Springleaf Financial Review

My brother had bad credit after charging tools when he worked as an auto mechanic. When he get socked with medical bills and high utility bills, he needed short-term help to meet his monthly expenses.

Rather than using one of those quickie-get-fast-$-now places that charge 125% interest, he used Springleaf Financial Services. They offer personal loans, not payday.


The difference is that he had months to pay the balance off rather than weeks, which is what those quick-$-now places offer. He also used a vehicle as collateral and did not receive a super crazy high interest rate.

They offered him an interest loan and no pre-payment penalty. Of course, he did pay a high interest rate at 29.99% but that was lower than the payday loan he used the first time around at 125 percent interest. That was the loan that made him struggle making on-time payments and made his credit worse.

He needed about $5,000 to finishing paying off the tools, payday loan, and the medical and utility bills. He did get the check, with few issues.

Because he doesn’t write well, I’ve typed this up and am providing a Springleaf Financial review so others may benefit.

Horrible credit and high bills

springleaf financial review
Avoid advances like the plague. They offer weeks to pay the balance off and you may need months.
Photo by HelenCobain via Flickr | CC BY 2.0

My brother has a low FICO score at 620. He did not bother with a bank or credit union because he figured he would be turned down.


He did try Prosper — a peer to peer lending service — and was not successful, but he did get mailings from Springleaf, which had a location about 30 minutes away from where he lived.

Rather than drive and fill out the application, he used their website.

The branch manager called the following day. Three days later, the manager offered a couple options: A vehicle title loan and a personal property loan.

This is the value of personal loans. They are secured by collateral, which provides some security for the lender.

The title loan was for $5,500 and required to use one of his cars for collateral. That’s what he choose, and the branch manager explained what paperwork was needed:

  • Pay stub
  • W2
  • Photo ID
  • Copy of lease
  • Bills
  • Vehicle title, registration, and insurance

One important point is that your vehicle needs to have active registration and it can’t be near expiration.

If it is expiring in 60 days, it either needs to be re-registered before applying for the loan or you won’t qualify.

Be careful of extras

One thing he mentioned is that Springleaf automatically added credit insurance, which he did not want.

He expressed concern to the branch manager, but the manager kept trying to sell the credit insurance.

If you are considering this style of loan, make sure you are aware that they may add credit insurance without asking you.

Be prepared to be vocal if you don’t want credit insurance.

Springleaf directly paid off the payday loan he had. This was a $1500 loan that was being charged 125 percent interest.

This was done so Springleaf knew my brother would not assume more debt than he could handle. Besides, that crazy high interest was a huge burden lifted from him right there.

They also cut him a check to pay for his medical and utility bills.

Conclusion of Springleaf Financial Services review

Yes, $5,500 at 29.99% interest is high.

But for people who have bad credit and need a chunk of money to pay off a super high interest loan and other bills, this can be a good deal.

His monthly payment went from about $600 for the payday loan and tool bill to $225 a month. That’s a 62 percent change.

He also could pay his family’s medical bills and keep the natural gas service on now that the utility bill was paid.

There is a valid market for these type of companies, and they charge the high interest because they own the bad credit loan market.

Besides, many people will default on high risk loans, and they need a way to pay their own bills.

This style of loan is not for everybody, and you need to keep that in mind.

Also keep in mind that it is important to pay these loans off.

If you don’t, you may get a judgment against you and these type of companies may get a court order to garnish your wages. It is important that you borrow responsibly.

Remember, take the terms and conditions home and read them before you sign anything. Make sure you understand what you are reading. If not, ask questions.

Just because you have a financial hardship doesn’t mean you should take a financial bath.


That said, I hope this write-up of a Springleaf Financial review has been helpful.