A wonderful reader received a mailer from Personify and sent it in for review.
The mailer is a great educational opportunity to help you be a wiser consumer to understand the statements made.
The most common statement people seem to not understand well is “pre-qualified.” An average person may assume that if you are pre-qualified for a loan that you have already been approved for the loan. Afterall, pre-qualified means “qualify in advance to take part in something.”
Take for example the mailer shown below.
The initial statement says the consumer is pre-qualified up to $7,000 but the little marks next to those statements refer to the fine print in the mailer.
When the advertisement says “pre-qualified” they further define that as “Prequalification is subject to underwriting, credit review and your credit score at the time pre-funding of your loan. The maximum program APR is 99.99%.”
It is unclear exactly what you are “pre-qualified” for except to apply for the loan.
And while the mailer says you can get up to $7,000, it also says “Loan amount does not reflect 5% origination fee.
Personify Loan Mailer
The mailer also goes on to say, “Your interest rate may decrease over time” but the disclaimer says “Rate reduction applies to interest rate only, not APR. Your interest rate will not be reduced below the program minimum interest rate of 24%.”
Just keep in mind that any time you receive a mailer like this it is an advertisement to sell you a loan. If you have questions, ask them before you agree to any loan from anyone.
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