financial backers.

How is Pave Able to Offer Low Rates?

Pave recognized a big hole in the personal loan marketplace for talented young people who had promise but minimal credit history. With this in mind,Pave created a unique underwriting process that takes into account not only the borrower’s creditworthiness, but the value of his or her ideas, goals and education.

Pave starts by reviewing the borrower’s credit score and history, but then analyzes: use of personal funds, work history, current employment, education and future earning potential. This gives Pave opportunities to recognize how financially responsible a person can be as a whole, and enables Pave to offer the lowest rate possible without assuming too much risk.

Pave’s Underwriting Process

Pave approaches underwriting with a viewpoint that one size does not fit all.

While Pave does use a FICO credit score as a baseline, it considers alternate factors such as: education, employment and work history.

“As for previous education, we look at a number of things,” says David Rosen, head of underwriting for PAVE. “Including publicly available information on student loan repayment, and how likely graduates from certain schools, programs, or majors are to be employed.”

For example, say a student wanted to obtain a Bachelor’s degree in engineering, but because he was only 19, did not have a very high credit score.  Most banks would deny him funding based on his low credit score alone, but Pave would look at his high school employment history, his grades, and even future salary potential as an engineer. By using this hybrid underwriting model, Pave loans may be able to offer him financing.

How Can I Get Approved for Funding?

Basic eligibility for a Pave Loan requires:

  • US Citizenship
  • At least 18 years of age
  • Must have a US Bank Account
  • Must have a credit score of 660 or higher

Are There Any Restrictions On The Amount I Can Borrow?

Pave’s minimum loan amount is $3,000 and its maximum is $25,000

How Can I Use The Money I Borrow?

Pave places no restrictions how you use the money you have been loaned, because it recognizes there are many reasons why funding might be needed, and that those reasons could change at any time. 

People have typically used Pave funding to pay off or consolidate debt, finance higher education, or even start their own business.

Step 1: Sign up for Pave

Pave1

You will need to enter your first and last Name, email address, and a password.  Or, you can sign up using Linkedin.

Step 2: Confirm your Email

Step 3: Fill Out the Talent Questionnaire

The Talent Questionnaire is Pave’s way of finding out all of your basic information such as your birthdate, address, current living arrangement (rent or own), marital status, work experience, how much you want to borrow, education, and a bit of information about how your financials look currently.

Additionally, Pave Loans will ask for your social security number and then do a “soft pull”that will not affect your credit score, to determine your pre-eligibility. You must have a credit score of at least 660 to be considered for financing.

Step 4:  Approval

Once you have entered all of the information the Talent Questionnaire requested, Pave loans will take approximately 1 business day to review your application, and then they will contact you to let you know if you are approved for a Pave Loan or not.

Fee Warnings

Pave does not charge a prepayment penalty. It origination fees averages 2%. This means that if you refinanced $10,000 of credit card debt, the origination fee would cost you $200.

However, Pave does note that as it expands its service area and eligibility requirements, origination fees will range from 1.00% - 6.00%. This means that the origination fee on that same $10,000 would cost you anywhere from $100 – $600 in origination fees.

Pave Against the Competition

Other lending options such as SoFi and LendingClub do offer more convenient and flexible lending solutions. 

Where Pave limits you to $25,000, SoFi* allows you to borrow amounts from $5,000 to $100,000 with No origination fee. In addition, SoFi offers unemployment insurance with every personal loan, which is a great added benefit.

SoFi
APR

5.99%
To
17.67%

Credit Req.

680

Minimum Credit Score

Terms

24 to 84

months

Origination Fee

No origination fee

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SoFi offers some of the best rates and terms on the market. ... Read More


Fixed rates from 5.990% APR to 17.67% APR (with AutoPay). Variable rates from 5.60% APR to 14.700% APR (with AutoPay). SoFi rate ranges are current as of August 7, 2019 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. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 5.60% APR assumes current 1-month LIBOR rate of 2.27% plus 3.08% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. 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.

