Emergencies can be costly, which is especially true for people who are living paycheck to paycheck and don’t save any money. Mobiloans may seem like a good option for quick cash, especially in case of an emergency expense or a short-term loan.
However, the company is different from what it seems. Continue reading to find out if Mobiloans can help you solve your problem.
What are Mobiloans?
Mobiloans’ slogan is “fast cash for people on the move.” It offers loans to people who require emergency cash for situations like an emergency expense or a short-term loan. Potential borrowers should know that Mobiloans is an Indian tribal lender and is not subject to state law. The Tunica-Biloxi Tribe of Louisiana owns the company.
They were federally recognized in 1981 as an American Indian tribe. It operates its online business from an office on the reservation.
With the increasing popularity of cash advance apps, borrowers have alternative options to access funds in a pinch. Mobiloans loans are similar to cash advances from credit cards, but they offer higher interest rates than a payday loan. Mobiloans charges its customers an Annual Percentage Ratio (APR) of between 206.14% to 442.31% in addition to finance fees and cash advance fees.
Are Mobiloans licensed?
Mobiloans, federally recognized by the government as tribal lenders and operating or offering services in other states, aren’t subject to any laws. They do not need a license to be able to lend money. They don’t have to adhere to the state’s restrictions on interest rates and fees, including limitations on the annual interest rate.
Suppose you are a New Mexican resident and want a loan through Mobiloans. Payday-type loans are subject to a cap of 175% APR in New Mexico.
Lenders can only charge up to 175% on any loan. You take out a loan through Mobiloans, an online lender, believing the interest rate is at most 175%.
However, later, you find out that it is 425%. The company is not obligated to follow the laws in your area, so you have no recourse.
Mobiloans has a Policy for Responsible Lending that promises transparency about all costs related to their lines of credit and loans.
They claim that they adhere to federal lending laws as long as they do not conflict with tribal sovereignty. The Truth in Lending Act and Fair Credit Reporting Act are just a few listed laws.
Mobiloans Loan Terms Typical
Mobiloans provides a loan, but it is a line of credit. Borrowers can be approved for a specific amount, say $2,000, but they wait to pay until they draw the amount.
Borrowers can choose to withdraw 0 or the entire $2,000. The company conducts a credit check on all applicants, just like with other loans.
Here are the terms and conditions for taking out a loan from Mobiloans.
- Ability to borrow as little as $200 as well as as much as $2,500
- Financial services including monthly, weekly, bi-weekly, and semi-monthly repayment plans.
- Rates of interest between 206.14% – 442.31%
- Cash advance fees from $30 to $125
- A finance charge is imposed if the Mobiloan balance is not paid in full by the end of the first billing cycle. The finance charge ranges from $10 to $125 for each billing cycle. Your payment history will impact the amount of finance charge.
Online Reputation
Mobiloan is a well-established company that has been around for a while, providing reliable financial services. You can quickly research to find out what past borrowers have to share about their experiences with the company, including their payment history.
The Better Business Bureau (BBB) is the best place to start. The BBB has not accredited Mobiloans. Mobiloans was given an A- grade by the organization.
However, Mobiloans customers gave it a rating of one and a quarter stars out of five. The BBB has received 26 complaints about the company in the past 12 months.
Customers complained about multiple issues with Mobiloan’s customer service team. They could not pay their balance in full and the high-interest rates and fees.
One user from the Ripoff report cautions borrowers against obtaining loans with Mobiloans. He had borrowed $1,000 from Mobiloans, and he was able to withdraw the cash.
After crunched the numbers, he only realized how much interest was being charged. He was shocked to discover he was paying $1,265 interest, more than the borrowed amount.
Legal Newsline published a story in 2018 about a class-action lawsuit filed against Mobiloans. According to the consumers, the company had violated 18 USC RICO. SS 1962(C and (D) and Virginia’s and Indiana’s usury laws. The lawsuit also mentioned that Mobiloans tried to avoid these regulations by affiliating themselves with American tribes. Potential borrowers should also be aware of this.
Pros of a Mobiloans loan
Mobiloans attempt to justify their high-interest rates and fees by highlighting their connections with American tribes. This affiliation allows them to offer a more flexible loan option for borrowers. However, as mentioned earlier, this strategy has been met with legal challenges and customer complaints.
- Online application is quick and simple
- Funds are available within the next business day.
- Email notifications and statements to remind you when your next payments are due.
- Calculate online loan costs and fees in the FAQs section.
- Mobiloans Rewards allows borrowers to receive 10% and 66% off fixed finance charges and cash advance fees.
- The financial U tab contains useful tips, online courses, and interactive tools to help consumers make healthy money choices.
Cons of a Mobiloans loan
- Mobiloan doesn’t serve all 21 states and the District of Columbia. District Court cases may also affect loan availability.
