We all know that Native American loans have been growing rapidly the last few years, but has anyone stopped to ask why? Sometimes in life we just accept what ever comes our way or whatever is out there, without stopping for a moment to wonder why that event or situation has come to pass.
That's the point behind this write-up, to stop and look around at how the tribal lending growth has come to dominate so much of the online lending landscape. So why choose a tribal loan? Simple, because it is your best chance to qualify for being accepted to get a loan. That's all and that's it. Most other lenders are going to say no to you at this point if you ask for a signature loan, aka a personal loan.
These products are just dead at the banks and really at the credit unions as well, unless you are really qualified with a very solid income and you've been on the same job for years. Here's another question, how do you know that the loan company you are applying with is actually a tribal lender? That's a great question and there is a pretty easy way to find out. Nearly all tribal lenders (as in about 99% of them) will have a term they use at the bottom of their website that says "tribal lending entity" or possibly a phrase that is very similar.
This phrase is what you are looking for when you find an online loan company, go to the bottom of the site (or possibly the FAQ page) to see if there is a statement about tribal lending or Native American lending, or both. Once you see this, then you know you've got a company that is free to offer loan products that are not confined to all the restrictions that standardized lenders have to go through. Tribal lending entity, that term actually means something. The companies advertise this fact because it is a digital calling card, which states in essence that they are free from the supervision of the state governments and to a more limited extent the federal government as well.
Normal loan shops have a high degree of regulations, rules, monitoring, and laws which they must abide by when issuing loans. Plus, nearly all of the traditional lenders (read that as banks and to a lesser extent credit unions) will use one of the big three credit rating agencies in order to determine if you qualify for a loan.
You know what that means, right? It means that there is a very distinct chance that you will not be labeled as qualified for any type of loan thanks to what is written down in the digital files at places like Experian or Equifax. Between the restrictions that states are now imposing (and enforcing) on short-term lending, the rules of the federal government, the internal policies at the banks these days (all of which have tightened credit incredibly in the last five years) and the credit rating agencies, we have arrived at a point in time where less than 30% of the American population will qualify for any type of personal loan product.
There are two excpetions to this rule, one is the old fashioned payday lending business, but even that is getting more restricted and if you qualify you might get $500 if you are lucky. The other exception is the only real exception, and that is tribal lending. Although tribal lending is expensive and can be financially dangerous if you don't take the loans seriously, these companies are the only real chance at getting a true loan for any duration of time.
Tribal installment loans are the only real loan that more than half of the American population can qualify for and that's a real problem for the nation. You can relatively easily qualify for a $3,000 loan through Plain Green, a $2,500 loan through Clear Creek Lending, or a $1,500 line of credit (installment loan) via Mobiloans.
The Mobiloans product happens to be my personal favorite, I have been approved for two loans with them (not concurrently) and both times I had a good experience. The interest rates are very reasonable when compared to the 500 Fast Cash and Ameriloan rates. This gets back to the original concept, that tribal installment loans are superior to the tribal payday loans.
If you have bad credit and you need a loan you can head over to your nearest payday loan store and get screwed. You can go to a tribal lender and get about the same treatment, although getting the loan will probably be twice as simple with the tribal firm. Or you can go to a tribal installment lender and get the best deal possible, which means the most money in a loan, the lowest rate you will qualify for, and the longest timeframe to repay the loan.
If you go with a payday loan company you are basically making a mistake. You will be paying more in interest, for a shorter amount of time and for a smaller amount of cash. In our current credit disaster, when so many Americans have bad credit or not so great credit, the best you can get is the Native American installment loan offered by a handful of firms.