- The History of Blue Trust Loans
- APR, Rates and Terms
- Minimum and Maximum Loan Amounts
- The Advantages
- The Disadvantages
- The Bottom Line
Article Title: How Does This Lender Stack Up?
Short Description: They are a tribal lender that offers installment loans. The company is owned and operated by Hummingbird Funds, LLC , a sovereign tribal nation, wholly-owned and controlled by, the Lac Courte Oreilles Band of Lake Superior Chippewa Indians. Interest rates are sky high. That said, is a loan from Blue Trust Loans worth it in the end? We investigate...
Cost of Loan
This lender offers a very expensive form of installment loans. Being a tribal lender and not having to abide by state or U.S. federal laws, they charge interest rates between 471.78% to 841.45% APR. For clarity, the average APR of a tribal loan is around 450%. You can borrow as little as $100 or as much as $2,500. We advise to borrow as little as possible–only to cover an emergency expense that may have come up.
User Review( votes)
- Fast and easy application process
- Easy access to emergency cash
- Funds deposited within 24 business hours
- Decent option if you’ve exhausted all other resources
- Very high interest rates — as high as 841.45% APR
- Not a good option for large financial purchases
- Not a solid solution if you have average credit or better
When you are in need of fast cash for emergencies, you can’t always rely on traditional bank lenders to help you out. For many people just like you, it’s simply a matter of bad credit. For this reason, it makes sense to find a reputable, bad credit lender for emergency expense needs.
Could Blue Trust Loans be the alternative lender you need? Advertising attractive rates, quick approval and fast turnaround, the company has many potential borrowers intrigued.
But is it a scam, or it is actually a legit company that can help you secure fast cash? This will depend on you and your financial situation. This information has been gathered from various Blue Trust loans reviews to help you make that decision.
The History of Blue Trust Loans
Blue Trust Loans is a direct tribal lender that is based in Hayward, Wisconsin. They provide online loans to anyone in need of quick cash, and their services are accessible in 37 states – including Washington, DC.
Founded in 2014, the company is an LLC that is under the ownership of a Native-American tribe – namely, the Lac Courte Oreilles Band that is part of the Lake Superior Chippewa Indian tribe.
Run by Compliance Officer Cynthia Miller and manager Trina Starr, the company is rather private – which is why we have no clear information regarding the number of employees or their so-called “advanced customer service.” However, they have offered a fair share of loans to a significant number of people.
The company was created as an alternative to payday loans. While payday loans use your paycheck as collateral, installment loans do not require any collateral at all.
The profits from this lending company are meant to support the tribe’s members, as well as the reservation’s economy. While it’s also available for Americans that are off the reservation, its laws are independent of U.S. laws – simply meaning the loan terms are governed by the sovereign state of the Lake Superior Chippewa Indian tribe.
APR, Rates and Terms
The APR of a lending company is one of the first things you should look at when choosing an installment loan lender. The APR shows you exactly how much you’ll pay in interest over the life of the loan.
That being said, according to Blue Trust Loans reviews, the APR is considerably high. On average, the APR for a tribal installment loan is around 300% – but in the case of Blue Trust Loans, the average is around 600%.
The APR is fixed, and it is calculated the moment you apply for a loan. The lowest APR we found is 471.78%, whereas the highest was 841.45%. This includes the interest rate as well as origination fees.
Most reviewers agree that the APR is very high. And rightfully so. It is possible to find another lender with more preferable rates. Take this into consideration when doing your research.
For example, the bigger the loan, the more you’ll pay in fees and interest. An $825 loan, for instance, will have you paying back as much as $3,000 – which is significantly more than the amount you borrowed.
With such high interest rates, you really should ask yourself if it’s really worth it.
The APR will also depend on other factors – such as your credit score. If you have a high credit score, then it is likely that you will be able to receive a lower APR. However, if you have bad credit, the APR will also be much higher.
Minimum and Maximum Loan Amounts
The minimum amount that you can borrow is $100, which is less than most tribal loans provide. This is actually a good option for those who only want to borrow a small amount for something such as a minor car repair.
The most that you can borrow is $2,500. However, this will also depend on your financial situation, if you’re a repeat customer and your repayment history with the lender. If you are a returning customer, you will be able to borrow $2,500 – that is, if you believe you can handle the exorbitant APR.
However, as a new customer, you are limited to $1,200. Therefore, if you need to borrow a higher amount, you may want to look elsewhere. You’ll only be able to borrow again once your original loan is paid in full.
Ideally, if your income is on the lower side, you may want to avoid borrowing the maximum loan amount. You may end up having to repay more than you can afford.
This type of arrangement leaves many low income borrowers in a vicious cycle of debt. Always make sure you can afford a loan before signing on the dotted line, so to speak.
