Debt Consolidation Loan:
Frequently Asked Questions

You Have Questions. We Have Answers.

Debt Consolidation Loan:<br>Frequently Asked  Questions background

Applying for a loan

  • Question: How do I apply?
    Answer:

    Applying is by invitation only. If you are potentially eligible for the Versara Consolidation Loan, one of our Sales Consultants will reach out to you by phone and/or email. The steps to apply include the following:

    1. One of our financial consultants will contact you to explain the loan product and application process.
    2. If you are interested in checking your rate, the financial consultant will ask you some basic information and check your eligibility by having our proprietary algorithm conduct a soft inquiry into your credit report. This will not impact your credit score in any way. This process of determining your rate should take no longer than a few minutes.
    3. If you are pre-approved, the financial consultant will review your offer in greater detail. This includes your interest rate, APR, monthly payments, and loan duration. If you would like to proceed with the application, the financial consultant will email you a link to your online application portal.
    4. Once you verify your account and e-sign your Truth in Lending Agreement, the remainder of the online application is broken down via a To Do List, in which you will be guided through our quick, user friendly process of verifying your information before receiving your funds. Please note that you are still able to cancel your application after you sign the Truth in Lending Agreement.

    The first three steps can be as quick as 5 minutes. Step four can be as quick as 2-3 business days.

  • Question: How long does the application process take?
    Answer:

    The entire application process from start to finish, can take anywhere between 3 business days to 2 weeks. This entirely depends on how fast you successfully complete your To-Do List.

    As a reminder, applying for a Versara Consolidation loan is by invitation only. Once you are contacted by one of our Financial Consultants, you will know within minutes if you are pre-approved. At that point, if you chose to proceed, you will be directed to complete an online application, where you will be asked to fill out some basic information and provide various documentation to verify your identity and income. These steps will be laid out in the form of a user-friendly To-Do List. The faster you successfully complete your To-Do List, the faster you will be notified the final status of your application.

  • Question: When will I receive my funds?
    Answer:

    This entirely depends on how fast you successfully complete your To-Do List. Once you have received notice that you have been formally approved for the loan, meaning you have successfully completed your To-Do list (including verifying your bank account), you will receive the funds in your bank account within 1-2 business days.

  • Question: What is the Truth in Lending Agreement?
    Answer:

    The Truth in Lending Agreement (TILA) is a standard form designed to help you understand your loan’s specific terms, including but not limited to the following:

    • Total Loan Amount – The loan amount that you have been approved for
    • Total of payments – The total number of monthly payments you’ll pay by the end of your loan lifecycle. This is an estimation, assuming you’ll make timely payments and no extra payments.
    • Annual Percentage Rate (APR) – This reflects your annual interest rate and origination fee. For more information, please refer to What is the difference between my interest rate and APR?.
    • Finance Charge – This amount shows the total amount you’ll pay in interest throughout the entire lifecycle of your loan. This is an estimate, assuming you only make timely payment with no prepayments or an early payoff.
    • Amount Financed – This is the amount you will be receiving in your bank account after your loan funds are disbursed. This is essentially the total loan amount minus origination fee.
    Note: This graphic can be scrolled to the right.
    $20,000 loan
    $19,000
    $626.87 per month

    Your actual monthly payment will vary based on the terms and conditions of your loan offer (which includes your APR, loan amount, term, and origination fee). The example above is provided for illustrative purposes only, your experience may be different.

    Once you sign the TILA, you can access and download it at any time in your online Versara account.

