Zippyloan personal loan review

Pros

• Loans as small as $100
• Loan options for poor credit

Cons

• Payday loans come with high fees
• No guarantee you’ll be matched with a lender
• Information sold to lenders

What you need to know about a Zippyloan personal loan

Payday lenders used to be storefront check-cashing outlets that often targeted lower-income borrowers, but payday loans are now available online. Zippyloan is an online marketplace for payday loans and personal loans. Here’s what you need to know.

Not a lender

Zippyloan is not a lender or a bank. Instead of directly issuing loans, Zippyloan is a marketplace that connects people with all credit types, including poor credit, to lenders. If your credit isn’t great, a service like Zippyloan may be able to help you find a loan.

Payday loans

The short-term loans offered by some of the lenders Zippyloan works with — also called payday loans — aren’t an ideal source of funds because they tend to come with high fees.

When you get a payday loan, your repayment is scheduled to coincide with the day your paycheck hits your bank account. But if you don’t have a reliable source of income, this type of high-cost financing can be hard to repay.

A typical payday loan costs an additional $10 to $30 for every $100 you borrow. The loan — along with the fees you paid to borrow the money — needs to be paid back in 14 days or whenever you receive your next paycheck. Say you get a payday loan with a $15 fee for every $100 you borrow. Borrowing $500 would mean you’d pay $560 two weeks later when the loan is due.

Paying a $15 fee for every $100 you borrow on a 14-day loan is equal to a 391% annual percentage rate.

It’s important to consider your alternatives before taking out this type of loan. But when a payday loan is your only option, Zippyloan may be able to help you find the best option for your situation.

No guarantee of a loan match

Even though Zippyloan works to match all borrowers with lenders, it doesn’t guarantee that a lender will issue you a loan. If your income or credit doesn’t meet a lender’s requirements, you may not be eligible to borrow money.

Personal loans for fair credit

If you’re looking for a personal loan, Zippyloan can connect you with lenders offering competitive interest rates on unsecured personal loans for debt consolidation, home improvement or other major expenses. This can be a real benefit if your credit isn’t great or you’re having a hard time finding loans for another reason.

Repayment terms for unsecured personal loans from Zippyloan’s lending network range from six months to six years.

Keep in mind that you may not qualify for the advertised rate — since Zippyloan is a marketplace, it can’t guarantee what interest rates you may be offered. Compared to advertised rates from other lenders, these are reasonable rates. But if you have excellent credit, you may be able to find lower interest rates elsewhere.

Not available nationwide

You won’t be able to get a loan through Zippyloan if you live in New York, Oregon, West Virginia or Washington, D.C.

A closer look at Zippyloan

If you’re in a hurry to take out a loan, here are a few things to understand about loans from Zippyloan’s network of lenders.

• Loans range from $100 to $15,000. Lenders that work with Zippyloan offer loans that range from $100 to $15,000. The exact amount you can borrow will depend on your credit history, income and other factors determined by lenders.
• Watch out for payday loans. If you’re taking out a small loan, the loan balance may be due as soon as your next payday. Be sure you understand the loan agreement before you borrow — and remember that short-term payday loans often carry APRs above 300%.
• Loans generally aren’t secured. Most loans offered by Zippyloan’s network of lenders aren’t secured loans. That means you won’t have to offer up collateral, like your car, to secure the loan.
• Expect fast funding. Once a lender approves your loan, you may receive funds in your bank account as soon as the next business day. Keep in mind that depending on your bank, there may be a wait before you can access your cash.
• Interest rates vary. Zippyloan isn’t a lender, so it can’t guarantee the rates you’ll be offered on loans from its network of lenders.
• There’s no credit minimum. Zippyloan doesn’t guarantee that it will match you with a lender — but borrowers with bad credit may be able to qualify for a loan through one of Zippyloan’s partners.

Who a Zippyloan personal or payday loan is good for

Zippyloan specializes in connecting people with poor credit to fast cash.

A loan through the Zippyloan marketplace could be a solution if you’re facing a personal emergency and you don’t have cash or available credit — but don’t forget that payday loans can trap you financially. But if you don’t have a credit card and you don’t qualify for a payday alternative loan, a payday loan may be your only option.

How to apply for a loan through Zippyloan

Since Zippyloan isn’t a lender, you can’t apply directly through the company. Instead, you’ll need to fill out an information request through Zippyloan’s “Get Started” page online. You’ll be asked to provide your personal information along with employment details, your credit score range and bank account information.

Zippyloan then sends the information to lenders that may offer to lend you money. If you want to apply for a loan, you must also complete a separate loan application from one of the lenders (this can often be done online). Lenders may use verification services to confirm the accuracy of the details you sent.

Not sure if a loan from Zippyloan is right for you? Check out these other lenders.

If you’re looking for a personal loan and don’t have great credit, you still may find a loan that suits you better than a payday loan.

• OneMain Financial: OneMain Financial works with people with fair or poor credit. You may have to secure a loan with collateral like your car, but you may be able to get reasonable repayment terms.
• Avant: Avant offers unsecured loans to borrowers with fair credit or better and doesn’t charge an early-payment penalty.

*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.