With traditional lenders once again tightening their grip on who they lend money to, you might be in a position where you need to consider an alternative lender. This is especially the case if you are in possession of less than ideal credit.
One such lender that offers its financing services to those with poor-to-bad credit is Jora Credit. The online lender offers fast loans of between $500 to $2,600 – albeit at a very uncompetitive rate of interest.
If you are thinking about borrowing money from Jora Credit as a last resort option, then be sure to read our in-depth review first. We’ve unravelled all of the important points we think you should know, such as fees, loan terms, eligibility, and more.
Before we delve into the fundamentals, let’s explore what Jora Credit actually is.
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What is Jora Credit?
Launched as recently as 2017 and based in Texas – Jora Credit is a relatively new entrant to the online lending space. Although the company offers lines of credit in a select number of states, its main financing product is installment loans. Unlike a traditional lender, Jora Credit was set-up exclusively for the poor-to-bad credit marketplace.
As such, if you’ve been turned down for a loan by your local bank or credit union, you might still be eligible for a Jora Credit loan. However, it will come as no surprise to learn that this comes at the expense of less than favorable APR terms. In fact, you could pay anywhere from 179% APR upto a whopping 349% APR.
Nevertheless, the lender is an online-only platform, meaning that the entire loan application process can be completed on your desktop or mobile device. In terms of how much you can borrow, this ranges from just $500, up to a maximum of $2,600. Loan terms range from just 4 months, upto a maximum of 30 months.
However, the specific terms surrounding your loan agreement will depend on a number of individual variables, including that of the state you live in. As Jora Credit is required to hold a lending license in each of the states it offers loans in, it must adapt its financing terms on a state-by-state basis. This means that you could pay a higher or lower rate of APR depending on where you live.
Finally, and as is the case with most online-only lenders, the entire application process can be completed in less than 5-10 minutes. In most cases you will receive an instant pre-approval decision on-screen, as long as Jora Credit is able to validate your information via third party sources.
So now that you know what Jora Credit is, in the next section of our review we are going to explore the lender’s eligibility requirements.
Am I Eligible for a Jora Credit Loan?
As is to be expected with a lender that targets poor-to-bad credit profiles, the eligibility requirements at Jora Credit are very low. Before we explain the requirements in more detail, you will first need to ensure that you are based in an eligible state.
- New Mexico
- North Dakota
- South Carolina
The above locations are states where financing regulations are somewhat more flexible – especially with respect to high interest loans. If you’re not based in one of the above states, then you’ll need to consider another lender.
As per the Jora Credit website, there is no stipulation of a minimum FICO credit score. On the contrary, the platform will accept credit scores of all standings. In terms of your employment status, the only requirement is that you need to have a steady source of income. This means that even if you’re unemployed – but receiving an income in the form of benefits or a pension, then you still might qualify for a loan.
Other than the above, the only other eligibility requirements specified by Jora Credit are the following:
- Valid US checking account
- Aged at least 18 years old (more in some states)
- Have a government issued ID
- Be a US citizen or permanent US resident
How Much Do Jora Credit Loans Cost? APR and Fees
One of the most, if not the most important factors to consider when using a bad credit lender like Jora Credit is the amount of APR that you will be charged. While the specific rate will depend on a number of different factors, Jora Credit loans will come with an APR rate of between 179% and 349%.
Whichever end of the APR spectrum you are situated in, this is very expensive. While arguably this is still cheaper than the average Payday loan rate of 400% APR, obtaining financing via the Jora Credit platform is very costly.
For example, even if you were able to get the lowest rate of 179% APR, a $2,000 loan over 24 months would end up costing you just over $7,424 in total. That would amount to a $309 payment every month, with a total interest charge of $5,423.
At the other end of the spectrum, a $500 loan over 12 months at an APR rate of 349% would end up costing you $1,330 in interest. This is almost three times the amount that you initially received.
On the other hand, it is notable that Jora Credit does not charge any origination fees, nor will you need to pay anything upfront to obtain the loan.
How Does Jora Credit Calculate Your APR Rate?
In terms of how Jora Credit reaches a decision on your APR rates, this will depend on a number of key metrics. First and foremost – as per the individual lending licenses it holds in each of the states it operates in, the amount of APR that Jora Credit can charge will depend on where you live.
