Today I will be doing an elaborate review of a special type of small personal loan called Spot Loan designed to cater for quick cash needs or emergency expenses which may have been denied by the typical traditional banks or lending institutions. Spot Loan was established as an alternative to payday loans, aiming to address immediate financial needs in a more favorable and seamless process.
However while Spot Loan distinguishes itself from payday advance lenders, it shares similarities with them, such as the inclusion of extremely high interest rates. But Spot Loan differs by not imposing any penalties for early repayment. In times of emergencies, a short-term installment loan from Spot Loan can be beneficial if you are able to swiftly settle the debt.
What is Spot Loan?
Spotloan is an online loan company owned by BlueChip Financial, a tribal lender that offers short-term personal loans with fixed payments. The lending platform offers loan amounts ranging from $300 to $800 with repayment terms of up to 10 months. If you apply for a short-term loan from Spotloan, you will realize that the loan’s annual percentage rate, [APR], are typically higher than other personal loan platforms.
The National Consumer Law Center recommends 36% as the upper limit of an affordable interest rate. Therefore before you apply for any loan, read over the terms and make sure the payments will fit in your budget. Depending on your terms, your APR with Spotloan could be as high as 490%, which is similar to what expensive traditional payday lenders charge.
How To Apply For Spot Loan in 2023?
To apply for a loan from Spot Loan, simply fill out an online application form at spotloan.com. To apply, you must be age 18 or older with verifiable employment or another regular source of income, an email address, a phone number and a bank account. You will need to further provide the following personal details: Full name and address; Date of birth; Social Security number; Length of time at residence; Employer name/address; and Bank account details.
Once you meet the above basic application requirements, you can follow the following steps on their website to complete your application process:
- Choose a Product: Spot Loan simplifies the selection process by presenting various options in a user-friendly manner. Borrowers can determine their preferred total principal balance and monthly payment upfront. The website will then calculate the corresponding repayment term and total number of payments.
- Click “Get Started”: Once you have finalized the desired loan term, clicking this button will redirect you to the application page.
- Identity Verification: Spot Loan will request your name and Social Security Number to verify your identity. It is important to exercise caution and not provide this information if you decide to cancel the application, as there is a risk that it may be retained and sold to third parties.
- Provide Personal Information: The next step involves providing personal details such as your address, contact information, and housing situation (renting or owning).
- Share Income Details: Spot Loan will inquire about your employment status and any other sources of monthly income. This section typically plays a significant role in determining the approval or rejection of your application.
- Provide Banking Information: Finally, Spot Loan will require your bank account information, including the bank name, as well as your banking and routing numbers. These details enable them to facilitate the transfer of funds.
Upon submitting all the necessary information, Spot Loan usually provides an immediate decision on the application. If approved, the funds can be deposited into your account within a single business day.
How Does A Spot Loan Works?
Spot Loans are typically unsecured, meaning the lending institution isn’t given a specific claim on a borrower’s assets. This implies that borrowers will typically pay a higher interest rate on these loans. Instead of pledging collateral, borrowers qualify for loans based on their credit history and income. In many ways, a Spot Loan behaves the same way as credit card debt and, like credit card debt, it is a good idea to make all payments on time and in full when possible.
You can apply for a spot loan online, over the phone, or through your ATM. Borrowers must submit personal information including name, phone number, Social Security number, income, and the intended purpose of the funds. The process for approving the loan and its disbursal is in many cases completely automated, and a borrower can receive the funds in a matter of hours.
Lenders can approve these loans in as little as 10 minutes. A commonly issued Spot Loan, according to
investopedia is a type of mortgage loan issued to a borrower to purchase a single unit in a multi-unit building, such as a condominium complex. Some lenders must approve an entire building before they agree to approve a loan for a unit within that building. However, as long as the building meets certain broader requirements, other lenders will make a spot loan after approving only the unit to be purchased.
What Are The Loan Amount Offered by Spot Loan?
Spot Loan typically offers online installment loans, ranging from $300 to $800, with the possibility of receiving funds as early as the following day. You are granted a maximum of eight months to repay the loan. However, it is important to note that with interest rates exceeding 400%, failing to promptly repay this small loan can result in substantial costs.
What Are the Interest Rates and APR of Spot Loan?
Like we noted earlier, Spot Loan charges relatively high interest rates which is a maximum APR of 490%. This APR breaks down to approximately 1.34% interest charged daily. However, Spot Loan offers a potential benefit for borrowers who have successfully paid off one Spot Loan installment loan and are looking to apply for a second.
