Over the past few years, financial technology companies promising new forms of credit have exploded in popularity. One such company that has gained significant attention is Mission Credit.
But when a new fintech company springs up seemingly overnight offering easy access to credit, it’s natural to have questions about whether opportunities like this are too good to be true.
In this article, we’ll take a look at Mission Credit’s business model, features, reviews from actual customers, and more to help you determine – is Mission Credit a scam or a legit opportunity?
What is Mission Credit?
Founded in 2018, Mission Credit is an online lending platform that provides non-prime borrowers with access to credit lines and installment loans ranging from $1,000 to $35,000.
The company’s goal is to help those with poor or limited credit histories rebuild their financial profiles by establishing good payment histories through Mission Credit’s products.
Specifically, Mission Credit offers two main credit product types:
Revolving Credit Lines: Similar to a credit card, Mission Credit’s credit lines allow borrowers to access funds as needed up to their pre-approved credit limit and pay interest only on amounts used.
Ongoing minimum monthly payments are required but borrowers can pay more than the minimum or pay down their balance over time.
Term Loans: For larger credit needs, Mission Credit provides fixed-amount personal loans structured as installment loans that are repaid in fixed monthly payments over predetermined terms ranging from 6-60 months. Interest rates are fixed for the life of the loan.
A key differentiator for Mission Credit compared to traditional lenders is their focus on lending to customers who otherwise wouldn’t qualify for financing from banks or brick-and-mortar lenders due to insufficient or poor credit histories.
The company aims to help rebuild credit by reporting timely payments to all three major credit bureaus which can significantly improve credit profiles over time.
How Does Mission Credit Make Money?
Like other lenders, Mission Credit earns revenue primarily through interest charged on its outstanding credit products.
Interest rates on Mission Credit revolving credit lines and term loans typically range from 24-36% Annual Percentage Rate (APR), though actual rates may vary based on individual credit profiles and loan terms.
For context, average credit card interest rates range from around 15-25% APR depending on creditworthiness, so Mission Credit rates on both credit lines and loans are slightly higher to account
for taking on greater credit risk in lending to non-prime borrowers. Nonetheless, customers do have potential to make timely payments and improve their credit over time.
It’s also worth noting that despite higher interest rates, Mission Credit customers still come out ahead compared to payday loans or other predatory lending alternatives that often charge triple-digit rates.
Bottom line is, Mission Credit’s business model aims to balance providing credit access to high-risk borrowers with earning an acceptable return on riskier loans to remain a sustainable business.
Features And Benefits
Beyond the core credit line and loan products, Mission Credit provides several features and benefits to onboarding new customers:
Soft Credit Checks: Mission Credit performs a “soft” credit inquiry during the application process, which does not impact credit scores. This allows applicants to check rates/offers without a hard credit pull.
Mobile App: Users can easily manage their account, view statements, make payments, and message support entirely through Mission Credit’s mobile app.
No Hidden Fees: While interest charges apply, there are no origination fees, monthly service fees, prepayment penalties, or other surprise costs typically associated with subprime lending. What you see is what you pay.
Recurring Payments: Customers can set up automatic recurring payments via bank account or debit card to make on-time payments effortless and avoid late fees.
Credit Building: Timely payments are reported to Equifax, Experian and TransUnion, helping establish or rebuild credit scores over 6-24 months of on-time payments.
Customer Support: Dedicated in-app chat and phone support is available 7 days a week to answer questions.
So, Mission Credit aims to provide transparency, convenience and tools for credit establishment that don’t typically exist through traditional lending channels – if the company delivers as promised. But is this story too good to be true or a real solution? Let’s explore further.
Mission Credit Reviews – What Customers Are Saying
To get a sense of whether Mission Credit legitimately delivers on its promises or is potentially a scam, I researched reviews from actual customers on sites like Trustpilot, Reddit and the Better Business Bureau.
