The ReadyForZero financial company is a debt consolidation company. Their aim is to sell you loans, but their marketing message is that they are trying to help you get rid of your debt. Their marketing message is all about helping you, and yet all of their proposed “solutions” involve using their loan services in some way. They say they want to help, but what they actually do is sell you loans.
On the other hand, if they were to market their true intention with slogans such as “Get out of debt by getting into debt with us,” they may not sell many consolidation loans. Just because their marketing message says one thing, and their actions suggest another, it doesn’t mean they are a bad company…or does it?
Is This Evil Company Trying To Get Me In More Debt?
No, but they are trying to sell you loans. The ReadyForZero business model works by bringing you in, helping you pay off your debt, and getting you in more debt in the future. Here is how it works:
- You are in debt, so you consult their debt consolidation team
- They help you calculate how much debt you are in
- The total figure is the amount of the loan required
- ReadyForZero gives you a loan for that amount
- The loan has a lower interest rate, so you save money
- Their services and tools help you lower your debt with them
- You pay off your debt
- They help you rebuild your credit with more loans
- You rebuild your credit with their loans over time
- All your debt is paid off again
- You now have a fantastic credit score and no debts
- The ReadyForZero solicits you again for new loans at amazing prices
That is their basic business model, and that is how they make you money. They bring you back again and again to put you in more debt, which sounds bad, but every time you follow through with their plan, you come away debt free and with a better credit rating.
Are ReadyForZero The Ones That Are Lending The Money?
In a way, it is ReadyForZero’s money being lent, but that is because they are owned by Avant. The online lender Avant purchased ReadyForZero in March 2015. Since then, Avant has done a great job of marketing ReadyForZero with a “Less is more” strategy. Their website and their adverts are not loaded with offers and nutty claims. All of their marketing is very direct and very simple, and it works exceedingly well. Avant is providing most of the loans, but ReadyForZero is also partnered up with the LendingClub and Pave.
Who Are The Lending Club?
The LendingClub is actually a US peer-to-peer lending company that was an amazing company and a great testament to the power of peer-to-peer lending. That was until the jackass CEO Renaud Laplanche’s ruined it by allowing the sale of $22 million in near-prime loans to be purchased by a single institutional investor.
The French ex-CEO Renaud Laplanche was the first person to set up a billion dollar Peer-to-peer lending company. He was leading the way in the industry and proving that peer-to-peer lending had a real future. That was until he ruined it all. He destabilized peer-to-peer lending and tarnished the industry forever by lending $22 million to one investor (which is bad), and not disclosing it (which is just as bad).
Who Is The Pave Lending Company?
Pave is a small company that only lends amounts up to $25,000. They offer 2-3 year terms, they have no pre-payment penalties, and they charge slightly higher rates of between 7.18% and 31.16% APR.
Pave is aiming for people who already have debt, and people who have a below average credit rating. They have slightly higher APR rates, but rates of around 32% are no worse than the average credit card rate.
How Does Their ReadyForZero’s Debt Consolidation Tool work?
The consolidation tool is nothing more than a very simple comparison tool. Enter your details and it generates a list of debt consolidation offers. They come from the three lending companies listed above, along with their sister, brother and affiliated companies.
The tool shows you results with details of the deals for which you may apply. Some have a slightly longer repayment schedules, some have lower interest rates, and some reduce your balance a little. You get to pick the one that best fits you and your situation. It is then up to you to apply for the consolidation loan.
The tool is free to use, and it doesn’t run a credit search, so your credit rating will not be affected by you using this tool.
What Is An Equal Housing Lender?
The ReadyForZero Company is actually an equal housing lender, but you wouldn’t know it unless you go to their homepage and squint at the icon at the very bottom of the page.
An equal housing lender means that they do not discriminate against people based on things such as the location of their house, or other factors that “shouldn’t” affect a person’s ability to repay their loan.
These things “shouldn’t” affect a person’s ability to get a loan in a perfect world, but the fact is that they do. If a person is from a country that is currently in a big civil war, there is a higher statistical chance that the person may have his or her assets stripped and/or be imprisoned or killed. If a person lives in a very rough area, there is a bigger chance that person will be robbed and will therefore miss payments.
A Slightly Higher Price Is Needed
The fact that the company is an equal housing lender means that they have to raise their prices in order to compensate for the bad debts that they are forced to take on. The equal housing icon is synonymous with higher rates, which is probably why the icon is tucked away at the bottom of the screen.
