At this point most credit card companies charge more than 16% APR for the balances you carry on those cards. It doesn't matter if it is a Visa, MasterCard or American Express, if you carry a balance on the card you are probably paying more than 19% (finance fees, finance charges, interest payments) in a full year.
That's what makes RadiantCash such a good tribal lender to talk about. Normally a Native American lender will charge far more than any credit card company. Tribal lenders like 500 Fast Cash or United Cash Loans, they have no problem with APR's that stretch to 500% and sometimes over 700% or beyond.
Think about how financially devastating a 700% APR would be for a balance carried through the year. That would mean that if you borrowed $300 at the beginning of the year you would pay $2,100 in finance fees before you even touched repaying the principal amount of the $300 back to the lender. This is a terrible rate, the design of this kind of debt is to trap a consumer into making just the interest payment and rolling the debt over.
Credit cards are not that great either but they are far superior to most tribal lenders. Paying 23% on a cash advance through a credit card firm or paying 29% annual interest on a store credit card, like Macys or Target is bad but doesn't even approach the high cost of a normal tribal loan shop.
Then there is RadiantCash which demonstrates that there are always exceptions to the rule. The lender starts new customers off with an APR in the 400% range. That is a high rate but it's a lower rate than what new (or returning) customers will pay with most (standard) tribal lenders. 500 Fast Cash and United Cash Loans are just two of over 100 tribal lenders that will charge well over a 400% APR.
What makes RadiantCash very nice as a company is the fact that each time a returning customer decides to borrow again from the firm the customer will get a lower APR. And we are not talking about some symbolic 10% off the regular rate. As the customer moves on to their second loan (assuming they take another loan) they are then provided an APR that is substantially lower than the first loan. The APR drops down into the 200% APR range. Now this is very uncharacteristic for tribal lenders, and I mean all of the other lenders involved in Native American lending, no other company is providing this type of program.
The cost of the loan keeps dropping with each new loan that is taken out by the customer, until it gets very cheap, as in credit card cost level cheap. This program that provides strong rewards for customers makes RadiantCash stand apart from the rest of the tribal lending crowd. And this is where the company gets their tag line they like to use when describing themselves which is "Loans With a Soul" and that title seems to imply that the other Native American lender (with their super high rates) are operating without a soul.
If RadiantCash has a soul because they are nice and lower the rates to their customers, then we can assume they are providing some degree of judgment to those other companies that have no incentives and no loyalty to their returning customers. Those customers are not acting in a nice (soulful) way with their customers. That's a funny way to look at it, and it surprising that they are willing to insinuate this concept, but I happen to agree with them.
Yes, I'm sure it's fun to be a tribal lender and collect the huge profits that come with operating one of those lenders. At the same time, it makes one wonder if the people (managers and owners) of these firms have any ethical concerns. Probably not, otherwise some other tribal lenders would have instituted a situation similar to RadiantCash. Although there are a few other Native American lenders that are decent the folks at RadiantCash are truly trying to operate a different type of short-term lending company that has ties to a Native American organization. Let's give them credit for trying to bring about a new way to get credit.