Acorn Finance is a popular lending platform you may have encountered while seeking to sort out your financial issue. However, it is not the only financial firm offering loans to its clients.
So, should you go for Acorn Finance personal loans?
Acorn Finance personal loans may be a good option for you if the loan purpose is home improvement. However, their credit score requirement does not favor borrowers with low scores. So, if you have a bad credit score, it is advisable to choose the other better options.
Acorn Finance Overview
Acorn Finance is a financial management firm that offers accounting services to businesses in different sectors. In addition, the company assumes the role of a loan broker and helps its clients access personal loans for home improvement financing from their network of lenders.
Acorn Finance Personal Loans Highlights
- Loan amounts: Borrowers can take out personal loans for home improvement between $1000 to $100,000, depending on their eligibility and qualifications.
- Loan types: Acorn Finance offers their clients personal loans for home improvement.
- Interest rate:Depending on the loan amount and lenders, Acorn Finance interest rates can be between 6.99% to 36% APR on loans.
- Credit Check: When you pre-qualify on Acorn Finance, there will only be a soft credit check. However, applying for a loan officially may attract a hard credit pull, depending on your lender.
- Minimum credit score: Acorn requires their lender to have a credit score of around 560 or higher before their applications can be considered.
- Funding Time: Once your loan gets approved, you will receive the deposit within one to two business days.
- Repayment Term: It can be up to 12 years, depending on the lender and loan amount.
- Fees: Acorn Finance may charge an origination fee to process the loans, and the amount varies, depending on your lender. The firm does not charge prepayment fees on loans that are paid off early.
- BBB Rating: A+
- Available areas: Acorn Finance offers personal loans in all U.S. states except Massachusetts, Rhode Island, and Nevada.
- Acorn Finance is reliable.
- It Provides Professional Services For Home Improvement Financing.
- Acorn Finance Offers Its Services To Both Customers and Contractors.
- Acorn Finance Only Considers Applicants With Fair Credit.
- Acorn Finance Personal Loans Have A High-Interest.
- Multiple Companies Would Be Reviewing Your Information.
Acorn Finance makes it easy for borrowers with fair credit scores to access large loan amounts for home improvement, building, and renovations.
Where Acorn Finance Stands Out
Acorn Finance is reliable
Acorn Finance is authorized to give out loans and has a unique NMLS identifier, 1817022, which allows regulators to supervise and ensure that the company is dealing with transparency.
So, you can rest easy taking out a loan from them since the firm is accountable to the appropriate regulatory body.
It Provides Professional Services For Home Improvement Financing
Acorn Finance has a network of credible lenders you can access after choosing their services. You can easily gain fast connections to personal loans from those lenders to finance your home remodeling, renovation, or improvement via Acorn Finance.
Acorn Finance Offers Its Services To Both Customers and Contractors
Borrowers or homeowners can easily get personalized offers from lenders via Acorn Finance with higher approval chances.
Contractors can also close more sales by providing suitable financing options to potential customers while partnering with Acorn Finance. Also, the contractors are not charged any fees for connecting with customers through Acorn Finance.
Where Acorn Finance Falls Short
Acorn Finance Only Considers Applicants With Fair Credit
Although Acorn Finance claims to offer personal loans for bad credit, its minimum credit score is around 560. That means the borrowers with lower credit scores will have difficulty getting their application approved on Acorn Finance. Some may even get rejected due to their low credit score.
Acorn Finance Personal Loans Have A High Interest
While borrowers have a high loan approval chance using Acorn Finance, the terms do not usually favor everyone. Acorn Finance personal loans give the lowest rate to people with excellent credit scores. If your credit score falls below average, expect outrageous APR on your loans.
Multiple Companies Would Be Reviewing Your Information
Acorn Finance is not a direct lender. The firm works as a loan broker and connects you to lending companies.
So, when you fill out a loan application, Acorn Finance shares your details with all the available lenders. There is no chance for privacy as they will all review your application and send loan offers if you qualify for their loans.
Compare Acorn Finance with Other Lenders
Some lending platforms offer better options than Acorn Finance, like lower minimum credit requirements, lower APR, and more.
Here's how Acorn Finance compares with two other lending companies: Personal Loans™ and cashusa.com;
Minimum credit score
No minimum credit score
No minimum credit score
6.99% to 36%
5.99% to 35.99%
$1000 to $100000
$1000 to $35000
$500 to $10000
up to 12 years
3 months - 6 years
3 months - 6 years
Acorn Finance vs. Personal Loans ™
At a glance, Personal Loans ™ seem like a better option than Acorn Finance. It has no minimum credit requirement, meaning borrowers with bad credit can apply and be considered for a personal loan. The APR range on Personal Loans ™ is also slightly lower than Acorn Finance.
However, a closer comparison of Personal Loans ™ and Acorn Finance shows that the latter may be the better option for another set of borrowers.
For instance, Acorn Finance has an A+ rating on BBB, while Personal Loans ™ has an A-. This means Acorn Finance is more credible and transparent than Personal Loans ™. So, if you have a 560 score or higher, you might want to select Acorn personal loans for lower risk.
Also, Acorn Finance offers loan amounts up to $100,000, while personal Loans ™ stops at $35,000. Borrowers who need higher loan amounts will find Acorn Finance more suitable.
In addition, Acorn Finance allows its clients up to a 12 years repayment plan on their loans, while Personal Loans ™ stops at six years.
Acorn Finance vs. Cashusa.com
Cashusa.com can be a suitable lender for those with bad credit scores who want a reasonable interest rate. The platform has no minimum credit score requirement, meaning those who fall short in that area can get their loans approved.
