Our Review of Spotloan
Article Title: How Does Spotloan Stack Up?
Short Description: Spotloans is an alternative to payday loans and specializes in short-term installment loans that can be repaid over time. The lender is owned by BlueChip Financial, a tribal entity governed by the laws of the Turtle Mountain Band of Chippewa Indians of North Dakota. Is a loan from Spotloans worth it in the end? We investigate...
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Summary of Spotloan
Spotloan is a tribal lender that offers short-term installment loans to consumers that have credit issues. Compared to other tribal lenders, Spotloan actually has a reasonable interest rate. They state their maximum interest rate is 490%. Compare this with other tribal lenders and you’ll quickly see it’s fairly reasonable. That said, it’s still a very expensive form of borrowing and should only be used in short-term, emergency financial situations. You can borrow as little as $300 up to a maximum of $800.
User Review
( votes)Pros
- Reasonable interest rates compared to other tribal lenders
- Offers up to $800 cash. Not too much that could trap a borrower into a vicious cycle of debt
- Great solution if you have bad credit and have exhausted all other resources
- Application process is secure, fast and easy
Cons
- Even though the APR is reasonable compared to other tribal lenders, it’s still an expensive form of borrowing
- Not a good solution for large financial purchases
[This article on Spotloan has been updated.]
When searching for a lender, there are many options to consider – some more convenient than others. When you have bad credit, you can’t really complain about the high APR or their terms – particularly when you need cash fast. Still, there are lenders that give you fair terms and others that might simply try to rip you off.
What about Spotloan? Is it a legit and convenient opportunity – or is it just a scam? Many people who have used their services left a fair amount of Spotloan reviews.
Let’s see what their opinion is about their services.
The History of Spotloan
Spotloan is a payday lending website that is owned by Bluechip Financial – which is a tribal loans company run by the Chippewa Indians. While fairly remote, this tribe has been recognized by the federal government and is approved to operate outside their reservation.
Established in 2012, Spotloan has been an established business for quite some time and has given around half a million quick loans to Americans. They pride themselves in their customer service – having their call center set in Belcourt, North Dakota.
The company attempts to fill any financial gap that people might have by providing installment loans. Unlike payday loans, borrowers can pay it in monthly installments.
Spotloan has helped a variety of people get a quick loan, regardless of bad credit.
This lender can offer money to anyone, regardless of their credit score – provided they don’t interfere with the tribe’s sovereignty.
The APR of Spotloan
The average APR of Spotloan is 450% – but according to their website, it can also reach a maximum rate of 490%. This is a considerably high considering the amount you are allowed to borrow.
Granted, the APR will also vary depending on how much you borrow and how long you want the term to be. The longer you drag out the term, the higher the APR will be. Similarly, the more you borrow, the more money you will have to pay in interest.
Considering similar lenders, one could say that Spotloan’s APR is quite competitive. However, unless you are certain that you can pay off the loan by the end of the term, most Spotloan reviews do not recommend it.
This type of loan is only recommended for emergency situations, such as a car repair or a medical bill.
Minimum and Maximum Loan Amounts
How much you borrow will depend on your income and your credit score. When you request a loan, you can opt for minimum loans of $300 and maximum loans of $800.
Compared to other lenders, the loan amounts are very low. However, it can be very convenient if you need to pay an unexpected bill.
That being said, with the average APR, you will pay back up to 12 times the entire amount of the loan. If you’re looking for a cheap loan, this is not for you. There are many fast cash lenders that offer similar loans with an APR as low as 35%. (Car title loans are typically under 35% APR for people with bad credit)
Furthermore, if you are looking for something that will give you a higher loan amount, this is not the best option for you. Unless you have fairly significant income, it is unlikely that you will receive the maximum amount of the loan. If you need more than a few hundred bucks, there are more suitable lenders that may suit your needs.
The Loan Terms
Spotloan is similar to a payday lender, delivering the cash as early as the same day – or as late as the next day. It usually depends on the time of the day that you make the loan request.
There is no need for heavy paperwork, nor a need for an intensive credit check.
When it comes to loan repayment, you can pay it back in as little as three months – and as long as eight months. The terms will be calculated for you upon approval – and it will be up to you whether you accept those terms or not.
Unlike other companies that allow you to choose between monthly and biweekly payments, Spotloan has only one option for their customers: biweekly payments. This might not be such a great option for those who receive weekly payments and wish to make their budgeting easier.
