Snap Credit, sometimes known as My Snap Credit, has more than a few reviews online and many of them are not that good. However, let's remember that all tribal lenders charge high interest rates and that means that all tribal lenders are going to have unqualified complaints. What's an unqualified complaint? Well, it's not the same as an unfair complaint.
I don't feel it's unfair to complain about interest rates in the realm of 500% to 700% even if the customer agreed to the terms. It's still unbelievable and so heavy a burden for the working poor. However, I will say they are not a proper complaint, or as we call it here, unqualified.
The borrower technically knew going into the loan that there would be ridiculously high rates. And they also knew (or should have realized) that the longer the loan was outstanding the greater the cost of these high interest rates would have on them. So taking away all of these unqualified complaints we can review the other more legitimate complaints, having to do with collections and loan agreements mainly.
My Snap Credit just isn't for me, and I would make the case that they aren't the right answer for any potential borrower, which includes you.
I would rather look at other loan shops (and yes these are still tribal-based lenders, so qualifying will still be quite easy) that are willing to provide better terms and timframes on their products.
Let's look at two alternatives to Snap Credit.
The first is Mobiloans, which is a bit of a hybrid when it comes to Native American loan firms. Mobiloans offers a line of credit. This line of credit works like an installment loan once the loan is issued, but that's assuming you take the entire line out at once.
If you only access a percentage of the loan (say for instance 50%) then you'll have the other 50% to borrow whenever you choose. This unique loan feature stands alone amongst the tribal lenders, as no other company is doing this, at least none that I could find. The loan limit is $1,500 which isn't the best but certainly much better than the $300 offered by Snap Credit.
The interest rate on the Mobiloans product is far superior, too. A loan through Mobiloans for $500 will only cost $50 in interest payments at the end of the first 14 day cycle, where the $300 loan from Snap Credit would cost $90 in fees at the end of that first 14 day cycle. See the stunning difference? It's hard to appreciate what the leadership at Snap Credit is thinking when they know these other tribal companies are out there with such better loan products. Maybe they are just hoping no one will mention these competitors.
The second Native American lender I want to look at (in comparison to Snap) is Clear Creek Lending. Now, it should be noted right away that Clear Creek also has some high interest rates. Their APR is in the neighborhood of 390% and that's still better than the Greenline Loans rate but that doesn't help much when both companies are charging what could be considered a terrible rate.
However, the big difference here is if you need a larger loan. Clear Creek Lending will issue loans up to $2,500 and that's for a first time lender as well as for existing customers. Clear Creek is also willing to have the customer repay over a six month period or longer. Clear Creek Lending is clearly the better option when compared to the product offered by Snap Credit, they beat them on interest rates, on length of the loan term, and on the dollar amount they're will to loan.
The problem that so many tribal payday lenders face is not that they are a bad company, it's just that there are better lenders (and lending programs) available to the public. And it's not as though it is more difficult to qualify for Clear Creek Lending or for Mobiloans, they are just as simple to borrow from any other Native American lender, that's one thing all these firms have in common.
So let's conclude by saying if you are looking at Snap Credit then you ought to keep on looking, because you will find better loan products on the market. The real problem is that they don't need a company name change, they need to evolved their product offerings.
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