Please note that New Start Financial is not affiliated with New Start Capital or Start New Financial
Have you come across New Start Financial? If so, you may be wondering if it is a legitimate company or if it is a scam. The company directly targets potential customers by either direct mail or email, with offers of a low-interest rate on loans to help you get out of debt with their debt relief program. In this blog post, we will tell you everything you need to know about New Start Financial so that you can make an informed decision about whether or not to do business with them.
New Start Financial is not a lender, it’s a lead generation company. This means they will sell your information to lenders who may be able to work with you on a loan, which are in most cases debt consolidation loans. They do this by marketing a pre-approval letter in order to get your information, share it with their network of money lending companies, and then refer you back to them for the actual loan.
New Start Financial has an “F” with the Better Business Bureau. Their BBB file states that New Start Financial has been in business for 14 years and has yet to get accredited by this organization.
So, is New Start Financial a scam or is it a legitimate company? Keep reading to find out everything we learned about the lead generator company.
What are the pros and cons of working with New Start Financial?
There are some pros to using New Start Financial services, such as the variety of lenders they work with. This can give borrowers more options and potentially better terms in less time, considering they don’t have to do the sometimes difficult task of shopping around hundreds of lenders to find a perfect fit.
As far as the cons go, some of the lenders New Start Financial works with have been accused of using bait-and-switch tactics and using New Start Financial’s platform to lure in unsuspecting borrowers. Borrowers should be aware of these tactics and carefully research any lender before agreeing to work with them. New Start Financial does not endorse any particular lender, so it’s important for borrowers to do their own due diligence so they don’t end up with a high interest loan.
If you’re considering working with New Start Financial, make sure to be aware of the reviews and complaints online.
What is New Start Financial?
New Start Financial is a lead generator company that offers customers access to their network of lending companies. However, some of these companies have been accused of having high interest loans and other financial products. Some customers have claimed to be highly displeased with the interest rate and that the terms and conditions of these products are often unclear, making it difficult for consumers to understand the true costs of borrowing.
As a result, New Start Financial has been affected by these allegations as they are the company that helped the customers match with a lender in the first place. If you’re considering taking out a loan with New Start Financial, be sure to do your research and understand the full terms and conditions before signing anything.
How does New Start Financial work?
New Start Financial works with a pre-approval code system. You will receive a pre-approval code through the mail, usually promising a loan with a low interest rate and comfortable repayment terms. Once you have this code, you can contact them to provide your information, which they will then bid to lenders who may be interested in qualifying you.
Most of the time, customers don’t know exactly which companies their information is being shared with. Make sure you also research the lender that is being suggested to you and understand how they work and what are the full terms and conditions.
Finally, they only offer their services for unsecured loans, they do not work with secured loans, student loans, or medical debts. If you default on a loan, this can cause problems down the road. Therefore, it’s important to make sure that you understand all the details.
What is New Start Financial’s website?
It has come to our attention that New Start Financial recently changed its logo to a much simpler one, and it also moved its website from nsftoday.com to nsfal.com. Both websites are still up and running and are representative of the company, so it is unclear why they made these changes. They also changed their location from Somonauk, IL to Sandy, UT.
Although these changes do not necessarily represent anything specific and could be attributed to the company wanting to refresh its image, it does raise some questions considering some companies have been known to resort to these methods to try to avoid negative reviews and the bad reputation they may have online.
It is hard to say why they changed their entire brand, but it is worth noting when deciding which company to go to for help with debt consolidation services and loans.
How to qualify to work with New Start Financial?
Since New Start Financial is not actually a lender but a lead generation company, most of the information they request from you is basic information, such as your full name, address, working phone number, and email address. However, they do require that you provide an 8-digit code that is on the back of the card they send potential customers in the mail.
Additionally, they ask you to consent to receive calls and emails from up to 3 of their marketing partners, which is something very common for lead generator companies since they sell your information to lenders.
There is not a definitive answer as to the qualifications the lenders require to receive the loan, as it may vary from lender to lender, but some of the most common qualifications are a stable source of income, proof of employment and residence, your credit score and history, among others.
What companies is New Start Financial associated with?
New Start Financial is a trade name/DBA of P&K Partners LLC. They do not disclose if they are particularly associated with a specific group of lenders, customers have to first request their services and then wait for the lending companies to contact them.
Some customers have complained that once a lender or local credit union contacts them, they are not reputable companies, and they have reported predatory practices and bait-and-switch tactics such as offering a low interest rate and low fees and then changing them once the loan is approved.