All rates, terms, and figures are subject to change by the lender without notice. For the most up-to-date information, visit the lender's website directly. To check the rates and terms you qualify for, SoFi 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.

See Consumer Licenses.

SoFi Personal Loans are not available to residents of MS. Minimum loan requirements might be higher than $5,000 in specific states due to legal requirements. Fixed and variable-rate caps may be lower in some states due to legal requirements and may impact your eligibility to qualify for a SoFi loan.

If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions.

Terms and Conditions Apply. SOFI 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 SoFi's underwriting requirements. 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 anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

LendingClub* also offers personal loans of up to $40,000 with a minimum credit score of 600. LendingClub is not available in Iowa or West Virginia.

APR

6.95%
To
35.89%

Credit Req.

600

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

1.00% - 6.00%

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on LendingTree’s secure website

LendingClub is a great tool for borrowers that can offer competitive interest rates and approvals for people with credit scores as low as 600.... Read More

Pros & Cons of a Pave Loan

Pros:

  • Applying for a Pave personal loan will not hurt your credit.
  • The online application is easy and fast!
  • Pave Loans take non-traditional factors into accounts when deciding who they should finance.
  • Pave Loans can help you raise your credit score by paying off credit cards, or offering low-cost higher education financing solutions. 

Cons:

  • Pave can’t offer loans in the following states: Arizona, Connecticut, District of Columbia, Maine, Massachusetts, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Oregon, Pennsylvania, Tennessee, Vermont, Wisconsin and Wyoming
  • Rates start at 7.18% and can go quite a bit higher, depending on creditworthiness, up to 29.65%
  • You must have a credit score of 660 or higher.
  • Loans are available from $3,000 to $25,000

Pave Loan is leading the way in developing a non-traditional lending process catering to millennials. Its system provides financing to a generation with great ideas, but who lack the credit to make those dreams happen. Currently, Pave is beta testing in New York, but Pave personal loans will soon be available in many other areas of the United States as well. Whether you live in New York or not — you should always comparison shop rates before settling on any personal loan.

Customize your personal loan offers with comparison tool

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.

Gretchen Lindow
Gretchen Lindow |

Gretchen Lindow is a writer at MagnifyMoney. You can email Gretchen at [email protected]

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Capital One 360 Checking Account 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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If you’re searching for a checking account with minimal fees, you’ve likely considered depositing your money into an online bank. But with so many online banks vying for your business, you may wonder which account is best suited for your needs.

The Capital One 360 Checking Account boasts no fees and no minimum balance to open which is pretty standard in the online banking world. However, there are other unique features of this account that set it apart.

The Capital One 360 Checking Account At A Glance

Let’s start with the basics. To qualify for 360 Checking you must be 18 years or older and a U.S. citizen or permanent resident with a social security number.

These are the perks ofopening a 360 Checking Account:

  • No monthly fees
  • FDIC insurance coverage
  • A free MasterCard debit card
  • No minimum balance to open or earn interest. Rates are variable and account APY ranges from 0.20% to 1.00% depending on your balance.
  • Use of Bill Pay. Send bill payments directly from your checking account for free. And set up eBills to receive electronic bills from participating merchants.
  • Person2Person payments. Send money free of charge to people who bank with Capital One 360 and elsewhere. Transfers to Capital One 360 accounts occur instantaneously. Transfers outside of the bank take up to two business days to authorize once the recipient approves it.
  • Access to 38,000+ Allpoint and Capital One ATMs for free. Drawing cash from an online account or making a deposit is a breeze, just search for an in-network ATM on Capital One’s mobile app or website.
  • Use of CheckMate for check deposits. Take photos of your checks from your mobile phone to make deposits. No standing in line or locating an ATM necessary.
  • Turn your card on and off. You can deactivate a card yourself online which is helpful if it’s stolen or missing.
  • No overdraft fees. Instead of a fee they offer an Overdraft Line of Credit that charges you a competitive interest rate if your account falls below zero.

Depositing Cash and Checks

Before taking the leap to online banking you may feel apprehensive about giving up access to a live teller for bank deposits. Fortunately, 360 Checking offers several simple ways to fund your account.

