Ascend personal loans are perfect for people who need to improve their bad credit scores. Most young adults have at least one financially crippling factor on their score, such as student loans, that requires attention for an improved financial future. Not to mention, people who have a very young line of credit, are trying to reduce debt, or are trying to pay off an auto or home loan. Although Ascend loans only serve a select few states, they are a great tool to be more financially sound.
Financial Background of The Average Ascend Personal Loan Borrowers
Most Ascent loan borrowers have a debt to average income of 28%, a $6,000 loan at an interest rate of 33%, a 630 credit score, and an income of just under $90,000.
Ascend loans not only lowers a borrower’s financial hardships but also, over time, lowers their interest rates.
Benefits of Using Ascend Personal Loans
- Rebuild savings plans
- Greatly lower average credit card spending.
- Reduce overall debt
- Reduce your auto interest by 20% by listing your title as collateral
After a mere three months of on-time payments, you are able to lower your interest rate. Ascend checks your credit report and bank account often. If they find positive financial behavior, they will lower your monthly payments. This functions as a reward for borrowers for being financially responsible.
Over 60% of Ascend’s borrowers opt in for their rewards program. On average, they save $300 over the course of the loan and they could potentially cut their interest rate in half.
Since Ascend mainly caters to borrowers with poor credit, their interest rates are much higher than other lenders. Their starting rate is 27%. Other lenders may be able to offer lower rates, but they do not let borrowers reduce those rates over the course of the loan. They may also only be available to borrowers with good credit scores.
Ascend does not provide loans to applicants with scores over 700. This is because those borrowers have a better chance of getting a loan with a lower APR elsewhere.
Ascend loans are only available in eight states: Alabama, California, Georgia, Illinois, Missouri, Oregon, South Carolina, and Utah.
How to Apply
- Make an account on Ascend’s webpage. You will need to provide some basic personal information including your social security number. To determine if you pre-qualify, Ascend will run a soft check on your credit, but it will not have an impact on your score.
- Once you are approved, you may compare their fixed-rate loan with their rewards loan. After you choose one, you will be asked to fill out a more detailed application and provide documents to verify your income and identity. If you sign up for the rewards loan, you will also be asked to connect your bank account and let Ascend monitor your banking activity.
- Ascend will conduct a hard credit check before you are given your money. They run the check and report to TransUnion.
- If you chose the rewards loan, you will be eligible for monthly rewards once you pay on-time for three months.
- There is also an auto-title pledge option. For this, you will need to call the company directly.
- Credit Score: 580 (the average is 630)
- Gross Income: $35,000
- Credit History: 1 year
- Loan Amount: starts at $2,000 but varies by state
- Loan Amount: $12,500
- APR: from 27.49% to 35.99%
- Duration: 3 years
- Length of Time it Takes to Receive Funds: 1-3 business days
Penalties and Fees
- Origination Fee: N/A
- Late Fees: After a 15-day grace period, the late fees vary from state to state
- Prepayment Fee: N/A
- Personal-Check Processing Fees: N/A
- Insufficient Funds Fees: different from state to state
Prior to Taking Out a Personal Loan…
- Determine exactly how a personal loan works.
- Check your credit score and determine your financial strengths and weaknesses. Lenders look at your score, income, debts, and the length of your credit history.
- Build up your credit score. Those with higher scores are more likely to get better loans at better rates.
- Compare a few loans. See how each one would affect your budget and your monthly spending habits. Determine how well the repayment plan would fit into your budget.
- Take all of your options into consideration. For example, you may be able to get a better rate with a cosigner or at a different financial institution.