Pave Personal Loan Review
If you're looking for a Pave personal loans review because you wanted a Pave loan, you'll need to find a different lender. Alternatives include LightStream, LendingClub, and Prosper, all of which could provide loans at reasonable rates depending upon your financial situation.
Pave no longer offers personal loans to new applicants. To compare other personal loan lenders, visit our best personal loans page.
Personal loans can be a versatile source of financing and a helpful financial tool because you can use the funds from a personal loan for any purpose you’d like. Since there is so much flexibility in what you can do with personal loan funds, many people use these loans for debt consolidation or to accomplish other important goals, such as paying for educational courses or to start a business.
Unfortunately, many young people have difficulty getting approved for personal loans because they haven’t yet had time to develop a long credit history and a good FICO credit score. Lenders are often unwilling to provide financing, even to responsible young people, since they simply don’t have the credit histories necessary to prove they’d be a reliable borrower.
What Is Pave?
Pave was founded in 2012 and, after its founding, it received applications from potential borrowers seeking as much as $700 million in funding. The company ended up issuing a total of $22.3 million worth of loans to 1,665 borrowers.
Pave was different. Pave personal loans were specifically targeted towards young people, and the company was founded to “democratize access to funding,” so more people would be able to access the money they needed to build a strong financial foundation.
Pave had a unique business model focused on young borrowers, and rates were lower for those who were using loan funds for self-improvement, such as debt consolidation, moving for a new job, or paying for educational courses.
Why Did Pave Stop Offering Personal Loans?
Unfortunately, Pave stopped issuing loans in June of 2017. The company did not provide a reason for pulling out of the personal loan market but instead indicated that it was exploring its options. And, when you visit the Pave website now, the company has indicated it is currently offering a Pave Global Credit Profile, which is a decentralized credit bureau created with the goal of removing barriers to affordable credit.
Those with existing Pave loans can continue to pay back the lender, but other would-be borrowers will need to look elsewhere to find the funding they need.
What Should Current Borrowers with Pave Personal Loans Do?
If you are a current borrower with Pave, the good thing is that nothing will change for you. Pave made the decision to continue to service existing loans when it transitioned to a new business model and stopped offering new loans. So, you’ll continue to submit your monthly payments to Pave according to your loan terms, and you can log into Pave’s website to view and manage your account online.
Alternatives to Pave Personal Loans
Although Pave Personal Loans are no longer available, there are still other loan options out there — including options for young people who haven’t had time to establish excellent credit. Here are a few of the online lenders worth considering when you’re looking for a personal loan.
LendingClub is a peer-to-peer lending company. This means LendingClub doesn’t personally make loans but instead allows borrowers to apply for loans funded by individual investors. Loans are available to borrowers with all different credit profiles, including young people who might not have established great credit yet and who might have obtained a Pave personal loan had they still been available.
Some of the key things to know about LendingClub loans includes the following:
- LendingClub currently offers loans with annual percentage rates (APR) between 6.95% and 35.89%. Your APR depends upon your credit score, outstanding debts, and the amount you’re looking to borrow.
- You can apply online for a loan through LendingClub and can check your rate without hurting your credit score. The process typically takes around seven days from the time you obtain a loan until you receive funding.
- You can borrow up to $40,000 through LendingClub.
- LendingClub charges an origination fee that’s between 1% and 6% of the loan amount. The fee is based on your credit report and is subtracted from the loaned funds. There are no prepayment penalties for early repayment.
- LendingClub indicates borrowers who consolidate debt with LendingClub loans reduce their interest rates by an average of 30 percent.
Prosper, like LendingClub, is a peer-to-peer lending service. Borrowers can qualify even if their credit profile isn’t considered strong, and can check their rates without hurting their credit scores.
If you’re thinking about borrowing from Prosper, here’s what you need to know:
- Prosper offers loans with APRs ranging from 6.95% to 35.99%.
- You can borrow between $2,000 and $40,000 through Prosper.
- You’ll have a choice of a three-year or five-year for repayment when you borrow through Prosper.
- It takes an average of five business days to obtain funds after accepting a loan offer from Prosper.
- Prosper charges a one-time origination fee that’s calculated as a percentage of the amount borrowed. There are no prepayment penalties.
LightStream is an online lender that provides quick approval for borrowers with strong credit reports. This means you’ll need good credit, or a cosigner, to qualify. While this can be a downside for young people without an established credit history, the quick approval process and flexibility LightStream provides still make this a lender worth considering. Plus, if you cannot qualify for an unsecured loan with LightStream, you may also have the option to obtain a secured loan for certain purposes, such as an alternative to an auto loan.
If you’re considering borrowing from LightStream, here’s what you need to know:
- LightStream currently offers loans with APRs between 3.34% and 16.99% for borrowers who sign up for autopay.
- You’ll need a strong credit rating, although some borrowers who don’t qualify for a conventional loan could obtain a secured loan.
- Loans are available for between $5,000 and $100,000 and funds can be delivered directly to your bank account, often the same day you finish the application process. You can use the funds for any purpose, including weddings, home improvement, medical bills, and paying off your credit card debt.
- LightStream does not charge any fees, including origination fees or prepayment penalties.
- LightStream also has a Rate Beat program and promises to beat other lenders’ APRs by .10 percentage points, provided certain conditions are met.
LightStream is so confident it’s loan process is great that it provides a $100 guarantee you’ll have the best-ever loan experience.
Shop Around to Find the Right Personal Loan For You
Although you can’t obtain a Pave personal loan anymore, you shouldn’t give up on the idea of personal loans. If you hope to obtain lower interest rates by refinancing current debt, or if you want to fund your continued education or other personal goals, you should shop around to compare interest rates, loan terms, and qualifying requirements from other loan service providers so you can find one that’s right for you.
Author: Christy Rakoczy
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