Tribal loans are not in all states
Though they claim that they are for everyone, they tend to forget
that in some states, they are illegal. That can be a setback, especially
to people with poor credit ratings and need tribal loans bad credit.
They can be very expensive to repay
While there are many features that tribal loans share with
installment loans, and sometimes taken as an alternative for installment
loans, the truth is that tribal credits are as costly as a payday loan
by direct lender with guaranteed approval. Sometimes, the APR can even
be astronomical compared to paydays.
Typically, the APR of a tribal loan ranges between $120-$300 which is
already exploitative. Some might even go as high as 500% APR. Jokes
And maybe the worst thing is that the creditors don’t show you a real
picture of what you will be charged before applying. They will only
tell you about the APR when you have already submitted your request.
This is why you need to consider a transparent and reputable lender.
The loan terms are determined by the creditor, and not by you
Many tribal creditors will allow you to select the lending term — but
then that doesn’t happen to all lenders. In some cases, the creditor
decides the loan term, and which you should agree on.
For instance, you might want to pay the monthly installments, but
anyway you will have to comply with their bi-weekly installment
payments. Sometimes, they might assign you the number of installment
payments automatically. To avoid these unfair terms, always do your
homework and deal with a lender who is not only reputable and
trustworthy but also who provides variable payment conditions.