When you need access to financing quickly, turning to online lenders like Roadrunner Financial can be an attractive option. Roadrunner Financial provides installment loans and lines of credit to borrowers, with quick access to funds and minimal paperwork. However, as with any lender, there are both benefits and drawbacks to using their services. This comprehensive review will provide an overview of Roadrunner Financial, eligibility requirements, repayment terms, interest rates, customer service, and pros and cons to consider before applying.
Overview of Roadrunner Financial
Roadrunner Financial is an online installment loan provider founded in 2010 and based in Chicago, IL. They provide access to fixed-term installment loans and revolving lines of credit ranging from $500 to $10,000 for borrowers with fair credit or better. Here are some key details on their products and services:
Products and Services Offered
- Installment loans– Fixed-term loans ranging from 6 to 48 months in term length. Loan amounts range from $1,000 to $10,000.
- Credit lines– Revolving line of credit with credit limits up to $10,000. Draws can be taken as needed.
- Credit monitoring services– Free credit score monitoring and analysis for all borrowers.
Fees and Interest Rates
One downside of Roadrunner Financial loans is that they tend to have higher interest rates than some competitors:
- Interest rates range from 29.99% to 179.99% APR
- Origination fees of up to 6% may apply
- Late fees of up to $30 per late payment
Applying for a Roadrunner Financial loan can be completed entirely online. After submitting the initial application, a lending decision is provided in minutes.
Benefits of Using Roadrunner Financial
While the high-interest rates are a definite drawback, there are some advantages to borrowing from Roadrunner Financial:
One of the biggest advantages of Roadrunner Financial is fast access to funds. Approved borrowers can receive funds as soon as the next business day after approval.
Borrowers can select loan repayment terms ranging from 6 months to 4 years, providing more flexibility than short-term payday loans.
Simple Qualification Requirements
Roadrunner Financial only requires a minimum credit score of 585 and a monthly income of over $1,200 per month. This makes qualification easier than with traditional lenders.
Drawbacks of Roadrunner Financial
Along with the high interest rates, there are some other disadvantages to consider:
- As mentioned previously, Roadrunner Financial’s interest rates can be quite high compared to other personal loan providers. Rates range from 29.99% to 179.99% APR.
- Strict Payment Terms
- The payment terms for Roadrunner Financial loans are strict. Payments are due on the same calendar day each month and late fees apply if payments are not received on time.
- Low Maximum Loan Amounts
- The maximum loan amount offered is only $10,000. Borrowers with higher funding needs may need to look to other lenders.
- Roadrunner Financial vs Competitors
- How does Roadrunner Financial compare to some top competitors in the personal loan space?
- Prosper offers more competitive interest rates starting as low as 6.95% APR. However, max loan amounts only go up to $40,000.
- LendingClub offers similar interest rates to Prosper starting at 8.05% APR. Loan amounts can go up to $40,000.
- Avant provides similar products with APRs ranging from 9.95% to 35.99%. However, their max loan amount is higher at $35,000.
So while competitors may offer lower rates or higher loan amounts, Roadrunner Financial does provide a nice middle-ground option.
Eligibility and Qualification Criteria
- What are the requirements to qualify for a Roadrunner Financial personal loan? Here are the key criteria:
- Credit Score Requirements
- A minimum credit score of 585 is required. The better your credit score, the lower your interest rate will likely be.
- Income Requirements
- Borrowers must provide proof of a regular monthly income of at least $1,200 per month.
- Identification Needed
- A valid government-issued photo ID, Social Security card, and proof of address are required.
- Meeting these simple eligibility criteria is key to qualifying for the best Roadrunner Financial loan terms.
The Loan Application Process
- Applying for a personal loan through Roadrunner Financial is designed to be quick and convenient:
- Applying Online
- The entire application process can be completed on their website in minutes. You’ll input personal details, employment information, and bank account info.
- Document Uploads
- After starting your application, you may need to upload documentation to verify your income, identity, and address.
