Sometimes there are surprises in the business of Native American lending, and one of those surprises comes in the form of Cash Fairy. Now before I go into why I like this company it should be noted that normally this type of company would get a bad review.
Here are just a few of the bad things about Cash Fairy right out of the gate...
The company has a maximum loan amount of $500 for new customers, and they even hedge against that small amount. They have the audacity to say on their site that most customers will only qualify for $350 on their first loan. This doesn't help someone who is looking for a true loan.
Also, the company doesn't provide a true installment loan. Most of the favored companies that get a good or decent review provide at least 16 weeks to repay the loan. Without that flexibility it means one of two things, that the customer will have to (often magically) have to come up with the money within just days of getting the original loan or they will have to start the process of extending the loan. This makes short-term loans become very expensive and it negates the concept of the payday loan because it quickly turns into multiple paydays.
Third, and this is a weak point to complain, the company name makes it hard to take them seriously. A decade ago we were getting loans from companies like Wells Fargo, Chase Bank, large credit unions, or Quicken Loans. Big names with legitimacy established just by their name plates. But now we have to deal with Cash Fairy? Have things fallen that far in the last 10 years? The answer is yes, they have, and don't look for them to stop falling anytime soon.
Now having complained about all things big and small about Cash Fairy, let's turn to the fact that I actually wound-up liking this company. Cash Fairy has done something that I have asked a lot of Native American lenders to do and they are the first company that I believe has what I was asking for. Now let's note they didn't do it because I asked them, they must have thought it was a good idea, too.
Cash Fairy actually breaks out the cost of a loan with them on a daily basis. This is the most crystal clear way to see what you have to pay and just how expensive the loan will be. The term in days they list as available range from one day to 50 days. This is another interesting break with all other tribal lending firms, as nearly all other companies gear everything around a 14 day cycle, which for most Americans is their pay cycle at their employers.
Cash Fairy departs entirely from the concept of payday lending and dives into the world of daily lending. In other words, how long do you need your loan? Maybe it's for six days, maybe it's for 47 days. No matter the time you need, assuming it is less than 50 days, Cash Fairy can make those specific arrangements. And the loan can go beyond 50 days too, it's just that is the length of time they display for the example loan. This is not to say that Cash Fairy won't be taking out money like other payday lenders on your payday, because they will. But the calculation of time and the scheduling of the length of the loan, that is up to you.
Cash Fairy does charge a lot and that's to be expected. These smaller tribal lenders that issue loans under $500 are usually expensive because they don't have a lot of margin to make up bad debts and with low dollar amounts it's harder for them to turn a profit than a company like Mobiloans that issues $1,500 loans. The APR on the example loan at Cash Fairy is 782% which is not nice, especially over a longer period of time. But again, it's the old saying it is what it is, short-term lenders charge a lot of money and Cash Fairy is a tribal lender, completely free of state regulation and the credit agencies, so they charge a lot of interest because of the risks they take on.
In normal circumstances I would say forget Cash Fairy, because they offer such low dollar amounts. The fact that they have the nerve to actually temper consumer enthusiasm by stating most customers will only get $350 is still ridiculous. But despite these factors, I like the company because of the courage they displayed when they listed the daily rates up to 50 days on an example loan. This gives the customer the best visual image of what exactly is going to happen to them if they do take a loan with the company. This level of honesty and transparency is rare amongst any online lender.
If you need a small loan and need it for a specific number of days, you might just want to turn to Cash Fairy. You will be able to calculate the damage from the finance fees and at least know exactly what the terms of the loans will be, should you decide to take the loan. This is a lot more than can be said for most other Native American loan shops.