NetCredit Review

NetCredit ReviewNetCredit is a different kind of lender than you may be used to, they offer larger sized loans and the ability to pay back your loan over time with fixed payments. This would solve a few inherent problems with payday loans, but is it a smart choice? Let’s look at the numbers.

One potential problem with a payday loan is that the size of the loan might not be enough to cover your financial crisis. If that’s the case you will need to take out multiple loans, or take the loans out multiple times in order to get through it. With a service like this one you’re able to take out one larger loan so you can really take care of things when they go awry.

The other problem is having to pay back the entire loan on your next payday. This means it will tie up that money by forcing you to pay it back to the lender, which takes it out of your account and puts it in theirs, at least until you’re able to re-loan the money again and get it back into your account for another two weeks. With NetCredit you get to keep the money where you want or need it and just make payments back to them.

So we’ve seen the two benefits that NetCredit provides, and now let’s turn our attention on whether this makes any sense.

NetCredit Review – A New Kind of Lender

They have it set up so that you make payments on your loan like an installment loan. Let’s look at a potential scenario. Let’s say you live in California and want to borrow $3000 but your credit isn’t the best. You may be able to qualify for their Bronze level which would mean you’re paying an APR of 200% and you’re making payments of $250 every two weeks.

That may not sound bad, since you get a full $3k in your account to pay off whatever needs paying off, and all you have to do is pay $250 every two weeks. The only problem is you have to make those payments 37 times! All said and done that totals $9,250 which means you pay $6,250 in interest and fees. You end up paying 3 times more back than what you borrowed, which is absolutely insane.

Tiered Credit Rates
They function a bit like a bank with their three levels of credit and the different interest rates they charge. Let’s say you have pretty good credit, and you’re wanting $10,000. You’ll pay an APR of 35% which is still far higher than most loans and most credit cards even. You’ll make payments of $185 every two weeks and you’ll make 100 payments totalling $18,500, almost double what you borrowed.

Why Go With Them?
We couldn’t come up with a really good reason why someone would want to take out a loan with them, because they should either be able to get a better loan from a bank, or the interest is so bad that this won’t help them at all financially and they should seek out other options. Yes, it is nice to get a larger loan amount but you still have to make big chunks of payments every two weeks so it’s not as if you’re going to not feel this come out of your account.

The number of payments is just two high. If they could make it so you can make the payments monthly, if the payments were for a lower amount, or if there were fewer payments to make it might make sense, but as it stands there’s just no scenario we could come up with that makes this viable for most.

Our Recommendation
NetCredit doesn’t make sense for most borrowers. If your credit is good enough to get their Gold rating you should probably go with a bank instead. If your credit is poor and you only get their Bronze level, you’re going to pay absurd rates that will just cause you more financial stress and strife. We don’t recommend adding more problems to your life, and this will most certainly represent cash flying out of your account every two weeks, cash that you could use for a better life.

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