CocoLoan is an online credit broker that provides potential borrowers with access to a wide variety of online loans by connecting them with its extensive network of 100+ lenders. This makes it the ideal place for consumers that are unable to secure funding from traditional lending institutions like banks or credit unions because they have a less-than-stellar credit score.
The platform also allows borrowers to apply for funding online, which means that there is no need to deal with any lengthy paperwork or any in-person interviews. In terms of funding, you can find quick cash loans online on CocoLoan that can go as high as $35,000 with APRs that typically range from 5.99% to 35.99%.
The lenders in CocoLoan’s extensive network provide access to numerous unsecured loan options such as personal loans, payday loans, bad credit loans, installment loans, and more. There are no restrictions as to how you can use the money you receive, which means that you can use it to pay for car repairs, medical bills, or even vacations.
However, it is important to note that while the loans offered are easily accessible, they all come at a price. The lower your credit score, the shorter the repayment periods and the higher the APRs offered will be. In addition, its lenders may charge a wide variety of extra costs, such as origination fees, prepayment fees, late payment fees, and more.
Is CocoLoan Legit?
CocoLoan has been in the industry for quite a few years now, and within that time it has managed to build a positive online reputation by helping thousands of consumers connect with reliable and trustworthy lenders.
The lending service also takes extra precautions to ensure that your data remains protected by using advanced SSL encryption. As a result, you can rest assured that any information you share via the site will remain secure and confidential.
It’s important to point out that CocoLoan does not require borrowers to pay any money upfront, which means that you can feel free to use the service without making any financial commitment.
According to CocoLoan co-founder Sarah Ross, “Our sole aim is to provide people with access to more financial options, so we don’t believe in making our users pay money just to see what the lending market has to offer them.”
How To Qualify for CocoLoan?
Since CocoLoan is not a direct lender, there are no minimum credit score or income requirements needed to apply for a loan. However, to be eligible to use their service, there are a few important criteria that you need to meet. These include;
- Being 18 years or older
- Being a US citizen or permanent resident
- Having a stable income stream
- Having an active bank account
This means that even if you are unemployed, there is still a chance that you may be able to secure funding as long as you can demonstrate your ability to repay the loan on time.
What To Consider Before Applying via CocoLoan?
Before you decide to apply for a loan through their lending network, it is important that you consider a few factors.
Check your credit report. Even if you have a low credit score, there is a chance that you may have some errors or inconsistencies in your report that are unfairly affecting your credit rating. If reported to the relevant credit bureaus in advance, you may be able to improve your score and secure a more competitive loan offer.
Evaluate your budget. Before you apply for an online loan, it is important to review your current budget to see what the maximum that you can reasonably afford to pay in monthly payments is. This will help you make the best possible decision if you get loan offers. It will also help you to determine if there are any expenses that you need to cut out to repay the loan.
Gather the relevant documents. When applying for a quick cash loan, most of the lenders in CocoLoan’s network are typically more interested in your ability to repay the loan than your creditworthiness.
As such, you must be able to show proof of income, which can be bank statements, a W-2 form, or even pay stubs. In this respect, you should ensure that you have these documents handy to help speed up your loan application.
How To Apply For Funding via CocoLoan?
One of the most commendable aspects of CocoLoan’s loan application process is that it is fairly simple, as it only takes a few steps to apply for funding via the platform.
Step 1: Pre-qualify on CocoLoan’s site. The first step that you need to take is to head over to CocoLoan’s homepage and select your desired loan amount. From there, you will be presented with an online form that you need to fill out with your personal and financial details.
In most cases, you will be required to provide information such as your name, place of residence, social security number, bank account information, credit score, and so on.
Step 2: Compare loan offers. Your loan request will be evaluated once you submit the form, and if accepted, you can expect to receive multiple loan offers from CocoLoan’s panel of lenders. Each loan offer will have its own set of rates and conditions to consider, so take your time comparing them until you find the best deal.
Step 3: Wait for your funds. Once you’ve found the correct loan offer, you can e-sign the loan agreement, and the lender will begin processing your funds. You can typically expect the funds to be deposited into your account as soon as the next business day. Keep in mind, however, that this can vary based on the lender and your bank’s processing times.
NB: You should keep in mind that some of CocoLoan’s lenders may report payments to all three major credit bureaus, so you must repay your loan on time. This can help you build up your credit score, but it also means that any missed payments can damage it.
Setting up automatic payments on your account is a good rule of thumb that will ensure you don’t skip any scheduled repayments.
Pros And Cons Of Using CocoLoan
Before you decide to apply for a quick cash loan via CocoLoan, there are several pros and cons that you first need to consider. And if you happen to be feeling very indecisive about whether or not to use the service, then this may help to simplify the debate as you look to make the right choice.
In terms of the advantages, these include:
- Easy and simple loan application process
- Speedy loan decisions
- Soft credit checks
- Free loan comparison
- Fast funding
- Available 24/7
- Open to bad credit
- High-end data security
As for the drawbacks, these include:
- High-interest rate
- Short repayment periods
- High late payment fees
Based on this evaluation, it’s safe to say that there are more positives than negatives to using CocoLoan today.
The Final Verdict
Whether you should rely on CocoLoan or not essentially comes down to how urgently you need the money and if all other lending alternatives are not an option.
If you need cash in a hurry and have a bad credit score that prevents you from borrowing from a bank or credit union, then CocoLoan’s lending network may be the best solution for your situation.
However, do keep in mind that you will also need to be prepared to pay more money in interest rates and fees compared to traditional loans.