- Application Review
- Roadrunner Financial states that a lending decision can be provided in as little as 3 minutes after your complete application is submitted.
- Funding Timeline
- If approved, you can receive your loan funds via direct deposit as soon as the next business day.
- The online-focused, streamlined application process makes getting a Roadrunner Financial loan very convenient.
Repayment of Roadrunner Financial Loans
- Roadrunner Financial offers auto-pay discounts and multiple repayment options:
- Payment Methods
- Payments can be made via auto-pay, online, over the phone, or by mailing a check.
- Auto Pay Discount
- Setting up automated payments from a bank account provides a discount of up to 0.50% on your interest rate.
- Late Fees and Penalties
- Payments are due on the same calendar day each month. A late fee of $30 applies if your payment is late by more than 15 days.
- As long as you pay on time each month, you can avoid fees and penalties.
Customer Service and Support
- Roadrunner Financial provides customer service by phone, email, and through their online account portal:
- Contact Information
- Customer service can be reached at 800-341-2858. Support is available from 9 a.m. to 9 p.m. EST each day.
- Online Account Access
- You can log in to your Roadrunner Financial account to make payments, check balances, and manage your loan details.
- Mobile App
- Their iOS/Android app allows you to access your account on the go and make loan payments from your phone.
- Roadrunner Financial provides solid customer support channels to assist borrowers when needed.
Pros and Cons of Roadrunner Financial
Here is a quick recap of the key advantages and disadvantages of using Roadrunner Financial:
- Fast funding as soon as the next business day
- Flexible loan term lengths
- Easy qualification requirements
- Simple online application process
- Mobile app and autopay discounts
- Interest rates are very high
- Strict repayment terms
- Maximum loan amount of $10,000
- Late fees and penalties apply
Weighing these pros and cons can help determine if a Roadrunner Financial loan is the right choice for your needs.
What credit score is needed for Roadrunner Financial?
You need a minimum credit score of 585 to qualify for a Roadrunner Financial personal loan. The higher your score, the lower your interest rate.
How long does it take to get loan funds from Roadrunner Financial?
Roadrunner Financial provides very fast funding. If approved, you can receive your loan funds via direct deposit as soon as the next business day.
Can you get a Roadrunner Financial loan with bad credit?
Borrowers can qualify for a Roadrunner Financial loan with bad credit, but a minimum 585 FICO score is required. Those with poor credit below 585 may not qualify.
What states does Roadrunner Financial operate in?
Roadrunner Financial provides online installment loans and lines of credit to borrowers in the following 17 states: Arizona, California, Delaware, Florida, Georgia, Illinois, Missouri, New Mexico, Ohio, South Carolina, Tennessee, Texas, Utah, Virginia, Wisconsin, and Wyoming.
Does Roadrunner Financial do hard or soft credit checks?
Roadrunner Financial performs a hard credit inquiry when you apply for one of their loans. This can temporarily impact your credit score. Many lenders require hard pulls to verify identity and underwrite loans.
Overall, Roadrunner Financial can provide fast access to installment loan financing for borrowers with fair credit. Just be sure to consider the high-interest rates and strict repayment terms before borrowing. Roadrunner Financial loans are best suited for smaller loan amounts needed quickly that can be repaid responsibly within 6 months to 4 years.
Taking the time to weigh all the options allows you to make the best personal finance decision when unexpected expenses come up.
Faizan Ahmad is a financial analyst and writer who specializes in investments, banking, and corporate finance. He has over 7 years of experience working in the finance industry in various roles.
He leverages his strong financial modeling and data analysis skills to provide insightful commentary on business, markets, and economic trends.
At Ventures Money, Faizan covers topics including Credit Card Reviews, Loans, Insurance, and Mutual Funds in the banking sector. He provides in-depth analysis of the latest news and trends to help readers make smart investment decisions.
Outside of writing, Faizan enjoys following the stock market, rooting for his favorite sports teams, and spending time with his family.