New Credit America Review: Is It A Scam Or Is It Legit?

When it comes to managing your finances and finding the right loan options, it’s important to consider various factors such as interest rates, repayment terms, and customer reviews. One lender that has been gaining attention recently is New Credit America. In this article, we will take a closer look at New Credit America, its services, pros and cons, and whether it is a scam or a legitimate lender.

Understanding New Credit America

New Credit America is a licensed consumer finance company based in Portland, OR. The company specializes in providing loan products tailored to meet the unique needs of individuals seeking financial assistance. With a mission to help consumers restore their financial health, New Credit America has been in business for nine years.

New Credit America Services

New Credit America offers two primary services: debt consolidation loans and personal loans. Debt consolidation loans are designed to help individuals with multiple debts consolidate them into a single loan. This simplifies their finances and reduces their monthly payments. On the other hand, personal loans provided by New Credit America can be used for various purposes, including home improvements, medical expenses, and debt consolidation.

Pros and Cons of New Credit America

To better evaluate whether New Credit is the right lender for you, it’s essential to consider the pros and cons of their services. Here are some key points to keep in mind:

Pros

• Debt Consolidation Services: It offers debt consolidation services, allowing individuals with multiple debts to simplify their finances and reduce their monthly payments.
• Personal Loans for Various Purposes: The company provides personal loans that can be utilized for home improvements, medical expenses, and debt consolidation, providing flexibility to borrowers.
• Backed by a Reputable Bank: All loans are originated by Cross River Bank, an NJ chartered bank and member of the FDIC. This ensures that the loans are backed by a reputable financial institution.
• Second Chance Opportunity: It offers a second chance to individuals with bad credit who may not be able to secure loans from other lenders.
• User-Friendly Website and Online Application: Its website is easy to navigate, and applicants can conveniently apply for loans online.
• Excellent Customer Service: The company is known for its helpful and knowledgeable support team, providing exceptional customer service.

Cons

• Origination Fee: It charges an origination fee of up to 5% of the principal loan amount, which can increase the overall cost of the loan.
• Potential Prepayment Penalty Fees: Some loans may include prepayment penalty fees, discouraging borrowers from paying off their loans early.
• Late Fees: If borrowers fail to make their payments on time, late fees may apply.
• No Debt Settlement, Debt Relief, or Credit Repair Services: It’s important to note that it does not provide debt settlement, debt relief, or credit repair services.

Considering these pros and cons can help individuals make an informed decision when considering New Credit America as a lender.

Applying for a Loan from New Credit America

If you are interested in applying for a loan, the process is typically fast and straightforward. Here are the steps involved:

• Visit New Credit America’s website.
• Click on the “Apply Now” button.
• Fill out the online application form with your personal information, including your name, address, and Social Security number.
• Provide details about the loan you are applying for, such as the loan amount and purpose.
• Submit your application.
• Wait for a decision on your application. If approved, you will receive information on the loan terms, including the interest rate and any fees.
• If you agree to the loan terms, sign the loan agreement and provide any additional requested information.
• Receive the loan funds in your checking account within one to seven business days, depending on your bank and the loan amount.

In case you encounter any issues or have questions during the application process, its customer service team is available to assist you.

Is New Credit America Legit or a Scam?

The legitimacy of any financial institution is an important consideration when choosing a lender. In the case of New Credit, the company has been in operation for nine years and holds a license as a consumer finance company. It is important to note that it has an A+ rating from the Better Business Bureau BBB, indicating that it meets certain standards of trustworthiness and ethical business practices.

However, customer reviews paint a slightly different picture. With an average rating of 1.8 stars out of 5, and 7 complaints closed in the last three years, it’s clear that some customers have had negative experiences. It’s crucial to carefully weigh these reviews along with other factors when making a decision.

FAQs

1. How does New Credit America ensure the security and privacy of customers’ personal and financial information?

New Credit America takes the security and privacy of its customers’ information seriously. The company implements robust security measures to protect sensitive data. This includes encryption technology to secure online transactions, strict access controls, and regular security audits to identify and address any vulnerabilities. Additionally, New Credit America adheres to industry best practices and complies with relevant data protection regulations to safeguard customers’ personal and financial information.

