Backed Personal Loans Review 2019

Good For: Good Credit & Co-Signers

Backed might be a good fit if:

If you have a co-signer with good credit and are looking for a personal loan of up to $25,000, Backed may be a good option for you. With an application model that favors applicants with strong co-signers, some borrowers are offered annual percentage rates as low as 2.9%.

Backed personal loans are best for young borrowers with little credit history, who have co-signers with annual incomes above $50,000 and excellent scores. Backed can also be a good option for independent applicants with high credit scores. For borrowers without “backers”, there is no minimum credit score or income required to be considered for approval.

This company also favors borrowers living in Arizona, Arkansas, Florida, New Jersey, New York and West Virginia.

Backed Personal Loan Rates & Terms

Credit Score:720+ for co-signers
No minimum for borrowers without co-signers
Income:Requires co-signers to have an annual income above $50,000
No minimum for borrowers without co-signers
Loan Amount:$3,000 – $25,000
Interest rate (APR):2.9% – 15.99%
Origination fee:0.8% – 2.0% of loan amount
Prepayment fee:None
Time to funding:Two to Four business days
Repayment terms:1 – 3 years
Hard or soft credit check:Hard
Best For:Co-signers and borrowers with good credit
Applicant QualificationsNeed residency in Arizona, Arkansas, Florida, New Jersey, New York or West Virginia

Click “Check Rates” to pre-qualify and receive a personalized rate.

» MORE: Lenders That Accept Personal Loan Co-Signers

About Backed

Backed was developed to address the needs of recent graduates and families with young borrowers looking to build their credit histories and financial independence. As many fresh college graduates are still financially dependent on their parents, Backed provides an alternative to borrowing money directly from family members.

Due to the company’s unconventional policies that reduce the financial risk to co-signers, Backed is a top choice for students and early-career professionals who are still building their credit scores and personal capital.  The company aims to foster more trust between the borrower and the co-signer by keeping co-signers aware of each step in the loan process.

Whereas in traditional co-signed loan models, co-signers are only notified once the loan has defaulted and fees have accrued, Backed protects co-signers by informing them of both missed and made payments and offering a 15-day grace period to settle missed payments.

Having a few of the following things will help you secure your approval for a Backed personal loan:

  • A co-signer with a minimum credit score of 720 and annual income above $50,000
  • No recent derogatory remarks on your credit report if you’re applying independently
  • Residency in Arizona, Arkansas, Florida, New Jersey, New York or West Virginia

Rates and Fees:

Backed charges origination fees between 0.8% and 2.0% of the loan amount. There is also a $20 charge for late payments, a $15 fee for rejected payments and a $10 check processing fee. There are no prepayment fees.

Backed Personal Loan Review

Interest rates: Backed provides personal loans with annual percentage rates ranging between 2.9% and 15.99%. Borrowers are also eligible to apply for better rates on their loans when they demonstrate reliable repayment for at least 12 months.

Cost: Backed offers loans of up to $25,000 and repayment terms of one, two or three years.

How to Qualify for Backed: Qualifying for Backed requires applicants to be able to pass a hard credit check upon application. You should also be an employed U.S. citizen or permanent resident with a strong co-signer. If you’re applying independently, you should have a high credit score and no recent derogatory remarks on your credit report.

Backed for Co-Signers: The company’s loan application process is specifically designed to favor applicants with co-signers and make the co-signing process easier for all parties. Co-signers should have credit scores above 720 and a minimum annual income of $50,000. Co-signers are notified of each step and payment throughout the process, ensuring that both parties have a mutual understanding.

Automatic Payment Notifications: Backed automatically notifies co-signers via email when every payment is made. Additionally, they send notification emails when a payment is missed, as well as if the loan is in danger of defaulting. In the case of a missed payment, both the co-signer and borrower are given a 15-day grace period to repay the missing amount.  

Loan examples: A borrower with excellent credit who takes out a $14,000 loan with a repayment term of 24 months at 9.2% APR would make monthly payments of $641.52.

How Backed Personal Loans Compare

Backed vs Laurel Road

Backed and Laurel Road share many similarities, but here are a few aspects that differentiate the two:

  • Laurel Road loans have higher starting APRs, with a minimum of 8.01%
  • Laurel Road offers a wider range of loans, starting at $1,000 with a maximum amount of $45,000
  • Laurel Road has longer loan terms, with repayment periods ranging between three and five years
  • Laurel Road is better for borrowers who want to consolidate their debt
  • » MORE: Laurel Road Loan Review

Backed vs LightStream

Here are some of the ways one of Backed’s major personal loan competitors, LightStream compares:

Backed vs Mariner Finance

Backed and Mariner Finance offer similar products. However, they have some differing features. Let’s take a look at how they compare:

  • Mariner Finance has higher starting APRs, ranging between 18.84% and 36.00%
  • Mariner Finance has a lower loan maximum for online applications, with a ceiling of $7,000
  • Mariner Finance funds within just two business days
  • Mariner Finance is better for borrowers with lower credit scores who are looking for small personal loans
  • » MORE: Mariner Finance Loan Review

Backed Pros and Cons

Let’s take a look at some of the pros and cons of taking out a Backed personal loan:


  • If you have little to no credit, a co-signer can help you qualify for a Backed loan or lower APR
  • Borrowers who consistently repay their loans on time for 12 months may be eligible to apply for a lower rate
  • Unique co-signer policies provide more transparency for co-signers
  • Lower APRs for borrowers with excellent credit
  • 15-day grace periods for missed payments


  • Only borrowers with exceptional credit or co-signers are likely to get the best rates
  • Personal Loans from backed aren’t offered above $25,000
  • Backed is only available to borrowers in Arkansas, Arizona, Florida, New Jersey, New York and West Virginia

Backed Loans for Good Credit

Although there is no stated minimum credit score to apply for a Backed loan as an independent borrower, the company favors applicants with no recent derogatory marks on their credit reports and with excellent credit scores. The minimum for an applicant’s co-signer is an above-average score of 720.  Borrowers who repay their loans on time for 12 months can be eligible to apply for a reevaluation of their rate.

» MORE: Personal Loans For Good Credit


Backed loans are an option primarily for young or recently graduated borrowers who may be seeking to become financially independent from their families. Their co-signer program and policies allow for a transparent lending process for both parties. For borrowers with excellent credit, Backed also has relatively low APRs compared with some of its competitors. The maximum loan amount is $25,000, so if you want to fund a large-scale project, this may not be the ideal company to choose. However, their personal loans can be a good option to fund things such as apartment or automobile down payments. If you’re an applicant who is just beginning to build your credit and you have a co-signer who fulfills the eligibility criteria, Backed personal loans may be the right fit for you.

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