  • Question: What is my To-Do List?
    Answer:

    Your online application is broken down to a quick user-friendly format via your To-Do List, which will request you to verify some basic information with regards to your identity, bank account, and income/employment. Your To-Do List is broken down to the following four steps:

    1. Enter Income/Employment Information: You will be requested to input some basic information regarding your employment/income source(s)
    2. Verify Identity: For your security, you will be requested to enter your full social security number.
    3. Enter Bank Account information: In this step, you will enter the bank account information in which the funds will be deposited/the monthly payments will be withdrawn. Please make sure that the bank account you add is the same bank account in which you receive your income. After you finish step four (upload documents), you will be asked to verify your bank account by confirming a small test credit transaction (less than $1) that will be deposited into your bank account.
    4. Upload Documents: For the final step you will be requested to upload a few documents in order to verify your identity (such as a primary form of ID), along with the income you stated on your application. The income documents required depends on your income source(s) and shouldn’t include more than 1-2 documents per income source.
  • Question: What documents do I need to provide to verify my income?
    Answer:

    The income documents we will request depends on your income source. We require the following documents per employment status/income source:

    Note: This table can be scrolled to the right.
    Employment Status Required Income Verification Documents What Versara Verifies
    Full-time One pay stub dated within the last 30 days Applicant Name, Employer, Current gross pay, YTD gross amount
    Part-time One pay stub dated within the last 30 days Applicant Name, Employer, Current gross pay, YTD gross amount
    Self-Employed One most recent tax return (or 1099) with relevant schedules Net profit/loss from business (or annual income on 1099)
    Retired Only recent 1099S or recent award letter Applicant Name, Gross annual income from social security or retirement income source

    Please keep in mind that if the provided income documents do not sufficiently verify the annual income you stated on the application, we will not be able to proceed with the application.

  • Question: Why do I need to state my annual income accurately on my application?
    Answer:

    When you initially begin the application process, the financial consultant will ask you for your annual income before checking your rate. If you are pre-approved and you proceed with the application, our verification team will request various documents to verify your stated annual income. If there is a substantial discrepancy between your stated income and the income we can verify on your provided income documents, we will not be able the proceed with the application. The main reason for this is that your eligibility and interest rate was partly determined based on your stated annual income, therefore we must verify your stated income during the online application process.

  • Question: Must I be employed to be eligible for the loan?
    Answer:

    The minimum annual income threshold to be eligible for this loan is $10,000. You do not need to be employed to be eligible for a Versara Consolidation Loan. However, you do need to have a source of income that is verifiable through requested documentation.

  • Question: Does applying affect my FICO score?
    Answer:

    Checking your rate has no impact on your credit score. We conduct a soft inquiry to check your rate, which means that there will be no record of it on your credit report.

    However, once you accept the loan offer and successfully complete the entirety of your online application, we will conduct a hard inquiry on your credit report as the final step in the decisioning process, which will appear on your credit report and may affect your credit score.

  • Question: What are the basic eligibility requirements?
    Answer:

    Our basic eligibility requirements are that you must:

    • be a U.S. citizens or permanent resident;
    • be at least 18 years old;
    • have a valid Social Security number;
    • have a valid email account
    • have a bank account at a U.S. financial institution with a routing transit number;
    • satisfy our credit criteria
  • Question: To which states are loans provided?
    Answer:

    We currently offer consolidation loans to residents of the following states: AR, AZ, FL, GA, HI, KY, NC, NE, NH, NM, UT.

    We are constantly expanding the number of states we are servicing, so please check back periodically if your state is not currently included above.

  • Question: Do you accept joint applications?
    Answer:

    Yes, we do accept application with co-applicants. Once you are pre-approved over the phone with one of our financial consultants, the co-applicant (if applicable) will also need to complete an online application to verify his/her identity and income.

  • Question: How will I receive the funds?
    Answer:

    Once you have successfully completed the To Do List on your online application and have been officially approved for the loan, the funds will be directly deposited into the bank account you provided on your online application. This is the only option available for receiving your funds.

  • Question: Can I cancel my application after I am pre-approved?
    Answer:

    You can cancel your loan application at any time during the application process. However, if you do decide to cancel the application, please call our customer service number as soon as possible. This is because once you get to the final stage in the application process, unless we hear from you otherwise, we will proceed to approve the loan and disburse the funds into your bank account. Once the funds have been disbursed it will be too late to cancel the application.

