About Tribal Payday Loans
What Are Tribal Payday Loans?
Tribal payday loans are offered by tribal lending entities that operate from various native reservations around the country.
The Native American Financial Services Association represents most of these lenders and encourages them to offer online alternatives to payday lending.
Keep reading to learn more about tribal payday loans and what they have to offer.
Tribal Lending vs. Payday Lending
Traditional payday loans are funded with a single repayment date, requiring full repayment at the borrower’s next payday. For most people who are already in a tight financial spot, this can be prohibitive.
If they can’t pay when the loan is due, more interest charges and fees are added, and it quickly turns into a financial avalanche.
Tribal lending alleviates this issue for borrowers by offering installment loans.
They calculate the interest for the life of the loan and add it to the amount borrowed, which is then divided into bi-weekly or monthly payments to determine the length of the repayment term.
The number of payments will depend on how much is borrowed and the terms of the specific lender.
Eligibility for Tribal Payday Loans
In most cases, anyone with a source of income is eligible to apply for tribal payday loans. Good credit is not required and there are no other special eligibility requirements, as is the case with most payday lending services.
The application process will typically request your personal, financial, and income/job information to determine eligibility.
Advantages of Tribal Payday Loans
The biggest advantage of tribal lending is that the loan does not have to be repaid in full as soon as your next payday. Especially when you have a big financial emergency, coming up with that money in a short period can be difficult.
A tribal loan will have low monthly or bi-weekly payments, and will usually even allow you to pay extra or pay the loan off early with no penalty.
These loans may be available in states where traditional payday lending is illegal, offering a solution for people who need emergency funds and may have no other means of obtaining them. Plus, tribal loans are available to all consumers, including tribal and non-tribal applicants.
Disadvantages of Tribal Payday Loans
The biggest disadvantage of tribal payday loans is that consumers have limited protection from these lenders.
The same tribal sovereignty that keeps these lenders from following many strict consumer payday lending rules also may prevent them from being sued for any wrongdoing.
Like all payday loans, the interest rates are usually much higher than traditional lending products, as well.
Applying for a Payday Loan Alternative from LendUp
LendUp offers a new kind of payday lending that helps people improve their financial situation. When you apply for a loan with LendUp, you’ll enjoy:
- 24/7 access to online applications and mobile-friendly functionality.
- Instant lending decision.
- Money funded in as little as one business day.
- Loans for all credit types; good credit is not required.
- No hidden fees, no debt traps. Ever.
- Free financial education tools and courses.
- Top-rated customer service and support.
- Access to lower interest rates, higher loan amounts, and other credit-building products over time, as part of the LendUp Ladder (where available).
Apply for a LendUp Loan here:
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