Somehow it already got to be 2015 and I am on the hunt for new tribal lenders. The first new Native American loan company that I have found is Action Payday. This new company cuts right to the basics of what people want and there is little in the way of distractions on their website.
One interesting aspect of Action Payday is that they are co-branding (and it should be noted they are part of the same family of companies) the Go Loan. The Go Loan is a type of payday loan that has discounts associated with it based on the situation the borrower finds themselves in relation to the firm. For instance, a first time borrower can receive 50% off of their initial loan. While this might sound enticing it really is not much of a deal.
The main problem I have with Action Payday is found in the company's name, which is my least favorite word when it comes to short-term lending and that is the word "payday" because it means that there is a very slim amount of time that the customer will have to repay the loan. If they are lucky they will have about 20 days to repay.
It's more likely that they will have 12 or 13 days to repay from the time they receive the loan. No matter what kind of discount is going on (and that's not to say that 50% off isn't good because that is a nice price cut) the time frame that the loan has to be repaid just makes the whole endeavor not interesting to me. That's my personal take on this type of loan, I know that there are many customers of Native American lenders that have no problem with having such a short time to pay the money back, and there's another large batch of customers who don't mind getting very small loans, ranging from $300 to $500.
This is just not for me. I want a larger loan, with a base amount of at least $1,000 and that is the base, I would actually prefer a larger loan ranging upwards of $3K. Maybe I was spoiled by the large loan amounts that Western Sky Financial used to provide back in 2010. Those days are long gone, now we are lucky to be offered $1K. And in the case of Action Payday we are not even being offered that much, we are looking at a $500 loan. That's due to the "Go Loan" format that tops out at $500.
My advice for potential borrowers (who obviously have weak credit or no credit, and have no option to get a loan from a normal state licensed lender) who are satisfied (or content, or unconcerned) about getting a tribal payday loan then I would advise people to take a look at Radiant Cash. Sometimes they are found as RadiantCash.
The difference between a firm like Action Payday and RadiantCash is the interest rate that you will pay. While Action Payday has the one time discount of 50% for a new customer the team over at RadiantCash operate with a different model altogether. At RadiantCash the first loan that you take with them will be the most expensive. After you successfully repay that first loan the rate goes down for each consecutive loan.
The ugly secret about short-term loans, especially payday lending, is that the customers of these products tend to do two things regularly. First, when they get a loan they rarely pay off the whole loan and instead opt to take one (or several) extensions on that original loan. Second, the payday loan customer will tend to keep coming back for more loans over the years.
Consumers that get into trouble often stay in trouble. And it's not necessarily their fault. Prices for consumer goods are very high, rents and mortgages are very expensive and there is very little job security these days. Plus, many employers are paying wages and salaries that are just not that attractive. It all adds up to be a big financial mess for over half of the people in the nation.
Does any of this sound familiar?
If we can assume that a customer of a tribal payday lender will be back to the trough for more loans then a company like RadiantCash makes more sense than Action Payday. Yes, you will not get that initial discount with Action Payday but does it really matter? If you return to them for your second and third loans your cost will actually double, as you will go from the discounted rate of 15% to the standard rate of 30% per each two week loan. With RadiantCash the cost of each loan will decrease and it will permanently stay lower even if you don't take a loan for over a year.
Some people will use Action Payday but I will look elsewhere for unsecured debt. The Go Loan is just not that interesting and financially it does not make a lot of sense.
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