This article will review Vivaloan
First of all, we will discuss some important terminology related to our topic so that you… our readers… will be able to have a perfect understanding of the topic.
Loan – ‘Loan’ is nothing but the transaction between two parties namely, borrower and lender. If a borrower borrows money from a lender, in order to repay it after a period of time, the amount that has been borrowed will be called as a loan.
Almost all the lenders offer a loan to the borrowers by charging some additional amount of money, which is known as ‘Interest’.
This interest will be added to the principal amount and will be paid as a whole payment (Principal + Interest) during the time of repayment.
Generally, banks and other financial institutions offer loans. Loans can be provided to a single person or a business. For better insight, let us take a look at an entertaining example.
Example to understand ‘Loan’ and ‘Interest’ – Let us assume there are two guys who are friends and their names are ‘A’ and ‘B’. ‘A’ is a wealthy person and ‘B’ is a person that gets along with his life with the help of a small job. Suddenly, ‘B’ meets someone and wants to get married to them.
The person whom ‘B’ wants to marry always dreamt of a fancy wedding and a nice honeymoon. But as we know, ‘B’ could not afford such kind of money. Yet, ‘B’ wants to make his fiancé happy and wants to do something about it.
‘B’ discusses the matter with ‘A’, and ‘A’ being a kind-hearted person feels sad about it. ‘A’ wants to help his friend out and wants to give ‘B’ the money he wants. However, ‘A’ is a little bit money-minded and wants a profit for helping his friend.
‘A’ then says to his friend ‘B’ that he will give him the money he wants, but while repaying the money ‘B’ would have to pay more than what he took. ‘B’ agrees to that and takes the money.
For a nice wedding and honeymoon trip, ‘A’ gives ‘B’ $10,000 with an interest rate of 10% on the main amount. ‘B’ got married and went on a honeymoon trip and felt happy. After some days, ‘B’ got a promotion at the job and paid out to ‘A’ an amount of $11,000.
Here ‘B’ paid $11,000 to ‘A’ in which the actual amount took by him is the principal amount, which is $10,000 and the interest rate on the loan is 10%, which is $1,000, altogether summing up to $11,000.
Interest Rate – This is nothing but the rate of interest rate that is applicable to money obtained by the borrower.
Interest rates can be simple or compound, where compound interest means interest will be levied on the interest accrued previously as well.
Mostly, all banks and financial institutions offer loans on the basis of simple interest, but there are is a possibility that some might levy compound interest.
The loans that have an interest rate, which is low, are considered to be having a low amount of risk involved and higher interest rates have a high amount of risk involved.
Generally, most consumer loans have an Annual Percentage Rate (APR), which in almost all cases will be higher than the nominal interest rate and is not based on the policy of compound interest.
APR includes the interest rate along with the other types of costs that are generally linked to borrowing money.
Types of Loans – There are many types of loans such as Personal Loan, Business Loan, Home Loan, Car Loan, etc., which in most cases are offered by banks.
Let us know about the types of loans that can be obtained at Vivaloan, which are ‘Payday Loans’, ‘Personal Loans’, ‘Short-term Loans’, ‘Unsecured Loans’, ‘Doorstep Loans’, and ‘Installment Loans’.
‘Payday Loans’ – Payday Loan is a short-term loan, which in many cases, is known to have a higher interest rate. This loan is mainly based on the borrower’s income and the credit profile.
A payday loan is a loan for an amount, which is a fraction of the salary of the person who borrows. The person who wants a payday loan would have to provide a post-dated check.
Payday loans are also known by the names of cash advance loans and check advance loans. Over the years, many laws have been put forward in order to regulate the high amount of fees and interest rates of payday loans.
‘Personal Loans’ – Personal Loan is a type of loan that is based on an individual’s credit history and income. Personal loans often don’t require collateral from the person who borrows.
Collateral is an asset that can be seized by the lender that can be sold for finishing the repayment of the loan. Lender, instead of relying on collateral, opt for the person’s income and creditworthiness.