Next, the Jora Credit system will look at how much you need to borrow, and for how long. Effectively, the longer that you need to obtain the loan for, the higher the interest.
However, the most important metric that will determine your lending rates is your current financial standing. While it is true that Jora Credit will not approve or reject your application based on your credit score, it will take this into account when deciding what rates to charge you.
On top of your FICO score, the lender will also assess how much you currently earn, whether or not you are a homeowner, and perhaps, most importantly – what your historical relationship with debt is like.
Ultimately, the only way that you will know how much your Jora Credit loan will cost you is to go through the online application process. This isn’t problematic per-say, as your pre-approval rates can be obtained without the lender pulling a hard enquiry.
Instead, the lender will tell you whether or not you are eligible – alongside your individual lending rates, without the search appearing on your credit report. Only when you actually proceed with the loan offer will the lender initiate a hard credit inquiry.
Jora Credit: Paying Your Loan Back
When you sign your digital loan agreement, you will be notified of how much you need to pay each month, alongside the specific date that you need to make your payments. This will always be on the same date of the month.
When you initially went through the loan application process, you will have been required to enter your checking account details. This is the account that Jora Credit will pay your loan funds into, as well as to take your monthly repayments.
By setting up an automatic debit agreement, you can ensure that you never miss a payment. If you don’t have enough money in your checking account to cover the payment, then you will miss a payment, and thus, this will be reported to the main credit agencies. In doing so, your already-damaged credit score will be hampered even further.
Although Jora Credit claims that it does not charge late payment fees, you will incur additional fees if you’re loan agreement goes into default. Don’t forget, you’ll also have to pay interest on any charges that you incur.
Jora Credit does state on its website that borrower’s are advised to make contact with the support team in the event that a late payment is foreseen.
Some lenders can offer a flexible solution if you run into financial difficulties, so it’s always best to let Jora Credit know rather than allow the missed payment to occur.
On the other hand, if you make your Jora Credit repayments each and every month without fail, this will give you the chance to rebuild your credit profile. Furthermore, Jora Credit also allows you to repay your loan off early without incurring any financial penalties. If you are in a position to do this, you’ll likely reduce the overall cost of the loan by a considerable amount.
How do I Apply for a Loan With Jora Credit?
If you have all of the required information to hand (such as social security, driver’s license and bank account numbers), then the end-to-end application process should take no more than 10 minutes.
Here’s a step-by-step breakdown of what you need to do.
- Choose How Much you Want to Borrow You need to enter the amount of money that you want to borrow from Jora Credit, which ranges from $500 up to a maximum of $2,600. You also need to stipulate how long you want to borrow for the funds for, which can be from 4 months up to 30 months.
- Fill out the Application Form As is industry standard when applying for a loan online, you will now be required to provide Jora Credit with a range of personal information. This will include your full name, home address, date of birth, and telephone number. In order to electronically verify your identity, you’ll also need to enter your social security and driver’s license numbers.
- Once you’ve entered your personal information, you then need to answer some questions about your current financial standing. Although you won’t need to enter your credit score, you will need to provide information about your employment status. Notably, this includes your income, where you work, and your frequency of pay.
- After entering your current relationship with debt (such any outstanding loans or credit cards), you will need to enter your checking account details.
- Review the Loan Decision and Offer Once the next page loads, you will be notified whether or not you have pre-qualified for a Jora Credit loan. If you have, you will be able to review your individual loan terms. This will include your APR rates, how much you need to repay each month, and what the terms are surrounding late payments.
- If you don’t want to proceed, the application will not have been executed as hard enquiry, and thus, it won’t be reported to the credit rating bureaus. If you do want to proceed, simply sign the digital loan agreement, and your funds should be deposited into your specified checking account within 1-2 business days.
Jora Credit Review: The Verdict?
In summary, bad credit lenders like Jora Credit should only ever be used as a last resort.
You will pay a minimum APR rate of 179%, upto a maximum of 349% APR. Irrespective of what rate you get, this is a considerable amount of interest to repay.
This is unfortunately the reality of having bad credit.
On the plus side, we do like the fact that Jora Credit allows you to view your rates on a soft credit check basis before making a commitment.
This at the very least allows you to make an informed decision before signing the agreement. Moreover, if you do proceed, you can repay the loan in-full at any given time without being financially penalized.
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