As we close out 2022 and get ready for 2023 some things change and some stay the same. With tribal lending it's a bit of both, we have new names that enter the business but they are essentially providing the same old (high cost) financial products.
This is what we find with Uprova - a new tribal lender tied to a tribe called Habematolel Pomo of Upper Lake - a sovereign nation federally recognized tribe that owns the new lending site called Uprova. Sounds like the play on words here is that if you apply for a loan 'You' will be approved - You Approved - Uprova. That's not a qualified statement, just a guess from your commentator here.
Uprova is out to do a few things differently, which is to report your payments to FICO credit rating agency and also to something referred to as "alternative credit score" - which sounds not very meaningful. In the word of credit, it's the big three companies of TransUnion, Experian and Equifax. Any help with any other credit rating company would have to be deemed as not very important.
Uprova provides installment loans up to $5,000 but as usual we are guessing that the majority of applicants will qualify for a substantially lower amount, most likely ranging from $1,000 - $2,500. Companies can legally say that 'you may' qualify for a $5,000 loan if they give that loan to 1% of their client base. It's not an untrue statement, because you might qualify. Except then you will re-enter reality and the fact is you will not be getting that $5K loan.
One other nice element to Uprova loans is that you will pay down some of the principal amount with each installment payment. Many lenders (and every single mortgage lender by the way) will have the first installment payments pay only interest. And then the last payments will be nearly all principal to the original loan. So Uprova is breaking some new ground here with principal coming out of the very first payment.
Beyond these slightly good facets you are going to find the same old tribal loan company that has been out in the market for over 10 years now. Uprova said they provide "fast funding" and some loans are issued in 30 minutes. Sounds like the same thing to me. They say they provide a 'fixed payment term' - but so does ever other lender. Think about it, what lender is going to give you (the borrower) the option on the dollar amount to repay in a given time frame? Of course they won't, as many borrowers would choose to repay $10 per each repayment period.
They offer no prepayment penalties. This isn't meaningful as all tribal lenders do the same thing, as well as nearly all of the non-tribal loan outfits. They offer "easy to understand loan terms" - they all say this and it's always untrue, the loans term are these small print, annoying (and demeaning) legal jabbers. They also talk about 'high level customer service' which is a total nothing. Every company says that you will be treated with the utmost respect and then in reality it's just the same bland experience for all your email or phone interactions. And does it really matter? If I am going to take out a high interest loan and pay a bunch of money to some company, is it really important how flattering or respectful the person I deal with is? I guess to some people but not to me. I'm more focused on the high interest and the future money this is going to cost me.
Overall I would say Uprova is a better tribal loan company than most. They do reporting to credit agencies (which will help you in the long term), and they offer installment loans which are better than a payday loan. Uprova also has a number of ratings with TrustPilot so that has to be worth something, the company is 100% legitimate.
Beyond these takeaways remember it's always better to borrow from a friend or family member if you can, as the high interest rates will take real money away from you - and that's real money that you could use later on in 2023. The fact that you will get 'bailed out' of some financial difficulty in the short-term is real.
I get it, I have been there and you do have a real sense of relief when you get that qualification email back from the lender. You have solved your financial problems for another day, maybe another week, maybe even for another month. But somewhere later in the year you will feel the loss of the money you'll pay in interest charges. Uprova is a better company in a business that has very few promising long-term financial outcomes.
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