Spotloan claims to be a better alternative to payday loans in various ways. This online lender offers loans installment loans starting as low as $300 going all the way to $800. Unlike payday loans which need to be repaid by the next payday, Spotloan allows its customers to clear the loans on a more flexible term ranging from 3 to 8 months. You’ll even get the opportunity to pause your repayments when you are struggling financially temporarily.
Unfortunately, the flexible terms of Spotloan seem to be the only significant difference between the lender and payday loans. Everything else about Spotloans appears to be very similar to payday loans. First, Spotloans have incredibly high interest rates. The APR here is 450% which is nothing short of absurd! Spotloan claims that you’ll be able to save up to 50% when taking up their loans as compared to payday loans. While this may be true, it doesn’t change the fact that 450% is still an insanely high-interest rate that every borrower should do everything possible to avoid.
Taking a loan from Spotloan comes with a few advantages, but none of them are enough to justify the APR. Loan disbursement can be done within one day which is very convenient for everyone who’s looking for instant cash. Additionally, the lender has no minim credit score cap, and hence probably everyone can qualify for their loans. You are also allowed to make early payments without getting charged any prepayment fees.
Applying for loans from Spotloan
All loan applications are made online. You’ll have to create an account with Spotloan where you are required to provide some basic information such as:
- Name, date of birth and phone number
- Home and email address
- Social security number
- Employer’s name, address, and contacts
- Bank account details
- Information about your income
After setting up your account, you can select how much you want to borrow and the amount of payments that you’ll be making. Spotloan will proceed to use this information and calculate the repayment duration for your loan. They will also provide all the additional terms for your loan. You should read through the conditions before accepting the terms. Your loan application will then be reviewed. If your application is approved before 8 p.m. EST, you will receive the funds as soon as the following day. The entire process is really efficient.
Spotloan accepts different modes of loan repayments including automatic debits from the bank account, by money orders and by checks. Spotloan may charge you a $10 fee if you make a payment through a check and it bounces due to insufficient funds.
Who qualifies for a loan from Spotloan?
The beauty with Spotloan is that the qualification requirements are pretty basic. Everyone should be able to qualify for these loans, but the amount you will get will vary from one borrower to another. To be eligible for a loan through Spotloan, you must:
- Be a United States citizen or a permanent resident
- Have a steady income
- Have active savings or checking account
- Be at least 18 years old. The age limit may vary from state to state though
We would also like to point out that not only does Spotloan disregard credit scores when assessing your qualifications but they also won’t affect your credit reports when they are processing your loan. This is a good thing as you will never have to worry about any damage that your credit report may suffer if you are a frequent borrower on Spotloan.
Also, Spotloan is not available in all states. You are not eligible for Spotloan installment loans if you live in the following states; Colorado, Connecticut, Arkansas, Minnesota, Massachusetts, New York, New Hampshire, North Dakota, North Carolina, Vermont, West Virginia, and Pennsylvania.
Features of Spotloan
- Efficient online application process – Applying for loans from this lender is pretty easy. Their website is user-friendly, and hence you shouldn’t have a problem finding your way around it. After submitting your application, a relationship manager will get in touch with you. They will tell you whether your application has been approved and if it has, they will give you a rundown of the rest of the process. They will also tell you your options in case your application was denied.
- Various repayment options – Spotloan accepts different modes of repayment. You can pay through a direct debit from your bank or by a check or money order. You can also enroll in the auto-payment option. This will deduct the amount owed directly from your bank on every due date. There are no any hidden fees for choosing one mode of payment over the others. Bounced checks may attract a $10 fee though.
- Quick turnaround – Loan applications approved before 8pm EST are usually funded the next day. This makes Spotloan a good option for everyone in a tight financial spot which requires a quick way out.
- Soft credit pull – All loan applications on Spotloan will be subjected to a soft credit pull. This means that your applications will not affect your credit score. Also, Spotloan does not report the monthly payments to the three major credit bureaus. Instead, they use consumer reporting agencies such as Thread Matrix, eBureau, LexisNexis and CL Verify.
- Flexible repayment terms – Spotloan allows its customers to choose loan terms that are convenient to them. This flexibility is limited to 3-8 months which is more than what payday loans offer.
- Pause the payments – With Spotloan you can choose to pause your payments for some time. This will come in very handy when you are unable to raise funds for your next due date.
Limitations of Spotloan
Spotloan provides a quick fix for your financial issues, but there’s a hefty price to pay. The 450% APR is way higher than that of most personal loans. In most cases, the borrower will always end up paying so much more than what they are getting from the loan. Sometimes you can even find yourself paying interest rates that are three times the amount you borrowed. It’s tough to see the value of such a loan.
You can only borrow up to $800. This is quite low compared to other options in the market. The cap is not an issue if you don’t need a lot of cash, but if you want more than a few hundred dollars, then you’ll need to look elsewhere.
Spotloan is also not available in a lot of states as highlighted above.
How does Spotloan compare to other lenders?
Spotloan Vs. Avant
Avant offers personal loans starting from $2,000 to $35,000, and hence they are a good alternative for people who need more than the $800 Spotloan has to offer.
The interest rates also vary depending on your credit report, income, your state laws, and a few other factors. Typically, the rates range from 9.95% to 35.99%. An origination fee of 4.75% will also be charged from your loan. Even with the maximum interest rate and origination fee, an Avant loan will still end up being cheaper than the crazy Spotloan offers.
Spotloan Vs. OneMain
OneMain offers personal loans of up to $30,000 with interest rates varying from 16.05% to 35.99%. The exact interest rate applied on your loan will depend on your credit history. There is also no minimum credit score requirement, but the better your credit score, the more favorable the interest rates will be.
Spotloan should be the last alternative you consider when looking for a loan. Their interest rates are just too high to be ignored. We’d recommend that you try seeking financial help from family and friends first. You should also explore other personal loan lenders and local banks before considering Spotloan.