CashCall Personal Loans Review: Be Wary of Their History
CashCall offers fast and convenient personal loans and is willing to work with borrowers who have spotty credit histories. But due to their high fees and history of predatory lending practices, you’re probably better off with a different lender.
CashCall was established in 2003 and is headquartered in Orange, California. The company offers personal loans to borrowers in California, Arizona, Idaho, Missouri, and Utah. It is currently one of the largest online lenders in the U.S.
The CashCall loan application process is fairly easy and quick. You can apply online or over the phone and once you’re approved, you could receive the money in as little as four hours. But just because it’s easy to apply doesn’t mean you’re getting a good deal; CashCall has been the subject of multiple predatory lending complaints over the years.
In 2017, the company was ordered to refund over $15 million to Virginia consumers for deceiving borrowers and charging interest rates as high as 230%. This article will explain how to apply for a loan from CashCall, what the advantages are, and some things you should watch out for.
In this review:
- Applying for a CashCall Personal Loan
- CashCall Loan Rates, Terms, Fees, and Limits
- Benefits of a CashCall Personal Loan
- Downsides of a CashCall Personal Loan
Applying for a CashCall Personal Loan
CashCall makes it easy to apply for a loan and receive the funds quickly. You can apply for an unsecured loan over the phone or online and will need to provide some basic information.
This includes things like your name, address, Social Security number, and your monthly salary. You will also be required to verify your bank account, employment information, and identification.
Most online lenders require that borrowers have a credit score of 620 or higher to take out a personal loan or credit card. However, CashCall is willing to lend to borrowers with credit scores as low as 500, so they tend to be an attractive option for borrowers with low credit scores.
Once you’re approved for a loan, CashCall will transfer the money to your bank account in as little as four hours. The loan process never takes longer than one business day.
CashCall Loan Rates, Terms, Fees, and Limits
Depending on your financial situation, you can take out a personal loan from CashCall anywhere from $2,600 to $10,600. All CashCall personal loans come with fixed interest rates, which are determined by your credit history and the size of the loan.
If you have excellent credit, you may receive a lower interest rate but CashCall’s rates are still higher than other lenders. Here is a breakdown of loan terms:
- Rates: 35.52% to 184.36% APR
- Terms: 47 to 84 months
- Fees: CashCall charges both origination fees and late fees
- Limits: $2,600 to $10,600
If you’ve seen advertisements from CashCall touting interest rates as low as 10%, you may be surprised that your actual interest rate could be as high as 184.36%.
CashCall also charges fees that are much higher than other lenders. For a personal loan under $5,000, the fees start at a fixed $75. For loans over $5,000, the fees can be as high as 33% of the total loan amount.
Benefits of a CashCall Personal Loan
There are some benefits to taking out a loan through CashCall, especially if a low credit score makes it hard for you to secure a personal loan from other lenders. Here are a few benefits to taking out a personal loan through CashCall:
- Few credit requirements: CashCall is willing to lend to borrowers who have low credit scores. However, you will need an excellent score if you want to qualify for a low interest rate.
- Quick and easy application process: Applying for a personal loan from CashCall is easy and fast. Once you qualify for a loan, you can receive the funds in as little as four hours. If you live in one of the five states that CashCall services and you need money immediately, CashCall can probably help you.
- Possible credit boost: CashCall reports on-time payments to credit bureaus, so if you are able to make consistent monthly payments on your loan, it could improve your credit score.
Downsides of a CashCall Personal Loan
There are several downsides you should consider before taking out a loan through CashCall. First of all, CashCall is only available in five states: Arizona, California, Missouri, Idaho, and Utah. This limits the number of people who could qualify for a loan.
Compared to other online lenders, CashCall has shockingly high interest rates. For instance, if you borrow $2,600 for a term of 47 months, you could end up paying back the company more than $18,000.
Even worse than the high interest rates is the fact CashCall has repeatedly been the subject of lawsuits and consumer complaints. High interest rates aren’t illegal but misleading advertising practices are.
In 2009, the Los Angeles Times reported that the company paid a $1 million settlement in a lawsuit brought against them by the California Attorney General’s office. The lawsuit claimed CashCall used deceptive advertising practices. Though the company settled the lawsuit, it did not admit to any wrongdoing.
Then in 2014, the Sacramento Bee reported that CashCall was ordered to pay damages over its practice of charging excessively high interest rates. The lawsuit also alleged the company harassed borrowers who were unable to make their payments.
CashCall provides a quick solution for consumers who need fast access to cash. The application process is simple, and you can receive the funds in as little as four hours; the company is willing to work with less-than-creditworthy borrowers who may have a hard time finding a loan otherwise.
However, you should proceed with caution before doing business with CashCall, as the downsides seem to outweigh any positives. Its interest rates for consumer loans are extremely high, and you will likely end up paying back much more than you borrowed.
The company has been the subject of more than one lawsuit and has been forced to pay legal settlements related to alleged deceptive advertising practices and harassment.
You should consider your personal loan options carefully before signing on the dotted line. Think about the company’s reputation and whether they are going to be the most affordable option. There are many banks, credit unions, and online lenders that will be a better option than CashCall.
>> Read More: Best personal loans
Author: Jamie Johnson
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