I researched Viva Finance to understand their offerings, how their services work, and whether they could assist someone in financial need. Being able to distinguish different financial services can determine where someone goes to get the financial help they need.
When analyzing a financial service, there are key factors I look into. The first is figuring out the service’s eligibility requirements. I look to see how long the process to receive assistance takes. I also look into the terms of service, payment, and potential costs, if any.
All of this helps the consumer looking into the financial service make an informed decision. It gives the consumer the ability to evaluate the cost vs. the benefits of the service, like other offers in the market. Those looking into using the service should check the official information of the financial service provider as well.
I have broken down the service into easy-to-understand parts. I explain the service, how to use it, the advantages and disadvantages, and key considerations before using the service. My goal is to give a clear, concise, and helpful breakdown of the financial service so that you may understand what options are available to you, if any.
What is Viva Finance?
Viva Finance, Inc. is a U.S. financial services company that provides unsecured personal installment loans and emphasizes evaluating employees based on their workplace information. The company aims to increase access to credit with their alternative underwriting approach.
Depending on the arrangement, loan offer, and member bank, loans may be originated by Viva Finance, Inc., Thread Bank, or DR Bank.
The company primarily provides financing to employees seeking to pay off existing debt and/or cover expenses. Loan amounts may be up to $15,000; however, the exact amount is determined by approval and the terms offered.
Before addressing a competitor’s description of the product, I would recommend checking Viva Finance’s official information. It may help clarify the verified product details and dispel misconceptions and/or out-of-date information.
How Does Viva Finance Work?
The online application process is a significant departure from the traditional bank application process. Instead of having to visit a bank first, as is the case for a traditional bank application, eligible clients of Viva Finance can first start an application process and then, in the same digital process, review a possible offer.
Essentially, the client is asked to identify his/her employer, create an account, and initiate the pre-approval process to view possible rates. If the offer is accepted, the client fills in the required forms and sets up the repayment method of his/her choice.
It is worth noting that the 2-day turnaround time specified by the company for processing the loan funds after the contract is signed is an estimate. More applications, in all probability, will take longer.
What Financial Services Does Viva Finance Offer?
The company’s primary products are unsecured personal installment loans. Depending on the individual situation, these loans can be used to manage various types of financial emergencies or be used to consolidate debt when the terms make financial sense.
In addition, the company gives examples of debt consolidation, credit card refinancing, and unexpected expenses as potential uses of the loans. However, borrowing money to consolidate debt only makes sense if the overall cost and repayment structure of the new debt is more favorable than the existing debt.
The company states that loans can range from $2,000 to $15,000, and the terms can range from 12 to 36 months. The final loan amount, term and rate are determined by individual situations, and not every applicant will qualify for the maximum amount.
It’s important to remember that the advertised loan amounts are upper limits and not guarantees. Make sure you can afford the loan payments within your normal budget before applying.
Who Is Eligible for Viva Finance?
One of the first things I would check when starting a loan application is eligibility. From what I can tell from Viva Finance’s underwriting process, employment details of the applicant, their employer and their income may play an important role during the assessment process.
It is possible that an applicant would need to provide their two most recent pay stubs, their hire date document and a government-issued ID. Requirements may vary on an applicant-to-applicant or employer-to-employer basis, so it is a good idea to get the necessary documentation beforehand.
It is important to note that an employment-based underwriting approach does not mean that someone with a job will be approved, and it also does not mean that an applicant will receive a low APR.
Lending through Viva Finance is not currently available to active military members or their dependents. Interested applicants should review current eligibility and state-specific rules before applying.
How to Apply for Viva Finance?
The application process is entirely online, and thankfully, not very complicated. The main thing I would highlight is to take your time while providing your information, particularly personal and financial information. A rushed or careless application can result in a delayed process because documents may not be complete or information may not be consistent.
Here is a practical way to prepare:
- Visit the company’s official website and find the application option.
- Locate your employer and create an account.
- Provide the requested personal, employment, and income information.
- Upload any required documents and complete verification.
- Review the pre-approval information and available loan offer.
- Read the agreement carefully before accepting the terms.
If your employer is not on the list, the company’s FAQ states that you can submit a request for consideration for your employer to be added. There is no guarantee the request will be approved, and further verification may be required.
Funding is processed within 1-2 business days after the contract is signed, according to the company. I would advise not to make any urgent or specific spending commitments until the funds have been deposited into your account.
What Are the Benefits of Viva Finance?
One benefit may be the convenience of applying online for an appointment instead of having to schedule an in-person appointment, and the employment-focused underwriting for personal loans may offer another route to potential customers evaluating personal loan options.
Another benefit of an installment loan may be the ability to plan financially with the assurance of having a defined repayment schedule. This may be beneficial to borrowers who rely on credit with an uncertain payoff schedule.
Once again, the company states that there is no penalty for prepaying the loan. This may benefit borrowers if they receive lump-sum payments and want to reduce their outstanding balance, as long as they confirm how extra payments are applied.
An example of a situation where an installment loan may be beneficial is if a borrower needs a certain amount of money to cover the cost of a necessary and urgent expense (for example, if your car breaks down and you can’t get to work). In this case, the loan may provide immediate financial relief. However, the real benefit and the monthly payments may not be within your means. You should always carefully plan and evaluate your financial situation.
