Our Review
Product Name: How Does This Lender Stack Up?
Product Description: They are a direct installment loan provider operating in Texas and California. They are not a tribal lender, which are not governed by U.S. laws. They are a local company that abides by U.S. government and state laws. But is a loan from this lender worth it? We investigate...
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Customer Support
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Cost of Loan
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Application Process
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Summary
They offer two types of loans: single pay loans and installment loans. Single pay loans are very similar to payday loans. You obtain the loan and repay in one lump sum, typically on your next paycheck cycle. Installment loans, on the other hand, can be repaid back over the course of a few months. The latter option is usually a better fit for most customers. Depending on the type of loan, you can borrow as little as $100 up to a maximum of $1,500. Interest rates are between 391.07% – 664.29% APR, which is considered fairly high.
User Review
( votes)Pros
- Operates locally in California and Texas. Not part of a tribal, sovereign nation.
- Offers access to fast cash, from $100 up to $1,500
- Good option if you’ve exhausted all other financing options (use as a last resort)
Cons
- Interest rates are fairly high – 391.07% – 664.29% APR
- Not a good solution for large financial purchases
- Single pay loans must be fully repaid on the next paycheck cycle
Net Pay Advance is a bad credit lender that lends money with two options: single pay loans and installment loans.
If you need help paying an unexpected bill, Net Pay Advance *might* be a good option…or is it? In this guide, we go over everything…how much you can borrow, how much it will cost, and everything between.
Single pay loans, offered by Net Pay Advance, are simply pay day loans. The company coined this term to make their loans seem more favorable.
Here’s the skinny: According to payday loan statistics, only 14 percent of borrowers are financially capable of repaying a short term loan. That means 76% of borrowers end up in long term debt unable to pay off the loan.
That said, carefully consider the implications of borrowing from a short-term lender. Ask yourself:
- Is there any other way to get the money I need?
- Do I really need this loan?
- What happens if I can’t repay the loan?
- Will I be able to afford this loan?
Before applying for a loan, you should read this helpful guide on making part-time income on the side. You can do this from the comfort of your home and make good money fast.
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Be aware that both loan options from Net Pay Advance have considerably high interest rates.
What is Net Pay Advance and How Does it Work?
Initially founded in 2007 by Brian J. Staver, Net Pay Advance provides two types of loans for struggling consumers. To our knowledge, the lender has never been in any legal trouble, which is a good sign that they are a reputable lender. Interest rates will be considerably high, but this is the nature of short term loans. Lenders take on significant risk when lending to people with bad credit. Therefore, they charge a hefty premium. The company operates in only two states: Texas and California. Here’s how their loans work:
Single Pay Loans
Single pay loans are cleverly worded. It’s simply a payday loan that you pay back on your next pay period. There is no credit check and the amount you can borrow varies by state. You also do not need collateral for loan approval.
Installment Loans
Installment loans are different from single pay loans. Instead of paying the loan back on your next pay period, you have up to 180 days to repay. This gives borrowers more flexibility on repaying but will cost you more over the long run. Like single pay loans, installment loans do not require a credit check or collateral.
How Much Does a Net Pay Advance Loan Cost?
Both loan options will have significant interest rates. The APR you pay will depend on several factors. To give you an idea, it will depend on your credit rating (they do a soft credit check that will not affect your credit score). Other factors they consider are the state you live in (each state, California and Texas) have differing lending laws. That said, we give a breakdown of cost below.
Here’s How Much a Single Pay Loan Might Cost
- Available to California and Texas residents
- Loan Term: 7-31 days (you can also do a rollover but is not advised)
- Late fees: N/A
- The minimum payment for Texas residents does not decrease the principle
- A payment will be due every pay day
- Net Pay Advance does not accept partial payments
A single pay loan of $255 in California has a loan fee of $17.65 per $100 borrowed. If you pay this off within the loan terms (7-31 days), it will cost you: $44.12. Total amount to repay is $299.12.
Net Pay Advance does not list the finance charge for Texas residents.
