Article Title: How Does This Lender Stack Up?
Short Description: They are a tribal lender owned by Miinan Funds, LLC, a sovereign nation operated by the Lac Courte Oreilles Band of Lake Superior Chippewa Indians. Instead of loans, this lender offers a line of credit for borrowers with bad credit. But is a line of credit from this lender worth it? We investigate...
Cost of Loan
This lender offers a line of credit to borrowers with bad credit. You can obtain a line of credit as low as $100 up to $1,500. The interest rates are not listed on their website, which is a cause for concern.
User Review( votes)
- Offers access to fast cash, typically within 24 business hours
- Decent option for bad credit borrowers that have no place else to turn
- Not a good option for long term expenses or large financial purchases
- Lender does is not 100% transparent with interest rates
In a world full of short-term lenders, it’s important for companies to stand out. Tribal lenders often fly under the radar for lending options but can be an effective alternative for those that have less than average credit. Many tribal lenders offer short-term installment loans, making repayment a bit easier and simpler than payday lenders. However, interest rates are still high as this is for short-term financial needs.
This article will detail the company Ladder Credit, which offers line of credit loans. That is something not as common in the tribal lending space but could be of use to your current financial situation. We will dive into the website and other information to help give you the best chance at making an informed decision.
Overview of Ladder Credit
As you enter Ladder Credit’s website, you are welcomed with a simply yet professional looking landing page. All that’s on the page is the start of the application process, with other pages linked on the header of the website. In the footer of the page, you will find fine print information, which will go over in a moment.
If you are a returning customer, you can log in at the top of the screen using your social security number and email address. While this is an unconventional way of logging into your account, as long as your information is secure you will be perfectly fine.
Unfortunately, if you reside in the following states you are unable to obtain a loan from Ladder Credit: Arkansas, Connecticut, Georgia, Maine, Minnesota, New York, Pennsylvania, Vermont, Washington, Wisconsin and West Virginia. Also, in order to qualify you must be currently employed, receive regular paychecks and meet the employment duration requirements. The employment duration requirements are not specifically listed on their website.
Loan Rates and Terms: How Much Does it Cost?
Next, we move to the product, which is not a traditional bad credit loan that you repay over a few months. Instead, you will apply for a line of credit, which is similar to a credit card or home equity line of credit. The benefits to this include you are only charged interest on the money you borrow and if you don’t borrow money there is no fee.
Instead of being given an annual percentage rate you are charged per day. According to the company’s website, a line of credit for a new customer will cash 2% per day for an ACH and a 2.05% per day rate for debit via credit card. Returning customer can enjoy a lower rate of 1.75% per day and 1.80% per day respectfully.
While the interest rates seem low, if you compound that over several days it can quickly begin to add up. That means when you borrow money you will want to repay the balance as quickly as possible.
The Application Process
To begin the application process, you can select the apply now button and you will go to the start of the process. Initially you will provide information such as your name, address, social security number and driver’s license number. This information is standard across the tribal lending market.
From there, you will move to the next page and complete the last bit of information. Once completed, someone from Ladder Credit will reach out to you, verifying final information. After that point you will wait for your approval notification.
The Bottom Line
Now that you’ve been approved you can begin taking draws against your line of credit. When you choose to draw against your line of credit, proceeds from the loan will typically be deposited into your account with 24-hours, as long as you meet the required cut off times.
Repayments happen on your outstanding balance on the day you receive your paycheck. Funds are debited out of the linked account. Repaying the loan will consist of the finance charge plus 10% of your outstanding principal balance. However, if you want to repay the loan early you can contact Ladder Credit 3 business days before your due date and let them know you want your account to be debited early.
Other information you may find useful includes the language associated with the company being a tribal lender. While the company adheres to some Federal laws, the state laws from which you reside typically do not apply to this transaction. Ensure you read your documents carefully before signing and if you have any questions reach out to the company.
Ladder Credit has a very clean and professional appearance, providing all the information necessary to make an informed decision. What makes them unique is their product is a line of credit, not an installment loan. Having the line of credit available is perfect because should an emergency arise, you have access to money. Head on over to Ladder Credit’s website and give them look, you might find them to be exactly what you’re searching for.