Fox Hills Cash is a relatively new tribal lending company. The problem that most potential borrowers (looking to become customers) will have with this company is there very low maximum dollar amounts for their loan product.
Fox Hills Cash issues loans ranging from $200 to $500. And that $500 level, that's the highest amount for any borrower, including returning customers. That is one reason that a consumer will want to shy away from Fox Hills Cash, there simply isn't the level of funding that other tribal lenders can provide. Look at a company like Superior Funding which offers up to $3,000 in a line of credit or loan.
Getting approved for Superior Funding isn't much different (may not be different at all) than the requirements for a loan from Fox Hills Cash. In other words, why would any consumer opt to go with a lender who is far more limited with a $500 maximum loan rather than having the option to get a much larger loan from an equivalent company.
Even though it's an inconvenience the amount a consumer may borrow from Fox Hills Cash is not the biggest difficulty with this firm, the real problem with Fox Hills Cash is the interest rate that the loan carries. This lender has selected the rate for their loans to be 35% per every 14 day rolling period that the loan is outstanding. This rate is higher than most other Native American lenders charge.
For instance, a large and long time tribal lender called Mobiloans allows a new customer to borrow up to $1,500 for a single loan. The rate for any loan that is issued for $500 or above is only 10% per each 14 day period. And that gets us to the biggest problem that I have with Fox Hills Cash which is the cost of the loan.
Some tribal lenders charge 10% interest on a rolling basis, like Mobiloans. Some others charge even less, like Plain Green Loans which has a 59% APR which is even less than the 10% than Mobiloans charges. There are some other Native American lenders (many others actually) that will use what has become the industry standard interest which is 30% for each pay period that the debt is extended. Then there is Fox Hills Cash, for some reason they have decided to charge more for their low dollar loans than all of the other tribal lenders listed above.
Fox Hills Cash has a bi-weekly fee of 35% for their loans and that is basically some of the highest rates of all the tribal loan companies. It's funny that the firm can just publish this rate and let that information just hang out there in digital space. I guess the company is just hoping that consumers will not notice the rates, or if they notice then the hope is that they simply will not understand the ramifications of the high cost? It's strange how with so many other products (cars, groceries, gasoline) consumers will actively search within the market for the best deal available. And that makes sense because price is supposed to be a major factor when it comes to buying (or not purchasing) a product or service.
What makes tribal lending such an odd business is that it is so diversified, it is so diffuse and unorganized, we essentially have millions of potential customers who are looking around online for some form of credit.
They want a loan and they really have no starting point to work with, instead they just get on the internet and start hunting around for some loan that doesn't require collateral, like a house or title to a car. They just want to sign for the loan, prove they have a job and go into debt for whatever it might be they want to spend the money on. That's all, nothing else. This is how Fox Hills Cash can survive, with customers who are unconcerned about shopping around and getting the best rate. If these consumers were looking around at the competition there would be very little (or absolute zero) business going on with this tribal lender.
Even though it's always interesting to find a new Native American lender this is not the type of company that we are looking for when it comes to low rates. It is an automatic assumption that getting a loan from a tribe will cost much more than a standard loan, but the trade off is that the tribally-based lender will work with about anyone with a job, including those with bad credit or no established credit.
That's the opposite situation at the banks where they want a good credit score and a mostly unblemished credit history. But that doesn't mean we can't shop within the tribal lenders themselves. Not all tribal loan companies operate with the same terms, and Fox Hills Cash is proof of that with their substantially higher rates than Mobiloans.
For my own personal borrowing needs I would not turn to Fox Hills Cash for any reason, there are several tribal companies that have them beat when it comes to loan duration and interest rates. Mobiloans, Spotloan, Plain Green Loans, Clear Creek Lending and Great Plains Lending are just a few of the tribal lenders that I would prefer to use instead of Fox Hills. If Fox Hills Cash wants more business they are going to have to pay attention to the competition and get some lower rates in place.
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