Sunday, 20 October 2019

Finance Factory Personal Loan Review

Finance Factory Personal Loan Review
08 Jul
5:08

APR

Starting at 5.99%

Credit Req.

680

Minimum Credit Score

Terms

36 to 84

months

Origination Fee

Not specified

Finance Factory personal loan details
 

Fees and penalties

  • Terms: Finance Factory offers personal loan terms of 36 to 84 months.
  • APR range: As low as 5.99%.
  • Loan amounts: Finance Factory offers personal loans ranging from $25,000 – $500,000.
  • Time to funding: Loans are processed in as little as 48 business hours, but 7 to 10 days is average.
  • Credit pull: There will be a soft pull of your credit score when you check your rate online.
  • Origination fee: Not specified.
  • Prepayment fee: None.
  • Late payment fee: Not specified.

Finance Factory offers to connect personal loan applicants with its financial experts to help create a customized borrowing plan. These experts are available by email and phone, and can help guide customers putting together a financial plan that fits their needs.

Unlike some loan marketplaces, Finance Factory does not offer additional perks like a free credit score. However, depending upon the lender Finance Factory matches you with, you might receive additional borrower benefits with your actual loan.

Eligibility requirements

  • Minimum credit score: 650
  • Minimum credit history: Not specified.
  • Maximum debt-to-income ratio: Not specified.

To qualify for a personal loan through the Finance Factory marketplace, you need a credit score between 650 and 800. Per the company, a credit score of 680 or higher is ideal. You will also need to earn or receive $35,000 or more per year in income.

Fortunately, because Finance Factory offers a soft pull pre-qualification feature, you’re able to check your odds of qualifying for a loan and get an estimated rate before formally applying, so there’s no risk to your credit.

Personal loans from Finance Factory are available in all 50 states to applicants 18 years and older who reside in the United States. Finance Factory personal loans are also available to those who are self-employed. It’s important to also note that Finance Factory may call your employer to verify your employment status. It also may verify the income that you report.

Applying for a personal loan from Finance Factory

Applying for a personal loan via Finance Factory is relatively simple and painless. To start an application, you can either call or fill it out online. Upon completion, you’ll be able to schedule a call with a lending specialist to discuss your loan options.

You’ll need to provide Finance Factory with some basic information regarding your personal loan, including:

  • How much you’d like to borrow
  • The purpose of the loan
  • Your contact information
  • Your employment status
  • Estimated credit score
  • Total value of your assets
  • How soon you need the loan
  • Annual salary
  • Housing status (rent, own, mortgage, etc.)
  • Date of birth

Once you input this information, Finance Factory will see if you’re a good fit for the financing offers available through any of its lending partners. If you find a lender you’d like to borrow from, the formal borrowing process may be initiated and the prospective lender may reach out to you to provide necessary identifying documents, such as a driver’s license.

Pros and cons of a Finance Factory personal loan

Pros:

Cons:

  • Low rates. Finance Factory has competitive, low rates for its personal loans. However, these rates are only available to those with the highest credit scores.
  • No prepayment fees. Finance Factory does not charge any prepayment fees for paying off your loan early.
  • Check your rate with a Soft Pull. When applying for a personal loan with Finance Factory, you will be able to compare multiple offers from different lenders without any hard pull on your credit score.
  • Upfront fees will cut into your loan amount. At the time of closing on your personal loan, you will be responsible for any closing costs such as underwriting or funding fees, or loan processing fees.
  • Not the best for short-term financing. While some lenders offer terms as short as 12 months, Finance Factory’s minimum term limit is much longer, which may not be in line with what you’re looking for. However, because there are no prepayment penalties, you can pay off your loan as early as you like without any consequences.

Who’s the best fit for a Finance Factory personal loan?

Finance Factory personal loans may be a good choice if you have a high credit score. Its low rates, which are only offered to those with the best credit, could provide you with relatively low costs for borrowing. It should be noted that your rate is not only dependent on your credit score, but your employment status, annual income, debt-to-income ratio, among other things.

These personal loans may also be attractive if you’re looking to keep your monthly payments to a minimum. Finance Factory offers terms from 36 to 84 months and does not charge any prepayment fees for paying off your loan early. So, you could limit your monthly payment obligation while also allowing yourself to pay off the loan sooner, if you want. For example, if you receive a lump sum or tax refund and want to pay off your debt early, you can do so without penalty.