When compared to many other loans, personal loans could be obtained very easily and the interest rates of personal are also moderate, unlike a credit card loan. Personal loans offer the flexibility of paying the borrowed money in installments.
People who have an excellent credit score could secure a personal loan with very low-interest rates. The interest rates are also fixed, which means the interest won’t vary until the loan is fully repaid.
‘Short-Term Loans’ – As the name itself suggests, a short-term loan is a loan that can be obtained quickly and has to be repaid within a short period of time (a few days or weeks).
Short-term loans come in handy for a person to deal with their financial emergency when they are confident of repaying the amount back within a few days.
‘Unsecured Loans’ – An unsecured loan is a type of loan, which does not require any collateral and will be issued only on the basis of the customer’s creditworthiness.
A personal loan is an example of an unsecured loan as it does not require any sort of collateral is purely based on the individual’s creditworthiness.
‘Doorstep Loans’ – Doorstep Loan is a type of loan that can most popularly be observed in western countries. A doorstep loan is also a type of unsecured loan, as it does not require any collateral or guarantee.
Customers can get a doorstep loan at their doorstep by an agent with very minimal documentation. These are specially designed for the people who want to avoid all the hassle of going to a financial institution to get a loan.
‘Installment Loans’ – An Installment Loan is a type of loan that has to repay over time in scheduled payments. The tenure for the scheduled payments can range between a few months to many years depending on some factors.
This is usually associated with the traditional consumer loan, which is originated and provided locally, and has to be repaid by regular payments over a time that includes principal along with interest.
Vivaloan – Vivaloan is an online loan marketplace, which concentrates on providing the best financing deals to an individual. It should be noticed that Vivaloan is not a money lender and it is not involved in the lending process.
Vivaloan is just an online platform that shows suitable lenders based on a customer’s financial profile.
For example, if you want a loan of $500 and have a bad credit score, then Vivaloan will connect you with the lenders that can offer you a loan regardless of the credit scores.
If you are a person having a good credit score, then the platform will connect you with lenders that provide low APR rates.
In general terms, Vivaloan gives access to a person to apply for a loan that can be between $100 and $15,000.
For any amount lower than $1,000, Vivaloan considers it as a payday loan, requiring the individual to repay the amount when they receive their salary. Likewise, the amount above $1,000 will be considered an installment loan allowing the person to repay the money in installments from tenures between 12 months and 5 years.
Regarding the competitiveness of finding the loan deals, Vivaloan does not specify which APR rates are on offer. This means a person can only be able to find out the financing information only by going through the application process online.
However, it is not mentioned whether or not the loan application will have an impact on the credit score, but we are assuming that it will opt for a soft credit pull without leaving any footprints.
This is made possible as the search query will not be sent to the three major credit bureau agencies, instead, it will be sent to the other third-party service providers, which won’t leave the search to appear on the credit report.
How it works – Now, let us know about the details on how does Vivaloan actually works. Regardless of the underlying product or service, Vivaloan carries out its activities in the exact same way as all the online comparison websites do.
Vivaloans offers access to a wide range of loan providers with the help of a single search. For the procedure, first, you would have to open the website of Vivaloan.
After going to the homepage, the first thing that needs to be done by the individual is to enter the loan details. People will instantly be able to see a text box that should be filled in with the loan requirements.
This text box requires the person to fill in the information, which is:
- The amount which the person wants to borrow.
- The current credit score of that person.
- The reason for securing a loan
After entering these details, the user would have to click on the ‘Get Started’ button to continue with the process.
The next step is to enter the individual’s personal information. This personal information usually consists of things such as:
- Full name
- Date of Birth
- Main source of income
- Monthly earnings
The person will also be asked to provide information regarding how much they earn each month, how frequently do they get paid, the date of the next paycheck, etc.
Following that, the person has to fill in the home address, email address, driver’s license number, and social security number.