If credit companies do not have full control over whom they lend to, then they are forced to take losses and are therefore forced to put their prices up. In the image below, you can see the tiny equal housing icon hidden away. You can also see three buttons. The one on the left is for if you are in debt and you need help. Debt consolidation is not always ideal for people who have car payments and/or loans. They are mostly for people in credit card debt, or for people who have terrible interest rates on their car repayments and/or loans.
You Have Three Options On The Home Page
Debt consolidation is best used by people who are in credit card debt because they can turn their never-ending debt into an easily repaid loan. If you keep paying the minimums on your credit card, you will be in debt forever, but if you pay the minimum on your loan, then one day it will be paid off.
Your second option, as seen on the image above, is a personal loan. This is the button you hit if you have a good credit rating and you are shopping around for better interest rates. There is a chance that ReadyForZero will offer you a good deal, but it all depends on your circumstances and the parameters/demands of your lending.
The button on the right is for people who want to borrow, but who have a bad or poor credit rating. The ReadyForZero will help you build your credit rating up, even if it means taking on a few smaller loans and proving that you can pay them off without missing payments.
What About Your FICO Score?
Using the ReadyForZero service and tools will not affect your FICO® Score (your credit rating/ credit score). ReadyForZero runs soft searches that are not noted on your credit report. They only run a real search after you have applied for a loan or a service and you have confirmed that you want the loan and that you are happy for ReadyForZero to run a credit check.
What Credit Score Do I Need To Qualify?
You are going to need a credit rating that is at least fair, which is a score of 640+. However, the ReadyForZero staff members encourage people to run a search and apply for their loans no matter what their credit score. If you have a higher credit rating, then you improve your chances of having your credit request accepted.
The lenders that work with ReadyForZero are not banks, which mean they are not as hung up on credit ratings. They still consider your credit rating, but because the ReadyForZero credit companies have a number of different rules, a poor credit rating may not forbid you from getting a loan. They may still be able to offer you some sort of consolidation help at the very least.
Do People Misuse Their Debt Consolidation From ReadyForZero?
Boy do they ever! If you were to get a debt consolidation loan from your bank to pay off your credit cards and overdrafts with the bank, then your bank may take the money you borrow, pay off the debts, and close the accounts. But, ReadyForZero cannot do that.
When you say you are going to use their money to pay off your debts, they cannot stop you from taking what you borrowed and going to Vegas and going on a bender. It is in the ReadyForZero’s interest for you to pay off your outstanding debt and consolidate it into the loan they have given you. It is in ReadyForZero’s interest because it lowers your outgoings and ergo lowers the chances that you will miss payments for their loan.
If You Misuse A ReadyForZero Loan, Will They Give You Another?
The people who say they are going to consolidate their debts–and then do not–are breaking their consolidation loan agreement. If those same people pay off their consolidation debt, then ReadyForZero will give them another consolidation loan if the same people re-apply.
Even though ReadyForZero knows that the borrower didn’t use the consolidation loan to consolidate, they will lend the borrower money again because the borrower paid it off last time, which means they are reliable customers.
The ReadyForZero Company Has A Brilliant App
No ReadyForZero review is complete without mentioning the app. It is their app that most people are thrilled about. Many people are claiming they have paid off thousands because of the app that ReadyForZero produced.
It is a tool for people who have taken out some sort of loan or service with ReadyForZero. The app is free for customers of ReadyForZero to download and use. It has a series of powerful tools that allow you to track your debt and your credit.
It allows you to manage your debt and it reduces your credit utilization, which may have a positive effect on your credit rating. The app uses bank-level encryption to stop hackers stealing your information.
- The app allows you to see your credit score
- You may track the progress of your credit score
- Personalize a repayment plan that will work for you
- See how your debt is being paid down
- See each of your debt repayments and the impact they are having
- Find offers and savings that will help improve your financial situation
- Receive alerts about your debt and credit rating
- Get updates about your upcoming deposits and payments
- Receive personalized recommendations
Conclusion – A Reasonable Way Of Cutting Debt
ReadyForZero wishes to sell you more debt in order to help you get out of debt, which will in turn help your credit rating. Frankly, it is a nutty way to get out of debt and improve your credit rating, but it will work if you are smart about the loans you choose, and if you do not do anything to damage your credit rating while you are in debt to ReadyForZero. The Smartphone app is a great perk of the service too. If you have been struggling to get out of debt for years, and you are sure you will not do anything to damage your credit rating in the near-to-intermediate future, then try ReadyForZero.