Personify Financial, a subsidiary of Applied Data Finance, LLC, offers personal loans to borrowers with poor credit. Qualified applicants may borrow up to $15,000 with a maximum of four years to repay the loan. The company offers loans in 27 states and works with First Electronic Bank to insure loans.
Personify Financial may be appealing to people who need quick cash, but we don’t recommend this lender due to its high interest rates and fees. APRs can reach up to 199.99% depending on where you live.
Personify Financial is also on the National Consumer Law Center (NCLC), high-cost rent a bank watch list. The NCLC states that some lenders resort to rent-a-bank strategies to circumvent state interest rate caps.
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How to Get a Personal Loan
Personal loans allow you to quickly access cash to cover emergency expenses, consolidate debt, or pay for large purchases. Lenders can offer different terms and rates for personal loans. The interest rate you get will depend on your credit score, the loan amount and term, as well as other factors such collateral and cosigner status.
Personal loans are available in secured or unsecured options. Unsecured loans do not require collateral. Secured loans require that you provide collateral. Secured loans have lower interest rates than unsecure loans. However, the lender may take your collateral and resell them to recover their money if your payments fall behind.
Alternatives to Personal Loans
A personal loan is a great way to finance purchases, consolidate debt or pay for emergency expenses. However, there are other options that may work better for you and your financial goals.
Home equity loan (HELOC) or home equity credit line. You can access a lump sum or a revolving credit line through either a HELOC or home equity loan if you have equity in your home. These forms of credit are secured by your home, so you might get a lower interest than with a personal loan. If you don’t make your payments on time, the bank could foreclose on your house.
A balance transfer credit card. A balance transfer credit card is available to those with good credit who want to consolidate high interest debt. This allows you to transfer existing credit card balances onto a new card, with a 0% intro rate. You can transfer your balance to a balance transfer card for 0% APR for a period of time. This is typically 12-18 months.
Payday alternative loans (PAL). Credit unions may offer PALs if you have an emergency and need to borrow a small amount. The loan can be repaid in six months and you can borrow as much as $2,000 The National Association of Federally-Insured Credit Unions (“NAFCU”) limits the amount credit unions can charge for interest. As of 2021, it is 28%.
Savings. Savings. You can save money every paycheck to pay for an emergency expense. To protect yourself against any unexpected expenses, it’s a good idea to create an emergency fund.
Credit counseling. A counselor from a non-profit credit counseling agency can help you get rid of your debt. Counselors can help you set a budget and identify ways to reduce your debt. They can also negotiate with creditors. You can contact your state attorney general to find a reliable agency or browse the U.S. approved agencies list. Trustee Program website.
The pros and cons of Personify Financial
- Quick loan disbursement
- Prequalification by soft credit
- No prepayment penalty
- Credit score minimum required is low
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- Only available in 27 States
- APRs up to 199.99%
- In some states, origination fees may be charged
- In some states, not the direct lender
- Acceptance of cosigners is not possible