This is the first time we are reviewing First Day Loans and there is not a whole lot to talk about. First Day Loan is a very typical tribal loan website which just does almost nothing (in fact there is one benefit of using this company, which is below) to promote or enhance anything new with Native American lending.
Tribal lenders have such absolute freedom to design and create new debt products and different structures for repayment, yet so many of the companies follow the same path of bland short-term lending that must guarantee a good return for them. However, it also guarantees that the consumer will have little in the way of true choice or service quality.
The one thing that can be said for First Day Loan is the fact that they do have a lower interest rate on their payday loans. Rather than the standard 30% that's charge on the 14 day loan like so many tribal lenders love to do, First Day Loan charges just over 9% for every 14 days the loan is outstanding. Now that is something good.
Critics will point to the fact that this lender still has an APR around 243% which of course is outlandish when compared to personal loans that banks used to issue bank in the early 2000's. But those days are gone and those banks are not interested in dealing in personal (unsecured) debt these days.
What's mildly surprising about the rate that this loan company offers is that it beats the Mobiloans 10% bi-weekly interest rate. This means that First Day Loan is going to be elevated on the charts when it comes to ranking tribal lenders, especially when it comes to the comparison of interest rates.
One problem with the lender is that the maximum loan is only $1,000 and that's a bit odd because the company does offer loans with three month and six month terms. Those loans get the same 243% APR however there isn't an allowance to lend more money beyond the $1K unless the company does this on a case by case basis, and they just don't mention it on their site.
The firm does mention that the rates and loans they detail are just examples so there might be extra amounts. But on the surface it looks as though $1,000 will be the maximum amount the average customer will have available to them.
Another note that stands out with First Day Loan is they have a requirement that customers may not have two outstanding loans when applying to for a loan with the company. That's unique because normally the tribal lender will state that the customer may not have any other outstanding loan at the time when the application is filed with the lender. First Day Loan has decided they are alright with allowing customers more flexibility when it comes to the financial status of their new customers.
The last major note for this lender is the duration of the loans offered by this company, which is not as clearly defined as some other Native American lenders. The main description of the loan offering is the payday loan, which is the 14 day vehicle.
However, the company also talks about the three month loan term and there is also a six month loan.
The interest rate that is applicable to this loan wasn't discussed at much length, so we are left to understand that the 243% APR will also apply to these longer time frame loans. It's a standing question because most tribal lenders (and most lenders in general) will offer a lower rate when a customer takes out a loan for a longer amount of time.
In general an installment loan (or the rare personal loan) will get a lower rate than the typical payday loan.
This makes sense to a certain degree as a short-term loan like a payday loan will allow the company the very immediate chance to make a profit and that's over in 14 days. But time doesn't seem to matter as much with FIrst Day Loan, it doesn't look like it matters whether the debt is 14 days or 180 days, the rate remains the same.
First Day Loan isn't a bad option if you are going with a tribal loan, which means there's a good chance you're not going to qualify for a more traditional personal loan from Springleaf or Wells Fargo. The fact that they have an interest rate that is better than Mobilonans definitely is an attention getting situation.
If you are considering taking a loan from a tribal lender (especially if it's from a lower grade firm like 500 Fast Cash or Ameriloan) then make sure to check out First Day Loan's website and read their loan offerings. You will notice very quickly that they have better terms and conditions than the majority of other Native American companies out there.
Recent Comments