If you’re a young borrower with a bright future, Pave Loans wants you! In the wise words of CEO and co-founder Oren Bass, “We lend to those who are upwardly mobile-looking to get ahead in their careers or get on top of their finances.”
Pave Loans started out by appealing to college students by offering graduation loans to help pay off massive amounts of student debt for a small portion of their future earnings. However, this “income-share agreement” proved to be too legally complicating for practical implications.
Following this, the company then sought out young borrowers to offer personal loans while still asking for a small share in their future profit. However, their end goal was to help millennials improve their future by improving their financial situation immediately. Mainly to help students paying off debt or costs of moving to a new job, Pave Loans proved to be a young borrower’s most trusted lender.
What Makes Pave Different
Credit matters no matter who the lender is. However, Pave is very lenient when it comes to applications and only requires a credit score of 660. Always be sure to double check your FICO and Vantage credit scores since that is where the company compiles your scores to decide whether or not to approve you.
Apart from credit scores, Pave also double checks employment history, education, and average income. Which are things any lender may check to approve an application?
You may be wondering, however, why background information, as well as your credit score, impacts your application. Not only does it determine you to be a dependable person to pay back the loan you may receive, but it also determines your interest rate.
Using this type of loan for self-improvement does have other perks as well. If you are enrolled in a course, you have the option to defer payment for the first three months. However, during this time, the loan will still gain interest.
Every approved applicant will receive an introductory phone call. This is used to verify the identity of borrowers and to ask for feedback. Here are a few other things you should know about before you apply for a personal loan with Pave:
– Min. Gross Income: N/A
– Min. Credit History: N/A
– Max. Debt-to-Income Ratio: N/A
– APR: 6.97-27.10%
– Amount of Time it Takes to Receive Funds: a couple business days
– Loan Amount: $3,000 – $25,000
– Loan Duration: 2 – 3 years
Penalties and Fees
– Origination Fee: depending on APR, 1 – 6% of the total loan amount
– Prepayment Fee: N/A
– Late Fee: 5% of total payment due or $15, whichever is higher
– Unsuccessful Payment Fee: $15
Pave: The Final Verdict
If you are searching for a lender that will take into account more than just your past, Pave might be a good choice for you. They consider borrowers financial potential and reward those who attempt to better themselves financially. Pave also offers rather competitive interest rates for those who may not be able to find them elsewhere because of short credit histories. As far as personal loans go, Pave is a good option for young people who may not have very many other options.