COVID-19: Loan Options and Payment Relief
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COVID-19 Credit Options and Payment Relief
While the COVID-19 crisis continues, lenders are re-evaluating their hardship plans.
The last update was on Dec 7 in 2020.
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The COVID-19 crises is affecting nearly everyone in the financial realm. While a new relief package offered by Congress may help to bridge the gap in financial resources caused by the effects of unemployment and other difficulties but some might still resort to loans. If you already have an individual loan, you may need help making your payments.
Although a lot of individuals loan lenders have tightened approval criteria, other lenders have offered low-cost small-dollar loans to consumers dealing with financial hardships. The lenders that had used to have catchall plans for hardship that were in place for those affected by COVID-19 have changed to a case-by-case basis.
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If you require to borrow cash, it is best to do so.
It may be worth calling local nonprofits, charities or credit unions for access to emergency funds at a low cost. Alternatively, here are some lenders who can help you in the event that you need to borrow short-term cash.
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Capital Good Fund
It is offering a crisis relief Loan to consumers who reside in the six states where the program operates: Delaware, Florida, Illinois, Massachusetts, Rhode Island and Texas. The small-dollar loans come with an annual percentage rate of 0% and deferred payment for the first three months.
Loan amount: $300 to $1,500.
APR: 5% for all approved borrowers.
Duration: 15 months and payments beginning after the first three months. Payments can be deferred further if the COVID-19 crisis continues beyond that. Interest will accrue throughout the deferment period of 90 days according to Chief Executive Officer Andy Posner.
The lender puts a premium on the bank’s history when it comes to underwriting. Instead of relying on a borrower’s current expenses and income, Posner says Capital Good Fund will attempt to determine whether an applicant is able to pay for the loan according to their current income and in the event that it is not possible the lender will look at whether the applicant could have gotten the loan prior to the crisis.
The loans have no application, closing or prepayment fees and don’t require collateral. The loan will be approved within two days of the submission of an application. Posner states that applications for the Crisis Relief Loan will be prioritized over other applications.
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Salary Finance
Salary Finance provides loans through employers and partners with Equifax to give companies insights into their employees’ financial health. The partnership was in process prior to the COVID-19 crisis began, says Salary Finance CEO Dan Macklin and the company’s offer isn’t contingent on the pandemic’s influence on the economy.
Employers who sign up to the alliance get a view of anonymized worker credit data, Macklin says. Employers can access the information to identify which segments are suffering the greatest financial strain and take action to alleviate it.
Salary Finance is typically provided by human resource departments as a benefit for employees, Macklin says. The payments made on Salary Finance loans are reported to all 3 credit bureaus.
The loan amount is $1,000 up to $5,000, up to 20% of an employee’s salary.
APR: 5.9% to 19.9 percent.
The term is 6 to 36 months.
Other borrowing options
: These not-for-profit institutions offer one of the most convenient loans. A credit union loan usually comes with lower APRs and more flexible terms than one from banks or online lenders.
Borrowers with bad or fair credit (629 or lower FICO) might have a higher chances of receiving approval from a credit union due to the underwriting process tends to involve more than credit information.
Certain credit unions also offer loans that are more secure than high-interest quick-term payday loans. These loans are available with a maximum APR of 28 percent.
Online lenders: Online lenders could be a quick option . You’ll probably need an excellent credit score and an income that is steady to be eligible in today’s climate. If you’re uncertain whether you’ll qualify, or what rate you’d get it’s possible to do so with NerdWallet. Pre-qualifying does not impact your credit score.
If you’re worried about making payments
Certain lenders are offering assistance with deferred payments, as well as waiver of late fees to those facing financial hardship. If you need help but don’t see your lender listed , you can look into other options .
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Best Egg!
The company encourages its customers to sign up to the account and see what options may be available.
Customers may be able to choose from payment deferrals, adjustments to payments, or a debt management program which can cut monthly payments across all debts, as per a company spokesperson.
