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.
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
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.
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.
Minimum Credit Score
24 to 84
No origination fee
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.
Minimum Credit Score
36 or 60
1.00% - 6.00%
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
- 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.
- 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.