With over 100 tribal payday lenders it might be hard to say which is the best of the bunch. And that is exactly what the vast majority of the customers for these lenders do say, we know as much because some of the worst companies (as in they have the worst options, highest costs and worst terms) are getting most of the business.
Who has time to sift through the 100 plus tribal payday lenders to see exactly which firm offers the best rates, the best loyalty program, the best repayment options and the most money allowed to be borrowed?
The answer to the question is the site you are at, this site, Native Loans. After reviewing so many tribal lenders it gets to be a simple equation to determine which Native American lenders are excellent, above average, average and not good at all.
Remember there are three different types of tribal lenders. The one we are discussing here is by far the most popular which are the payday lenders. These are the truly short-term loan companies specializing in loans that need to be repaid (or extended) in approximately 14 days. These loans can range for as short as 10 days and stretch to as long as 21 days.
The other two versions of Native American lenders are the installment loan providers and the line of credit issuers. The installment lenders make up about 15% to 20% of the tribal lending business. This segment has been growing over the last six months or so, as many of the previously tribal payday lenders are switching to take on certain characteristics of installment lenders, so much so that they are being reclassified as installment companies.
The third type of lender in this industry is the line of credit provider, which has only a small number of companies providing this loan service. But they are growing, it was only a year ago that there was a single company in this group (the one and only Mobiloans) but now there are at least six tribal lenders that are engaged in providing lines of credit.
Let's focus on the tribal payday lenders. This group has double or triple the number of customers versus the installment and line of credit lenders. Most of these payday companies like to charge 30% as a basic rate.
It doesn't matter if you are a brand new customer or a returning customer, they want the borrower to come up with the 30% in finance charges either way.
Think about exactly how a 30% interest rate works. For every $100 that is borrowed the customer needs to pay an additional $30 every 14 days that the loan is outstanding. So if a customer borrowed $1,000 for two weeks they would need to repay a total of $1,300 at the end of that loan period. $300 would be paid to the loan company as their profit and the $1,000 would be the repayment of the principal amount.
Which of the over 100 tribal loan companies is the best? The answer is RadiantCash (sometimes you will find them online as Radiant Cash) and it's due to their aggressive loyalty program. The first loan with RadiantCash will be less than most tribal lenders charge. But that's not even the good part of the story.
Many consumers that take out short-term loans (tribal or otherwise) will often return for another loan, either later that year or at a minimum in the coming year. And there are many more customers that keep taking out new loans (or they keep extending their previous loan) several times each year. This is not a good situation when that customer keeps paying 30% on each loan.
RadiantCash realizes this and they have created a loan program that all new customers are automatically enrolled into. This loan program has several levels, and the basic tenet of the program is the more times that you borrow the lower the interest rate you will have to pay.
For instance, the second loan that you repay to RadiantCash has an interest rate that is substantially less than the first. The third loan is cheaper than the second, and so on, all the way to the 12th loan. Now some people reading this would scoff and say to themselves they would never take out 12 payday loans. In response I would just say you better be sure.
There are no hard numbers in this business (because tribal lenders are all internally owned with no publications or disclosures required by states, the federal government or the SEC) but we know that many (or most potentially, it easily could be more than 51% of all customers) will take out multiple loans.
The reduction of the interest rate a consumer will pay continues to decrease with each new loan taken out with RadiantCash. This process continues all the way until the customer takes out a 12th loan. That 12th loan will carry an interest rate of 1.5% for a two week period.
This is by far and away the lowest interest rate that any tribal lender will charge, and this includes all types of lenders whether they are line of credit providers, installment lenders or their payday peers. Paying a minuscule 1.5% interest is very interesting and for those consumers who tend to take out many small short-term loans this company definitely needs to be on the radar. Rather than continuing to pay the 30% interest rate for each and every new loan they take out could be getting into a position to pay the very limited 1.5% interest after getting past those first 11 loans.
Of course this extremely low interest rate is dependent on taking the first 11 loans and also successfully repaying them. That means the borrower can't pay late or miss a payment, or negotiate for a new scheduled repayment format, basically there can be no interruptions in the agreed repayment time frame.
For all short-term borrowers please take a look at RadiantCash. The first loan will be cheaper than most other Native American lenders. And the later loans from RadiantCash will certainly carry a much lower cost than the other loan companies. RadiantCash is not the best tribal lender out there, as I prefer Plain Green Loans with their installment loans and Mobiloans with their line of credit, but when it comes to the payday loans there is no dobut that RadiantCash is by far the best option available.