You can transfer money from another bank or set up direct deposit from your employer. You can also deposit cash and checks at 360 Cafe and Capital One branch ATMs. Find deposit locations near you with its ATM locator map.

Avoid using an ATM altogether for deposits and take snaps of your checks and upload them using CheckMate. The 360 Checking website offers a short demo to show you exactly what’s involved with depositing remotely.

A Closer Look at Overdraft Protection

promo-checking-halfThe 360 Checking account has a pretty lenient overdraft policy. If you apply for the Overdraft Line of Credit the daily interest on overdrafts will cost you pennies. Though you should keep in mind that during the application process for the line of credit, Capital One will perform a “hard pull” and it can affect your credit score. However, this dip of 5 to 10 points is well worth the protection to avoid overdraft charges.

The rate for overdraft is currently 12.50% APR variable and Capital One offers a convenient overdraft calculator to show you how much you can expect to be charged if your account goes into the red. For example, an overdraft of $100 for 10 days will cost you just $0.31 based on its estimate.

What happens if you pass on the Overdraft Line of Credit and your account goes into the negative? There’s no mention of the repercussions on the 360 Checking website. However, customer service confirmed there’s still no fee, the transaction is simply declined. They do advise transferring funds into your account promptly, otherwise you run the risk of having your account shut down. Keep in mind that while it’s great you don’t have a fee levied against you, declining a charge could mean an important bill goes unpaid.

Additional Fees to Consider

Although 360 Checking has no monthly fee, it’s important to note that there are some other fees for extra services associated with the account. For instance, sending out overnight checks will cost you $20 and an overnight card replacement costs $25. Your first checks are free, but future checkbooks cost $5. Additionally, if a check is returned for insufficient funds you’ll incur a $9 Rejected Check Charge. And to place a stop payment on a check you’ll have to pay $25.

What Sets 360 Checking Apart From Other Online Accounts?

The ability to make cash deposits at select ATM machines is a key differentiator of this checking account. Other popular online banks like Ally, The Bank of Interest USA, EverBank and Charles Schwab don’t currently accept cash deposits.

In other areas like customer service and fees, 360 Checking has some stiff competition. The Ally Bank Interest Checking Account has no monthly fee or minimum balance requirement as well, but they offer 24/7 customer service. Capital One 360 provides customer service from 8 am to 8 pm.  Furthermore, miscellaneous fees for checkbooks, stop payments and expedited delivery services are higher with 360 Checking than Ally Interest Checking.

How does the Capital One 360 Stack Up With Interest?

This account is decent for earning interest if you can’t put more than $100 into it initially. If you have a little bit more money to deposit, there are other options that will earn you more interest.

For instance, the Bank 5 Connect High-Interest Checking Account currently offers APY of 0.76% for balances over $100 at opening. In order for you to make that type of interest with a 360 Checking account you need to maintain a balance over $50,000.

Just keep in mind that you shouldn’t be hoarding tons of cashing in your checking account. It’s much better to keep high amounts of cash in a savings account, which offers better fraud protection.

A Good Deal if You Value Convenience

Overall Capital 360 checking may not be your first choice if your primary goal is to find a checking account with the highest interest. But it should be at the top of your list if you value conveniences like easy access to your money at thousands of ATMs for free, the option to deposit cash, the ease of bank transfers and no overdraft fees.

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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.

Taylor Gordon
Taylor Gordon |

Taylor Gordon is a writer at MagnifyMoney. You can email Taylor here

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Earning Interest, Eliminating Fees, Reviews

Charles Schwab High Yield Investor Checking Account: Doesn’t Nickel-and-Dime You

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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When friends short on cash dash out of a restaurant in a frantic search for an in-network ATM, or stress about ordering checks for fear of getting slapped with an outrageous fee from the bank, I seriously question why. Why put up with that kind of nickel and diming when alternative banking options exist?