Discover
The program was previously offered. A spokesperson confirmed that the program is now over, and the company encourages borrowers to call for help with the loan instead.
Customers in need of assistance for more than one month can call 866-248-1255 or make use of the mobile app to contact a representative from Discover.
HSBC
If you’re struggling to cover an amount, you can ask for a hardship scheme by calling 1-800-524-9686. The company has different hardship plans for its products but doesn’t say what changes are available to personal loan borrowers. A spokesman didn’t respond to multiple questions for clarification.
LendingClub
The bank is allowing borrowers who are affected by COVID-19 to postpone payments and pay only interest while deferred according to a spokeswoman.
The lender updates its website its website, and has a phone number to handle hardship requests at 877-644-4446. The company states that it takes approximately 10 days to process hardship applications.
In May, LendingClub has launched an online resource to current personal loan customers, dubbed Member Center, according to the news release. In addition to options for payment that can help borrowers restore their regular payment schedule, the Member Center has a tool called Credit Profile that helps customers manage their money and improve their credit. The tool gives customers a complete view of their financial lives, including information like their ratio of debt-to-income, credit utilization and credit score.
A company spokeswoman says the tool will remain available to users after the COVID-19 saga has ended.
LightStream
could allow those affected by the pandemic and any other disaster or natural catastrophe to postpone loan payments. Contact us to receive a telephone number to get you in touch with someone who can discuss your hardship. You can’t defer a payment if you’re within 2 days of an automatic payment.
Deferments are reported to credit bureaus as deferments caused by a natural catastrophe and will not negatively impact your credit score, according to the company. The deferred payments are added to the end of your loan and the interest will accrue while your payments are delayed.
Borrowers can log in and then go to the Account Services page to request a deferment, or email for assistance.
OneMain
They will assist borrowers who are struggling to make their payments. The borrower assistance program of the lender is a component of the loan before the pandemic hit could help borrowers get deferred or reduced monthly payments, according to an official spokesperson for the lender.
Oportun
Customers can avail reduced or deferred payments. The company claims it will not report missed payments as late to the credit bureaus when you make arrangements in advance. Customers can contact the company by email or 650-419-5779.
OppLoans
is giving 30 days to pay for late payments with “no questions asked” for those who have been affected by COVID-19. its CEO Jared Kaplan. After that, customers can opt for 90 days of a financial hardship program, which will cut payment in half. He says those accommodations won’t affect credit scores in any way.
PenFed
is offering to let eligible borrowers make a payment on their own. Check whether you’re eligible for this, choose “Financial Assistance for Members Affected by COVID-19.”
PenFed also offers a program where customers can apply for a short-term emergency program (less than 6 months) or a more permanent hardship program (more than six months).
PNC
says it may offer postponed or reduced payment options to loan people who currently facing a financial hardship or who have a hardship plan about to expire. For most customers, the company says it will confirm their that they are eligible for assistance as soon as possible. To apply, go to PNC’s and click “Apply to be a the Consumer Loan Hardship Assistance.”
Customers must enroll in online banking to gain access to the .
Possible Financing
offers a plan for forgiveness that will allow customers to push payments out. The lender hasn’t provided any details about the plan since it published an article on its blog in March, but customers are able to contact customer service via its .
Upstart
has loan modification options available to certain customers who are affected by COVID-19, including the option of an extended loan duration or forbearance, as per an Upstart spokesperson. Previously, customers could defer up to two months of payments with no penalty or interest.
Contact Upstart by email
Wells Fargo
Deferring monthly payments will be granted for three consecutive billing cycles for qualified personal loan customers. Those who have received help before can still apply for more. Connect to your account online to review the options available.
To speak with to speak with a Wells Fargo customer service representative, call 877-269-6056.
About the writer: Annie Millerbernd is an individual loans writer. Her work has appeared on The Associated Press and USA Today.
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