Social Credit = Better Credit
The idea is simple: We know many prime people are stuck with less-than-prime credit scores. That's because sometimes life happens and our credit scores become an unfair reflection of our true trustworthiness.
That’s why we created group-signing.
Group-signing helps us see you the way your friends and family see you: a prime person, even if you have a less-than-prime credit score.
The Group-Signing Process
After you apply for a loan, you'll have the opportunity to invite friends & family to vouch for the fact that you’re “good for it”.
We will ask your friends to let us know if we can trust you by group-signing your loan. In doing so, they'll pledge to pay as little as $25 if you default on your loan.
Save Lots of Money
As your friends and family vouch for you, you'll earn credits towards your loan. For some borrowers, these loan credits will reduce their interest cost by over 50%!
Frequently Asked Questions
How does group-signing work?
LoanNow borrowers can ask their friends to vouch for them. In doing so, their friends and family will commit $25 - $500 each as a guarantee that reduces the cost of the loan. These group-signers essentially act as micro co-signers to reduce the risk of lending.
Will group-signing lower my interest rate?
When you collect group-signers, LoanNow passes along the reduced risk to you as savings in the form of loan credits over your remaining payments. This results in a lower calculated APR (annual percentage rate). Both the amount of the vouch and the total number of vouches figure into the reduction formula.
Does group-signing affect my loan approval decision?
Group-signing itself does not impact LoanNow’s underwriting approval/denial process. It strictly reduces the cost of credit for those borrowers that are already approved for a LoanNow loan. In the future we may offer conditional approvals to borrowers with no credit history who successfully group-sign their loan.
Do group-signers pay for my loan?
No, only you are responsible for paying back your loan. As long as you pay back your loan, group-signers don't pay a penny. They will only be on the hook if you default on your loan.