LoanNow Reviews: Beware Personal Loan Offers With Sky-High APRs

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Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.

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A personal loan can help you finance a big expense or pay off high-interest credit card debt. But it’s tough to qualify for one without a strong credit score.

That’s where online lender LoanNow comes in. LoanNow reviews your application even if you don’t have strong credit.

But there’s a price to pay for this flexibility. Some of its personal loans could come with whopping interest rates as high as 299.00%, as of June 6, 2018. That’s miles above average personal loan rates, which range from 10.30% to 32.00%, according to ValuePenguin.

Getting a personal loan with such a high rate could trap you in a cycle of debt that’s impossible to escape. That said, LoanNow might offer somewhat more reasonable rates to creditworthy customers. Here’s what you need to know about the lender and its personal loans.

LoanNow offers fast loans with high rates

Your interest rates and fees will depend on a number of factors, including your creditworthiness, loan details, and state of residence.

Here are the ranges for APRs and repayment terms in the six states that LoanNow operates in as of June 6, 2018. Double-check the LoanNow website for the latest rates.

State Loan amount APR Repayment term
Alabama $2,500 – $5,000 29.00% – 229.00% 12 – 48 months
California $2,500 – $5,000 29.00% – 229.00% 12 – 48 months
Georgia $3,100 – $5,000 29.00% – 59.00% 12 – 48 months
Missouri $1,000 – $2,500 29.00% – 299.00% 9 – 24 months
New Mexico $2,600 – $5,000 29.00% – 229.00% 12 – 48 months
Utah $1,000 – $2,500 29.00% – 299.00% 9 – 24 months

Note that your personal loan won’t come with an application or prepayment fee, but it might have an origination fee.

You can borrow between $1,000 and $5,000 and choose repayment terms between nine and 48 months, depending on where you live.

This maximum borrowing amount is low compared to other personal loan lenders. SoFi, for instance, lets you borrow a personal loan of up to $100,000.

Other online lenders, such as FreedomPlus, offer APRs as low as 4.99%. What’s more, maximum personal loan rates typically don’t go past 36.00% among lenders. Any rate higher than that could leave you with burdensome bills.

Eligibility requirements to borrow with LoanNow

Besides being a resident of one of the eligible states listed, you must meet LoanNow’s underwriting requirements for credit and income in order to qualify. Note that LoanNow will soon be extending its services to Illinois, Ohio, and Texas.

In addition to meeting financial requirements, you must meet age requirements based on your state. In many states, you need to be 18 years old to borrow a personal loan. Some states set higher age requirements of 19 or 21.

Pros and cons of borrowing with LoanNow

LoanNow offers fast funds and loan terms up to 48 months. But even a forgiving repayment term might not be enough to make up for its sky-high interest rates.

According to LoanNow, its minimum APR is 29.00%. Its maximum could be as high as 299.00%. That rate is way higher than what you could find at other lenders.

That said, there are some benefits to borrowing with LoanNow. For one, it works with borrowers with weak credit who might not qualify for personal loans from other lenders.

Second, LoanNow reviews your application and gives you a fast approval decision. If approved, you could get your funds directly deposited into your bank account within one business day.

LoanNow installment loans are unsecured, so you don’t have to risk any collateral when you borrow. Plus, your monthly payments remain fixed, so your bills won’t increase over time.

Finally, you might get an interest rate discount through LoanNow’s unique “group-signing” benefit. With group-signing, your friends and family can act as “micro cosigners” for your loan. They vouch to commit anywhere between $25 to $500 in the event you can’t pay.

Your friends’ support could also get you discounted interest rates. According to LoanNow, some borrowers got their interest costs cut by 50%.

Your group signers, however, can only help lower your rates; they won’t help you qualify in the first place. You’ll still need to meet LoanNow’s underwriting requirements to take out a personal loan.

Using the LoanNow online platform

LoanNow is an online loan provider, so you can complete the entire application online. You can also get customer support by phone or email as you complete your application.

To get started, you’ll create an account with a username and password. You can use your email or connect your Facebook profile to log in.

create a loannow account

Image credit: LoanNow

Once you’ve created your account, you’ll provide some basic personal information, as well as indicate how much you’d like to borrow.

You’ll also choose a purpose for your loan. Some options include:

  • Medical
  • Dental
  • Auto
  • Financial hardship
  • Debt consolidation
  • Credit building
  • Purchase
  • Investment
  • Business

Afterward, LoanNow might ask for documents to verify your income or employment.

loannow application form

Image credit: LoanNow

After hitting submit, LoanNow will instantly evaluate your application and tell you its decision. If you qualify, you’ll see your loan offers. You can accept, link your bank account, and receive funds the next business day.