A few years ago I got a notice from my bank detailing the latest updates and changes to accounts. While I’m generally guilty of carelessly passing over these fine print notices without much consideration, one thing in this particular notice struck me. The bank was instituting a monthly maintenance fee on checking accounts. I marched my way to my bank and closed my account.

While I didn’t care to pay for access to my own money, I also wasn’t too fond of the idea of stashing cash under my mattress. So I took to the Internet to do some research and found a solution that has kept me more than satisfied to this day.

Online Banking

In my quest for a better way to manage and store my money, I quickly learned that online banking was the best option for my needs- primarily due to increased accessibility, reduced fees, and better interest rates.

Because online banks have fewer overhead fees- no branch locations to rent or maintain, no tellers to pay, etc.- they can offer perks notably absent at brick-and-mortar giants, like Bank of America. As long as I could find a bank that was FDIC (Federal Deposit Insurance Corporation) insured, I knew my money would be well-protected- regardless of whether I was banking in person or online.

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Charles Schwab High Yield Investor Checking Account

Though Charles Schwab is better known for its brokerage services, the perks of their basic bank accounts immediately drew me in. In particular, the Charles Schwab High Yield Investor Checking Account with…

  1. No monthly service fees.
  2. No account minimum or minimum opening deposit.
  3. 0.10% APY variable interest rate on any balance. A huge improvement over the 0.01% rate you get from traditional banks like Bank of America.
  4. Unlimited fee rebates from any ATM worldwide. This perk has been a lifesaver, not only at home when I need to get my hands on some fast cash, but also whenever I travel. I have withdrawn money everywhere from Argentina to Ukraine without incurring any fees thanks to my Schwab checking account. It’s like every ATM in the world is “your” ATM. Schwab simply refunds me for any fees charged by an ATM terminal.
  5. Free bill pay. I have my Schwab checking account linked to various institutions so that I can easily pay bills online with the quick click of a button. Again, this kind of flexibility and ease is why I’m all about the online banking.
  6. Real overdraft protection. By opting into Charles Schwab overdraft protection, you’ll have real protection and won’t be charged to transfer your own money out of savings to cover an overdraft fee. Beware, if you don’t opt-in there is a $25 fee per incident with a $100 cap per day.
  7. Access to Schwab mobile deposit. As a freelancer who travels often, I love the flexibility of being able to deposit my paychecks from wherever I am with a few taps of my phone. Schwab also provides envelopes with prepaid postage for those who prefer to mail in their checks for deposit.
  8. Free Visa platinum debit card. No fees for original or replacement debit cards when delivered by regular U.S. mail. Includes travel and emergency services assistance, price protection, and warranty manager.
  9. Free standard checks. No fees on checks delivered by standard U.S. mail.
  10. FDIC insurance up to $250,000.
  11. A linked Schwab One brokerage account with no fees or minimums. 

Opening an Account

To enjoy all the perks of Schwab’s High Yield Investor Checking account you must open a Schwab One Individual Brokerage account, which can be done quite simply through the Schwab.com website. Once you’ve applied and been approved, you are free to transfer money free of charge between accounts.

I’m not sure why the checking account is only accessible in this round about way, but I’ve encountered no problems transferring everything from my brokerage account to my checking account after opening both and letting the brokerage balance sit at zero for the past several years.

Account Service

In addition to the remarkable accessibility and freedom from fees that Schwab checking offers, their 24-hour customer service and support is truly excellent. Every time I call I’m able to speak with a knowledgeable human being in a matter of minutes. I’d be hard pressed to say the same about other customer service experiences.

However, because Schwab checking is an online feature there is no traditional in-person service, which might be difficult for anyone frequently dealing in cash. While the 270 plus Schwab brokerage branches across the United States may be able to assist in some banking matters, they don’t offer all the same services as traditional brick and mortar banks.

At the end of the day, that small trade off is well worth the savings and convenience I get from using Charles Schwab’s High Interest Investor Checking Account.

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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.

Stefanie O
Stefanie O'Connell |

Stefanie O'Connell is a writer at MagnifyMoney. You can email Stefanie at [email protected]