Pave Personal Loans
Founded and run by a small team of industry experts, Pave strives to remove the typical boundaries you face when applying for a personal loan. To achieve this, they employ a different criteria in that they look past your credit score to learn more about you, your goals and your earning direction.
Because of its focus, Pave is a good option to consider if you need to establish a credit history and traditional means prevent you from doing this.
Pave Loan Basics
Pave offers unsecured personal loans from $3,000 up to $25,000. Interest rates for Pave's loans are as low as 6.02% APR, which puts them right in line with what similar lenders offer. Repayment terms for Pave's loans are from two to three years. If you have to borrow a large amount of money it will result in higher monthly payments due to the short repayment periods.
How It Works
To see if you qualify, you can apply for a loan on Pave's website. Its application is simple to do and you'll need to supply basic information such as employment history, education, income earned and address. This should take you only a few minutes to do. Once you apply, you'll find out if you qualify and if so, what your rate will be.
From there, you move to the onboarding phase; this is where you will supply documents that verify the information you gave in your application. As part of this, you will need to provide the following items:
- To verify identity, you will need to send them a clear picture of a current government-issued ID such as your driver's license.
- To verify employment, you will need to supply your last two paystubs from your place of employment.
- Lastly, if you need to verify assets, you will need to send them a copy of your bank statements that support the amount of assets you specified for the loan.
Once you send this information, Pave will verify the documents and your bank account within one business day. After this, Pave will conduct an introductory call with you. Once you complete the call, Pave will send your funds via direct deposit. On its website, it doesn't specify a time frame when you'll receive your loan funds, but it's also something they will likely go over during the onboarding call.
Pave is unique in that they examine multiple factors when determining your eligibility for its loan products. Here is a look at some of the factors they examine:
- Your FICO credit score. They use your score as a baseline to determine eligibility. Currently, the minimum score required for one of its loan products is 660.
- You must be at least 18 years old, be a U.S. citizen and have an active bank account.
- Pave does have residency restrictions, as they don't service the following states: Arizona, Connecticut, District of Columbia, Maine, Massachusetts, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Oregon, Pennsylvania, Tennessee, Vermont, Wisconsin and Wyoming.
- Pave will also examine other factors outside of your credit score such as your employment history, your education and your future earning potential.
Fees Associated with Pave
Pave does charge an origination fee when you use its loan products. The origination fee varies from one to six percent. To illustrate the true costs of this fee, say you decide to borrow $10,000 to supplement your federal loan for school and Pave assesses a four percent origination fee on your loan. This results in a $400 fee. While that might seem steep on the surface, it's important to be mindful of the competitive rates Pave charges for its loan products, so if you can receive a good interest rate it will likely offset the cost of the origination fee.
Benefits to Using Pave
Pave has a unique criteria process that can help you receive the funding you need. For example, say you have a limited credit history and need a loan to finish schooling to earn your nursing degree. With traditional lenders, they might disqualify you on the basis of your limited history. Meanwhile, with Pave, they could give you the funding you need because they see your future earning potential with the degree.
Another benefit is Pave has low interest rates because of the criteria they use. This makes them a much better alternative than using credit cards or private lenders for financing because you can save on the loan's total cost with Pave's lower interest rates.
Pave's onboarding process for its loans is exceptional and provides a personal touch similar lenders lack. The onboarding call gives you an opportunity to learn more about the loan you will receive and also presents you with the chance to have any questions or concerns addressed before moving forward.
Drawbacks to Using Pave
Because Pave still requires a minimum credit score of 660, not all applicants will apply. This means if you have had credit problems in the past, the best option is to wait, improve your score and apply in the future. Another option would be to find a co-signer with an excellent credit history to apply jointly with you.
Pave has short repayment terms of two to three years for its loans. This will result in higher monthly payments that can make repaying the loan, especially if you borrow a large sum, expensive to do. At the same time it's important to note that the shorter repayment term means you'll pay less in interest charges compared to longer term loans, which will save you on the loan's total cost.
Verdict - Good
Pave has a unique criteria process they employ to determine loan eligibility; this makes them a good option for some that need financing but cannot obtain it through traditional means. Pave also has a helpful onboarding process where you will have time to speak with a member of its staff to learn more about the loan product you will receive. However, the minimum credit score and residency requirements will mean Pave won't be a viable option for all.