Adding to that, he or she would also have to state whether they live in a house that is owned by them or is rented, and how long they have been living at the current residence.
Finally, the last step before viewing the loan offers is to provide the checking account details. This bank account, that a person provides, will be the primary bank account in which the amount will be credited and in most cases the account from which the repayments will be made.
By finishing all of that, the person should click on the submit button. After this, the search engine of Vivaloan will start showing the best offers for that person. These loan offers are often sorted on the basis of APR rates, from the lowest to the highest.
If an individual likes a specific loan offer, then he/she would be redirected to the lender’s website. After the lender’s website gets opened, the person would be provided with a digital loan agreement.
After following up with all the details (such as rates and fees) on the agreement, the person is required to sign the digital loan agreement. Voila! The application process is now complete, and the funds will be credited to the bank account the very next working day.
Eligibility – After heading over to the Vivaloan website, it can be observed that there exists an advertisement stating that loans are offered to all types of credit profiles. This means that regardless of the person’s credit score, Vivaloan will be able to search for a lender among the network in order to meet with the requirements of that person.
Based on what Vivaloan has to say, a person’s FICO credit score is not the only factor that a lender usually checks for while offering a loan. Moreover, this is not the only factor that determines whether or not a person could secure a loan.
In contrast to that, lenders will also take other metrics into consideration, such as the income of the person, his/her employment status, location of their residence (state they live in), etc.
While discussing the location, the best thing when it comes to making use of a loan comparison website like Vivaloan is that all the states in the United States are covered.
Adding to that, traditional lenders will only be able to offer loans in the states in which they have a regulatory license. Anyhow, Vivaloan simply connects a person with the loan providers, and therefore, is not a direct lender.
That being said, not everybody can be able to acquire a loan with the help of the Vivaloan platform. As for the criteria of eligibility, a person should be at least 18 years of age in order to get approved for a loan. In certain states like Georgia, the age limit is set to 19 years.
Furthermore, the person is also required to be a citizen or should have permanent residency in the United States.
It is also necessary for the person to hold a valid Social Security number, an ID that has been issued by the government (such as a driver’s license), and an active checking account in the United States.
Finally, the person should be able to assure that they have a stable source of income. As Vivaloan does not specify whether or not the employment status needs to be full time, it is likely that most of the lenders on this platform might prefer people having a steady source of income.
APR Rates and Fees at Vivaloan – The first and foremost thing that should be taken into consideration here is that there are no charges applicable for using the Vivaloan platform.
People can apply for a loan and find the lending rates offered by different lenders without having the necessity to pay a fee. This might strike a doubt among people about the source of income for Vivaloan.
Basically, Vivaloan charges a commission from the lenders that are available on its network, if a person succeeds in getting a loan from that specific lender.
Coming to the APR rates, Vivaloan does not provide any type of guidance over this matter. This is, however, understandable as there is an availability of services to the people belonging to different types of credit profiles.
For example, the interest rates that could be provided with the help of Vivaloan will be highly beneficial for the people having an excellent credit score when compared to the people having a credit score that is relatively low.
Henceforth, as discussed previously, the only best way of knowing the rates available to a person is by applying via the Vivaloan website. However, it could not be guaranteed that the search won’t be able to impact the FICO score.
As for the origination fees and the late payment charges, the fees will depend entirely on the lender that provides the loan. While filling the application, the lender that presents the loan offer will also provide the respective origination fees and the APR rates.
For people needing a loan of more than $1,000 origination fee of 0.5% to 5% will also be added to the installment loans. Whereas, a loan having an amount less than $1,000 will be considered a payday loan and the origination fees would be included in the APR rate.
The bottom line is people should remember that Vivaloan has nothing to do with the fees or interest rates that are applicable to a loan offered to the individual.
Even if a deal has highly competitive rates, it is necessary that the individual should go through the loan agreement before making a commitment. In the end, Vivaloan won’t stand responsible for disputes, if any were to occur.
Such disputes would have to be dealt with the lender who offered the loan.
