Thursday, December 8th
2022 Personal Loan Reviews
Leap Credit
- Loans from $500 to $3,500
- Only operates in a few states
- Extremely high interest rates
- Poor reputation
Leap Credit offers small personal loans designed to help you bridge the gap between paychecks, when unexpected expenses arise. The company has been in business for less than 5 years.
Only in a few states
At the time of our review, Leap Credit was only authorized to provide funds in the following states: Alabama, Idaho, Missouri, North Dakota, South Carolina, Texas, Utah, Wisconsin, New Mexico and Illinois. However, if you live in a state not included in that list, they say that if you fill out an online application they can match you with a lending partner in their network. Even in some of the states where Leap Credit is licensed to lend money (such as Texas), you may still be connected with a third-party lender.
Loans up to $3,500
How much can you borrow through this platform? That depends on where you live. Click on "Terms and Rates" at the bottom of the site, and then select your state of residence to find out what's on offer there. While available loan amounts vary, we found that most states have loan amounts ranging from $500 to $3,500.
Nightmarish interest rates
You'll also want to pay very close attention to the interest rates posted for your state. When we first looked, we thought there was a mistake - but no, it turns out that Leap Credit offers loans with exorbitant APRs: up to 800%. Yes, that means you could wind up paying a total of $6,000 for a $500 loan (as one customer cited). Ironically, Leap Credit describes their service as offering you a "financial life preserver" , when really it could wind up being a weight that drags you deeper into trouble.
Poor reputation
Leap Credit doesn't have an outstanding reputation. The Better Business Bureau gives them a "B" rating. In school, a "B" is pretty good, but when it comes to companies you're trusting with your finances, you should want as high a rating as possible. We were also troubled by the fact that, on the application page, Leap Credit has an icon claiming to be accredited by the BBB - but their listing actually had no accreditation. Considering that the lender had more than 50 complaints registered with the BBB just in the 12 months prior to our review (and a whopping 250+ complaints in the three years prior), it's no wonder that the BBB gave them a less-than-perfect grade and no accreditation.
Complaints of fraud
On the Leap Credit site, they feature client reviews through a well-known independent rating platform. In fact, all the reviews shown on the lender's page are 4- and 5-star evaluations. But, when you go directly to the review site, it tells a very different story. Reading through consumer comments there, and on the Leap Credit BBB listing is scary. More than a few people said they never signed the paperwork for their loan, after reading the offer and deciding it wasn't what they wanted - but the loan went through anyway. Leap Credit was then difficult to contact, making it almost impossible to get the situation fixed. Even more frightening are the multiple reports from people who never visited the Leap Credit site, and who paid their loans in full, and yet had payments drafted out of their accounts. Companies offering personal loans shouldn't have you needing to file a police report for fraud!
Look elsewhere for a personal loan
We can't see any reason to trust Leap Credit if you're looking for a personal loan. "Shady" and "scam" are two of the words most often used by people describing their experience with this company. We strongly encourage you to get the funds you need from a more reputable lending partner.
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Where Can You Find the Best Personal Loans?
With inflation on the rise and an endless list of possibilities for unexpected expenses - car repairs, visits to the ER, and broken appliances, to name a few - it's no wonder that an increasing number of people are applying for personal loans.
Sound familiar? If you find yourself in need of some cash, you've probably considered borrowing from a friend or relative - but there's no guarantee that your loved ones are in a position to help, and who really wants to ask? Fortunately, you've got options that don't involve an awkward conversation with people you know. There are many lenders that specialize in personal loans ranging from $500 to as much as $100,000, with simple application processes that can be completed 100% online.
Personal Loan FAQ
Continued from above...
What's the catch? There isn't one, as long as you choose your lender carefully. Some providers of personal loans charge excessively high interest rates and offer shorter-than-average terms, making it harder for you to pay it back on time. On the other hand, most reputable sources of personal loans are completely transparent with their interest rates, give repayment terms of up to five years, and won't charge you any fees if you're able to pay off your loan earlier than anticipated.
How can you determine which lender is the best choice for your personal loan? That largely depends on your individual circumstances, but there are several factors to keep in mind as you consider your options. They include the following:
- Loan amount. How much can you borrow? Some lenders offer a maximum loan of $4,000 or less, while others can fund loans of $25,000 or more. Make sure the provider you choose can actually give you the money you need.
- Loan terms. How much will you pay in interest? How long will you have to repay the personal loan? Are there any origination fees, prepayment penalties, or other costs associated with the loan?
- Eligibility. What is required to qualify for a loan? Some lenders have minimum credit score requirements, residency requirements, or other criteria you need to meet to be approved for a loan.
- Referral service or direct lender. Some personal loan platforms work as a one-stop shop to compare offers from multiple institutions, while others fund your loan directly. A referral service is a great way to make sure you're getting the lowest possible interest rates, but you may still have to go through the application process with the lender itself.
- Reputation. What do other borrowers say about their experience with the lender? Has the company gotten a positive evaluation from the Better Business Bureau?
TopConsumerReviews.com has reviewed and ranked the best providers of personal loans available today. We're confident that this information will help you get the money you need, deposited quickly and at the lowest possible rates!
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