Is Spotloan Real? Answering All Your Questions About This Online Lender

A company called Spotloan lends money online and gives short-term installment loans to people with bad credit. But is Spotloan a real business that you can rely on? This guide will answer all of your questions about the company and help you decide if it’s the right lender for your needs.

Overview of Spotloan

Spotloan is owned and operated by BlueChip Financial a tribal lender based on the Turtle Mountain Band of Chippewa Indian Reservation in North Dakota. The company was founded in 2012 to provide an alternative to payday loans by offering fixed payments over time instead of a lump sum on the borrower’s next payday.

Some key things to know about Spotloan:

• Offers loans from $300 to $800 for first-time borrowers
• Payments are broken up over 3 to 8 months
• Interest rates range from 60% to 360% APR
• Available in 21 states in the U.S.
• Loans decisions made quickly, often within 1 business day

Is Spotloan Legitimate and Legal?

Yes, Spotloan is a real, legitimate lending company. Because it is based on a Native American reservation, it has tribal sovereign immunity and can lend money and charge interest rates that are against state law otherwise.

Spotloan is registered and regulated by the tribal governing body. It is also a part of the Online Lenders Alliance, a business group that supports fair lending practices and responsible lending online.

The company’s main office is in Belcourt, North Dakota. It has an A rating with the Better Business Bureau and has had no complaints filed against it in the last three years.

So while the interest rates are very high compared to traditional lenders, Spotloan operates legally within the boundaries of tribal lending law. It is not a scam or “fake” lender.

Spotloan’s Reputation and Reviews

Spotloan has generally positive reviews and ratings across various consumer sites

• Trustpilot – 4.4 out of 5 stars based on 28,959 reviews
• Google Reviews – 4.2 stars out of 5 from over 5,000 reviews
• BBB – A+ rating; 0 complaints closed in last 3 years

Positive reviews mention the quick and easy application process, friendly customer service, and receiving funds quickly as advertised.

The most common complaints are about the high APRs, difficulty repaying loans, and issues contacting customer support.

Based on these reviews, Spotloan appears to be a well-regarded lender in the tribal online loan space. They have an established brand and mostly satisfied customers.

Pros of Getting a Spotloan

Here are some of the main benefits Spotloan offers compared to payday and other short-term loans:

• Lower payments – Installment loans have manageable payments over 3 to 8 months rather than a single lump sum.

• No rollovers – Spotloan’s installment loans have fixed repayment terms that avoid rollovers or extensions that rack up fees.

• Flexibility – You can prepay the loan in full or make partial payments early with no penalty. This helps reduce the total interest paid.

• Quick funding – Loans are approved quickly and you can get funds as soon as the next business day.

• Credit bureau reporting – Spotloan reports your payment history to the major credit bureaus, allowing you to build your credit score.

Cons and Risks of Spotloan

However, there are also some downsides to consider:

• Very high APRs – Interest rates range from 60% to 360% APR, much higher than rates from mainstream lenders.

• Can get expensive – If you extend or refinance the loan, you’ll pay significantly more in interest charges over time.

• Eligibility limitations – Spotloan is only available in 21 U.S. states at the moment.

• Missed payments are costly – Late fees quickly add up and can spiral your overall loan costs out of control.

• Potential debt traps – These loans are meant to be short-term solutions but can lead to a cycle of borrowing if you can’t repay them quickly.

Who Should (and Shouldn’t) Use Spotloan?

Spotloan installment loans are best suited for borrowers who:

• Have poor credit (usually 300-600 FICO score range)
• Need $300 to $800 quickly
• Only require a short-term loan and can repay within 6 months
• Have a steady income source to make the fixed payments

You may want to avoid Spotloan or proceed with caution if:

• You have other lower-cost borrowing options available
• You require more than $800
• You have difficulty making fixed monthly payments
• You live outside the 21 states Spotloan operates in
• You had issues with payday or installment loans in the past

Always compare interest rates and fees from multiple lenders. Make sure you can handle the monthly payments before accepting a Spotloan.

Alternatives to Spotloan Worth Considering

Here are a few alternative online lenders to check out that offer better rates and terms:

• LendingClub – Peer-to-peer marketplace with fixed rate loans up to $40k and APRs as low as 6%.

• Upstart – Uses alternative data for credit decisions. Offers 3 and 5 year installment loans. Rates from 7% to 35% APR.

• Avant – Installment loans up to $35k for those with fair credit. Admin fee only ranges from 4.5% to 8% of loan amount.

• Payoff – Debt consolidation loans starting at 5.99% APR for borrowers with credit scores of 640+.

The Bottom Line: Is Spotloan Worth It?

Spotloan is a legitimate online lender, but their ultra high-interest rates make their loans extremely expensive for borrowers. It’s wise to avoid their loans if possible and only use them as an absolute last resort.

If you have fair credit, you can likely find much lower rates through peer-to-peer lending sites like LendingClub and Upstart. Or explore debt consolidation loans to pay off the Spotloan balance at a lower interest rate.

Only those with poor credit (below 600 FICO) will likely qualify for a Spotloan. In that case, be cautious about borrowing more than you can realistically repay and try to pay it off early to reduce interest charges.

Spotloan installment loans are certainly better than payday loans. But make sure you thoroughly understand the costs and have a solid repayment plan in place first. Carefully weigh all your borrowing options to find the right lender for your situation.