When using the Next Day Personal Loan marketplace, potential borrowers are not under any obligation to accept loan offers from lenders.
The user doesn’t have to pay a fee through partner lenders’ Next Day Personal Loan marketplace. Next Day Personal Loan gets referral fees from lenders in their marketplace for connecting qualified borrowers.
The user starts by choosing a loan amount, monthly income, credit score range, and zip code from drop-down menus. The user must be able to verify their income to be eligible for a loan.
After completing the first few questions, the user is directed to a page asking for the following information:
- First name
- Last name
- Date of birth
- Reason for loan
- Street address
- Direct deposit available
- Bank account type
- Pay frequency
- Military affiliation
- Credit card debt total
- Social security number
- Phone number
The user can agree to be contacted at the phone number they provide by up to six individual lenders and for other marketing purposes. These contacts could include texts, prerecorded messages, and telemarketing that is exempt from the “Do Not Call” registry rules. However, agreeing to this level of phone contact from multiple agencies and lenders is not required to request or get a loan in the Next Day Personal Loan marketplace.
The fine print at the bottom of the form indicates that by clicking “Continue,” the user agrees to multiple credit checks.
“I am providing my express written consent under the Fair Credit Reporting Act for our Lenders and/or Lending Partners with whom I am connected to obtain my consumer credit report from my credit profile or other information from contracted Credit Bureau(s) associated with my pre-qualification for a credit inquiry.”
Since each lender conducts its credit evaluation, requesting a loan may result in multiple credit report inquiries. Credit inquiries for the purposes of obtaining a loan could reduce FICO scores by a few points.
If one or more lenders in the Next Day Personal Loan marketplace determine that a borrower meets their lending criteria, the Next Day Personal Loan platform will show the user the name of the company, the proposed interest rate, and terms of the loan, and then direct them to that lender’s website, where they can choose to complete the loan process.
At this point, Next Day Personal Loan is no longer part of the lending process. In the future, marketplace lenders may also use a user’s contact information to reach out to them with loan offers.