Receiving funds – Once finding a suitable loan and agreeing to all the terms and conditions of the loan, the individual would be directed to the lender’s website. Upon arriving there, the person should go through a digital loan agreement before signing it.
In most cases, the funds of the availed loan will be credited into the person’s checking account on the next business day.
In some cases, the lender might require further information and if they aren’t able to verify the data, the process can be delayed.
Repayment – Vivaloan is not a lender and therefore, the repayment schedule and the tenure will depend on the connected lender’s terms. In common practice, the person is required to set up an electronic debit arrangement.
This means the lender would automatically take a certain amount, which is fixed, from the checking account of the borrower (until the loan amount has been repaid).
This is the case for the loans above $1,000, which should be paid in installments.
But in case of loans having an amount less than $1,000, it will be considered a payday loan and the total amount has to be repaid the next time the borrower gets paid.
Customer Support – Vivaloan operates 24/7 because the application process for getting a loan is completely automated.
Anyhow, a person does have to remember that the funding process will be completed only after the lender manually processes it.
Per Se, if a person gets approved for the loan on the weekend, the funds won’t be released into the account until Monday.
However, if a person wants to contact Vivaloan, it would not be possible as no contact details are listed on their website. These details aren’t even made available by third-party sources, which makes it a tad bit inconvenient.
On the other hand, as we discussed already, Vivaloan is not a lender and there won’t be any need to contact Vivaloan regarding any question as everything could be dealt with the lender directly.
Maybe that’s the main reason Vivaloan doesn’t list any of the contact details on its website, maybe it doesn’t want to get involved in the loan arrangement.
Safety – It has been mentioned by Vivaloan that it works based on an industry-standard security protocol and makes use of 256-bit encryption technology to make sure that the person’s information is safe.
However, it has not been clearly mentioned how Vivaloan safeguards the information of an applicant.
Another important thing to consider is that Vivaloan requires the phone number of an applicant, which will be passed on to the lenders on the network. This could result in unwanted phone calls from lenders offering loans.
Advantages and Disadvantages – Now, let us have a look at the advantages and disadvantages of Vivaloan.
- Every person would be considered on Vivaloan, regardless of their credit profiles.
- Loans have flexible terms, which can be set up to 5 years and an amount up to $15,000 can be availed.
- It is advantageous to people during times of emergencies such as medical expenditure.
- The Vivaloan platform has a network consisting of many lenders, which offers a lot of options for the borrowers to choose from.
- Availability of payday loans as well as installment loans.
- No fees applicable to make use of the services offered by Vivaloan.
- 256-bit data encryption technology, which ensures the safety of personal information.
- Very fast process for transferring the funds, which can be credited to the individual’s account within time as low as one day.
- The services could be accessed by a person 24/7 at Vivaloan.
- Vivaloan is an online-only platform, which means that they could not be approached physically.
- There is no availability of contact details of Vivaloan available on their website.
- No direct lending services are offered at Vivaloan.
- There is no guarantee that a person will be able to get the best deal with the help of Vivaloan.
- No upfront information provided about the interest rates and the fees that are offered by the lenders.
- In some cases, individuals might only be offered a payday loan.
- Vivaloan is not available for the people living in New York, West Virginia, or Washington, D.C.
Vivaloan is not a direct lender, yet, it might be able to connect individuals with lenders who might be able to provide them the best competitive rates. This can be done even if the person has a bad credit score or no credit score at all.
There are some other alternatives to Vivaloan such as ‘Opploans’, ‘Rise Credit’, ‘Oportun’, etc., which might be a better option if you do not like Vivaloan.
You can be able to get an idea about whether or not to avail of a loan from Vivaloan by weighing in all the pros and cons. Our opinion is that Vivaloan is a good platform for people to find loan offers that suit them.
If you require further information on this topic, you can be able to find more information by contacting us.
That being said, if you require the services of a financial advisor or a wealth manager, you can feel free to contact us and avail of the expert financial solutions offered by us.