While Spot Loan distinguishes itself from payday lenders, it shares similarities with them, such as the inclusion of extremely high interest rates.
But Spot Loan differs by not imposing any penalties for early repayment. In times of emergencies, a short-term installment loan from Spot Loan can be beneficial if you are able to swiftly settle the debt. To determine if this service suits your needs, continue reading.
Spot Loan primarily offers online installment loans, ranging from $300 to $800, with the possibility of receiving funds as early as the following day.
You are granted a maximum of eight months to repay the loan. However, it is important to note that with interest rates exceeding 400%, failing to promptly repay this small loan can result in substantial costs.
By opting for loans through Spot Loan, you grant them the authority to collect and authenticate your information, which could potentially be disclosed to “employees, affiliates, vendors, partners, and third parties” in order to facilitate the loan process.
Spot Loan may additionally collect details pertaining to your banking account, credit score, and contact particulars.
Is Spot Loan Legally Fit To Operate?
Spot Loan operates under the assertion that it is a subsidiary of BlueChip Financial, an entity owned by the Turtle Mountain Band of Chippewa Indians of North Dakota, a federally recognized Native American tribe.
This tribal affiliation grants them certain flexibilities in terms of regulations applicable to payday lenders. They argue that being governed by tribal laws exempts them from adhering to federal and state regulations, including North Dakota’s interest rate limit.
However, the sustainability of this arrangement is uncertain, as there has been at least one investigation into the legitimacy of their tribal status. Tycko and Zavareei, a law firm, raised concerns that Spot Loan may not meet the required criteria to claim tribal privileges.
Due to a Supreme Court ruling, online lenders are now obligated to satisfy more than mere formalities to qualify for tribal immunity. If it is determined that Spotloan does not meet the necessary qualifications, they could face significant consequences.
Spot Loan recently reached a settlement in a class-action lawsuit that accused them of charging unlawfully high interest rates, further complicating their legal situation.
How To Apply For Spot Loan?
For individuals interested in applying for a Spot Loan product, the application process is straightforward. By meeting the requirements of having a steady income stream, a bank account, and an email address, you can follow these steps on their website:
- Choose a Product: Spot Loan simplifies the selection process by presenting various options in a user-friendly manner. Borrowers can determine their preferred total principal balance and monthly payment upfront. The website will then calculate the corresponding repayment term and total number of payments.
- Click “Get Started”: Once you have finalized the desired loan term, clicking this button will redirect you to the application page.
- Identity Verification: Spot Loan will request your name and Social Security Number to verify your identity. It is important to exercise caution and not provide this information if you decide to cancel the application, as there is a risk that it may be retained and sold to third parties.
- Provide Personal Information: The next step involves providing personal details such as your address, contact information, and housing situation (renting or owning).
- Share Income Details: Spot Loan will inquire about your employment status and any other sources of monthly income. This section typically plays a significant role in determining the approval or rejection of your application.
- Provide Banking Information: Finally, Spot Loan will require your bank account information, including the bank name, as well as your banking and routing numbers. These details enable them to facilitate the transfer of funds.
Upon submitting all the necessary information, Spot Loan usually provides an immediate decision on the application. If approved, the funds can be deposited into your account within a single business day.
Is Spot Loan Available in All States in The US?
Not at all, Spot Loan is limited to individuals in the following states: 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.
What Makes Me Eligible to Apply For Spot Loan?
Spot Loan has comparatively lenient eligibility criteria when compared to numerous other installment loan providers.
To qualify, you will need to demonstrate a steady income from employment or another regular source, possess a checking or savings account, provide a valid email address or phone number, and be at least 18 years of age.
Spot Loan extends its services to all states except for Arkansas, Minnesota, New York, North Dakota, Pennsylvania, West Virginia, and the District of Columbia.
Is Spot Loan Customer Service Fair Enough?
Spot Loan prides itself on delivering exceptional customer service that goes the extra mile.