For returning customers, Spot Loan offers interest rates that could range from 460% to 330%. Furthermore, borrowers who continue to take out and pay off Spot Loan personal loans with a clean payment history have the potential to receive an APR of 99% once they take out their 10th loan.
What Are The Features of a Spot Loan?
- Spot loans are installment loans, and for those who can pay the loan back on time, and can stomach the high interest rates, spot loans can be an intelligent alternative to other short-term loan solutions. Other features include:
- Like other types of short-term loans, spot loans usually carry a significant interest rate.
- Spot loans are not the same as payday loans, and offer a significantly longer time horizon in which to pay back the loan.
- A Spot Loan is a financial instrument and are not to be confused with Spotloan.com, an online lending company that issues Spot loans.
- Those that benefit the most from spot loans are those who can pay the loan back promptly and in full.
What Are The Privacy and Disclosure Policy of Spot Loan?
By opting to apply and obtain loans through Spot Loan, you grant them the authority to collect and authenticate your information, which could potentially be disclosed to “employees, affiliates, vendors, partners, and third parties” in order to facilitate the loan process. Spot Loan may additionally collect details pertaining to your banking account, credit score, and contact particulars.
Is Spot Loan Available in All States in The US?
Not at all, Spot Loan is limited to individuals in the following states: Alabama, Alaska, Arizona, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington, Wisconsin, and Wyoming.
What Makes Me Eligible to Apply For Spot Loan?
Spot Loan has comparatively lenient eligibility criteria when compared to numerous other installment or payday loan providers. All you need to qualify is to demonstrate a steady income from an employment or another regular income source, possess a checking or savings account, provide a valid email address or phone number, and be at least 18 years of age.
Spot Loan extends its services to all states except for Arkansas, Minnesota, New York, North Dakota, Pennsylvania, West Virginia, and the District of Columbia.
Is Spot Loan Customer Service Fair Enough?
Spot Loan prides itself on delivering exceptional customer service that goes the extra mile. Each applicant is assigned a dedicated “Relationship Manager” who ensures they stay informed about the progress of their application and addresses any inquiries that may arise throughout the process.
Spot Loan offers three primary communication channels: phone, traditional mail, and email. However, it’s worth noting that the website does not provide specific hours of operation, and the email address provided (help@spotloan.com) may not always offer a prompt response.
While the presence of relationship managers is commendable, enhancing the accessibility of contact information and providing comprehensive details would further enhance Spotloan’s customer service experience. You can as well contact Spot Loan customer service via phone at 888-681-6811.
What Are The Unique Qualities in Applying for Spot Loan?
Spot Loan distinguishes itself from its competitors through various unique qualities and notable processes, which include:
- High Customer Satisfaction: Consumer Affairs rates Spotloan with an impressive 4 out of 5 rating for overall customer satisfaction.
- Transparent Rates and Policies: Spot Loan maintains transparency by clearly presenting their rates and policies, ensuring borrowers have a clear understanding of the terms.
- Convenient Repayment Options: Spot Loan offers easy repayment options, facilitating a smooth and hassle-free process for borrowers to fulfill their loan obligations.
- Swift Turnaround Time and No Upfront Fees: Spot Loan stands out by providing a quick turnaround time for loan approvals, allowing borrowers to access funds promptly. Additionally, they do not impose any upfront fees, enhancing affordability and transparency in the lending process.
What Are The Demerits and Disavantages of Using Spot Loan?
The disadvantages of obtaining a loan from Spot Loan, however far outweigh the advantages. It is not uncommon to see annual percentage rates (APRs) over 300%. Even if you are able to pay back the spot loan in the time frame you signed for, you are paying well over your principal loan amount to the lender. Therefore before considering a loan from Spot Loan, it’s important to take note of the following drawbacks:
- Non-Competitive Offers: It offers may not always be the most competitive compared to other options available in the market.
- Application Process: You are required to wait for Spot Loan to initiate contact with you before you can proceed with completing your application, which may cause some delays.
- High APRs: While Spot Loan’s annual percentage rates (APRs) may be competitive in relation to similar lenders, they can still be notably high, resulting in substantial costs over the loan term.
Is a Spot Loan Considered a bad Idea?
Taking a loan offer from Spot Loan is not necessarily a bad idea, but can quickly become difficult and expensive if you are unable to make repayments on time. Like other loans, Spot Loan carry an interest rate but since the loan period is usually shorter, the interest rates are much higher, and you may end up paying a significant amount of interest if you miss any payments.
