Backed personal loans review July 2018 | finder.com

Backed personal loans review

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Know someone with excellent credit? This lender lets you recruit them as a “backer” for better rates on your loan.

If you’re in the process of building your credit, finding a personal lender that offers a competitive APR can be tough — that’s if you’re even approved at all. You need someone to have your back.

Backed, a relative newcomer to the world of online lending, simplifies the application process and offers financing to those who might not qualify with traditional lenders. And if you have someone to back you on your loan — mom, dad or a close friend — it improves your chances of getting a lower APR.

We review your personal loan options with this non-traditional lender to help you make an informed borrowing decision.

Product NameBacked personal loans
Min Loan Amount$3,000
Max. Loan Amount$25,000
APR2.9%–15.99%
Interest Rate TypeFixed
Minimum Loan Term1 year
Maximum Loan Term3 years
  • Must be 18 years or older
  • A US citizen or permanent resident
  • Have a valid bank account
  • Personal credit score 660+ or your backer must have a credit score 720+
  • Annual income of $18,000+ or your backer has a minimum annual income of $50,000
  • Must not have declared bankruptcy in the last seven years
  • Must reside in New York, New Jersey, Arkansas, West Virginia, Florida or Arizona

What makes Backed personal loans unique?

Backed aims to provide personal loans to those with little or no credit. Its mission is to get you the best rate possible and set you up for success by being honest and fair about your lending options. They look at more than just your credit score — considering your education and employment history.

But what really sets Backed apart from other lenders is that they let you add a “backer” — someone with a strong credit history to back your loan — possibly improving your APR by 41%. Having a backer not only lowers your APR, but it helps you stay on track with your payments and can build your credit history.

What is a “backer”?

Backed doesn’t use cosigners — it uses backers. A backer is someone willing to “back” your loan by lending you their creditworthiness. A backer could be anyone you know with a strong personal credit score who is willing to pay your loan if you’re unable to make payments.

How is a backer different than a cosigner?

Cosigners and backers are similar in that by signing on a loan, they promise to pay back the loan if the borrower does not. Typically cosigners are notified once the borrower is 30 days past due, and both the borrower and the cosigner’s credit is impacted. Backed personal loans notifies backers within the 15-day grace period if a borrower misses a payment — without damaging anyone’s credit.

How do personal loans from Backed work?

Backed offers unsecured personal loans of up to $25,000 to residents of New York, New Jersey, Arkansas, West Virginia, Florida and Arizona.

To qualify for a loan without a backer, you’ll need a personal credit score of at least 660 and a minimum annual income of $18,000.

Loans with a backer require your backer to have a credit score of at least 720 with an annual income of $50,000 or more — but your credit score and income can be lower.

Apply through CompareFirst to be considered by Backed and multiple other lenders at once

Compare more personal loan providers

Rates last updated July 19th, 2018

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Unfortunately, none of the personal loan providers offer loans for that credit score. If you are in urgent need of a small loan, you might want to consider a short term loan.
Name Product Product Description Min. Credit Score Max. Loan Amount APR
Even Financial Personal Loans
Get connected to competitive loan offers instantly from top online consumer lenders.
580
$100,000
4.99%–35.99% (fixed)
Upgrade Personal Loans*
Affordable loans with two simple repayment terms and no prepayment penalties.
620
$50,000
6.87%–35.97% (fixed)
LendingClub Personal Loan
A peer-to-peer lender offering fair rates based on your credit score.
660
$40,000
6.16%–35.89% (fixed)
SoFi Personal Loan Fixed Rate (with Autopay)
No fees. Multiple member perks such as community events and career coaching.
680
$100,000
6.575%–14.865% (fixed)
Credible Personal Loans
Get personalized rates in minutes and then choose a loan offer from several top online lenders.
Good to excellent credit
$50,000
4.99%–36% (fixed)
Best Egg Personal Loans
A prime lender with multiple repayment methods.
640 FICO®
$35,000
5.99%–29.99% (fixed)
Prosper Personal Loans
Borrow only what you need for debt consolidation, home improvements and more — with APRs based on overall creditworthiness.
640
$40,000
6.95%–35.99% (fixed)
FreedomPlus Personal Loans
Consolidate debt and more with these low-interest loans. Cosigners welcome.
640
$35,000
4.99%–29.99% (fixed)
NetCredit Personal Loan
Check eligibility in minutes and get a personalized quote without affecting your credit score.
550
$10,000
34%–155% (Varies by state) (fixed)
OneMain Financial Personal and Auto Loans
An established online and in-store lender with quick turnaround times. Poor credit is OK.
Varies
$30,000
16.05%–35.99%* (fixed)
Monevo Personal Loans
Quickly compare multiple online lenders with competitive rates depending on your credit score.
580
$100,000
3.09%–35.99% (fixed)