Each applicant is assigned a dedicated “Relationship Manager” who ensures they stay informed about the progress of their application and addresses any inquiries that may arise throughout the process.
Spot Loan offers three primary communication channels: phone, traditional mail, and email. However, it’s worth noting that the website does not provide specific hours of operation, and the email address provided (firstname.lastname@example.org) may not always offer a prompt response.
While the presence of relationship managers is commendable, enhancing the accessibility of contact information and providing comprehensive details would further enhance Spotloan’s customer service experience.
You can as well contact Spot Loan customer service via phone at 888-681-6811.
Advantages of Using Spot Loan
Spotloan distinguishes itself from its competitors through various notable aspects, which include:
- High Customer Satisfaction: Consumer Affairs rates Spotloan with an impressive 4 out of 5 rating for overall customer satisfaction.
- Transparent Rates and Policies: Spotloan maintains transparency by clearly presenting their rates and policies, ensuring borrowers have a clear understanding of the terms.
- Convenient Repayment Options: Spotloan offers easy repayment options, facilitating a smooth and hassle-free process for borrowers to fulfill their loan obligations.
- Swift Turnaround Time and No Upfront Fees: Spotloan stands out by providing a quick turnaround time for loan approvals, allowing borrowers to access funds promptly. Additionally, they do not impose any upfront fees, enhancing affordability and transparency in the lending process.
Disavantages of Using Spot Loan
Prior to considering a loan from Spotloan, it’s important to take note of the following drawbacks:
- Non-Competitive Offers: It offers may not always be the most competitive compared to other options available in the market.
- Application Process: You are required to wait for Spot Loan to initiate contact with you before you can proceed with completing your application, which may cause some delays.
- High APRs: While Spot Loan’s annual percentage rates (APRs) may be competitive in relation to similar lenders, they can still be notably high, resulting in substantial costs over the loan term.
Does Not Paying on Time Affect My Credit Score?
It’s important to note the potential consequences of late payments when utilizing Spot Loan:
- Additional Fees and Increased Interest: Late payments may incur extra fees and result in additional interest accumulating over the duration of your loan. Moreover, if you opt for autopay but have insufficient funds, a $10 fee may be charged.
- Defaulting and Credit Score Impact: If you are unable to make a payment within 90 days of the scheduled date, it will lead to loan default, causing more significant repercussions on your credit score. Missing occasional payments might not have a substantial impact, but defaulting will adversely affect your creditworthiness.
Is Spot Loan Really Safe to Use?
- Information Sharing for Everyday Business Purposes: It has the ability to share your personal information for regular business operations, and you are unable to restrict this sharing.
- Information Sharing for Marketing Purposes: It can share your personal information for their marketing initiatives, and you have no option to limit this sharing.
- Joint Marketing with Financial Companies: It has the authority to share your personal information for joint marketing ventures with other financial institutions, and you cannot restrict this sharing.
- Affiliates’ Everyday Business Purposes: It does not share your personal information for their affiliates’ routine business operations.
- Affiliate Marketing: It does not share your personal information for their affiliates to engage in marketing activities directed at you.
- Nonaffiliate Marketing: It can share your personal information with nonaffiliated companies for marketing purposes, but you do have the option to restrict this sharing.
It’s worth noting that Spot Loan implements security measures that comply with federal law to safeguard your personal information.
Spot Loan presents itself as a viable option for individuals in need of short-term installment loans to address immediate financial obligations. While it offers advantages such as transparency, convenient repayment options, and a quick application process, there are certain drawbacks to consider. These include the potential for non-competitive loan offers, the requirement to wait for Spot Loan’s contact to complete the application, and the high annual percentage rates (APRs). Late payments can result in additional fees and interest, and defaulting on the loan can have severe consequences for credit scores. It is important to carefully evaluate the terms and consider the potential impact on personal finances before opting for a Spot Loan.