Spotloan Personal Loans Review: High-Cost Alternatives to Payday Loans

Spotloan might provide a lifeline if you need money fast and can’t access traditional loan products. The service offers accessible borrowing options with easy-to-meet requirements, a simple application process, and quick approval and funding times.

However, there are several considerations regarding the cost of loans and the company’s ratings on trusted customer review platforms. Here’s everything you need to know about the Spotloan loans and terms to make an informed borrowing decision.

Brief Outline

Pros:

• No impact on your credit score;
• Bad credit borrowers are considered;
• Flexible repayment options;
• No prepayment penalties;
• Loan amounts of up to $1,500 for preferred borrowers;
• Funding in one business day.

Cons:

• High interest rates;
• Low maximum amounts of up to $800 for most clients;
• Don’t help build credit;
• Late fees may be applied;
• Not available in all US states.

A Detailed Spotloan Loans Overview

Spotloan is an online lending company owned by BlueChip Financial, a tribal lender that offers more flexible alternatives to regular payday loans. Here’s a detailed overview of the company’s products and terms.

Loans for Any Credit

Spotloan sets no minimum credit score requirements, making their loans available to people with bad or no credit. You can qualify for its products even if you were denied a loan from traditional banks.

Easy Application Process

You can complete the entire process online in about 10 minutes. The company only needs your basic personal and financial information and sets easy-to-meet eligibility requirements. The website also has an interactive interface that allows you to choose a convenient payment and calculate the full cost of your loan.

No Traditional Credit Checks

The service only uses alternative credit reporting agencies to verify your loan eligibility. The information they look at includes your nad and credit account details, as well as your payment history. Such a check is not shown on your traditional credit report and doesn’t affect your credit.

Small Loan Amounts

Both first-time and repeat borrowers can obtain between $300 and $800 through Spotloan. Clients who have 10 or more loans from a company can request up to $1,500, provided that their income is high enough.

High Loan Cost

The company’s maximum loan APR is 490%, making its borrowing option very expensive. For example, if you borrow $600 with 10 bi-weekly payments over 5 months, you would pay approximately $775 in finance charges. The total loan cost will be $1,375.

Repayment Flexibility

Unlike regular payday loans that need to be repaid within 7 to 31 days, Spotloan allows you to repay the funds within up to 10 weeks in affordable bi-weekly installments. Thanks to this, you can manage your budget more effectively and reduce the financial burden.

No Prepayment Penalties or Origination Fees

Loans offered by Spotloan don’t involve any extra charges for processing your application or repaying the funds early. You can also return the funds to the lender within three days from the date you receive them at no cost if you change your mind.

Fast Approval and Funding

Once you submit your application, it typically takes just one minute to receive an approval decision. If approved, the money will be deposited either on the same day or within up to 2 business days, depending on the approval time and day of the week.

Limited Accessibility

Spotloan offers its products to residents of 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.

No Credit-Building Opportunities

The company doesn’t report your on-time payments to major credit bureaus, meaning that they won’t help you build credit. At the same time, late payments may be reported to traditional credit agencies and result in a drop in your rating.

Probable Late Fees

Although the service mentions it doesn’t apply any fees if you fall behind on payments, the company’s website says you may be subject to additional interest charges and fees based on the balance due of your loan. Therefore, you need to review your contract terms carefully.

Reviews on Spotloan: Online Reputation

Reviews on Spotloan are quite contradictory from platform to platform. Let’s take a closer look at what former clients say about the company on various customer review websites.

TrustPilot: 4.4 out of 5

About 89% of customer feedback on TrustPilot consists of 4- and 5-star reviews. However, there are some consumer reports regarding long funding times and deposits on old bank accounts that were already in the company’s systems. As a result, some borrowers haven’t received their funds when needed. Affected clients also noted that customer support was useless and didn’t help in solving the problem.

BBB: 1.22 out of 5

Spotloan reviews on BBB show mostly a 1-star borrowing experience. Former customers typically mention high APRs, unclear borrowing terms, and unrecorded loan payments. As a result, many clients find themselves owing almost twice as much as they initially borrowed without even knowing about the problem.

Best Company: 1.9 out of 5

Reviews on the Best Company website can be considered warning signs. Customers say the company’s APRs are too high to be legal. Some people also mentioned they had faced some problems with early repayment. However, some borrowers still enjoy their easy application process and fast approval and funding times.