What is the business rating for New Start Financial?
New Start Financial is not accredited by the Better Business Bureau (BBB), and they currently have an “F” Rating. Additionally, there are no customer reviews which is very unusual for a company that is 14 years into the business, but they do have 3 complaints on the website, of which 2 were closed in the last 12 months. The most common complaint type is Advertising/Sales Issues.
What fees does New Start Financial charge?
New Start Financial charges a performance-based fee only to its clients. This means that they make money by selling your information to third parties, and not by charging you hidden fees or commissions.
It is worth noting that most lenders do charge origination fees and late fees, and sometimes even maintenance fees. It is important you ask for all of this information from your lender before signing any documentation.
What is the minimum credit score to apply for New Start Financial?
New Start Financial advertises itself by promising customers financial help “no matter what their credit score is” and they are not a lender themselves. Although it is uncertain if they take the credit score into account, it is safe to say that people with high credit scores are most likely to receive the best conditions on their loans, but it is entirely up to the conditions of the actual lender.
The minimum credit score for most lenders is usually around 600-640, but this does not mean that you could not get a loan if you don’t meet this requirement. You could always try to negotiate the best terms possible for your individual circumstances.
How does New Start Financial affect your credit?
New Start Financial Services does not perform any actions on your credit report or evaluate your credit score. They simply send your information to their network of lenders. When you choose a lender, they will temporarily lower your credit score by checking your credit report when you sign up for the service. However, over time, as you use the service to improve your credit, your score should begin to rise again. Also, They do not assume consumer debt, make monthly payments to creditors, or provide tax, bankruptcy, accounting, legal advice, or credit repair services.
Additionally, if you miss payments or default on your loan, most lenders will report to major credit bureaus. If you’re considering using New Start Services, it’s important to weigh the pros and cons carefully.
Is New Start Financial a debt settlement company?
No, New Start Financial is not a debt settlement company. This company generates leads for their partner companies which provide debt consolidation loans and services like credit card debt. They sell these paying customer leads to their partners in order to help them gain new customers.
How much does New Start Financial save you?
This lead generation company does not really save you any money, as they are not the ones who give you the loan. All they do is collect information from you and pass it along to their lending partners. The partner then makes the decision on whether to approve your loan, so New Start Financial won’t save you any money themselves.
New Start Financial BBB Reviews
New Start Services is accredited by the Better Business Bureau (BBB) but has an F rating. The company has no published reviews which is very unusual, but they have unanswered complaints about advertising/sales and billing/collections. If you’re considering doing business with New Start Services, be sure to do your research and read customer reviews before making a decision.
Here are some New Start Financial BBB Complaints:
Unanswered Complaint Type: Advertising/Sales Issues 08/08/2021
I have now made 4 EARLY payments on my vehicle this company has not reported anything to any of the major credit bureaus. The whole point of me accepting such a high interest loan on my vehicle was to help restore my credit, and yet this has not been the case. I would like to refinance this loan under a local credit union or another franchise if this does not get resolved quickly.
This is horrible business practice, their website is horrible and looks like they paid a high school kid $50 to build it, they have no real point of contact, and I am HIGHLY displeased with the service. They won’t do anything to help a paying customer, but are quick to collect their check!
Unanswered Complaint Type: Billing/Collection Issues 10/24/2019
I opened an account with them around Ja January 2019. I signed a contract where they would be the lien holder on my vehicle. they have no reported to credit once, and it is now a paid off loan. I signed a contract stating that I would have my credit reported to. Not once has it hit Equifax and I have recently had a dealership pay off the loan. It is on no credit report actually. This is a major problem as I used them as a credit repair service.
So, is New Start Financial Legit or a Scam?
It is hard to say for sure. It looks like it could be risky to work with them. They’ve been in the business for 14 years according to their BBB file so they most definitely are a working business, but they have been accused of bait-and-switch tactics by customers who were promised one thing and then delivered another.
When it comes to finding a debt consolidation lender, it is important to do your research in order to find one that is trustworthy and will offer you the best terms. There are many lenders who claim to have the lowest fees, but not all of them can be trusted. If you’re not careful, you could end up paying hidden fees or being stuck with a loan you can’t afford.
Do you have experience with nsftoday.com? We want to hear about it! Share your story in the comments below.
Thanks for reading! Make sure to check out our previous article on debt consolidation.