If you need emergency cash to cover an expense or a loan for a major purchase, sometimes your options can seem limited. After all, relying on high-interest credit cards and payday loans is an easy way to get trapped in debt. Fortunately, new companies such as Pave have emerged to help people in this exact situation.
Pave is a new online lender focused on low-cost loans. Whether you are looking to refinance student loans, fund an educational course, finance a home addition, or just need a little extra cash, Pave loans may be a good option for you.
Read on for a full Pave review and information on how to apply.
Pave loans are underwritten by Cross River Bank and Pave is the servicer for all loans it originates for the duration of the loan. The lender offers personal loans with two- to three-year terms. Borrowers can use the funds however they choose.
In the Pave review below, we will look at more of the details for how Pave loans work and whether or not they are a good fit for your personal loan needs.
How Pave loans work
The main product Pave offers is personal loans in amounts of $3,000-$25,000. These loans are designed for people looking to make lifestyle improvements – people who want to Pave their path to a better future. (See what I did there?)
Although Pave does look at credit scores when approving borrowers, that’s not the only factor they consider. In fact, the FICO score is just a small piece of the puzzle Pave looks at when approving borrowers.
The Pave lending model is ideal for borrowers who have a short credit history and want to use their future earning potential to boost their chances of getting approved for a loan.
For example, let’s say you want to take out a loan to pay for a popular coding bootcamp course. Pave has data on the average pay bump you could expect for completing that course – and that could factor into the approval process.
Basically, Pave can expect you to see a pay increase when you complete the course, which lowers your borrower risk. Plus, if you are using your loan for tuition, you have the option to defer your first three payments.
Pave also offers loan investing on an investor-by-investor basis. If you are a legal United States resident and qualify as an accredited investor per SEC requirements, you can email Pave to inquire about the investing process.
How to apply for Pave loans online
The Pave loan application process is simple and straightforward. To start your application, head over to Pave’s personal loan application form.Start a Pave Loan Application Here
Start by entering the amount of money you want to borrower and how you intend to use the loan proceeds.
If you select “take a course,” you are prompted to enter the course provider. Pave has a long list of code schools available. They also have some non-code programs, such as New England Tractor Trailer Training School. Some of the fund uses, such as a business loan, require a little more information as well.
Next, fill in some basic personal information such as your address and phone number. Enter your email and password to create an account.
In the next section, you are prompted to fill in your education and career history.
On the final screen, you are asked for some financial information and enter your Social Security number so Pave can access your credit report.
Once you submit, you’ll get your interest rate on the next screen.
Overall, the application process is simple and easy to follow. If you have your financial information available, completing the entire application to see your rate should only take a few minutes.
Pave interest rates and fees
Pave offers competitive rates for the most creditworthy borrowers. However, for those with a spotty credit history, rates can get into the same range as credit cards.
Interest rates can change at any time without notice, so always check current interest rates before applying for any loan. As of this writing, Pave interest rates range is 6.20% to 19.75% APR.
Pave does not allow for borrowing with a co-signer to lower interest rates. The rate you are offered is the rate you get. While your FICO credit score is a factor, Pave uses your education and career information as part of the lending criteria used to determine your interest rate.
Also, Pave charges origination fees ranging from 1% to 6% based on application information.
The interest rate Pave offers is available for 30 days. After that period, you have to reapply with a completely new application.
Pave eligibility requirements
Pave loans are available only to United States citizens at least 18 years old who have a bank account at a bank located in the United States. Borrowers must have a credit score of 660 or higher to qualify for a loan.
In addition, borrowers must have an income, job offer, or plan to attend a career-enhancing course.
Borrowers in Arizona, Connecticut, Maine, Massachusetts, Nebraska, Nevada, North Dakota, Oregon, Pennsylvania, Tennessee, Vermont, West Virginia, Wisconsin and Wyoming are not eligible.
In Alabama and Nebraska, applicants must be at least 19 years old. Mississippi applicants must be 21 or older.
Pave customer service
Pave can be reached by phone, email, or through a chat system on the website. When I tried out the chat feature on a Friday morning, it was offline, but I was able to send in my question via email and received a friendly response in under an hour.
Pave customer service generally receives positive reviews from users.
More about Pave
Pave is located in New York City and has a small team of 17 people behind the platform.
The company’s mission is to provide better access to affordable funding, which it can in the case of the most creditworthy borrowers in Pave’s model. They are a technology-first company, but provide personal touch points for new borrowers and current customers who need customer service support.
In fact, each new approved applicant can expect a personal phone call from a member of the Pave team. On the call, they also verify your identity and ask for feedback on the loan application process.
Founded in 2012 by Oren Bass and Sal Lahoud, the company brought in $300 million in capital through debt financing in December 2015 and recently raised an $8 million equity round in April 2016.
Cross River Bank is Pave’s primary partner for funding new loans. When you get a loan from Pave, you are actually borrowing from Cross River Bank with Pave acting as a loan servicer. Cross River Bank is a small bank with four locations in New Jersey and New York. The bank headquarters is in Teaneck, New Jersey, just a short drive from New York City.
Borrowers never interact with Cross River Bank directly. All applications, payments, and customer service for Pave loans are handled by Pave. Interestingly, Cross River Bank has relationships with several non-bank lenders including peer-to-peer lending giant Lending Club.
Pave contact informationApply For a Personal Loan From Pave
Interested in a personal loan?Here are the top personal loan lenders of 2017!
|Lender||Rates (APR)||Loan Amount|
|* = includes AutoPay discount|
|4.77% - 14.24%*||$5,000 - $100,000||Visit SoFi|
|5.25% - 12.00%||$2,000 - $50,000||Visit Earnest|
|5.75% - 16.24%1||$5,000 - $50,000||Visit Citizens|
|5.67% - 29.99%||$1,000 - $50,000||Visit Upstart|
|6.20% - 19.75%||$3,000 - $25,000||Visit Pave|
|8.00% - 25.00%||$5,000 - $35,000||Visit Payoff|
|9.95% - 36.00%||$1,000 - $35,000||Visit Avant|
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