Does Spot Loan Do Credit Checks?
Even though Spot Loan checks your credit history and request information from credit reporting agencies, these inquiries may not appear on your credit report. Essentially, Spot Loan does a credit check to review all accounts where borrowers have accepted credit. These accounts may include mortgages, credit cards, existing loans, or any other credit agreement. The type of credit pull Spot Loan performs may be referred to as a soft credit check.
What Are Spot Loan’s Credit Requirements?
Spotloan makes bad credit loans but doesn’t require a specific minimum credit score. It may pull a soft credit inquiry from a credit bureau, but soft credit pulls do not impact your credit scores, and only you can see them on your credit reports. Spotloan provides payment information to at least one major credit bureau so you can help improve your credit score through timely repayments.
What Are Soft Credit Checks?
soft credit checks are safe inquiries into a consumer’s credit history. Lenders can perform soft credit checks by inquiring with non-traditional credit reporting agencies. Borrowers can also perform soft credit checks for a report on their own financial history via their accounts with a bank, credit card, and other financial institutions.
Is Spot Loan a Predatory Loan or Loan Shark?
Many consider Spot Loan as predatory due to approving those with less than ideal credit with full knowledge they may be unable to make timely payments. In this scenario, the recipient of the loan can quickly be overrun with interest. Because of this, some people see it a loan shark.
What Are The Consequences of not Paying Spot Loan on Time? Does it Affect My Credit Score?
Borrowers risk having their APR increase if they make late or delinquent payments. Another way borrowers can increase their Spot Loan funding balance is by sending a bad check. Spot Loan charges $10 for all returned checks as an NSF fee. It’s important to be aware of specific potential consequences if your payment of Spot Loan are late which include:
- Additional Fees and Increased Interest: Late payments may incur extra fees and result in additional interest accumulating over the duration of your loan. Moreover, if you opt for autopay but have insufficient funds, a $10 fee may be charged.
- Defaulting and Credit Score Impact: If you are unable to make a payment within 90 days of the scheduled date, it will lead to loan default, causing more significant repercussions on your credit score. Missing occasional payments might not have a substantial impact, but defaulting will adversely affect your creditworthiness.
Is Spot Loan Really Safe to Use?
When reviewing Spot Loan’s privacy policy, it’s important to note the following details:
- Information Sharing for Everyday Business Purposes: It has the ability to share your personal information for regular business operations, and you are unable to restrict this sharing.
- Information Sharing for Marketing Purposes: It can share your personal information for their marketing initiatives, and you have no option to limit this sharing.
- Joint Marketing with Financial Companies: It has the authority to share your personal information for joint marketing ventures with other financial institutions, and you cannot restrict this sharing.
- Affiliates’ Everyday Business Purposes: It does not share your personal information for their affiliates’ routine business operations.
- Affiliate Marketing: It does not share your personal information for their affiliates to engage in marketing activities directed at you.
- Nonaffiliate Marketing: It can share your personal information with nonaffiliated companies for marketing purposes, but you do have the option to restrict this sharing.
It’s worth noting that Spot Loan implements security measures that comply with federal law to safeguard your personal information.
How Does Spot Loan Loan Comparison Works?
It is imperative to analyze how a Spot Loan loan might work. Assuming you got an offer of a loan amount of $600. With an APR of 490%, you could pay off the loan with ten bi-weekly payments over the course of five months. This repayment plan would result in $775 of finance charges, bringing the total cost of the loan to $1,375 which is more than twice the amount of the original loan!
However from the above, it’s quite easy for a loan from Spot Loan to get quickly multiplied and repayment becomes very difficult. Instead of dealing with a 490% APR, you may want to look into other loan options that could offer you better rates, more money, and more flexible terms.
Is a Spot Loan The Same As A Payday Loan?
A Spot Loan is different from a payday loan. A Spot Loan functions like a regular loan, commonly referred to as an installment loan, where you make your own payments and while they are on a schedule and like a payday loan carry a high interest, Spot Loans allow more time to pay back the loan and generally don’t carry the exorbitant late or rollover fees that payday loans will.
How Do Spot Loan Installment Loans Compare to Other Payday Loans?
You may be asking: How does a payday loan compare to an installment or personal loan from Spot Loan? A payday loan and a Spot Loan loan share many similarities, including high-interest rates and low loan amounts. The biggest difference between Spot Loan and a payday loan is the repayment terms.