Spotloan Customer Service
Perhaps the most notable aspect about Spotloan is the customer support – which claims to go above and beyond to keep their applicants happy. Each applicant is given his/her own “relationship manager,” as they are called, which will keep them up to date and respond to any questions that come up.
There are three ways through which the relationship manager may be contacted. You can do so through the phone, by email – and even by traditional mail. There is no list of working hours on the website, but so far, they have been fairly responsive to questions. At least when it comes to emails, they are never left unanswered.
The customer service is, therefore, very good – and offers productive answers. However, had they offered more contact information along with the hours of operation, perhaps they would have gained more points.
Advantages of Spotloan
While there are still some things that people do not like about Spotloan, there are several features that are quite convenient. Here are the most notable features:
The Application is Easy and Straightforward
It should not take more than 10 minutes to apply for a loan. Everything is clear and straightforward from the moment you hit the first page. You’ll select how much you want to borrow – and then express how much you want to pay on every installment. The process was made to be convenient for every type of borrower.
After you complete the application, you will be shortly contacted by the relationship manager – whom will tell you whether you have been approved or not. If the answer is positive, then you will be guided throughout the rest of the process.
No Minimum Credit Score – Bad Credit Ok
If you have a credit score that is less than stellar, Spotloan may be a good option for you – mainly because there is no minimum credit score. Therefore, it will not be taken into consideration when it comes to being approved.
Perhaps the only thing that it might affect will be the interest rate that you pay.
There Are No Hidden Payment Fees
The good thing about Spotloan is that you’ll be told about any and all fees upfront. You’ll be told exactly how much you will be charged, and there are no penalties if you want to pay the loan off sooner, rather than later. Furthermore, there are no hidden prepayments for you to make. You’ll start paying the loan back as soon as the first installment hits.
Funds Deposited Same Day or Next Day
Granted, there will be a waiting time until you are approved. However, the loan will be processed as soon as it goes through your manager. And, you’ll get your money no later than the following day.
The time of day you make your loan request will also determine how soon you get the loan deposited into your account. For instance, if you complete your application in the morning, there is a chance that you’ll receive your money on the same day. On the other hand, if you make your request in the evening, the chances are high that you will receive your money the next day.
You Have the Option to Pause Your Payments
This is an option you’ll be hard-pressed to find with many lenders. Most of the time, missed payments are not taken lightly – so, there will be penalties. However, with Spotloan, you have the option to pause your payments until you have the funds. Simply notify them.
There is a chance that you’ll be charged more for it in the long run – which is why you’ll have to discuss things thoroughly with your relationship manager. They will tell you exactly what extra charges may occur.
Applying Will Not Affect Your Credit Score
Spotloan will check your credit score in order to calculate the appropriate payment. However, it won’t be a hard credit check – instead, it will be a soft credit inquiry. This means that your loan application will not directly affect your credit score.
You Have an Auto-Payment Option
This is actually quite convenient if you’re a busy person. In the event you are swamped with work or simply forget to make a payment, you can rest assured that the installment payment will be withdrawn automatically. This way, it’s set and forget.
Disadvantages of Spotloan
While there are things that many people appreciate about Spotloan, there are also a few things that are not so well looked-upon. Among these drawbacks, the following aspects are included:
The APR is Very High
Compared to a personal loan – or even private lenders with similar terms – the APR for Spotloan is higher than most lenders. There are many cheaper alternatives – so unless this is your only option, it may not benefit you financially. If instead you’re looking for a reasonable interest rate, you may want to look into a personal loan.
You Can Only Borrow Up to $800
For some people, this is actually highly convenient, since they do not really want to borrow more money that they can handle. However, those who want to borrow more money will not find any help here, as they can borrow only up to $800. If you have a more costly expense to pay, you may want to look elsewhere.
It’s Not Available in Every State
Spotloan covers quite a large part of the map in America – but there are also several states that have not been covered. For instance, while you may be able to borrow in 38 states, you won’t be able to do so if you live in Colorado, Arkansas, Massachusetts, Connecticut, New York, Minnesota, North Dakota, North Carolina, Vermont, Pennsylvania, or West Virginia.
Final Thoughts on Spotloan
Unless the circumstances are dire, borrowing from payday lenders won’t be able to help you much financially. However, what we do know about Spotloan at this point is that while their interest rate is very high, their actions are legit and are not trying to scam people – at least according to most Spotloan reviews.
If possible, try looking for more affordable opportunities. However, if it’s your last resort – and you know for sure that you can handle the payments – you can safely go for Spotloan. They may be expensive, but at least the process is smooth and there is a high chance that you’ll get approved.