Its loan amount range also starts lower than Acorn Finance. Borrowers who don't want to borrow up to $1000 can choose the $500 on cashusa.com instead.
Acorn Finance offers ten times the maximum loan amount on cashusa.com to borrowers. Those who have larger projects will benefit from Acorn Finance than cashusa.com. Acorn Finance also allows borrowers a loan term of up to 12 years, depending on the lenders and loan amount.
Another thing to consider on both sides is their BBB rating. Acorn Finance gets an A+, while cashusa.com has a C-, meaning the former is more reliable than the latter.
However, despite Acorn Finance's nice ratings on BBB, it has a 560 minimum credit score. Borrowers with low credit will have no choice but seek other options, like cashusa.com, for higher loan approval chances.
Qualification Requirements For Acorn Finance Personal Loans
Age: You must be 18 or meet your state's minimum borrowing age (whichever is higher).
Minimum Credit score: The minimum credit score is 510. However, Acorn Finance is more likely to consider loan applications from borrowers with scores starting at 560.
Minimum income: Acorn Finance did not specify the acceptable annual income of its borrowers. However, you must be employed for your loan application to be considered on the platform.
Citizenship: You must be a U.S. citizen or a green card holder. Residents of Massachusetts, Rhode Island, and Nevada are exempted.
Identification: Acorn Finance may require your driver's license, government-issued ID, or proof of citizenship/permit to verify your identity.
Bank Account: Borrowers are not required to have a bank account before their loan applications are considered on Acorn Finance.
Co-signer: Acorn Finance allows borrowers to co-apply for a loan with someone who meets the requirements. This allows you to qualify for loans at lower interest rates and better terms.
Note: Active military members can apply for loans on Acorn Finance. This is because the military lending act does not allow lenders to charge over 36% APR on loans borrowed by service members.
But, since Acorn Finance does not exceed the limit, it can offer its services to military personnel.
4 Steps To Apply For Acorn Finance Personal Loans
Acorn Finance offers its services to homeowners and contractors.
If you are a homeowner, here's how you can apply for Acorn Finance personal loans in four simple steps:
Pre-qualify: Acorn Finance allows you to
review the potential loan offers before applying. So, you will
fill out an online form
via their website
with your details to see those offers.
It will only result in a soft check, so you don't need to worry about harming your credit score. You can also use the Acorn Finance loan calculator to do a quick rate check before applying for a loan.
- Select an Offer: Compare the terms on all available offers and select the most suitable option.
- Complete Your Application: After selecting an offer, apply directly for the loan via the lender's website. The lender may carry out a hard credit pull, which can temporarily affect your credit score.
- Receive Funding: Once Approved, the lender will deposit your fund within one or two business days.
Note: All personal loan applications happen on acornfinance.com. The Acorn Finance app is only used by clients interested in the firm's accounting, savings, and investment services.
As a contractor, here's how you can enjoy the numerous benefits of partnering with Acorn Finance:
- Give your customer an estimate for their remodeling, improvement, or building project.
- Your customer pre-qualifies for loans on Acorn Finance by filling out an online form to access potential loan offers. Your customer selects the most suitable loan offer from the list and applies on the lender's site.
- Your customer gets funded by the lender if their application gets approved within one or two business days.
- Acorn Finance notifies you when your customer gets their funds deposited.
- Your customer awards the project to you and pays for your services as agreed.
How CreditYelp Rates Acorn Finance
|Requirement and Application||4/5||It is easy to meet the requirements of Acorn Finance. Application is easy as well.|
|Loan Accessibility||4.5/5||All states in the U.S. except for Massachusetts, Nevada, and Rhode Island can access Acorn Finance offers. However, the firm only considers those with fair credit.|
|Affordability||3.5/5||The interest on loans varies from lender to lender. You may get matched with a lender with a high-interest rate.|
|Customer Experience||4/5||Based on Arcon finance reviews on BBB, the firm gets a 4.2 /5 rating.|
Acorn Finance FAQs
Q1: Is Acorn Finance Legit?
Acorn Finance is a reputable personal loan lender founded in 2017. It has an A+ rating on BBB and a 4.2/ 5 score from customer reviews.
Customers who gave feedback on Trustpilot also positively reviewed Acorn Finance loan services. Their cumulative rating is 4.7/ 5, with most applauding the platform's speed, responsive customer support, and simple processing.
However, it is crucial to remember that Acorn Finance personal loans, like any loan, come with risks and expenses. So, before borrowing, consider your credit score, ability to repay, and the loan terms available to get the best deal.
Q2: What Can I Use Acorn Finance Personal Loans For?
Acorn Finance personal loans can be used for home improvement, remodeling, and building financing projects. You can use it for roofing, flooring, and everything in between as long as it improves the home.
Here are some of the things you can do with personal loans from Acorn Finance:
- Barn financing
- Fence financing
- Pool financing
- Hot tub financing
- Deck financing
- Landscaping financing
- Basement remodels financing
- Solar panel Financing
- Kitchen remodeling financing
- Garage financing
- Container home financing
- DIY home construction financial
- Horse barn financing
- Vacation home financing
- Duplex financing
- Tiny home financing, and more.
Q3: Are Acorn Finance and Acorns The Same Company?
No, Acorn Finance and Acorns are not the same company. Acorn Finance offers lending services, while Acorns offers its services to novice investors interested in the stock market.
Although both firms use similar logos, you can readily recognize the Acorn Finance logo by its blue color and more realistic appearance.