The loan term usually goes up to 6 months, and as a customer, you can choose how many installment payments you want to make. You can actually pay the entire installment loan off in 6 payments – or you can stretch it out into more than 27 payments.
Blue Trust Loans makes the payment schedule clear on their website, and it’s broken down as you can see below:
- Customers who make bi-weekly payments will have to finish repaying the loan after 12 payments.
- Customers who make monthly payments will have to finish paying back the loan after 6 payments in total.
- Customers who make weekly payments will have to finish with the loan after 24 payments.
Needless to say, every loan must be repaid over the course of six months. Another advantage of Blue Trust Loans is no penalties exist for pre-payments. That is, if you want to pay your installment loan off early to avoid high interest fees, you can do so (and you should).
However, a disadvantage in paying your loan off early, unfortunately, does not result in any discounts on your loan. You are still required to pay back interest in full, as stated by the loan terms.
The terms on your loan should be on your loan documents – which is why you should read it carefully.
Some Blue Trust Loans reviews mentioned they never received a loan term document, whereas others did. To be fully aware of what you are paying, you should ask for loan documents before agreeing to any loan.
Similar to a payday loan, applying for a tribal loan is very easy.
However, when you apply, you will be asked for the following information:
- Personal: name of the applicant, birth date, e-mail address, social security number, address, phone number(s), requested loan amount.
- Income: phone number and name of your employer, the regular date(s) of your paycheck, the net amount of each paycheck, paycheck dates for the next two payments.
- Bank Account: account number, routing number, account type.
In order to receive an installment loan, each borrower must be at least 18 – and a citizen of the United States.
There’s no mention on a minimum credit score, which is good news for borrowers with bad credit. According to Blue Trust Loans, you can borrow even if you have poor credit.
Your credit score will only be checked to determine your APR costs. Other than that, Blue Trust Loans only conducts soft credit checks – thus, your credit score should not be affected.
Blue Trust Loans has a variety of features that make it a convenient loan type, despite the astronomical APR.
Some of their most notable features are the following:
Club Blue Membership
For most tribal loans, whenever you plan to take out a new loan as a returning customer, you will be given an APR based on your credit score. However, for Blue Trust Loans, there are certain perks as a returning customer – aside from the fact that you can borrow more money.
A returning customer that has paid a previous loan in full can not only receive a higher loan limit, but be given lower APR rates. This is because the customer has shown a certain degree of trust – thus receiving better loan terms.
The application process generally takes less than 10 minutes – and you’ll know within a few minutes if you’re approved or not. The most it can take to know an answer is an hour.
Once your application has been approved, you’ll have the funds deposited into your account very quickly. Depending on the time of the day that you completed your application, you may receive the cash as early as the next business day.
Bear in mind that the day of the week will also be deciding factor. Therefore, if you request a loan on a Friday, there is a high chance that you’ll be receiving your funds on a Monday, the following working day.
No Prepayment Penalties
If you can afford it, Blue Trust Loans allows pre-payments. This is a highly convenient option if you receive your paycheck before the due date and you don’t want to risk squandering money.
While most payday lenders will penalize you if you pay early, Blue Trust Loans has no repercussions.
With many installment or tribal loans, you will not know precisely how much you’ll have to pay every period. However, with Blue Trust Loans, you will know exactly how much you have to pay.
Granted, the first and the last payment may have different fees – but the payments in between are consistent, and you will know exactly how much you have to pay off.
No Minimum Credit Score
Even if you have bad credit, this should not prevent you from getting a loan. Granted, they will ask whether you have filed for bankruptcy (or if you are planning to). If this is the case, you may not be eligible for a loan.
That being said, they will conduct a soft credit check. This will allow them to set an interest rate, which is necessary for your APR.
There are indeed a few advantages – but there are also some drawbacks that people find quite concerning. Some of them will include the following.
Very High APR
Most short term loans have a very high APR – but compared to other installment or tribal loans, the APR set by Blue Trust Loans is particularly high. Many people would consider this company an online loan shark, in our opinion.
Limited First-Time Loan Request
As a first-time borrower, you’re limited to borrowing no more than $1,200. This number will gradually increase – but you must borrow several times and clearly show that you are capable of paying your loans off.
Lack of Transparency
Blue Trust Loans offers some information regarding their fees and interest rate on the website – still, they are not completely clear about the financial responsibilities of the borrower. According to several Blue Trust Loans reviews, some customers believe they have been scammed into accepting a very expensive loan.
The Bottom Line
Considering the negative reviews that Blue Trust Loans has received, it’s difficult to tell whether they are scammers or not. Indeed, the company does provide reliable ways for each customer to get financing – but the fees that customers have to pay are outrageously high.
Plus, as the Blue Trust Loans reviews have stated, they do not appear to be completely transparent about their process. Some are not even told their interest rate until after they have been accepted for the loan. This prevents the borrower from refusing the loan since he is not yet aware of the financial pitfalls.