The bottom line: NetCredit installment loans are an option in an emergency if you can’t qualify for a loan with a lower APR and you have no other options.
Min. Credit Score
34.00 - 155.00%
$1,000 - $10,000
Pros & Cons
Able to fund loans the same or next business day.
Soft credit check with pre-qualify.
Rates are high compared with other bad-credit lenders.
May charge an origination fee.
Some loan payments may not initially go to principal.
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To review NetCredit, NerdWallet collected more than 30 data points from the lender, interviewed company executives and compared the lender with others that seek the same customer or offer a similar personal loan product. Loan terms and fees may vary by state.
When to consider: As a last resort in a true emergency after you’ve exhausted other options.
NetCredit is a Chicago-based online lender, offering personal loans with high interest rates and short repayment terms. Borrowers with bad credit can get a NetCredit installment loan for $1,000 to $10,500. The lender says it can fund a loan as quickly as the same day it’s approved or the following business day.
Borrowers typically get NetCredit loans for unexpected bills or to consolidate other debts, says Kirk Chartier, chief marketing officer at NetCredit’s parent company, Enova International. Still, the loans have high annual percentage rates, and NerdWallet recommends considering this type of loan as a last resort.
Enova also owns online payday lender CashNetUSA, and some applicants seeking a NetCredit loan could also see advertisements for CashNetUSA, says Enova's head of consumer marketing, Kelly Jordan. More commonly, she said, CashNetUSA borrowers see NetCredit marketing materials.
Qualifying for a NetCredit loan
The lender uses the VantageScore to assess borrowers' risk but also considers employment history, residential history and other factors. NetCredit looks into borrowers’ credit history to review the pattern of on-time and missed payments that Chartier says can get lost in a traditional credit scoring model.
Must be at least 18 in most states.
Must have a verifiable source of income.
Must have a Social Security number.
Must have a personal checking account.
Must have an email address.
NetCredit loan features
NetCredit boasts fast funding and flexible terms. Here are some of the loans' consumer-friendly features:
Reports payments to Experian and TransUnion.
Gives option to customize loan amount and term.
Offers financial education resources, including budgeting and savings.
Refinance option: NetCredit lets some borrowers with a history of on-time payments refinance a loan to lower their monthly payments, the company says. Borrowers can’t apply for this option, though; instead, those who qualify for refinancing see a button on their online account that says, “I Want to Lower My Payments.”
If you choose to refinance, calculate the cost to be sure you’re not paying more in interest than you would without refinancing. Loans with lower payments and longer terms can be more expensive.
NetCredit loan example
NetCredit loans are cheaper than most payday loans, but they’re still an expensive option — for the average loan, you could end up paying more than double what you borrow.
The average NetCredit borrower has a 620 credit score and an annual income of $58,000. The average loan is $3,200 with an annual percentage rate of 87%.
A $3,200 loan with an 87% APR and two-year repayment term would carry:
Monthly payments: $285.
Total interest paid: $3,644.
Total amount repaid: $6,844.
How NetCredit compares
Here’s how NetCredit stacks up against similar lenders:
OppLoans offers similar APRs and loan amounts. Unlike NetCredit, OppLoans doesn’t require a credit check. OppLoans borrowers can change their payment date online.
Oportun offers personal loans with maximum APRs of 36% to borrowers with little or no credit history. Like NetCredit, Oportun boasts fast funding and reports on-time payments to credit bureaus. But Oportun allows co-signers.
Rise loan APRs can be much higher than NetCredit's. NetCredit's loan amounts are higher. Rise lets borrowers track their TransUnion credit scores and refinance for a lower rate after 24 on-time payments.
» MORE: Installment loans for bad credit
What to know about NetCredit
Interest rates: In some states, the lender offers loan amounts seemingly designed to circumvent state-mandated interest rate maximums. For example, California caps APRs on loans between $2,500 and $10,000 at about 36%. NetCredit offers loans up to $10,500 in that state, while APRs on loans from $10,100 to $10,500 range from 36% to 65%.
Amortization: Some borrower complaints published by the Consumer Financial Protection Bureau say that payments aren’t going toward the loan’s principal. In some cases, Jordan says, the first few payments on a NetCredit loan may go to interest only.
Virginia lawsuit: The Commonwealth of Virginia sued NetCredit in 2018, alleging the company operated there without a license and misled borrowers in an effort to avoid the state's rate caps.
NetCredit isn't a good idea if
Your main goal is to build credit: NetCredit reports on-time payments to two of the three major credit bureaus to help borrowers build credit. But there are ways to build credit without incurring high-interest debt.
You can get cash elsewhere: NerdWallet recommends exhausting all your options before considering a lender with high-interest rates. Even in an emergency, you may have other, cheaper options. Take the quiz below to explore alternatives:
Before you take a NetCredit loan
Compare the cost of taking the loan to the cost of not taking it: Calculate the overall cost of not having funds for your purpose, then weigh that against the typical cost of a NetCredit loan in your state.
If you take a NetCredit loan
After considering your alternatives and weighing costs, you may decide that a NetCredit installment loan is your best option. In that case, do what you can to carve out room in your budget to pay off the loan as quickly as possible. For most people, this loan is too expensive to be a long-term or repeat solution.
Personal Loans Rating Methodology
NerdWallet rates lenders that offer high-interest personal loans separately from other lenders due to the consumer risk associated with these loans. We define high-interest loans as those with rates that exceed 36%, which is the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. The maximum allowable rating for high-interest lenders that we review is four stars. We award points to lenders that offer loans that minimize harm to consumers through affordability, transparency and practices that prioritize consumers’ needs. This includes: checking credit and reporting payments to credit bureaus, monthly payments that don’t exceed 5% of a borrower’s monthly income, fully amortizing repayments, transparency of loan rates and fees, and accessible customer service and financial education. NerdWallet does not receive compensation for our star ratings. Read our editorial guidelines.