Pave is an online lending company based in New York City that provides personal loans to young borrowers who want to invest in themselves and take control of their finances. Pave was launched in 2013 by Sal Lahoud and Oren Bass. When it first started, Pave gave out loans to newly graduated students in exchange for a share in their future wages. This income-share lending model turned out to be too complicated from a legal standpoint and Pave opted to focus on conventional personal loans instead. However, Pave still bases its eligibility criteria on potential for success rather than only on borrowers' credit history and FICO score.
Pave takes a holistic view of each potential borrower. Instead of just focusing on credit score and income, Pave looks at many other factors, such as employment history, education, and future earning potential. This gives some borrowers the opportunity of getting lower rates than they could otherwise qualify for. Borrowers can use the funds for practically any purpose. Many borrowers use it to pay off credit card debt or to invest in further education. Pave may even approve the loan applications of borrowers without a regular job to finance courses with partner schools.
To get started, complete Pave's online form. Pave will perform a soft pull on your credit report and get you a rate offer within minutes. Soft credit pulls don't hurt your credit score, so you can check what rate your qualify for without damaging your credit.
Pave offers online personal loans of $3,000 to $25,000 at rates ranging from 7.18% to 25.96% APR. Terms go from 24 months to 36 months. To apply fill in the online form and you'll get a rate offer in just minutes. Pave doesn't charge prepayment penalties but it does have a 1% to 6% origination fee.
Borrowers can apply for a second Pave loan, once they pay for 50% of the initial loan.
The APRs Pave offers range from 7.18% to 25.96% APR.
Pave loans range from $3,000 to $25,000. Loan terms range from two to three years.
Borrowers must apply online by completing Pave's loan application form. If you qualify, Pave will give you a quote for rates and terms. If you accept the terms, provide the necessary documentation, and your documents are confirmed, Pave will give you an introductory call and send your funds to your bank.
To qualify you must:
- Be a U.S. citizen
- Be 18 or older
- Have a U.S. bank account
- Have a credit score of 660 or more
- Either have a job or plans to attend a course.
Pave's underwriting process requires proof of your identity, proof of your citizenship, your two most recent pay stubs, and bank statements. Pave may also require a school offer letter if you plan to use the funds to attend a course at one of its partner schools.
Once a loan is approved, funds are deposited within a 24 hours. Loans to pay for boot camps and other education courses have a three-day cancellation period before the funds are transferred.
Pave uses Cross River Bank as a loan originator.
- Instead of focusing on just credit score and income, Pave considers a wide variety of factors when determining rates and terms.
- Unlike credit cards and lines of credit, Pave has a fixed interest rate. You will know exactly how much you have to pay every month, which makes it easier to budget.
- It offers terms of up to 36 months.
- Rates are as low as 7.18% APR.
- You can borrow up to $25,000.
- There are no prepayment penalties.
DISCLAIMER FROM PAVE: Terms and Conditions apply. Borrower must be a U.S. citizen with a valid bank account and SSN. The estimated APR presented is an estimate and is not guaranteed. Approval for a loan and your actual interest rate will and will depend on your credit profile and other information obtained at the time of application. Loans are made by Cross River Bank and are not available in all states. The following examples depict the APR, monthly payment and total payments during the life of a $10,000 personal loan. As a payment example, a two-year $10,000 loan with a 7.18% APR would have 24 scheduled monthly payments of $444.11, and a three-year $10,000 loan with 7.18% APR would have scheduled 36 monthly payments of $306.49.
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