CashNetUSA is the leading online payday lender in the United States. As well as payday loans, CashNetUSA is also a direct lender of installment loans and lines of credit. The application process takes a few minutes, and borrowers receive an instant lending decision. In some cases, money can be transferred by the next business day. The catch is that CashNetUSA has high-interest rates.
So, is it a good idea to apply for a loan with CashNetUSA? How does it compare with other installment and payday loans? This review takes an in-depth look at the cost and terms of CashNetUSA Loans. We will also take a close look at its application process and eligibility requirements.
In this article
Who Are CashNetUSA Loans Designed For?
CashNetUSA Loans are designed for persons with poor credit, looking for a flexible funding option that doesn’t require them to leverage property as collateral. Unlike title loans, pawn store loans and mortgages, CashNetUSA loans are not secured. They have flexible eligibility requirements that make their loans an attractive option for people who need cash now and have limited access to more traditional sources of credit, such as banks and credit unions.
CashNetUSA is a brand of Enova International and was first launched as Check Giant LLC in 2003. In 2004, Al Goldstein joined the company and turned the business toward online consumer lending. In 2006, Enova was purchased by Cash America, the world’s largest pawn company with 859 stores in operation across the country today. The purchase was made to create an internet-based division of their brand, allowing further customer reach. Al Goldstein left the company and proceeded to launch another successful online lending company: Avant.
Enova is a holding company for a variety of finance technology businesses. As well as CashNetUSA, its flagship brand, Enova also owns NetCredit, Headway Capital, QuickQuid, OnStride and Dollars Direct. Headway Capital offers business loans. QuickQuid and OnStride provide payday loans in the United Kingdom. Dollars Direct operates in Australia and Canada. Enova also does business in Brazil (as Simplic) and China (as YOUXINYI).
By 2014, CashNetUSA had become a growing business with a revenue of $615 million and a net income of $89.2 million. CashNetUSA is based in Chicago, Illinois, and is licensed in all the states it operates. It has a D rating with the BBB because of a high volume of complaints. Many of the complaints (over 100) were caused by scammers claiming—falsely—to be representatives of CashNetUSA and requested advance payments to process personal loan applications.
How Do CashNetUSA Loans Work?
CashNetUSA offers three main credit products: payday loans, installment loans, and lines of credit. The products available vary depending on state laws. In Texas, for instance, payday and installment loans are available but lines of credit are not. In Utah, on the other hand, only lines of credit are available. However, all the products are fast and easy to apply for. Cash can be deposited within 24 hours of applying, and people with poor credit can qualify. Here is a brief summary of the products CashNetUSA offers:
- Payday loans: These are small, short-term loans that must be repaid by the next payday, usually two weeks to one month.
- Installment loans: These have longer terms and larger loan amounts than payday loans. The interest rates are lower than payday loans, but they are still relatively high.
- Lines of credit: These are the most flexible funding option. They work like a credit card. Once you’re approved, you can request advances up to the available credit limit. As you make payments, your available credit increases. Interest rates are also very high when compared to prime loans.
What Are The Rates and Terms?
Rates and terms vary from state to state and depend on the loan amount and the length of the term. Some states have restrictions on the interest rates lenders can charge. Smaller and shorter loans have higher interest rates. Visit CashNetUSA‘s profile page at SuperMoney for the latest rates.
To illustrate, in California an 8-day $100 payday loan has a $17.65 finance charge, which is an APR of 805%. The same loan with a 31-day term has the same $17.65 finance charge, but the APR drops to 208% APR. The state with the highest APR is Mississippi, which has a $20 fee for every $100. That is an APR of 912.5% on an 8-day repayment term.
Installment loans have larger terms and interest rates of around 187% APR in California. Lines of credit are not available in California. They are available in Utah, where the daily interest rate is 0.819%: an APR of 299%. Lines of credit have a 25% transaction fee. For instance, if you take out a $200 advance, you will have to pay a $50 transaction fee and only receive a $150 deposit in your bank account.
How Much Can You Borrow From CashNetUSA?
Maximum loan amounts vary depending on state law. The most you can borrow from CashNetUSA is $3,600, but this amount is only available in California. In Florida, the maximum loan is $500, in Texas it is $1,800 or 35% of your gross monthly income, whichever is less.
To illustrate the cost of a CashNetUSA, consider this example. A $2,600 loan with 39 bi-monthly payments (18-month term) will have a finance charge of $5,465.59 and fixed bi-monthly payments of $206.84 ($514 a month).
What Is The Application Process Like?
The application process is one of the strong points for CashNetUSA. Yes, interest rates are high. But if you’re looking for a fast source of cash that doesn’t perform credit checks or require you to fill in pages and pages of financial information or fax documents, it’s hard to beat CashNetUSA.
Instead of performing extensive credit checks on applicants, CashNetUSA searches the Clarity database. The Clarity database keeps a record of transactions of customers with cable television accounts, rent-to-own shops, check cashing, consumer finance companies, and other businesses.
These are the steps and screens you can expect to take if you apply for a loan with CashNetUSA.
1. Create An Account.
Creating an account will require choosing a password and providing general personal information, such as your Social Security Number and date of birth.
2. Additional Information.
In the second and final page of the application form, you will need to provide additional financial and work information. This information includes the loan amount you want, your license number, and the contact details of the company where you work.
3. Sign Contract.
If you meet CashNetUSA’s eligibility requirements, you will need to sign the contract and provide banking information so your money can be deposited.
CashNetUSA’s eligibility criteria are simple. As with other payday lenders, borrowers:
- Must be a US citizen or permanent resident
- Have been employed for at least a month
- Have an active checking account
- Must be at least 18 years old
What Are The Advantages And Disadvantages of CashNetUSA?
The main downside to CashNetUSA is its cost. With interest rates as high as 912% APR, this should not be your first choice for credit. Borrowers with excellent and good credit should first try with prime lenders, such as SoFi and Prosper. However, if you do not meet the credit requirements of prime lenders, CashNetUSA offers several advantages over regular payday lenders and installment providers.
- No credit check
- Fast application process. It takes only a few minutes
- Instant lending decision
- CashNetUSA is a direct lender.
- Money deposited within 24 hours
- CashNetUSA is the largest (and first) online payday lender in the United States
- Flagship brand of Enova: an international holding company of online lenders
- Competitive interest rates
- Fixed payments and a transparent fee schedule
- Selection of credit products: payday loans, installment loans, and lines of credit
- CashNetUSA is licensed in all the states it operates