The test we apply
The question we ask is not whether a debt can eventually be collected. It is whether the payment fits into your month alongside everything else you already owe. Those are different questions, and lenders that only ask the first one are how people end up in a debt spiral.
Before we approve anything we look at income and its stability, existing debt payments, recent payment history, and how the new payment sits against your take-home pay. A loan that leaves you unable to cover rent is a loan we should not have written.
The rule of thumb we use, and you can too
Total monthly debt payments excluding rent or mortgage should stay under roughly 20% of take-home pay. Run the payment through the loan calculator and check it against your worst recent month, not your best one.
Who we decline, and why we say so
Declining is part of lending responsibly. We decline where the payment does not fit the budget, where income cannot be verified, where the pattern of recent borrowing suggests a new loan would make things worse, and where a state's rules do not permit the loan requested.
Every declined applicant receives a written adverse action notice with the specific principal reasons, as the Equal Credit Opportunity Act requires. We do not use vague language such as "did not meet our criteria" on its own.
- We do not lend to someone taking a new loan to make payments on an existing one
- We do not approve a larger amount than was requested in order to increase interest
- We do not re-approve a customer immediately after a hardship arrangement
What we never do
| Practice | Our position |
|---|---|
| Rollovers | Never. The balance only goes down. There is no mechanism to extend a loan by paying a fee. |
| Prepayment penalties | None. Paying early reduces your total interest. |
| Origination fees | None. The approved amount is the deposited amount. |
| Guaranteed approval claims | Never used. Approval always depends on review. |
| Upfront fees | Never requested. Anyone asking you to pay before funding is running a scam. |
| Selling your data | Never. See how we make money. |
| Collateral | Not taken. Our loans are unsecured, so no vehicle title is at risk. |
Alternatives we tell people about first
If a cheaper option is realistically available to you, take it. We would rather lose the application than write a loan you did not need.
- A payment plan from the original biller. Hospitals, dentists, utilities, and landlords often run interest-free hardship arrangements. Ask specifically for the hardship or payment plan team.
- Utility and rent assistance. LIHEAP covers heating and cooling costs and most states run emergency rent funds. Dial 211 or visit 211.org.
- A credit union payday alternative loan. Federal credit unions offer PALs of $200 to $2,000 with APRs capped at 28%, which beats our pricing. If you can join one and wait a few days, do that.
- Nonprofit credit counselling. If debt is the underlying problem rather than a one-off bill, the NFCC at nfcc.org offers free and low-cost sessions.
When your circumstances change
Contact us before a payment is missed, not after. We can usually move a due date once per loan at no cost, and we would rather restructure than default someone. Options depend on your situation and may include changing the due date, a short deferral, or a modified schedule.
- Tell us earlyCall or email as soon as you know a payment will be difficult. Nothing is triggered by asking.
- We review togetherWe look at what changed and what is realistic, not at what maximises recovery.
- We confirm in writingAny change to your schedule is documented and sent to you before it takes effect.
How we treat past-due accounts
We follow the Fair Debt Collection Practices Act in every contact. We do not call your employer, we do not contact your family about your debt, we do not use threats or misrepresent what can happen, and we do not contact you at unreasonable hours. A late fee of $15 applies only after a 10-day grace period, and it applies once, not repeatedly.
Military borrowers
Covered members of the armed forces and their dependents receive the protections of the Military Lending Act, including the 36% Military Annual Percentage Rate cap and the required oral and written disclosures. Where the MLA cap is lower than the rate we would otherwise offer, the cap applies.
If borrowing is becoming a pattern
Two or more loans taken in a year to cover ordinary monthly costs is a signal that the problem is the budget, not the shortfall. Free help is available from the NFCC at nfcc.org and from the Consumer Financial Protection Bureau at consumerfinance.gov.
This policy was last reviewed on by .