Online payday loans typically require full loan repayment within approximately fourteen days or less, while Spot Loan gives their borrowers three to ten months to repay their loans. However, longer repayment terms may not be the best for your finances. Because of the high-interest rates, longer repayment terms may cause the total cost of your loan to skyrocket.
Is Spot Loan Legally Fit To Operate And Its Tribal Affiliation Question?
Spot Loan operates under the assertion that it is a subsidiary of BlueChip Financial, an entity owned by the Turtle Mountain Band of Chippewa Indians of North Dakota, a federally recognized Native American tribe.
This tribal affiliation grants them certain flexibilities in terms of regulations applicable to payday lenders. They argue that being governed by tribal laws exempts them from adhering to federal and state regulations, including North Dakota’s interest rate limit.
However, the sustainability of this arrangement is uncertain, as there has been at least one investigation into the legitimacy of their tribal status. Tycko and Zavareei, a law firm, raised concerns that Spot Loan may not meet the required criteria to claim tribal privileges.
Due to a Supreme Court ruling, online lenders are now obligated to satisfy more than mere formalities to qualify for tribal immunity. If it is determined that Spot Loan does not meet the necessary qualifications, they could face significant consequences.
Spot Loan recently reached a settlement in a class-action lawsuit that accused them of charging unlawfully high interest rates, further complicating their legal situation.
What Should I do If my loan application is rejected by Spotloan?
If Spotloan rejects your loan, it will send you an Adverse Action Notice explaining why. If you feel the rejection stems from a credit report mistake, you can contact the credit bureaus directly or via a credit repair company to dispute incorrect, obsolete, or unverifiable items.
Loans Like Spotloan 2023 [Fastest Loan Alternatives That Work Like Spotloan]
Spotloan’s installment loans are limited compared to other payday providers as you can only borrow between $300 and $800, with a maximum term of 10 months. Also with Spotloan carrying annual percentages as high as 490%, it may become necessary to get other alternative loans like Spotloan to find a cheaper option.
If Spotloan’s offers, interest rate, APR and loan amount does not meet your lending requirement and request, then you need to seek for viable other reputable loans like Spotloan which can provide equally fast and seamless alternatives that can work for you, with cheaper rates, bigger loan amount and greater flexibilities.
Below are our list of the top 5 best loans like Spotloans you can apply for in 2023. With a lower interest rate, higher approval rate for bad credit, higher loan amount and longer loan tenure, these loan apps like Lendly below will bring you the lending benefits you deserve.
Top 5 Best Loans Like Spotloan 2023 for Fastest Approval And Urgent Cash
One of the uniqueness of Spotloan is its unusual loan terms that balance high interest rates with long payback periods. There are many similar payday lenders and loan-matching networks that can arrange installment loans like Spotloan or at least similar to Spotloan. You may qualify for a personal loan with an interest rate of 36% or less. Moreover, online network loans may let you borrow more than Spotloan’s $800 maximum and give you a longer loan term.
Some of the best online loans like Spotloans that can approve urgent cash with greater flexibilities include Chime SpotMe, Albert, Brigit, MoneyLion, Possible Finance, Cash App, LendYou, Monevo, CashUSA.com and BillHappen among others. These loans like Spotloan offer better lending alternatives than online payday lender, where interest rates can exceed 700%, and you have one to four weeks to repay the entire amount. Most of these Spotloan alternatives do not require credit check and charge very little and affordable interest rate.
In Conclusion
Spot Loan is a lending institution offering viable option for individuals in need of short-term installment loans to address immediate financial obligations. The platform’s loans ranges from $300 to $800 with repayment terms ranging from 3 months to 10 months. Spot Loan is also an asset of BlueChip Financial, a tribal lending financial institution. This entity is owned, organized, and operated by the Turtle Mountain Band of Chippewa Indians. The Tribe’s Reservation is located within the state of North Dakota, where the Turtle Mountain Band handles all BlueChip Financial business.
While Spot Loan offers advantages such as transparency, convenient repayment options, and a quick application process, there are certain drawbacks to consider. These include the potential for non-competitive loan offers, the requirement to wait for Spot Loan’s contact to complete the application, and the high annual percentage rates (APRs). Late payments can result in additional fees and interest, and defaulting on the loan can have severe consequences for credit scores. It is important to carefully evaluate the terms and consider the potential impact on personal finances before opting for a Spot Loan.