Your Loan Offer

  • Question: How is my interest rate calculated?
    Answer:

    Our interest rates vary between 3.32% and 26.06%. Your interest rate is calculated by our proprietary algorithm at the initial point of application with one of our Financial Consultants. By conducting a soft inquiry into your credit report, our algorithm considers many various factors throughout your credit history along with your stated income, which will require further verification through requested documentation in the later stages of the application.

  • Question: Can I change my rate?
    Answer:

    No. Once your interest rate is determined by our algorithm, its terms cannot be changed.

  • Question: What is the difference between my interest rate and APR?
    Answer:

    The Annual Percentage Rate (APR) is your true cost of borrowing on an annual basis. The APR essentially factors in both the interest rate and the origination fee.

  • Question: What is the Origination Fee?
    Answer:

    The origination fee is a one-time fee (5% of the total loan amount) to cover the cost of processing the application. The origination fee is included in your APR and is only charged if you receive the loan, which will be deducted from your principal at the time the funds are disbursed into your bank account.

    The origination fee is the only fee associated with receiving the loan.

Payments

  • Question: When are my payments due?
    Answer:

    Your monthly payment is due 30 calendar days from when the loan is disbursed into your bank account. So, if you received the loan on the 10th, your monthly payment will be due on the 10th of every month (unless otherwise requested).

  • Question: Can I switch payment methods?
    Answer:

    Your default payment method is direct pay (or via withdrawal from your bank account).

    Your second method is to pay via personal check (check must be under your name or under name of the co-applicant). Payments by check are subject to an additional $15 check processing fee and must be mailed to us on time or face potential late fees.

  • Question: What happens if I’m late on a payment?
    Answer:

    Payments that are 14+ calendar days late are subject to a $15 late fee. The late fee is separate from the $15 return fee. This means that you are potentially subject to $30 in fees on a given payment if it returns and/or is late. The funds from the next successful payment will be partially allocated to satisfying all fees associated with returned and late payments.

  • Question: What happens if my payment returns due to insufficient funds?
    Answer:

    If your monthly payment returns due to insufficient funds in your bank account, your loan is subject to a $15 return fee (AKA NSF fee). Please keep in mind that this NSF fee is separate from of a Late Fee, meaning that you are potentially subject to $30 in fees on a given payment if it returns and/or is late. The funds from the next successful payment will be partially allocated to satisfying all fees associated with returned and late payments.

  • Question: How can I make prepayments?
    Answer:

    To make a prepayment, call our customer service team at 1-855-397-3392. The prepayment does not have to fall on your designated monthly payment date, but you must make the prepayment request at least 1-2 business days prior to its intended date.

    As a reminder, the prepayments will be solely allocated to paying down your principal, therefore only affecting the remaining loan term, which will be shortened. The monthly payment amount will remain the same.

  • Question: How can I Payoff my loan?
    Answer:

    To schedule a loan payoff, call our customer service team at 1-855-397-3392. Please keep in mind that the payoff amount will often differ from your current loan balance. In addition to remaining principal, the loan payoff amount will include all unpaid fees (late fees and return fees), along with any interest you owe up until the point you intend on paying off the loan.

  • Question: How can I change my bank account information?
    Answer:

    To change your bank account, simply log into your online account and edit your banking information on your homepage. Once you update your bank information, you will still have to verify your bank account through a small test credit (less than a dollar) that will appear on your transaction history approximately 2 business days after updating your bank information.

    You must verify the bank account for it to link to your Versara account. Therefore, if you add your bank account less than 2 business days prior to an upcoming payment, the payment will not be withdrawn from the updated bank account.

  • Question: Can I reschedule the date on an upcoming payment?
    Answer:

    Yes, you can. You can reschedule/postpone the payment by up to 14 days without incurring any late fees. To reschedule a payment, please call our customer support number at 1-855-397-3392.