Here’s How Much an Installment Loan Might Cost
- Available to Texas residents only
- Loan Term: 180 Days
- Lat Fees: $7.50 on the 11th day past due (and yes, you can receive multiple late fees)
- A payment will be due every pay day
- Accepts partial payments
Net Pay Advance does not offer finance charges for installment loans in Texas.
How Much Can I Borrow From Net Pay Advance?
It depends on the type of loan and which state you live in. Net Pay Advance must follow strict rules set forth by each state’s lending laws. While interest rates are very high, the lender has maximum loan amounts in place to stop consumers from getting too deep in debt. This is a positive, as many lenders are shady and often can be compared to a loan shark.
California Single Pay Loan Amounts and Terms
- Can borrow from $100 up to $1,000
- Must repay within 7-31 days or by your next pay period.
- Has a payment extension of 3 days
- Late Fee: N/A
Texas Single Pay Loan Amounts and Terms
- Can borrow from $100 up to $1,000
- Must repay within 7-31 days or by your next pay period.
- Has a payment extension of 3 days
- Late Fee: N/A
Texas Installment Loan Amounts and Terms
- Can borrow from $100 up to $1,500
- Must repay within 180 days
- Has a payment extension of 3 days
- Late Fee: $7.50 on the 11th day past due (this can multiply so be careful)
How to Apply for a Net Pay Advance Loan
Applying for a Net Pay Advance loan is very simple. Caution: loan interest rates will be very high compared to a traditional personal loan with excellent credit. Be sure you read the terms of service and full disclosures before you submit your final application for a loan. This is the #1 thing borrowers forget to do, and then are frustrated when they discover what the interest rates and fees are.
Step 1: Fill Out Your Personal Details
In this section, simply start filling out your personal details.
- First Name
- Last Name
- Email Address
- State of Residence
Step 2: Personal Details Cont.
In step 2, you will be asked for additional personal information that includes:
- Create Account Password
- Social Security #
- Gender
- Birth Date
- Cell Phone #
- Home Phone Number
- Driver’s License #
- License State
- Address
- Years/Months at Address
- How You Find Out About Net Pay Advance
Step 3: Employment and Income Details
Step 3 requires that you list your employment and income details. Here’s what it looks like:
- Last Paycheck Amount
- Type of Income (Employment, Retirement, etc)
- How Often You Are Paid
- Employer Name
- Employer Start Date
- Job Title
- Supervisor Name
- Work Phone
- Work Phone Extension #
Step 4: Banking Details
On step 4, simply fill out your debit card information. They do not require bank account or routing number.
- Debit Card #, Expiration Date and CVV code
- Name and Address as it Appears On Your Card
What Are the Advantages of Net Pay Advance?
This lender has many positive advantages. The loan application process is very smooth and your funds can be deposited within 24 hours (depending on the time of day that you submit your application). Customer support is very responsive. To our knowledge, there are no hidden fees or surprises that you should be aware of. All loan terms are stated up front, except for residents of Texas that opt for an installment loan.
What Are The Disadvantages of Net Pay Advance?
The disadvantages of this lender is clear: the interest charges are very high. In California, for instance, a lender cannot charge more than a 15% finance charge. This can equate to a loan with an APR of 460%. If you cannot repay the loan by your next payday, you will have to roll the loan over and pay more in interest. This is the perfect recipe for a debt disaster. And one which many consumers often fall into. This is why it is important that you question if a cash advance loan is necessary. And if it is, be sure to read all disclosures.
The Bottom Line on Net Pay Advance
The bottom line is, if you have exhausted all other resources, then you should apply for a loan. As far as we know, the lender has never had any legal issues arise from defrauding consumers. The only downside that we have found is the high interest rates and the fact that the lender does not provide financing charges for Texas residents. If you live in Texas, reach out to someone at Net Pay Advance and simply ask them what your financing charge will be.
Have you used this lender before? if so, leave a rating and a comment on your experience to help future borrowers make the right decision!