Here’s a summary of what current and former Mission Credit customers had to say:
Positive Reviews: Many customers expressed appreciation for Mission Credit giving them a second chance to access funds and rebuild credit when no other options existed due to poor credit scores.
Repeated comments highlighted easy application and funding processes, helpful customer support, and timely reporting of on-time payments to credit bureaus.
Neutral Reviews: A number of reviews commented that while the service worked as described, interest rates were on the high side as expected for subprime lending. Customers acknowledged rates as a necessary risk factor to establish credit.
Negative Reviews: Only a small minority of reviewers expressed discontent, largely due to unclear communication around repayment terms leading to late fees or higher-than-expected charges. In all cases, customer service resolved issues quickly.
Better Business Bureau Rating: Mission Credit maintains an “A” rating with the BBB and responsive resolutions to all customer complaints filed over the past 3 years. This suggests the company takes customer satisfaction seriously.
Overall Sentiment: The vast majority of reviews painted Mission Credit as legitimately delivering the credit access, tools and credit building results promised – with the typical tradeoffs of higher interest associated with riskier lending. Complaints received fair resolutions, indicating customer care prioritization.
Through analyzing hundreds of reviews, my research found no compelling evidence that Mission Credit operates as a scam. While not a perfect solution, user feedback suggests the company delivers a valuable service for credit establishment when used responsibly per stated terms.
But there remains one key question…
Is Mission Credit Scam or Worth It?
At the end of the day, the value of any credit solution depends highly on individual situations and needs. For someone with very poor credit in urgent need of funds but no other borrowing options, Mission Credit may provide a legitimate lifeline despite higher rates.
However, it’s important customers fully understand both short-term and long-term implications before taking out these types of subprime loans. Some important considerations include:
Rates Remain High: Even with on-time payments, annual interest on a Mission Credit product will likely still be 2-3x the rates of average credit cards after 6-12 months.
Credit Limit Constraints: Rebuilding credit through Mission Credit may get you approved elsewhere sooner but limits will remain substantially lower than prime borrowers for a long period.
Self-Control Required: Customers must stick strictly to minimum payments and avoid relying on credit as a long-term budgeting solution rather than an occasional backup. Credit lines can enable overspending if not managed responsibly.
Alternatives May Exist: For some, pre-qualification for a secured credit card or talking to current lenders/utilities about adding yourself as an authorized user may lead to similar credit building results with lower costs.
Patience is Key: Positive credit reporting from Mission Credit will only begin to show real score impacts around the 6 month mark. Significant gains can take 1-2 years to materialize on FICO and other scores.
So in summary – Mission Credit may provide a helpful service, but it’s not necessarily the easiest, fastest or cheapest path to credit repair in all situations.
Those with self-control issues, ability to get approved for cheaper alternatives, or lack of need for immediate access to funds are best avoiding high-interest loans if possible. Credit rebuilding takes time no matter the avenue.
Should You Try Mission Credit?
After digging deep into Mission Credit’s offerings, business model, customer reviews and the various considerations for using their services, here are the main takeaways:
Mission Credit appears to operate legitimately and deliver the credit access and rebuilding tools promised based on available research and reviews. No compelling evidence was found it operates as a scam.
For those with very poor credit scores facing urgent short-term funding needs and rejected elsewhere, Mission Credit may fill a need – but comes with high ongoing interest costs.
Over time, responsible usage that maintains on-time payments will help increase credit scores to become approved for other options. However, significant benefits will only materialize after 6-12 months of activity at the earliest.
Customers must practice strict self-control, avoid reliance on credit as a long-term budget solution, and understand rates remain high even after on-time payments begin improving credit.
Those able to secure lower-interest financing from secured cards, utilities or existing lenders directly should always do so before resorting to higher-cost personal loans if possible.
If you’ve done your due diligence, demonstrated self-control over spending, are truly rejected by all other lenders, and understand responsible long-term credit management
Mission Credit could help you get back on the right financial path over the next 6-24 months. But it’s not a quick fix and requires commitment to see true rewards from your effort
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