2. What factors does New Credit America consider when determining the interest rate for a loan?

When determining the interest rate for a loan, New Credit America considers several factors to assess the creditworthiness of the borrower. These factors may include the borrower’s credit history, credit score, income level, employment stability, and debt-to-income ratio. By evaluating these factors, New Credit America aims to provide personalized interest rates that reflect the borrower’s financial situation and risk profile.

3. Can I use a loan from New Credit America to consolidate both secured and unsecured debts?

Yes, New Credit America allows borrowers to use their loans for the consolidation of both secured and unsecured debts. Whether you have credit card debt, medical bills, personal loans, or other forms of debt, you can use a loan from New Credit America to simplify your finances and consolidate these debts into a single loan. This can help you manage your payments more efficiently and potentially reduce your overall interest rate and monthly payment.

4. Are there any penalties for paying off a loan from New Credit America before the end of the loan term?

New Credit America does not impose any prepayment penalties for borrowers who choose to pay off their loans before the end of the loan term. This means that if you have the means to pay off your loan early, you can do so without incurring any additional fees or charges. This flexibility allows borrowers to save on interest costs and become debt-free sooner.

5. How does New Credit America assist customers who experience financial difficulties during the loan repayment period?

New Credit America understands that unexpected financial challenges can arise, making it difficult for borrowers to meet their loan obligations. In such cases, the company encourages borrowers to contact their customer service team as soon as possible. New Credit America’s customer support team is trained to assist customers facing financial difficulties and can explore options such as loan modification, repayment plans, or temporary payment arrangements to help borrowers navigate through difficult times.

6. Can I qualify for a loan from New Credit America if I have a low credit score?

Yes, New Credit America offers a second chance opportunity to individuals with bad credit who may have difficulty obtaining loans from traditional lenders. While a low credit score can affect the terms of the loan, New Credit America considers other factors such as income stability, employment history, and debt-to-income ratio when evaluating loan applications. This means that even with a low credit score, you may still be eligible for a loan from New Credit America.

7. How quickly can I expect to receive a decision on my loan application from New Credit America?

New Credit America aims to provide borrowers with a quick and efficient loan application process. Once you submit your online application, the company’s verification team will review it promptly. In many cases, borrowers receive a decision on their loan application within minutes. However, the exact timeframe can vary depending on factors such as the completeness of the application, verification requirements, and peak application periods. New Credit America strives to provide timely responses to ensure borrowers have the necessary information to make informed financial decisions.

8. Does New Credit America offer any resources or tools to help borrowers improve their financial literacy and money management skills?

Yes, New Credit America is committed to promoting financial education and offers various resources to help borrowers improve their financial literacy and money management skills. The company’s blog provides valuable articles, guides, and tips on topics such as budgeting, credit management, debt consolidation, and financial planning. By accessing these resources, borrowers can gain insights into effective strategies for managing their finances, making informed financial decisions, and achieving long-term financial stability.

9. How does New Credit America handle customer complaints and concerns?

New Credit America takes customer satisfaction seriously and has processes in place to address complaints and concerns promptly. If you have any issues or concerns about your loan or experience with New Credit America, the company encourages you to contact their customer service team directly. The customer service representatives are trained to assist and resolve any problems you may encounter. Additionally, New Credit America strives to continuously improve its services based on customer feedback, ensuring a positive experience for borrowers.

10. Can New Credit America offer financial guidance or personalized advice to help borrowers make the best borrowing decisions?

While New Credit America provides loans and related services, it’s important to note that the company cannot provide personalized financial advice or act as a financial advisor. Each borrower’s financial situation is unique, and it’s advisable to seek guidance from a qualified financial professional for personalized advice tailored to your specific circumstances. A financial advisor can provide comprehensive insights, analyze your financial goals, and help you make informed decisions regarding borrowing, debt management, and overall financial planning.

Conclusion

When considering New Credit America as a potential lender, it is important to review their services, pros and cons, and customer reviews. New Credit America offers debt consolidation and personal loans, making it a viable option for those seeking financial assistance. The company has a user-friendly website and is backed by Cross River Bank, a reputable financial institution. However, it’s crucial to consider potential fees, such as the origination fee, and be aware of the mixed customer reviews.

To make an informed decision, it’s recommended to compare rates, terms, and customer feedback from multiple lenders. Additionally, it’s advisable to consult with a financial advisor to evaluate your unique financial situation and determine the best course of action. Ultimately, by carefully considering all aspects, you can make a confident decision regarding your financial needs and whether New Credit America is the right fit for you.