Tribal Loans: Payday and Installment Loans

Tribal Installment Loans

As mentioned before, tribal installment loans are provided by a tribal lender, which is considered a lending entity. You may borrow from $1,000 up to $2,500 (or even $5,000) and pay it back in small monthly amounts. Usually, the repayment term varies from 6 up to 24 months.

Borrowers can use a tribal installment loan in many urgent situations like paying medical bills or other unplanned expenses. Usually, they apply for no credit check tribal installment loans from direct lenders when having a bad credit score, which doesn’t allow them to be eligible for conventional lenders.

As there is no clear distinction between tribal lending practices and payday loans, let’s dive in deeper and make a detailed comparison between these two loan products.

Tribal Loans vs. Payday Loans

People confuse tribal lending with payday lending, but they have some essential differences. However, you should understand the legal definition of these loans. As we said before, a tribal loan took many characteristics from a loan with monthly installments, more than from payday loans. Even though their annual percentage rate (APR) might be higher than payday loans, they offer a more flexible repayment plan. Also, the repayment term is larger. It makes them a secure option for consumers who don’t want to ruin their monthly budget.

On the one hand, according to their structure, tribal nation loans with monthly payments just simulate conventional cash advances. It is a practice where customers pay an initial amount of the money plus the interest rates after a given term. On the other hand, payday loans do not always help people get out of the money crisis as they come with risk of entering a debt circle.

If you decide to apply for tribal payday loans, pay attention to the section of loan terms where you’ll find the laws set by your state. It will allow you to get all the needed information about your tribal payday loan. Or you can access the official websites and find out about loan law practices of your state.

Can I Get a Tribal Loan with Bad Credit?

Native Americans with all kinds of credit scores are welcome to get tribal loans for bad credit from a tribal lender. They don’t run hard credit checks upon credit rating through three main credit bureaus. Instead, they check your personal and financial details through alternative credit companies. In other words, the tribe lenders analyze only your current financial situation. It is essential to know that these checks will not affect your FICO score at all, as there is no teletrack reporting. You’ll be able to take a Native American loan when you need it.

Requirements for Getting Tribal Loans

Borrowers from an American Indian Tribe must meet some important eligibility criteria before applying for an easy tribal installment or payday loan. The first and the most critical requirement is that borrowers should be federally recognized as native Americans of a tribal reservation. Many Native American lenders demand you to be at least 18 years old, which is a reasonable requirement. Besides, a lender might require also:

• Government ID/driver’s license;
• Active employment status;
• An active bank account;
• Income proof;
• Approval of indebtedness (more than two months);
• An active email address and phone number.

These requirements and loan documents may vary by lender and state. If a tribal lender will need some more information, it will contact you by phone or via email. Try to stay in touch until you get an approval decision.

Tribal Loan Alternatives

As tribal loans can be costly, you can consider several cheaper alternatives.

• Installment loans. With an installment loan, you can get up to $5,000 as far as your income allows. The repayment options are flexible. You need to make fixed monthly payments instead of repaying the whole amount at once;
• Payday alternative loans. These credit union loans are similar to payday loans but have lower interest rates that are capped at 27%. Additionally, they offer extended repayment terms of up to 6 months;
• Credit card cash advances. Consider borrowing from you credit card balance by withdrawing money in an issuer’s store or ATM;
• Borrowing from family or friends. You can get a better deal by borrowing from someone you know well. This can be a great solution if you need a small amount for a short period.