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Review Summary: Pertuity Direct is a financial service company that offers social financing. The platform allows borrowers and lenders to come together in an effort to work out smarter financial solutions for both and better rates as well. Social lending eliminates the traditional banks which cuts expenses. Lower expenses mean better interest rates for consumers. It makes the lending process simple and uncluttered. It is a new way of doing business for borrowers and for lenders.
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(4 out of 5 stars)Pros:
- The process is all online and eliminates the need to make multiple trips to the bank
- The borrowing and lending are based through an online community.
- The credit approval process is handled by the company so the online community does not see entire credit histories or credit scores.
- The process is simple – there is no bidding for loans by the lenders and no guessing of what interest rates my be applied
Cons:
- Loans are not available in all states
- This is not a true peer to peer lending situation because the Pertuity Direct determines who qualifies for the loans
- Lenders pay a fee for withdrawing money early (although it is a relatively small fee)
- Lenders must start with a $250 minimum
Who Benefits most from this Service
Borrowers with good or great credit scores (660 or higher) that need to pay off loans, credit cards or other notes through the use of a personal loan or who are looking for a quick and easy loan process for a personal loan.
The Process:
Borrowers fill out a loan application and Pertuity Direct puts the application through the approval process. This process will determine the interest rate the borrower’s credit rating made possible. The borrower then accepts or rejects the loan offer. If the offer is accepted then the loan is funded by Pertuity.
Lenders invest their money in the Pertuity Direct approved loans through partner entities. All of the underwriting and risk management are done by Pertuity Direct.
Quick Stats
- Pertuity Direct is a privately held company.
- Closing costs are determined by credit scores but run between 1% and 2%
- There are fees for late payments and failed payments
- There is a 1% discount for electronic funds transfer
- The company is lead by a team of well seasoned financial industry professionals
- Loans are 3 year installment loans that can be used for any purpose and do not require collateral
- The process can be completed in a little as 24 hours and funding can happen in as few as two days
Likes:
- The social lending benefits lenders by giving a higher interest rate than other typical accounts and also by allowing them to assist others in need. It helps borrowers by giving them a better rate on personal loans than can be found in other traditional financial institutions.
- Pertuity Bucks is the rewards program that allows the borrower to tell their story when applying for the loan. Lenders have access to the stories and award the bucks to those they find most compelling. Borrowers can lower their principle loan amounts or even potentially eliminate the principle using Pertuity Bucks.
Dislikes:
- There is no physical location to go and talk with a live person if a problem occurs.
- Investors have no direct influence over who receives loans.
