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NetCredit Credit Card Debt Consolidation

Are NetCredit credit card debt consolidation loans a roadmap for getting out of credit card debt? Using a NetCredit credit card debt consolidation to consolidate your credit card debt into a single loan can be help you accelerate your effort to get out of debt, but only if you do it the right way. Finding the right company is a must! Here are the pros and cons to using Upstart. Let’s be positive and start with the pros!

Pros of a NetCredit Credit Card Debt Consolidation

Laxer approval standards

NetCredit is a lender for people with fair, poor, or damaged credit. That means that they are much more familiar with people with less-than-perfect credit histories. They are more likely to take a chance on you if you’ve had some issues with credit in the past.  

Fast process

NetCredit will make a decision on whether to lend you money within a few minutes of submitting your application. Their decision process is entirely online and it’s automated. And if you accept the loan, you could have the money in your account as soon as the next business day. So, once you decide that this is something you want to do, you can move pretty quickly to get it taken care of. 

Unsecured loan

NetCredit’s loans are unsecured. That means that you won’t need to put up collateral in order to be approved. Not only does this simplify the process, it also means that you won’t risk losing your asset if you run into trouble repaying the loan. 

Now let’s turn our attention to the cons of using NetCredit to consolidate your credit card debt.

Cons of a NetCredit Credit Card Debt Consolidation

Low loan amount

NetCredit can really only be considered a good solution if you have limited credit card debt because the largest loan that they offer is $10,000. And there’s no guarantee you could be approved for that amount. If you need to consolidate more than five or six thousand dollars in credit card debt, you may want to find a different lender. (Below, I will tell you about a really good way of shopping around for options.)

High APR

NetCredit’s APRs start at 34% and go all the way up to 100%. While this range is high, it is actually competitive for loans for people with damaged, low, or poor credit scores. Still, those rates are high enough that it is unlikely that you would want to use them to consolidate traditional credit card debt. If you had debt on secured credit cards with higher interest rates, NetCredit might be able to solve your problem. But, I would still only consider using them if they offer you a loan with an APR of a few percentage points below what you are currently paying on your other debts. 

Origination fee

NetCredit charges an origination fee of between 1-5% of the loan amount. Origination fees are fairly common, although not all companies charge them. There are two things you need to be aware of when it comes to orgination fees. First, the fee comes out of the proceeds of the loan. That means that if there is a 5% origination fee on a $10,000 loan, you will receive $9,500 dollars but still be expected to pay back $10,000.

The second thing you need to be aware of is that you don’t get a prorated reimbursement of the origination fee if you pay the loan back early. So, if you are planning to be aggressive about paying your loan off early (and you should), the origination fee will be a sunk cost. So, if you have two loans with the exact same APRs, you might want to pick the one with the lower origination fee. 

No direct payoff option

NetCredit does not have the option of paying off your credit card balances for you when you take one of the credit card consolidation loans. It’s convenient when a lender will pay off the balances for you, but I think of it as a “con” when they don’t for another reason: they are less likely to approve you and less likely to give you the lowest interest rate. Why? Because they can’t guarantee that you will take the money and pay down your other debts. So, they probably don’t consider debt pay off in their assessment of your debt-to-income ratio. 

Shop Around

Even if you are thinking of using NetCredit, their interest rates are high enough that you owe it to yourself to shop around and make sure you are getting the best deal that you can get. At The Yukon Project, we’ve tried to make shopping around easy. You can visit our marketplace page and apply to one of our premium lenders. Behind the scenes we will check your rate with up to 40 lenders. The application will not affect your credit and we will show you all of the approvals so you can select the loan that is right for you. 

Remember that there is no rule that you have to consolidate your credit card debt. If a company isn’t offering you a interest rate that is at least a few percentage points better than what you are paying on your credit cards, don’t consolidate. Just focus on making extra principal payments every single month so you can make meaningful progress towards living a debt-free life. 


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Jonathan Walker