What interest rate does SpringLeaf Financial charge?

(Question from Mike in Charlotte, NC) i need help with my rent can you tell me what rate does springleaf charge?

Dear Mike,

A loan through SpringLeaf Financial is a type of consumer finance loan. The cap on the interest rate charged for such loans depends on the laws of each state. In North Carolina, the rate is controlled by the North Carolina Consumer Finance Act.

The cap depends on the amount of the loan in North Carolina, so it depends on the amount of your loan which will set the interest rate cap. Generally speaking, consumer finance company loans in North Carolina may charge up to 30% APR. Any amount that exceeds $1,000 will carry an 18% interest rate, up to a maximum of $7,500. However, if the loan amount is at least $7,500, then the entire loan is subject to an 18% maximum interest rate.

While that might sound complicated already, there are additional fees allowed by the law that could increase your total borrowing costs above just the interest rate. There could be a processing fee charged of $25 twice a month, or 1% (maximum $40) charged twice a year on larger loans (above $2,500).

There are additional tack on products that can push the amount higher. Credit insurance is often very expensive and completely useless. It is a waste of money. Still, a high number of borrowers end up adding it on, thereby ensuring that they will pay a much higher amount to borrow the money.

SpringLeaf Financial generally prices its loans between 24-30% APR in North Carolina. Your actual interest rate will depend on a few factors.

First what is your credit score? A poor score may require a higher rate. A cosigner with better credit could lower your rate slightly.

Second, is there any collateral? A security interest could reduce the rate.

Finally, do you know what rate you deserve? If you don’t, expect to pay near the maximum rate. If you do take the time to check your credit rating, then you will probably find out from shopping around that you could obtain a much lower interest rate than what SpringLeaf or any other consumer finance company charges. For example, state employees and family members can get a similar rental loan for a 12% rate.

If you are looking to borrow money, I would encourage you to first look to see if you qualify for any of the NC rental assistance loan and grant programs located throughout the state. There are also several transitional housing opportunities in the Charlotte/Mecklenberg County area that could provide a much better alternative to pricey consumer finance loans. You just might be able to get the rental assistance you need without a loan. Even if you must borrow money, there may be an opportunity to get an interest-free loan through a community partner rather that borrowing money at 24-30% APR.

More information about SpringLeaf Financial and interest rates may be obtained from its website or by calling their national hotline at 800-961-5577.