Tribal Lenders. Pros, cons and eligibility criteria
Tribal Payday Loans are offered by tribal lending entities which provide various native reservations around the country. Thus, Tribal payday loans are a good alternative to traditional payday loans. Review the basic information about Tribal loan, its advantages and disadvantages, and the eligibility criteria before applying.
What Are Tribal Payday Loans?
Tribal payday loans are loans offered by tribal lending entities. The advantage is that these tribal entities provide various native reservations around the country. Typically, these lenders are represented by The Native American Financial Services Association. This association encourages them to offer various alternatives to payday loans.
What is the difference between Tribal Lending and Payday Lending?
Of course, before applying, it is important to feel the difference in order to be confident in the correctness of your decision. So, study the difference between tribal payday loans and traditional payday loans before deciding.
A traditional payday loan is a loan that has fixed repayment terms. In other words, you must fully cover the debt with interest on the day of your next paycheck. However, it is very difficult for most borrowers to cover the loan in such a short period of time. As a rule, if you are in financial difficulties, you need more time to find the money to pay off the debt, so short repayment periods are inconvenient.
Thus, if the borrowers cannot pay off the payday loan on time, they face additional interest rates and commissions. So, it becomes more and more difficult to repay the borrowed money.
Tribal loans have one significant difference. As a rule, they often offer longer repayment terms that will be easier to repay. Generally, the terms of the loan can vary depending on the loan amount and the lender chosen. Thus, Tribal lenders offer more favorable and convenient lending terms that help borrowers to repay the loan as it suits them.
What are the eligibility criteria for Tribal payday loans?
Each lender has eligibility criteria that must be met in order for your loan application to be approved. Tribal lenders are no exception.
The main factor that influences the approval of your application is a regular source of income. Thus, the lender has a kind of guarantee that you will be able to repay the loan on time. So, if you receive monthly payments, technically you are already eligible for a loan.
The advantage of Tribal lending is that you do not need to have good credit in order for your application to be approved. Thus, even people with bad credit scores can apply and receive money in order to deal with their financial difficulties.
However, in order to apply, you need to provide the following information: your name, age (which must be at least 18 years old), contact details such as email and phone number, residential address, financial information, and information about your income. You do not need to meet a large number of criteria to work with this lender, so it is quite easy to get a loan.
What are the benefits of Tribal payday loans?
It is important to examine the benefits of a loan in order to understand if it meets your expectations. So, check out the main pros of Tribal payday loan before you apply.
- The main advantage of this loan is that you do not need to repay the loan in full on the day you receive your paycheck. This lender understands that during a difficult financial situation it cannot be easy to find money, and even more so to repay the loan within one month.
- Another advantage of Tribal loan is that you can repay the loan in advance if you get the chance. Although many lenders charge an early prepayment fee, but with a tribal lender you won’t need to think about it.
- What’s more, Tribal loans may be available in states where traditional lending is illegal. So, if you wanted to apply for a loan but couldn’t do it because the law does not allow you, then Tribal loan can be your salvation. It is also worth noting that Tribal Loan is available to all borrowers, including tribal and non-tribal applicants.
What are the disadvantages of Tribal payday loans?
The main disadvantage of this loan (like all payday loans) is the high interest rates. Thus, if you apply, be prepared for the lender to offer you rates that are much higher than those of traditional lenders.
It is also worth noting that consumers have limited protection from these lenders, which is another drawback of Tribal Payday Loans.
After examining the advantages and disadvantages, you can decide if this loan offer is right for you or if you should look for something else.
As already mentioned, Tribal loans are a fairly good alternative to traditional payday loans. As a rule, they offer more favorable repayment terms and borrowers do not need to think about how to pay off the loan before payday.
Also, Tribal lenders do not ask for a large number of requirements to be met. Thus, it enables the majority of people to apply and be approved. The main factor influencing your approval is the source of income. Thus, if you can provide proof of payment and meet the minimum criteria, you are more likely to be approved.
However, do not forget that with Tribal loans you can get high and unprofitable interest rates, which will make it harder to pay off your debt. Thus, before applying, make sure that you will be able to repay the loan. Use your money wisely!