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Backed Inc. is a provider of unsecured loans to citizens or permanent residents of the United States; at this stage we only make loans to residents of New York, New Jersey, Arkansas, West Virginia and Florida. All our loans are offered for a term of 1, 2 or 3 years and are offered with an APR of 2.9-16%. The APR is determined by the application information, your FICO score, and if you have a Backer. You can learn more about our application process here
Our loans are offered to borrowers with a FICO score of 660 and the loans range in size between $3,000 to $25,000. You can only apply for one loan at a time, so make sure to apply for the full amount. If your loan repayment will remain without any issues for a period of 12 months, you may be able to replace your old loan with a new loan with more favorable rates.
Backers help us build your trust, when your FICO score does not have enough history. Backers help you receive a better APR and protect your credit score in case of missed payments.
Contrary to traditional co-signers, who are typically informed after a loan has defaulted (accumulating fees and penalties, and damaging a borrower’s credit score), a Backer is informed of any payment shortfall prior to default, in a 15 day grace period, enabling them to assist before accumulating late fees, and most importantly, before any damage occurs to your credit score.
Someone you know is applying for a personal loan. The applicant either cannot be approved for the loan or is looking to get a lower rate by adding a Backer to the loan.
You are helping someone you know well to start building a good credit history and facilitate a financial need of theirs.
As a Backer, you are pledging that you will pay off the loan if the borrower does not pay. If the borrower doesn’t pay, you will be held responsible for 100% of the unpaid balance and may have a negative impact on your credit if you do not pay.
Yes, however, we work with Backers differently from most other lenders. Traditional co-signers usually get notified only once borrowers default (30 days past the due date) and sometimes aren’t notified of the borrower default until the cosigner’s credit is impacted. At Backed, we will notify the Backer in the 15 day grace period when a Borrower misses a payment and will work with all parties to bring the loan back to good standing.
You should only be a Backer for someone you know well and trust. Ask yourself if you believe that the borrower will make on-time payments. Based on your experience, does the borrower have a tendency to meet all of his or her obligations? If so, then that is a good person to Back.
It will not affect your credit score