There are a number of companies that offer Native American installment loans. The question is which of those installment loans is the best option for you? And which one will you qualify for? And for how much money? These questions have to be answered and this is why we've reviewed all of the major (and a few minor) of the Native American installment loan companies.
Notice the review is only for installment loans, if you are searching for payday loans then this isn't the right review for you. However, before you leave you might want to check out what the deal is with installment loans as they are universally a better product than tribal (or non-tribal) payday loans.
I know there are people who are looking to only borrow a little bit of money or who plan on repaying the money very quickly, but despite these circumstances an installment loan is still the more sensible (and cost saving) option when compared to a payday loan. Keep reading if you want to see the explanation as to why this is the case.
Let's use two tribal lenders that I am very familiar with, the first being Mobiloans and the second being Ameriloan. I have used both companies, and Mobiloans I have used more than once. Mobiloans is the installment lender and Ameriloan is the payday lender.
They are both sovereign, tribal-based lenders that are exempt from state licensing or regulation. So in their legal arrangements they are very similar but when it comes to how they behave, what they charge, and how they function, the two companies couldn't be further apart.
Mobiloans is an installment lender. If you really want to get technical they issue a line of credit. However, it's a moot point because once they issue the credit (once you take a loan) then the line of credit defaults to being an installment loan. This company will loan up to $1,500 and the repayment timeframe can stretch for 20 to 40 weeks.
This makes the entire process of going into debt far more manageable than a company that issues a basic loan and is then looking for full repayment within 14 days.
Unfortunately, that is exactly how Ameriloan and so many other tribal payday lenders work. And I shouldn't just pick on the Native American payday shops here, because there are thousands of state licensed payday lenders (both physical stores and online companies) that conduct the same type of low quality business that Ameriloan is engaged in.
That not-so-good business model consists of issuing what are called payday loans, other times referred to as emergency loans, where the borrower takes out what is ostensibly a "loan" but the entire dollar amount of the loan will come due (to be completely repaid) in anywhere from 12 to 19 calendar days. Is it me, or does this type of a loan not really help anyone? If there is an emergency it's hard to believe that the emergency has been or will be solved by getting one of these very short-term loan products.
This is why when I make the comparison of a firm like Mobiloans to a company such as Ameriloan, it's very difficult to imagine ever giving the tribal payday lender (Ameriloan) any credence as a viable option when companies like Mobiloans are out there. This is an instance where true competition is at play.
There is simply no good reason to take out a loan from Ameriloan (the Native American payday lender) while Mobiloans (the Native American installment lender) is just as easy to qualify for a loan and the costs for the Mobiloans product are less than that of Ameriloan.
In general terms, and I mean this as a widely recognized fact that can very rarely be disputed, there is no reason to go with the short-term payday lender when you can borrow more money for a longer period of time for less money by using a tribal installment lender, such as Mobiloans. There are other companies like Mobiloans, two of which are Clear Creek Lending and Great Plains Lending.
Make sure to do your homework if you are considering taking out a payday loan, because I believe that you need to reconsider that decision.
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