Backed allows you to check what interest rate you will be charged without an impact to your credit score. If you choose to proceed you may apply for a loan free of charge. After receiving your initial rate you will have a chance to improve your assigned interest rate by inviting Backers to co-sign on your loan. You may also reduce your origination fee by completing the full loan application.
If you are approved you will be assigned an interest rate. You will have fixed monthly payments that will not increase. You can prepay your loan at any time without a prepayment fee.
When you apply for a loan, your loan will receive a grade ranging from AAA to E with a corresponding interest rate, origination fee, and annual percentage rate ("APR").
The APR shows you the cost of borrowing money on a yearly basis inclusive of interest rate and all known fees, such as the Origination Fee. This can help you compare offers on a level playing field.
The range of interest rates, origination fees, and APRs for each loan grade is listed on the table below. You may not be eligible for the full range of rates or loan terms displayed here. Your monthly payment will vary based on the interest rate, the loan amount, and the term selected.
|Loan Grade||Interest Rate||Origination Fee||APR 12 Mth||APR 24 Mth||APR 36 Mth|
|AAA||2.24% - 2.90%||0.8% - 1.25%||3.73% - 4.77%||3.22% - 4.12%||2.90% - 3.73%|
|A||5.21% - 7.73%||0.8% - 2.0%||8.72% - 9.62%||6.80% - 7.72%||7.30% - 8.10%|
|B||7.32% - 12.01%||0.8% - 2.0%||10.84% - 13.92%||8.92% - 12.04%||9.42% - 12.41%|
|C||9.54% - 14.54%||0.8% - 2.0%||13.07% - 15.99%||11.15% - 15.96%||11.66% - 15.97%|
|D*||12.62% - 14.54%||0.8% - 2.0%||15.53% - 15.99%||14.26% - 15.60%||14.76% - 15.97%|
|E*||11.01% - 14.54%||1.6% - 2.0%||-||12.63% - 15.60%||13.14% - 15.97%|
To make things easier, you can request that Backed initiate an electronic funds transfer in the amount of your loan payment each month. You will receive an email in advance of the transfer, and you may choose to cancel an upcoming transfer, or any future transfers, and make your loan payment in another manner (see Manual Processing Fee below).
Backed will only charge an Origination Fee if your loan is approved and you accept the terms of your loan. The Origination Fee will be stated upfront and the amount will be deducted from your loan proceeds.
Processing monthly loan payments simplifies the loan payment process. You may choose to pay your loan payments by check, but this makes processing your loan costlier. For loan payments made by check, Backed assesses a $10 Manual Processing Fee per payment. There is no charge to make payments with an electronic funds transfer from your bank account, and there is no prepayment fee for paying your loan off early.
If a payment is rejected by your bank, an Unsuccessful Payment Fee of $15 is charged to cover the cost Backed incurs from its banking institution. This could happen if there's not enough money in your bank account to cover your check or electronic funds transfer, your bank account has been closed, or if the account is suspended or inaccessible. We may attempt to process your automatic payment up to two additional times and each attempt that is returned unpaid is subject to an Unsuccessful Payment Fee.
You have a 15-day grace period following your monthly due date during which you can make your payment with no penalty or impact to your credit score. After the 15-day grace period, a Late Payment Fee is charged. The amount of a Late Payment Fee is $20.
* Loan grades D, E and F require a Backer. D requires a Backer of at least Grade B; E and F require Backers of at least Grade A.