How Spotloan Might Be Used

The company doesn’t limit you in the way you can spend the funds. However, taking into account high APRs, we recommend you use the loans only as a last resort when you face an emergency. Some good purposes may include medical bills, urgent bills, emergency home or car repairs, and other unexpected expenses that require you to act quickly.

What Do You Need to Qualify via Spotloan?

Spotloan has quite simple eligibility criteria. To qualify, you need to meet the following requirements:

• Be at least 18 years old
• Be a resident of the state the company operates in
• Have a job or other regular source of income;
• Have an active checking or savings account;
• Provide your SSN, a valid email address, a mailing address, and phone number;
• Verify your identity once approved (in some cases).

How to Apply with Spotloan

Spotloan claims you can complete the application in just 10 minutes or less. To fill it out, you need to provide the following details:

• Full name;
• Date of birth
• Current address;
• Social Security number;
• Length of time at residence;
• Bank account details;
• Active cell phone number;
• Email address;
• Employer’s contact details.

Once you submit the application form, the company will review it and send you an answer within a few minutes. If approved, the money will be transferred into your bank account within the same day or in up to two business days.

Who Might Spotloan Loans Be Good for?

The company’s loans may suit borrowers with poor or no credit who need money fast and are looking for more repayment flexibility compared to traditional payday loans. They are typically used for various emergency expenses and urgent short-term needs. Please note that Spotloan products should not be considered a long-term solution due to their short repayment periods and very high APRs.

Best Spotloan Alternatives

If Spotloan doesn’t seem the best option for you, consider the following lenders that may offer some better alternatives:

How to Choose the Right Lender?

Once a lender you deal with can affect your overall borrowing experience, it’s crucial to pay attention to the following factors before making the final choice:

• License and the website. Make sure the lender is licensed to operate in your state and discloses all the required information on their website;
• Cost of borrowing. Pay attention to the APRs the lender sets and ensure they are reasonable and meet your local laws and regulations;
• Loan amounts. Make sure the amounts offered are enough to cover your current needs. Also, ensure you can afford to repay the total loan cost;
• Monthly payments. Use a loan calculator to see how much you will need to pay on a monthly basis and whether you can afford such payments;
• Extra fees. Besides APRs, explore whether the lender charges extra fees for application, loan processing, late payments, or non sufficient funds;
• Requirements. As each lender may apply their own criteria, make sure you meet them before applying to save time and effort;
• Repayment options. The repayment flexibility can make it easier to manage your debt. Still, it can also result in a higher loan cost, so you need to choose wisely;
• Reputation. Read other customers’ reviews to see what are the potential pitfalls you can face when dealing with the lender. Choose a loan provider with a solid reputation.

FAQ

Is Spotloan a Direct Lender?

Spotloan is a direct loan provider, so there are no third parties involved in the process when you borrow money from the company.

Is Spotloan Legit?

Yes, the service is legal. The Turtle Mountain Band of Chippewa Indians Lending Commission has given a legitimate lending license to BlueChip Financial, which owns the Spotloan brand.

How Much Do Spotloan Loans Cost?

The company says its maximum loan APR is 490%. This translates to the daily interest rate of approximately 1.34%.

Does Spotloan Check Credit?

The company performs a non-traditional credit check via alternative means to assess your creditworthiness. Such an inquiry has no impact on your credit score.

How Long Does It Take Spotloan to Deposit Money Into Your Bank Account?

If you accept your loan terms on a Monday through Friday, before 1:30 PM CT, Spotloan will transfer the money by the end of the same day. If you accept an offer Monday through Thursday between 1:30 PM and 8 PM, you will access your money overnight. For offers accepted on a Friday after 1:30 PM through anytime on Sunday, the money arrives by the end of the next business day.

What Banks Does Spotloan Accept?

The company accepts checking or savings accounts of any banks and credit union if they are under your name and are not associated with other accounts at Spotloan. Prepaid debit accounts are not accepted.

How Will I Repay a Loan from Spotloan?

Spotloan loans may be repaid within up to 10 months in equal bi-weekly payments. You can set up automatic payments from your bank account or use debit cards, checks, or money orders. There’s an option to repay your loan early without paying any penalties.

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