Compare up to 4 providers

What are the benefits of a Backed personal loan?

  • Competitive rates. Rates starting at just 2.9%, compared to the 5–6% starting APR common with other lenders.
  • Convenient application process. Applying for a loan with Backed is easy thanks to the straightforward online application.
  • Quick funding turnaround. Receive your funds in as little as two business days.
  • Startup friendly. Backed offers career investment loans for startup businesses, a good alternative to traditional business loans with strict revenue requirements.

What to watch out for

Backed has several attractive perks, but this online lender isn’t without its pitfalls:

  • Restricted availability. Backed currently only lends to residents of New York, New Jersey, Arkansas, West Virginia, Florida and Arizona. If you don’t live in one of those states, you’ll have to look elsewhere for a personal loan.
  • Limited customer support. Customer support with Backed is limited to email correspondence. There’s no customer service phone number available.
  • Origination fee. Backed charges a one-time loan processing fee of up to 2% of your loan, ultimately leaving you with less money upon funding.

Am I eligible?

To be eligible for a personal loan with Backed, you must meet the following criteria:

  • You are a US citizen or permanent resident with a valid visa.
  • You are at least 18 years old.
  • You have a valid bank account.
  • You reside in New York, New Jersey, Arkansas, West Virginia, Florida or Arizona.
  • You have a credit score of at least 660 or your backer has a credit score of at least 720.
  • You have a minimum annual income of $18,000 or your backer has a minimum annual income of $50,000.
  • You have not declared bankruptcy in the last seven years.

How do I apply?

  1. To find out if you prequalify for a loan with Backed, go to its website, indicate the term and loan amount you’d like to receive and click Apply Now.
    Backed personal loans homepage screenshot
  2. Choose your loan type. Click Next.
    Backed personal loans application screenshot
  3. Enter your basic personal information, including your full name, personal contact information, education history, employment status, address, date of birth and Social Security number. Next, review the Terms of Use and Privacy Policy. If you agree, click Verify and get your rate.
    Backed personal loans application screenshot
  4. If you’re eligible for a loan, Backed provides you with a quote detailing the loan terms you qualify for. Keep in mind that the initial offered rate is subject to change if you decide to add a backer to your application. At this point, you’ll provide supporting documentation to verify your personal and financial information.
  5. Finally, review your loan offer from Backed. Should you accept, the funds are deposited into your account within two business days.

Apply through CompareFirst to be considered by Backed and multiple other lenders at once

I got the Backed personal loan. Now what?

  • Don’t miss a payment. Know when your payments are due and make sure you don’t miss a payment.
  • Keep your backer informed. If you included a backer in your loan agreement, make sure they understand the details of your loan, like when payments are due and how much they are.
  • Reach out to Backed. If you’re unable to make a payment, contact Backed using its email notification system.

Bottom line

Backed personal loans offer competitive rates and flexible loan options to those with thin credit. It could be a good option if your looking to improve your credit and have friends or family members with excellent credit who trust you to pay back the loan.

However if you plan to apply by yourself, Backed isn’t much different from other nonbank lenders offering personal loans. And if you prefer to speak to a representative on the phone about your loan, Backed may not be the right lender for you.

Compare other providers and loan options to find what works best for your personal finance needs.

Frequently asked questions about Backed personal loans

Aliyyah Camp

Aliyyah Camp is a publisher for finder.com helping folks compare personal, student, car and business loans. When she's not helping people with their personal finances, you can find her going for runs outdoors.

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