Before accepting, make sure you understand your interest rate and repayment term. Our personal loan calculator will help you understand the costs of borrowing.

However, our calculator doesn’t let you enter an interest rate above 100.00%. Any rate higher than that is entering predatory lender territory, and borrowers should beware.

Consider, for example, how much you’d have to pay on a two-year $3,000 loan with a 100.00% rate. Your monthly payments would be $293, and you’d pay $4,030 in interest alone. That’s not even taking into account an origination fee that could be attached to your loan.

You should also note that LoanNow doesn’t provide the option of a rate quote without a credit check. To see if you qualify, you’ll have to submit a full application and consent to a hard credit inquiry in the process.

LoanNow reviews are mainly positive

Many LoanNow customers actually have positive things to say about the lender. On Trustpilot, 98% of 619 reviews gave LoanNow an “excellent” or “great” rating.

One reviewer wrote, “They were very professional and friendly and I got my loan almost right away.”

Another said, “I was unsure if I was going to get a loan because of my poor credit score. I was able to get my funds deposited into my account the very next day, which was a lifesaver.”

Despite its sky-high rates, customers seem to appreciate LoanNow’s lax credit requirements. One reviewer, however, said his experience should serve as a warning to borrowers.

“I was turned down even though my credit rating is excellent,” he wrote. “I believe this company only wants customers who can’t pay. Avoid.”

Another said he regretted taking out a loan with a high interest rate. “It is extremely too high and it makes it virtually impossible for anybody to do it comfortably,” he wrote.

If you’re looking to borrow with LoanNow, make sure you understand the details of your loan and can comfortably pay it back on time. Most customers should avoid any interest rate that’s creeping into the triple digits.

Contact LoanNow customer service for more info

If you’d like to learn more from the company itself, you can contact LoanNow by calling 800-437-1875 or emailing customercare@loannow.com. You can also explore LoanNow’s blog to learn lessons in personal finance.

Overall, LoanNow customers appreciate its fast service and flexible eligibility requirements. But the lender could saddle you with high interest charges, so you could end up paying back a lot more than you borrowed.

If you can’t qualify elsewhere, you might want to consider other options. Either way, make sure to comparison shop with other lenders.

By researching your options, you might be able to find a flexible personal loan that won’t cost you so much interest in the long run.

Note: Student Loan Hero has independently collected the above information related to LoanNow personal loans. LoanNow 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!
LenderRates (APR)Loan Amount 
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Personal LoansFixed rates from 6.199% APR to 15.365% APR (with AutoPay). Variable rates from 6.145% APR to 14.685% APR (with AutoPay). SoFi rate ranges are current as of June 15, 2018 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 6.145% APR assumes current 1-month LIBOR rate of 1.97% plus 4.175% 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.
  2. 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)

2 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Personal Loan Rate DisclosureFixed interest rates from 6.49% – 19.49% (6.49% – 19.49% APR) based on applicable terms. Lowest rates range from 5.99%-18.99% (5.99%-18.99% APR), are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment Discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  2. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with us at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  3. Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Personal Loan during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12-month period, the borrower will no longer be eligible for this discount.

* Important Disclosures for Upgrade Bank.

Upgrade Bank Disclosures

  1. Personal Loan Rate DisclosureFixed interest rates from 6.49% – 19.49% (6.49% – 19.49% APR) based on applicable terms. Lowest rates range from 5.99%-18.99% (5.99%-18.99% APR), are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment Discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  2. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with us at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  3. Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Personal Loan during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12-month period, the borrower will no longer be eligible for this discount.
7.73% – 29.99%$1,000 - $50,000
Check rate nowon SLH's secure site
6.15% – 15.37%1$5,000 - $100,000
Check rate nowon SLH's secure site
6.87% – 35.97%*$1,000 - $50,000Visit Upgrade
8.00% – 25.00%$5,000 - $35,000
Check rate nowon SLH's secure site
4.99% – 29.99%$10,000 - $35,000Visit FreedomPlus
5.99% – 18.99%2$5,000 - $50,000Visit Citizens
15.49% – 34.49%$2,000 - $25,000Visit LendingPoint
5.99% – 35.89%$1,000 - $40,000Visit LendingClub
5.49% – 18.24%$5,000 - $75,000Visit Earnest
9.95% – 35.99%$2,000 - $35,000Visit Avant
Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.