Understand These Terms to Determine The Cost of A Loan
The cost of a loan is made up of the interest rate charged, fees, and other costs associated with obtaining the loan. The company states that the APR is within the range of 11.99% to 35.99% with fees and other costs of the loan included, and with repayment terms up to 36 months. The actual offer made to you may be different from what is stated here based on the company’s credit standards and decisions applied to your loan request.
As an illustration, the company shows what a loan of $4,000 would look like at a 19.60% APR. In this example, the monthly payment would be $204.45, and at the end of 24 months, the total amount the borrower would repay would be $4,906.80.
Not every offer will include a breakdown of costs to the detail of the illustrative example. Compare offers carefully. The monthly payment may not reflect the total cost of the loan if the loan has a longer repayment term.
Loan disclosures detail costs and other terms and conditions of the loan. Carefully review these disclosures and compare the terms offered by several lenders to assess competitiveness of terms.
Is Viva Finance Legitimate and Safe to Use?
Before providing sensitive information or accepting a loan, I would ensure that a company is legitimate, licensed, and that the terms and conditions of the contract are clear. In this case, the company has identified itself as Viva Finance, Inc., in the disclosures provided and includes business and licensing information and contact information.
The company discloses that it is not a bank. It further explains that various lenders may originate the loans offered through the company’s services. This is important to know since the loan document and applicable lender are not always the same. Legitimate business information does not necessarily mean a particular loan is suitable for you.
You should read the privacy policy, check how payments are collected and confirm the total repayment amount. If you have any questions, contact the company. Additionally, I would confirm that all loan applications are submitted through the company’s verified official website, rather than through an unexpected email, text message, or other unofficial website.
Viva Finance Pros and Cons
I would assess the advantages and limitations together rather than deciding based on a headline rate or a quick application alone.
Potential advantages
- An online application process.
- Employment-focused underwriting.
- Unsecured installment loans, meaning the loan does not generally require collateral.
- A defined repayment schedule.
- No early repayment penalty, according to the company’s published terms.
Potential disadvantages
- The advertised maximum loan amount is not guaranteed.
- APRs can be relatively high, depending on the offer.
- Approval and terms depend on individual circumstances.
- Documentation and employment verification may take time.
- Regular payments can put pressure on a tight budget.
The key question is whether the financing solves a genuine problem without creating a bigger one. If the monthly payment leaves too little for rent, groceries, utilities, or existing obligations, I would reconsider the amount or explore alternatives.
A loan can be useful, but it is not automatically the best solution simply because an application is convenient.
Alternatives to Viva Finance
I like to have at least 3 loan options to choose from. Which option you choose comes down to how quickly you need the money, your credit profile, the amount you need, and what you are comfortable repaying.
Credit Unions and banks can also give personal loans with differing rates and fees. For existing credit card debt, a balance transfer may be a good option if the promotional terms are in your favor, or a payment plan may be a good option if available from the service provider. For smaller expenses, payment plans may be a good alternative to taking out a new loan. Viva Finance may be a good option if their terms work in your favor, but it may not always be the cheapest.
Be sure to look over the APR, total cost, loan term, fees, and the monthly payment. The best option may not always be the one that gives the largest loan. It may be more prudent to look at your total cost to find a loan that is most suited for your needs.
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Tips for Choosing the Right Financial Solution
Start by determining the amount you really need. The amount you qualify for may not always be the amount you need. If you qualify for a larger loan, that does not mean you need to take out the larger loan. Ask yourself, would taking out a larger loan benefit you? Oftentimes, taking a larger loan can increase your costs unnecessarily.
Determine your monthly repayment budget, and see if the loan repayment is still affordable. If you are considering Viva Finance, carefully look over the final agreement for fees and the APR. Understand the payment schedule for early repayment and look for any loopholes.
Never base your decision on the preliminary offer. Always compare the total cost of the loan with other options. Avoid borrowing to cover recurring expenses, unless you’ve developed a realistic plan to resolve the shortfall. A little planning now can help you avoid financial stress in the future.
Frequently Asked Questions
1. What is Viva Finance used for?
Viva Finance can provide unsecured personal installment loans to applicants who qualify to be used for debt consolidation, credit card refinancing and/or payment of unforeseen bills.
2. Who can apply for Viva Finance?
To be eligible to apply for a loan, an individual must meet certain guidelines. Employment information is a key factor in the company’s evaluation, and income, credit history, and other factors may also affect the company’s decision.
3. How long does the Viva Finance application process take?
The applicant completes the application online. Once approved, the company processes funding within 1 to 2 business days from the time the loan agreement is signed. Verification of information may affect the time it takes the company to process funding.
4. What interest rates does Viva Finance offer?
The APR range is 11.99% to 35.99% and is subject to change. Your individualized APR offer will be listed on your loan agreement, if approved.
5. Can I repay my Viva Finance loan early?
The company states that its loans do not have early repayment penalties. Review your specific agreement to understand how additional payments are handled.
Final Thoughts on Viva Finance
Based on what I have reviewed, Viva Finance is a potential alternative to other personal loans that employees may wish to consider. For the right borrower, Viva may be able to offer a lower total repayment amount and more manageable loans than other lenders.
I would evaluate several options and review every agreement to make sure I completely understood the terms of the loan before signing. There are many options out there to help people meet their short-term needs. People should evaluate the right options so as not to compromise their long-term financial stability.
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