Depending on your credit score and borrowing history, a Finance Factory personal loan could be a way to lower your APR on your credit card debt. If you can find a lower rate with a personal loan, this can be an effective strategy to pay off your credit card debt and lower your interest rate.

Finance Factory consumer reviews

Overall, Finance Factory has a good reputation. Currently, the company is an accredited member of the Better Business Bureau with an A+ rating.

Finance Factory also has earned 4.7 out of 5 stars based on consumer reviews on LendingTree (Disclaimer: MagnifyMoney is owned by LendingTree). Here are a few examples of real reviews the company has received for both its personal loan product, reviewed above, and its business financing options:

“Everyone was very helpful and the process was made very easy!” wrote Angel from Tomball, Texas. “From start to finish was less than 10 days and I was updated regularly on each step of the process. I would highly recommend using Finance Factory for any loan! I will be using them for any future needs.”

Edward from Traverse City, Mich., said, “For the most part, Everything went pretty smooth. Other than having to do a couple documents over, it went pretty quick.”

Finance Factory FAQ

Finance Factory is a loan marketplace that can connect you with lenders that offer a variety of loans, such as personal loans and a wide array of business funding options.

Finance Factory lending partners like for you to have a credit score of 650 to 800, with a score of 680 or higher considered best.

Finance Factory offers to connect you with lenders who may be willing to loan you between $25,000 – $500,000.

The following documents may be required when you apply for a loan through the Finance Factory marketplace:

  • Credit report (may start with a soft pull)
  • W-2s and pay stubs
  • Personal tax return for self-employed applicants
  • Award letters for applicants who are retired or receive disability

You will need to earn or receive at least $35,000 in annual income to qualify for a loan through the Finance Factory marketplace.

According to Finance Factory, personal loan funds can be used for a wide variety of purposes, including:

  • Credit card consolidation
  • Home improvement
  • Credit improvement
  • Major purchases
  • Business expenses and startup costs
  • Real estate investment

In most cases, no collateral is required from lending partners in the Finance Factory marketplace.

Alternative personal loan options

Marcus by Goldman Sachs®

APR

5.99%
To
28.99%

Credit Req.

Varies

Minimum Credit Score

Terms

36 to 72

months

Origination Fee

No origination fee

Marcus by Goldman Sachs® offers personal loans for up to $40,000 for debt consolidation and credit consolidation. Read More


Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans).Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. For New York residents, rates range from 5.99% to 24.99% APR.

A personal loan from Marcus by Goldman Sachs® could be a good alternative to Finance Factory. It advertises a starting interest rate of 5.99% for its personal loans, though this is only for applicants with a great credit score. But the major benefit of this lender is that it does not charge any fees. Currently, Marcus by Goldman Sachs lets people borrow up to $40,000 via its personal loans, with terms of 36 to 72 months.

APR

5.99%
To
16.74%

Credit Req.

680

Minimum Credit Score

Terms

24 to 84

months

Origination Fee

No origination fee

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


Fixed rates from 5.990% APR to 16.240% APR (with AutoPay). Variable rates from 5.74% APR to 14.700% APR (with AutoPay). SoFi rate ranges are current as of March 18, 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 5.74% APR assumes current 1-month LIBOR rate of 2.43% plus 4.28% 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)

SoFi’s personal loans could be a good alternative for your borrowing needs. Its rates start as low as 5.99% APR for those with great credit. You can borrow up to $100,000, and receive unemployment protection, which allows you to defer payments in case you lose your job while paying off your loan. It also provides live chat customer support seven days a week.

APR

7.99%
To
35.89%

Credit Req.

620

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

1.50% – 6.00%

Upgrade is an online lender that offers fairly priced personal loans for a term of either 36 or 60 months.Read More .

Borrow anywhere from $1,000–$50,000 with a personal loan from Upgrade. It advertises rates as low as 7.99% on its personal loans, with terms of 36 or 60 months. Upgrade also boasts fast funding, which allows you to have money in your account within one day of providing all the necessary information. In addition to personal loans, Upgrade offers credit monitoring, alerts, and education to customers.

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.

Michelle Black

Jackson Wise

Jackson Wise |

Jackson Wise is a writer at MagnifyMoney. You can email Jackson here

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Source: https://www.magnifymoney.com/blog/personal-loans/finance-factory-personal-loan-review/

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