- The History of Mobiloans
- How to Apply (and Get Approved) for a Line of Credit
- APR Rates
- The Minimum and Maximum Loan Amounts
- Repayment Terms
- The Advantages
- The Disadvantages
- The Bottom Line
Article Title: How Does This Lender Stack Up?
Short Description: This is a tribal lender that claims to offer a new twist on emergency loans. The lender is owned and operated by the Tunica Biloxi Tribe of Louisiana, a federally recognized Indian tribe. But is this loan worth it in the end? We investigate...
Cost of Loan
This is a tribal lender that offers a line of credit to potential borrowers. You’ll typically be approved for a specific loan amount, but instead of depositing the full amount into your checking account, you can simply borrow what you need. For example, let’s say you need $500 for an emergency expense. They approve you for $1,000. Therefore, you can transfer $500 from your line of credit into your bank account, and still have $500 in the form of a line of credit. That said, it’s typically not something we recommend. Only borrow what you need. This form of financing is similar to “dangling a carrot” in front of consumers with bad credit. And the more you borrow, the more you’ll pay in fees and interest rates over time. Typical interest rates of are between 206.14% – 442.31% APR. You can borrow as little as $200 up to a maximum of $2,500.
User Review( votes)
- Offers a line of credit, which should be used with caution
- Application process is simple and straightforward
- Good option for those with bad credit issues
- Expensive form of borrowing
- Not a good solution for large financial purchases
Short term loans may not be the best solution when it comes to covering regular gaps in income. However, they can be fairly convenient when it comes to paying emergency expenses. Things like an car repair, an unexpected bill – or some other expense that takes you by surprise.
Unexpected expenses must be paid, and when you need fast cash, a loan is usually the best idea.
However, with so many loan sharks fishing around for desperate people, how do we know they aren’t a scam?
Well, what about Mobiloans?
Are they a scam? Or, are they actually a convenient way to get funds to pay those unexpected bills and expenses?
Let’s find out more about them, shall we?
The History of Mobiloans
Mobiloans advertises itself as a “new and flexible way to borrow emergency cash.” Based in Marksville, Los Angeles, Mobiloans is a tribal lender that has been offering lines of credit since 2011. Operating in 30 states within the US, they have provided hundreds of thousands of loans.
Unlike fast cash or payday loans, Mobiloans is fairly much like a credit card – but without the actual card. You are required to fill in an application, and will be tested for eligibility. If approved, you’ll be given a line of credit based on how much you request.
Bear in mind that your income will also determine your eligibility.
Unfortunately, there’s not much history about Mobiloans online. And, most of the information is found through Mobiloans reviews. Their website also seems to be lacking information.
How to Apply (and Get Approved) for a Line of Credit
People with a low credit score may still be eligible for a line of credit. However, there is still a limit that you might want to keep in mind. For instance, in order to borrow money from Mobiloans, you need at least a 300 credit score.
Also, you don’t necessarily have to be employed as long as you can prove that you have reliable income. And, that you actually have the means of paying back the money.
You’ll also need to prove that you are a citizen of the United States.
That’s about it. You’ll be required to send in a copy of your driver’s license, as well as some proof of your income.
After conducting a soft credit check, you’ll quickly discover whether or not you are approved.
Compared to many lending websites, they seem to have variable interest rates with a fairly convenient APR. Depending on how much you borrow and how long you set the loan term to be, the APR is between 206% and 442%. With the lowest being an attractive number compared to other tribal lenders.
Having said that, a 206% APR is still considerably high. Especially since you can find regular lenders that will go even lower than 100%. Not to mention personal loans, with APR being as low as 10%. However, this will depend on the condition of your credit score.
If you have a relatively good credit score, you may get a lower APR. The lower your credit score, the higher the APR will be.
Still, the state of your credit will not always determine your loan eligibility. You may have bad credit, but as long as you meet their requirements, you should be approved.
The Minimum and Maximum Loan Amounts
Fast cash lenders typically have a minimum loan amount between $400-$500.
However, with Mobiloans, you can borrow as little as $200 and as much as $2,500.
You’ll be approved in the form of a line of credit, and you’ll be able to withdraw from that line as much as you need. The only condition is that you will be required to make payments at least twice a month – interest included.
Considering that these are short-term loans, extra charges may occur. This is in addition to the funds that you borrow – which do not include interest. You may have to pay for fixed finance charges, but also for cash advance fees. This happens each time you make a withdrawal.
This is why you should thoroughly discuss upfront and ongoing fees and charges with your lender so that you can avoid “hidden” payments.
There are also certain minimum payments that you will have to make. However, this will depend on the withdrawals, as well as the percentage of every withdrawal.
