Backed Personal Loan Review: Low Rates for Cosigned Personal Loans or Creditworthy Borrowers

Backed Personal Loan Review: Low Rates for Cosigned Personal Loans or Creditworthy Borrowers

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For poor credit borrowers willing to use a cosigner, Backed may be one of the best options for getting an unsecured personal loan. And in case you think Backed is only for cosigned loans, it’s also an excellent choice for borrowers with great credit because of its low rates. Backed offers personal loans from $3,000 to $25,000 with rates between 2.9% and 15.99% and terms of one, two or three years. One major downside to Backed is that it is currently only available in six states: Arkansas, Arizona, Florida, New Jersey, New York and West Virginia.

Backed Personal Loan Review: Should You Apply?

If you’ve had trouble qualifying for a personal loan, consider a cosigned loan from Backed. Backed is also a great choice for borrowers with excellent personal credit. You can borrow between $3,000 and $25,000 through Backed with rates from 2.9% to 15.99% and terms of one to three years.

Good for...Bad for...
  • Cosigned personal loans
  • Low rates for good to excellent credit
  • Borrowers outside AR, AZ, FL NJ, NY, and WV
  • Personal loans over $25k

Backed is one of the best online options for getting a cosigned personal loan. When you apply at Backed, you can add a “backer” to your loan, which can help you get approved and qualify for a lower rate. Your backer must meet the minimum eligibility criteria at Backed, which includes a minimum FICO score of 660 and at least $18,000 in annual income. And unlike a traditional cosigner, backers are informed immediately of any late or missed payments and are given a 15 day grace period before any late fees or credit reporting begins. Even if you don’t need a cosigner, Backed offers very competitive interest rates on its loans from 2.9% to 15.99%.

Backed is also willing to give you a better rate if you demonstrate good payment history. If you repay your loan for 12 months without any issues, you can apply for a better rate on your loan. However, if you do make a late payment or a rejected payment, you will be charged a fee: $20 for a late payment and $15 for non-sufficient funds. There are also origination and check processing fees associated with every Backed personal loan.

You can only borrow up to $25,000 through Backed, which is lower than what we've found many other lenders offer. Typically, online lenders will let borrowers take out up to $30,00 or $40,000, with some lenders allowing amounts up to $100,000. If you need serious cash, you should shop for a personal loan elsewhere (lenders like SoFi, LightStream and Wells Fargo offer unsecured personal loans up to $100,000). Another downside to Backed is that it is currently only available in a handful of states: Arkansas, Arizona, Florida, New Jersey, New York and West Virginia. And if you live in Arizona, you must borrow more than $10,000 through Backed.

Eligibility Criteria

To be eligible for a Backed personal loan, you or your cosigner must meet the following requirements:

  • U.S. citizen or permanent resident
  • At least 18 years old
  • Be employed with at least $18,000 in annual income
  • Credit score of 660 or higher
  • No bankruptcies in last 7 years
  • No current delinquencies

Meeting these requirements does not guarantee that you will be approved for a loan, but you will need to meet these criteria to even be considered.

Backed Personal Loan Terms and Requirements

Backed offers unsecured personal loans up to $25,000 with terms from one to three years. Backed encourages borrowers who may have trouble qualifying to apply with a cosigner to get approved and receive better rates.

Loan Amount Range$3,000 - $25,000
APR Range2.90% - 15.99%
  • Origination fee: 0.8% - 2.0%
  • Late payment fee: $20
  • NSF/returned payment fee: $15
  • Check processing fee: $10
  • No prepayment penalty
Loan Terms1, 2 or 3 years
Repayment OptionsMonthly
Direct Payment to CreditorsNo

Application Process

As a first step, you’ll need to fill out an online pre-qualification form. You’ll need to tell Backed about the amount of money you need and your planned use of the funds, your educational and employment history, your housing situation and other personal information. Once you enter this information, Backed will ask for your Social Security Number to conduct a soft credit pull. This will not affect your credit score.

Application ProcessOnline
Time to Get Funds2-10 days
Credit Check
  • Soft credit check to get rate
  • Hard credit check when you apply
Credit ReportingYes
Cosigners/Co-borrowers Allowed?Yes

After Backed receives your credit information, you will either be preliminarily approved or denied. If you are approved, Backed will give you a loan offer that includes the loan amount, term, APR and monthly payment schedule. Should you choose to accept this offer, Backed will need to verify the information you provided to officially approve you for the loan. To verify your identity, Backed may ask for a copy of your government-issued ID, recent pay stubs, access to online bank accounts and a copy of a utility bill. Once you provide these documents, Backed will verify your information. If everything checks out, Backed will have you sign a loan agreement to receive your funds. Funds are usually deposited to your bank account within a few business days.

How Does Backed Compare to Other Lenders?

Before you commit to a loan from Backed, it may be a good idea to shop around. Below, we take a look at some of Backed’s major competitors.

Backed vs. Earnest

  • on LendingTree's secure website
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Like Backed, Earnest has excellent interest rates, but it’s a better choice than Backed if you need to borrow more than $25,000. Through Earnest, you can borrow up to $50,000 with APRs between 5.99% and 17.24%. Earnest also looks for creditworthy borrowers, preferring individuals with several years of credit history, little non-mortgage debt, demonstrated ability to save and good credit scores. Because of this, we do not recommend Earnest for a debt consolidation loan -- rather, Earnest is great if you need money for a large purchase or investment, such as moving expenses, home improvement or a vacation.

Backed vs. Avant

  • on LendingTree's secure website
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If you can’t qualify for a Backed personal loan without a cosigner, consider a personal loan from Avant. Most borrowers at Avant have credit scores between 600 and 700, so it can be a good choice for borrowers with scores under 660 (this is the credit cutoff at Backed). However, we recommend that borrowers have credit scores of at least 580 to apply to Avant, so it’s not a good option for those with very poor credit. Avant offers higher loan amounts than Backed, up to $35,000. Rates at Avant are between 9.95% and 35.99% with terms from two to five years. Similar to Backed, it will take a few days to receive funds if you are approved for a loan.

Backed vs. Upstart

  • on LendingTree's secure website
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Upstart can be a great choice if you need more than $25,000 or are looking to take a coding bootcamp. Upstart allows you to borrow up to $50,000 for terms of three or five years. While rates are higher than at Backed -- 8.27% to 35.99% -- Upstart has lower credit requirements, only requiring a 620 credit score to qualify. If you are accepted into one of the lender’s coding bootcamp partners, Upstart will even waive some of its eligibility requirements. Upstart works with 17 major coding bootcamps including Fullstack Academy, Dev Bootcamp and Hack Reactor. If you are approved for a loan from Upstart, you can receive funds within one day.

Madison is a former Research Analyst at ValuePenguin who focused on student loans and personal loans. She graduated from the University of Rochester with a B.A. in Financial Economics with a double minor in Business and Psychology.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.