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When you need a bad credit loan, it’s likely you will not qualify for a traditional personal loan. However, you do have options and a tribal loan from Spotloan might be the answer. But first, read our report on Spotloan reviews to see if it’s the right fit for you.
Review Summary for Spotloan
Spotloan 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.
– 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
– 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
Spotloan is a bad credit lender owned by Bluechip Financial – a tribal loans company run by the Chippewa Indians. While fairly remote, this tribe is recognized by the federal government and 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 helps consumers obtain financing by providing installment loans. Unlike payday loans, borrowers can pay the loan back in monthly installments. However, interest rates are typically very similar to payday lenders. Installment loans are also referred to as short term loans.
Spotloan has helped a variety of people get a same day loan (within 24 hours, depending on the time of your submitted application), regardless of bad credit. They lend money to anyone in the U.S. that needs an emergency loan.
The average APR of Spotloan is 450% – however, the maximum rate can also reach as high as 490%. This is a very high interest rate, but this is what you can expect to pay, on average, with any tribal lender. In fact, some tribal lenders have interest rates that exceed 1,200% APR. That said, Spotloan does a good job on keeping their charges lower than most other lenders. Although rare, we’ve seen a tribal lender that charges an insane 2,900% APR to borrowers.
The APR rate you pay depends on how much you borrow and how long your loan term will be. The longer you drag out the term, the higher your APR will be. Also, the more money you borrow, the more you will pay in interest fees.
Considering similar tribal lenders, Spotloan’s APR is quite competitive. And please be aware: this type of loan is only recommended for emergency situations, such as car repair, medical bill, etc. it should never be used to finance a long-term purchase (car, house, etc).
How much you borrow will depend on your income and your credit score. When you request a loan, you can opt for a loan between $300 and $800. The loan amount you can borrow is on the lower-side, compared to similar tribal lenders. But there is a good reason for this.
The loan amounts are low because Spotloan does not want you to be overwhelmed with debt. They really do want you to pay the loan back as quickly as you can.
Here’s an example: Let’s say you secure a $300 loan that has an average APR of 450%. You will pay back almost double what you borrow (almost $600). If you’re looking for a cheap loan, Spotloan is not it. There are several fast cash lenders that offer similar loans with an APR as low as 35%. One such tribal lender with more attractive interest rates is Big Picture Loans.
Here’s a more accurate example:
* The above calculations are based on loan amounts and payment schedules on the Spotloan website. If you pay more than the bi-weekly minimum, you will pay less in interest.
Bottom line is, if you need a higher loan amount, Spotloan is not the answer.
Spotloan can usually provide same day loans to borrowers. However, the funding time depends on when you submit your application and are approved. If it’s later in the day, you might have to wait until the next business day. One of the major benefits of Spotloan is there is no need for heavy paperwork or an intensive credit check. As far as repaying your loan, 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 lenders 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 paychecks. It could make budgeting your finances more complicated.
Perhaps the most notable thing 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,” which will keeps borrowers up to date on their loan and responds 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.
The customer service is, therefore, very good – and offers productive answers.
While there are some things that people do not like about Spotloan, there are several features that are quite convenient. A borrower that has bad credit should not assume they will get the best rates and pay less than someone with perfect credit. It just will not happen. If you have bad credit, expect to pay a very hefty fee because you are a risk to the lender. That said, here are the most notable features:
It only takes 10 minutes to apply for a loan. Everything is straightforward from the moment you hit the first page. You’ll select how much you want to borrow – and then how much you want to pay bi-weekly.
Step 1: Select How Much You Want to Borrow and Your Bi-weekly Payments
Step 2: Complete This Step By Giving Spotloan Your Details
In addition to your First Name, Last name and Social Security Number, Spotloan will need:
Step 3: Submit Your Financial Details
For step 3, you will need:
After you complete the application, you will be shortly contacted by the relationship manager – who will tell you whether you have been approved or not. If the answer is yes, then you will be guided throughout the rest of the process.
If you have bad credit, Spotloan may be a good option for you – they do not look at your credit score. Therefore, it will not be taken into consideration during the application process. However, it might affect the interest rate that you pay.
The good thing about Spotloan is they tell you 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.
There will be a brief waiting time until you are approved. However, the loan will be processed as soon as it goes through your relationship 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 the loan is 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.
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.
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.
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, the installment payment will be withdrawn automatically. This way, it’s set and forget.
While there are things that many people appreciate about Spotloan, there are also a few things that might be viewed as a disadvantage. For starters, the interest rates are extremely high. But by now, you should already know this. Borrowers with bad credit should not expect to receive the same benefits as someone with a perfect credit rating.
Someone with perfect credit has options. You, unfortunately, have limited options (sorry).
Compared to a personal loan – or even private lenders with similar terms – the APR for Spotloan is higher than most traditional lenders. However, lenders that work with borrowers with bad credit, are taking a huge risk. This ‘risk’ is why borrowers are hit with extremely high interest rates. The key is to pay the loan back as soon as possible.
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.
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.
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