There are many caveats and fees that you may stumble across. Therefore, it’s difficult to calculate exactly how much you’ll pay up for the next 6 months.
According to several Mobiloans reviews, the term of the loan will depend on exactly how much you borrow – and how many billing cycles you opt for.
You can choose 13 billing cycles, which will last for about 6 months – and they can go as far as 60 billing cycles. Important: the longer the loan term, the more you’ll pay in interest charges, so please be aware of that.
The type of billing cycle that you choose may also vary. For instance, you may choose biweekly payments – or you can choose bimonthly. Biweekly payments are generally a good option if you are paid daily, and you wish to give smaller payments. Bear in mind that more payments may lead to a higher interest rate.
Bi-monthly payments are a better option if you want to pay bigger chunks at a time. This is also a good option if you receive your salary biweekly or monthly.
Sadly, Mobiloans does not have the option for you to make monthly payments – which is why you will have to budget your payments yourself.
Furthermore, if you are late with your payments, there is a very high chance that you will be charged late payment fees.
You can avoid them if you make the payment immediately after – or if you discuss an extension with Mobiloans. Bear in mind that doing this might inquire some changes to your interest rate.
There are certain features that make Mobiloans an attractive option for borrowers. Some of the convenient features include:
No Penalties for Prepayment
Let’s say that you made or inherited a boatload of cash and you want to eliminate a big chunk of your debt.
Some lenders will penalize you for that, as paying early means the lender loses money on future interest charges, etc
Mobiloans does not charge penalties to pay your debt earlier than scheduled.
Just remember to never be late with your payments.
Funds Are Deposited Within 24 Hours
If you sign up for autopay, you’ll get the funds no later than 24 hours. This will obviously depend on the processing time – but the earlier you are with the request, the sooner you’ll get the money.
For instance, if you make your request at 7 AM, there is a chance that you can get your line of credit by 5 PM. However, if you submit your application late in the afternoon or evening you may have to wait until the next day.
There’s No Need for Employment
Many people get denied a loan or a line of credit simply because they are unemployed.
However, with Mobiloans, you may easily borrow as long as you can prove you have some form of monthly income.
You Get Rewards
If you make your payments on time, you also get reward points. These points come with benefits, such as discounts on your cash advance. These discounts range from 15% to 80% – and the more conscious you are with your payments, the less you will have to pay on cash advance fees.
Round the Clock Customer Support
If you need help from Mobiloans outside of business hours, their customer support is available 24/7. However, bear in mind that this feature is automated. If you are looking to talk to an actual person, you should try to contact them when Mobiloans provides live customer support.
Just as there are some notable features that make Mobiloans a fairly convenient option, there are also a few reasons this lender may not be a good option for you.
Here are some of the main reasons why people may steer clear of Mobiloans.
First of all, this line of credit is super expensive. Considering that the APR can range from 206% to 442%, you should exercise extreme caution. Plus, even with bad credit, there is a high chance that you can find a better opportunity somewhere else. If you decide to go with Mobiloans, make sure you pay the loan off as quickly as you can.
Potential Overdraft Fees
If you sign up for autopay, it will take out the drag of having to make the payments yourself every day. However, in the event that you don’t have the funds necessary for auto paying, there is a risk that you will be charged overdraft fees.
These can be avoided if you make sure there are enough funds in your account.
While this may not be a problem for those receiving bimonthly paychecks, it can be rather inconvenient for those that receive a paycheck once a month.
Even if you make early and bigger repayments, there is still a bimonthly minimum charge that you’ll have to go through – and if your salary is M.I.A. by then, you might face late penalty fees.
Limited Availability in the U.S.
According to many Mobiloans reviews, you can get a line of credit from most states in the U.S.
However, there are a total of 20 states from which you cannot borrow. These states include Arkansas, Washington DC, New York, and New Jersey.
Limited Alternative Payment Options
In the event that you do not want to be setup on autopay, Mobiloans will send the amount of your loan in the form of a traditional paper check.
However, note that this can take a couple of days – and may not be such a great option if you need money quickly.
The Bottom Line
The bottom line is that Mobiloans is, indeed, a legit lender. As noted by the customers that have used their services, their transactions are smooth and straightforward. And, if you are timely with your payments, there will not be any hidden surprise fees.
Still, that does not change the fact that Mobiloans is very expensive. The APR is enormous, and the fact that you’ll have to pay in bimonthly payments at most is even more troublesome.
As most Mobiloans reviews express, this lender is a good option if you need immediate access to quick cash.
On the other hand, if you are looking for more affordable rates, you might want to try looking in other places.