Basix personal loans is a new online lender that serves people who are just below the eligibility requirements of traditional banks and prime online lenders. The company was launched in 2015 by ZestFinance Inc., a financial technology company that was founded in 2009 by Douglas Merrill. ZestFinance also owns online lender ZestCash and provides underwriting services to many other lenders. Basix has an A- rating with the BBB and is based in Los Angeles, California.
How Does Basix Work?
Basix puts big data analysis to work to help borrowers with less than perfect credit qualify for lower rates and better terms. Its target audience are borrowers who don't meet the requirements of prime lenders but whose credit is not so bad they should have to resort to payday loans either.
Its online application form only takes a few minutes to complete and once approved funds are deposited directly to borrowers' accounts within two business days. Unlike credit cards and other personal loan models, rates are fixed not variable, which means interest rates will never go up. There are no origination fees, prepayment fees or any other hidden fees. There is a $5 late fee for borrowers who exceed the 15 day grace period.
What Are Basix's Interest Rates?
Interest rates range from 25.99% to 35.99% APR (as of August 2015) depending on the creditworthiness of the borrower, the term length and the loan amount. These rates represent the final cost of borrowing with Basix. There are no hidden fees to consider.
How Much Money Can I Borrow from Basix?
This is the main drawback of this loan. The maximum loan amount is $5,000, which may not be enough for some borrowers. The maximum term is 36 months, which allows borrowers to repay their loans with modest monthly payments. To illustrate, a $5,000 loan with a 35.99% APR will cost $228.99 a month: a total cost of $8,243.64.
Which States Does Basix Operate In?
Basix currently serves customers living in Alabama, California, Georgia, Illinois, Missouri, New Mexico and Utah. However, Basix is still a new startup that is expanding rapidly. Its goal is to operate in all 50 states.
What Is Basix's Application Process Like?
The application form only takes a couple of minutes to complete and is completely online. Applicants receive a quick response and eligible borrowers get their cash deposited directly to their bank account within two business days.
Eligibility requirements for Basix's personal loans are much less stringent than most online lenders. For instance, the minimum credit score is 600 as opposed to the 640 or 720 prime lenders require. Apart from a 600 credit score, borrowers must be over 18, have an active bank account, a regular source of income and an email address.
How Is Basix Better Than Other Lenders?
Basix is a good option for people who are struggling to find a lender because they are just below the eligibility requirements of banks and prime online lenders. Although the interest rates are higher than most banks and prime online lenders, they are still low when compared to the rates sub-prime lenders, short-term loan providers and payday lenders offer.
Flexibility is another big advantage of Basix loans. Borrowers can use their money for home improvements, debt consolidation, emergencies, major purchases, business expenses or whatever they want. Basix also offers flexible terms of up to 36 months and doesn't charge an origination fee or prepayment fees. Late payments only incur a $5 late fee and there is a 15-day grace period after each due date. The only catch is the maximum loan amount, which is only $5,000.