Hannah Locklear | September 11, 2023
Summary: Spotloan, owned by a BlueChip Financial (a tribally-owned organization), is an emergency loan provider that charges extremely high interest rates and comes with high APRs. Before signing up for a Spotloan, you should thoroughly research the terms and conditions to avoid bigger debt problems.
For those looking into short-term lending options, it's essential to stay informed about the variety of lenders available in the market. One such lender that might pop up in your search is Spotloan. Before you decide whether it's the right option for you, let's delve into five things you should know about Spotloan.
Spotloan is an online lender that specializes in providing short-term installment loans. Unlike traditional payday loans, which typically require repayment by the next payday, Spotloan offers a more flexible installment repayment plan. This means borrowers can spread their repayments over a few months, making it potentially more manageable.
Beware of the following information, listed on Spotloan’s website:
“Spotloan owned by BlueChip Financial ("BlueChip"), a tribally-owned entity organized under and governed by the laws of the Turtle Mountain Band of Chippewa Indians of North Dakota, a federally recognized Indian tribe (the "Tribe"). BlueChip is located on, operates within, and originates and services loans from the Tribe’s reservation. Though Spotloans are available to residents of certain states, consumers should know that BlueChip’s lending license is issued by the Tribe's Lending Commission, and not by the states in which its consumers may reside. Although the visitation is electronic, consumers are coming on to the Tribe’s reservation and subject to the Tribe’s jurisdiction to obtain a Spotloan.”
Here is the Spotloan phone number for Spotloan customer service:
Spotloan reviews claim that the company is hard to work with, uses extremely high APRs, demands full payment even in times of financial hardship, only applies monthly payments to interest rates, and takes advantage of vulnerable borrowers.
Here’s an example of a real Spotloan customer review:
“I took out a loan with Spotloan a year ago in July for $400.00. I have been paying $143.94 every month since and have to this date paid $1584.34 and still owe four more payments in the same amount. This is ridiculous how these people get rich off the people who really need help. I will tell everyone that I come in contact with about this company and how they take advantage of people.”
One of the critical things to note about Spotloan—and similar short-term lenders—is the high annual percentage rate (APR) on their loans. With Spotloan, you can borrow up to $1500 (up to $800 for new and repeat borrowers, up to $1500 for preferred customers with 10 or more loans). Even though the loan amounts are fairly small, Spotloan may end up charging you more than double the loan amount after interest rates apply.
For example, if your Spotloan APR is 490% and you borrow $600 with a bi-weekly payment schedule of ten payments over five months, then you would pay approximately $775 in finance charges, for a total payback of $1,375. Note that this only applies if your first payment occurs 14 days after the loan is funded and you make all scheduled payments in full and on time. Charges could exceed even this scenario.
This high cost of borrowing is something to consider seriously before opting for such a loan. Always calculate the total amount you'll be paying back to determine if it's a financially sound decision.
Please note that Spotloan is a high-cost credit option suitable only for addressing immediate financial needs. It is crafted to assist in emergencies like housing rent, medical charges, vehicle fixes, and work-related expenses.
As such, Spotloans are not designed for resolving extended credit or other prolonged financial challenges. You might find other credit avenues more suitable, such as borrowing from acquaintances or family, utilizing credit card advances, securing a personal loan, or tapping into home equity or savings.
Spotloan is not regulated by state law, but rather by laws of the tribe of Turtle Mountain Indian Reservation. This type of loan is often referred to as a tribal loan. Spotloan lists the following disclaimer on its website:
Don’t expect your state laws to protect you if you fall under any obligation to Spotloan.
Several other lenders offer short-term, small-dollar loans similar to Spotloan. These loans are often geared towards borrowers with less-than-stellar credit or those who need quick access to funds. Here are eight loans like Spotloan:
When considering any of these alternatives, it's essential to:
Spotloan and similar lenders can provide quick financial relief in emergencies. However, the high APRs and interest rates mean they should be used cautiously and ideally as a last resort. Before taking out any loan, always explore all your options, read the terms carefully, and make sure you understand the total cost of borrowing. Remember, informed decisions are always the best decisions.
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