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Approved for Loanbuilder/Paypal

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Anonymous
Not applicable

Approved for Loanbuilder/Paypal

I'm wondering if anyone on the board has any experience with Loan Builder by Paypal. I was just approved for $15k for my business. The paperwork was minimal but did require my K1 tax return, 4 bank statements and utlity bill with business name on it. 

 

I am happy to get the loan but because it requires a weekly payment over 39 weeks, it's a little bit of a pressure cooker. I won't use all of the money, so that is a good cushion to pay it back, but I'm sure anyone who has a young business (almost a year and a half) understands.

Message 1 of 7
6 REPLIES 6
Creditaddict
Legendary Contributor

Re: Approved for Loanbuilder/Paypal

Some other options like Kabbage are monthly payback.

Fundbox.

Message 2 of 7
Anonymous
Not applicable

Re: Approved for Loanbuilder/Paypal

Their interst rates can be high.  The lowest i've seen in 13.5% APR.  They try to fool you by giving you 'cost of money' rates or simple interest rates.

Message 3 of 7
lindsaydruart
Established Contributor

Re: Approved for Loanbuilder/Paypal

I have a loan with them that comes due in December. I don't particularly like the weekly payment but it has been no muss no fuss. It was great for when we needed it but I'm glad it's almost paid off. Paying the full time frame costs a fortune.

Gardening since 12/15/2019. Goal 12/15/2021
FICO 8 as of 12/16/2019 - EQ 602 EX 656 TU 628
Message 4 of 7
Anonymous
Not applicable

Re: Approved for Loanbuilder/Paypal

They are relatively quick as far as application process and approval, but the rates, term, and weekly payment can be killer if you're not careful. You're also stuck paying the whole amount including interest, even if you payback early, so in essence, its a very harsh prepayment penalty. Personally got 30k at 9% cost of loan, which in effect, is a 34% APR.

 

If you miscalculate, a loan like this can easily put you under. Add contingencies for how long you expect to take to pay back, and if necessary, ask for a bit more than you actually plan to use so the extra is availble to make payments on the loan.

 

Would I do it again? probably not. It's worth it to cultivate your credit so you can go the traditional route for much lower cost and far superior terms.

Message 5 of 7
Anonymous
Not applicable

Re: Approved for Loanbuilder/Paypal

Do they report to the 3 personal major credit bureaus? 

Message 6 of 7
Creditaddict
Legendary Contributor

Re: Approved for Loanbuilder/Paypal

Business. No personal reporting
Message 7 of 7
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