- High-interest rates, sometimes influenced by National Credit Adjusters
- Complex fees can be confusing for most borrowers.
- Customer service has a poor reputation, sometimes due to interactions with National Credit Adjusters.
How to apply for a Mobiloans loan
Only four steps are required to apply for a loan with Mobiloans, keeping in mind the role of District Court and National Credit Adjusters in the process.
- Register for an account:
Select your state from the drop-down menu, and then create your username. At this point, you will also need to enter your date of birth and name. Note: Mobiloans applicants who reside in Alabama and Nebraska must be at least 19 to apply for a loan. The age requirement for all other states is 18.
- Fill out your personal information:
Add your physical address and social security number to the boxes. Ensure you provide accurate social security information to avoid delays.
- Your financial information:
This includes information about your employment and one of your bank accounts. Your loan repayment will be made through automatic withdrawals from your bank account.
- Submit your application:
Please take a moment to check the information in the application. Correct any mistakes and submit your application for review.
Below are some statistics on Mobiloans:
| Statistic | Value |
|---|---|
| Number of loans issued | Over $1 billion |
| Average loan amount | $1,500 |
| Average interest rate | 29% |
| Average loan term | 36 months |
| Number of borrowers with bad credit | Majority |
| Repayment rate | Over 90% |
Mobiloans: There are better alternatives
These Mobiloans alternatives are better than dealing with high-interest rates or confusing fees.
- Cash advance credit card:
Most credit cards offer a cash advance option. If you already have one of these cards, you can request a cash advance. There’s no need to be concerned about doing business with unscrupulous companies, and the interest rate will not exceed three digits.
- Avant:
Avant personal loans have an APR of 9.5% to 35.99%, lower than Mobiloans. The company offers loans ranging from $2,000 to $35,000. You can also apply for a credit line with 0 to $1,000 credit limits. Borrowers also have the option of borrowing a greater amount of money.
- Personify Loans:
Personal Loan Pro is a great Mobiloan alternative for people who need a loan quickly. This company offers competitive interest rates and doesn’t charge additional fees on their loans. Furthermore, you don’t have to worry about hidden fees or penalties because Personal Loan Pro is completely transparent with its costs and information.
What’s more, Personal Loan Pro has incredibly fast processing. You can get your loan approved quickly–often within 24 hours or less! Plus, if you’re worried about your credit score and need some help getting approved, they also provide options like co-signers and secured loans so that you can still get the money you need without worrying too much about your credit history.
- Ask your family and friends for help:
Although it can seem difficult to borrow money, this is often the best option. Offer to repay the loan with interest when you make the request. Research the interest rate on bank loans in your area to get an idea and create a contract. This will let your friend or relative know you are serious about repaying them. You may be offered the opportunity to borrow the money interest-free.
- Register for credit counseling:
Check with your bank to find out if they offer credit counseling. Most major banks and credit unions offer this service. A credit counselor will assist you in negotiating the balances of your medical bills and create a budget to help you get on track. They can also offer advice on how to build healthy financial habits for the long term.
- Side hustle:
While you may not work a second job full-time, starting a side business that will generate enough income to meet your immediate financial needs is possible. A few jobs in lawn and housekeeping could be yours. You could also offer tutoring, dancing lessons, and acting classes. There are many options. The best thing about side hustles is that you can end them when your financial goals are met.
Frequently Asked Questions
What loan amounts does Mobiloans offer and what are the repayment terms?
Mobiloans offers personal loan amounts ranging from $500 to $2,500. Loan terms are between 3-11 months, with longer terms available for larger loan amounts. Specific repayment terms depend on the loan amount, applicant’s financial details, and state of residence.
How quickly can I get approved and receive funds through Mobiloans?
With Mobiloans, loan approval decisions are made quickly, often instantaneously. If approved, loan funds can be deposited as soon as the next business day after accepting the loan offer. The fast approval process and funding makes Mobiloans a viable option for quick access to cash.
Does Mobiloans perform a hard or soft credit check during the loan application process?
Mobiloans performs a soft credit check during prequalification that doesn’t affect credit scores. Once officially applying, they conduct a hard inquiry which can temporarily lower credit scores by a few points. Both checks are required parts of their underwriting process.
What are Mobiloans’ interest rates and fees for a personal loan?
Mobiloans personal loan interest rates range from 99% to 299% APR. Origination fees up to $75 may apply. There are also late fees and returned payment fees. Interest rates and specific fee amounts depend on loan details.
Are there any prepayment penalties with Mobiloans personal loans?
No, Mobiloans does not charge borrowers prepayment penalties. Customers can pay off the full loan balance early without incurring extra fees or financial penalties of any kind from the lender.
