If you have low or poor credit, it can be difficult to qualify for a personal loan.
But, there’s a catch: Balance Credit personal loans come with extremely high fees and interest rates, often well over 100.00%.
So even though Balance Credit offers a personal loan fast, you’ll likely end up spending a lot of money on interest charges.
Here’s what you need to know so you can decide whether a Balance Credit personal loan is right for you.
Balance Credit personal loans come with high APRs
The borrowing limits on Balance Credit personal loans vary by state, but a typical range is $100 to $5,000. Your rates and terms also depend on where you live, how much you wish to borrow, and what information you provide on your application. You can pay your personal loan off on a weekly, biweekly, or monthly basis.
Interest will start accruing from the date of disbursement. Plus, you’ll be charged an origination fee. You can pay the loan off ahead of schedule without penalty.
Unfortunately, the website doesn’t provide examples of APRs and fees until you apply. To get a sense of rates, though, I spoke with customer service about a personal loan worth $5,000 in California.
According to the representative, this loan would have an APR of 251.99% on a biweekly repayment plan. Altogether, it came with an extraordinarily high finance charge (a fee that includes the origination fee and interest) that totaled over $6,000.
To compare, SoFi personal loans come with an APR range of 6.99% – 14.87% with no origination fee. And Upstart personal loans have APR rates between 7.73% – 29.99% and origination fees between 0% and 8%.
Of course, you need to meet credit and income requirements to qualify for low-interest personal loans. But since Balance Credit lends to almost anyone with a bank account, it can opt to charge high interest rates.
If you can’t qualify for a personal loan elsewhere, Balance Credit could help. It provides most borrowers with an instant approval decision and deposits funds in your account within a day.
But thanks to significantly high charges, you could end up paying thousands of dollars more than you borrowed. Taking on high-interest debt is a risky move, especially if you already have a subpar credit score.
Instead of borrowing a Balance Credit personal loan, you might be better off with another option, such as using a credit card (if you’re careful) or forgoing a loan altogether.
How Balance Credit personal loans work
Balance Credit offers personal loans up to $5,000, depending on where you live.
Applying for a Balance Credit personal loan online
Borrowers can apply for a Balance Credit personal loan online. You’ll start by providing personal information, such as your name, address, and Social Security number.
You’ll also indicate how much you’d like to borrow and what you plan to use the loan for.
Finally, you’ll provide your bank account information. Balance Credit checks that your account is in good standing. Plus, it’ll use this information to make automatic withdrawals from your account.
Since the company has your bank information, it can withdraw money on the payment due date, even if you’re not able to afford it.
After crunching the numbers, Balance Credit will tell you if you qualify. Plus, it’ll show you rates and terms in your loan offer. If you agree, you can go on to finalize the loan agreement.
Balance Credit loans are only offered in certain states
Balance Credit is headquartered in Chicago, but it doesn’t offer personal loans in Illinois. Instead, according to a Balance Credit customer service rep I spoke to, it provides personal loans to residents of California, Delaware, Idaho, Missouri, New Mexico, Ohio, South Carolina, Texas, Utah, and Wisconsin.
Besides living in an eligible state, you must also meet a few other requirements to qualify for Balance Credit personal loans:
Have a valid email address
Have a working phone number
Hold an active checking account or savings account in good standing
Be 18 years of age or older
Be a U.S. resident
According to the representative I spoke with, Balance Credit doesn’t have specific requirements for your bank account balance or income. It just requires that your account have a positive balance.
Balance customer reviews warn against high interest rates
If you’re looking for more information on Balance Credit personal loans, you can call the lender at 855-942-2526 or email it at email@example.com. Ohio customers should call 800-970-8978 or email firstname.lastname@example.org.
You can also read customer reviews for firsthand insight into the company’s services. With its massive finance and interest charges, it’s no surprise that most customer reviews are negative.
On financial product comparison website SuperMoney, for example, 63% of customers gave Balance Credit one star out of five. One reviewer said companies such as Balance Credit “prey on people with challenging credit.”
Another reviewer on SuperMoney said, “Every loan company that the APR is close to 99.00% should not be even on the market; it’s crazy how they want to take advantage of people.”
Customer reviews on Credit Karma are marginally better. The lender averages a 3.1 out of 5 stars. However, Credit Karma customers also complain about its high interest rates, with one saying, “In my opinion, this loan is only to be taken out if you have an emergency. The interest is very high.”
Another reviewer on Credit Karma warned borrowers to, “Be ready for an intense interest rate. You will pay back more than double what you borrow. I don’t even know how an interest level that high is legal.”
On a positive note, some customers said the company is upfront about this information, so you at least know what you’re getting into before you borrow. Plus, they say the process is fast and easy, and you do get funds in your bank account quickly.
Before borrowing, you have to decide if access to fast money is worth the huge costs of borrowing. In most cases, the answer should most likely be no.
Note: Student Loan Hero has independently collected the above information related to Balance Credit personal loans. Balance Credit has neither provided nor reviewed the information shared in this article.
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.16% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|7.73% – 29.99%||$1,000 - $50,000||Visit Upstart|
|6.26% – 14.87%1||$5,000 - $100,000||Visit SoFi|
|6.99% – 35.97%*||$1,000 - $50,000||Visit Upgrade|
|8.00% – 25.00%2||$5,000 - $35,000||Visit Payoff|
|4.99% – 29.99%3||$10,000 - $35,000||Visit FreedomPlus|
|5.99% – 18.99%4||$5,000 - $50,000||Visit Citizens|
|15.49% – 34.49%5||$2,000 - $25,000||Visit LendingPoint|
|6.16% – 35.89%6||$1,000 - $40,000||Visit LendingClub|
|6.99% – 18.24%7||$5,000 - $75,000||Visit Earnest|
|9.95% – 35.99%8||$2,000 - $35,000||Visit Avant|