One of the least known among the online tribal lending firms is a company called Blue King. Much like other tribal lenders Blue King conducts their initial application process through their website. There are a few differences between Blue King and more popular tribal companies.
For one, Blue King makes no bones about the need for an active checking account which is what all of these lenders require. What makes the Blue King site so funny is they actually spell out that the checking account needs to be at least one month old. This is hilarious, the fact that one month now is a testament of some sort that the potential customer is not a crook or a total dead beat. The team at Blue King actually publishes this requirement on their front page and on the "Requirements" page, so they are not kidding. As a customer you need to have a checking account that is a minimum of 30 days old.
Have things fallen to this supreme level of desperation? Are checking accounts being set-up and then immediately used to go grab online tribal loans? I'm always curious too as to how the lender would be able to check on the age of a checking account. I have a checking account that is seven years old and another that is two years old, who in the world would be able to distinguish this when you phone a bank? Is this pertinent information that a bank employee would be willing to furnish to someone calling the bank and claiming to be a lender? It's a bit of an aside, but the one month requirement is just very eye-popping and surprising to me.
Another odd thing about Blue King is the revolving nature of the loans they provide. Most of the well known tribal lenders (Western Sky, Great Plains Lending, Plain Green Loans) all have a set structure to pay back the loan. They issue installment loans and those loans will last anywhere from six months to 18 months. The repayment schedule is very concise and completely established. This is not the case with Blue King and the format is a substantially more flexible than that of the standard installment lenders.
Blue King lets you take out a loan. The repayment schedule is that the loan is technically due on the next payday, which is anywhere from 14 to 21 days away. But this is just a technicality, no one is actually required to pay off their loan. Borrowers are only required (and it seems encouraged) to just pay the minimum amount for each pay period. The payments are set-up to correspond with the borrowers paydays.
This type of lending can be convenient but also dangerous. Having such a completely open-ended lending structure could allow some less astute or less observant borrowers from paying the same amount on a loan for a year or longer. At some point a lender should draw the line and use some of the principal amount of a payment to reduce the amount owed on an outstanding loan. This isn't the case with Blue King and it leaves something to be desired. It's hard to advise anyone to take a loan with Blue King when there are many higher quality tribal lenders, such as Plain Green Lending and Spotloan.