Earlier we talked at length about bad credit loans, with a focus on payday loans. If you read that article you know that we want to shy away from the bad credit payday loans, as they are barely loans in the first place. To say that getting money for 10 to 14 days is a loan is a stretch at best and just a bad business deal at worst.
This time let's focus on the bad credit installment loans instead, which are loans that you are eligible for given only a few requirements on your part. Almost everyone who applies for the tribal version of installment loans will qualify, as long as you have some level of income (which is not always necessarily a full-time job) and you are over 18 years old, which of course you are or you wouldn't be reading this article.
Having bad credit usually means you will not have access to getting an installment loan. There are some prominent companies that have sprouted over the last few years (mainly since the financial crisis hit in 2008) that are specializing in offering personal loans that have a strong flavor of installment loans. The days of a true personal loan, where you borrow some money, say $5,000 and then you agree to pay that loan back in three years in full, that type of situation is just gone. You may not know this, you may not want this, but those loans are gone and they're not coming back. In fact, unless you are buying a house or a car don't plan on getting a loan from any bank, either. But the problem here is we're not even talking about being shut out of the banking business, we are talking about not even qualifying for the lower tier personal loan shops.
You've probably noticed these companies popping-up over the last few years. Companies like Springleaf Financial and OneMain Financial have a lot of brick and mortar lending stores appearing. Then there are some installment loan shops around from First Cash. There are hundreds of online lenders that provide varying degrees of installment loan products, some of them are total garbage and some are very legitimate. Magnum Cash is a large online lender that has a hybrid loan product. Check Into Cash is a growing installment loan provider that often makes a confusing offering of "installment payday loan" which is just another way of saying installment loan. And the list goes on with way too many companies to list in full.
The problem with all of these installment lenders is that you probably will not qualify for any of them. Regular installment lenders like Springleaf, OneMain Financial, and CashNetUSA are going to have a number of limitations placed on their loans, and it only takes one of these rules to stop a potential customer from getting a loan. Some of the limitations are created by the rules (regulations) that states create and enforce. Other rules are internal to these lenders, and they often check credit scores and/or credit reports to see if their customers meet those internal standards.
This is why so many borrowers turn to tribal loan companies. Tribal lenders are not going to put their applicants through the mill on the road to becoming a customer. The tribal loan shops just want the business and they will make the application process very fast and easy. If an applicant has a job and they are over 18 years old, then they will be approved for a loan.
Bad credit is not a factor when it comes to Native American loans. It's sounds too good to be true but it's not, even if you have a bankruptcy most tribal lenders will still approve and issue a loan to that person.
Now is there a catch? Technically, yes there is. Even though the bad credit will not prevent you from getting a loan it doesn't protect you from getting assigned a high interest rate.
This is what tribal loan companies are famous for, which are very high interest rates. The best way to handle these high interest rates is to work to pay off at least some of the principal near the start of the loan.
That's one of the good things about an installment loans, since you get more money that you would from a payday loan the customer theoretically will have an extra amount of money (more than you would have with the payday loan) and that customer can use the extra money for the first repayment date.
Paying some principal is really helpful as the loan moves ahead because all of the future scheduled repayment dates will be revised to have a lower finance charge. Tribal payday loans don't offer this ability since they always have a lower dollar amount available for the original loan.