I know how confusing and stressful it can be trying to figure out which lender is right for you. That’s why I wanted to write up this guide breaking down the pros, cons, costs, experiences, and more when it comes to SpotLoan Reviews specifically.
The biggest complaints about Spotloan Reviews seem to be around their sky-high rates and sometimes spotty customer service when it’s time to make payments. But most agree that they’re a decent last-resort option when you need cash fast and don’t have great credit or many options.
What is SpotLoan?
For those not in the know, SpotLoan is an online lender that offers short-term, small-dollar personal loans. They provide funds fast – often as soon as the next business day – which is why they’re called “spotloans.”
SpotLoan has been around since 2012 and they market themselves as a convenient, flexible way to get emergency cash or cover unexpected expenses that pop up between paychecks. Their loans range from $300 to $800.
How SpotLoans Work
The application process for SpotLoan is quick and can be completed entirely online. All you need to apply is:
- Be at least 18 years old
- Have an active checking account
- Provide proof of income
Once approved, you can e-sign your loan agreement and the funds will be deposited directly into your bank account as soon as the next business day.
SpotLoan loans are paid back via scheduled payments, usually within 6 months. Your payment schedule and total interest costs will depend on factors like your state of residence, income, and loan amount.
As I mentioned, getting a SpotLoan isn’t too difficult since they have pretty minimal eligibility requirements. Here’s a quick rundown:
- Must be a U.S. citizen or permanent resident
- Be at least 18 years old
- Have an active checking account (required for transfers)
- Provide proof of income
- Have a regular income source
- Can’t be active military or a dependent of active military
- Can’t have any recent bankruptcies
As long as you meet those basics, you’ll likely be approved as long as you have decent credit and income.
SpotLoan Fees and Interest Rates
Now, on to the not-so-fun part – what it actually costs. SpotLoan’s fees and rates are pretty standard for a short-term, small-dollar lender:
- Origination fee: Spotloan does not charge any origination fee.
- Interest rate: The maximum APR (Annual Percentage Rate) on Spotloan is 490% APR. This varies a lot person-to-person though based on creditworthiness.
- Late fees: Around $15 fee for late payments and $10 for any returned checks as an NSF fee.
Those interest rates are no joke! The key is paying off your SpotLoan as fast as possible so those charges don’t rack up. I’ll talk more about managing payments in a bit.
SpotLoans Reviews: What Real Borrowers Say
SpotLoan reviews are mixed, as you’d expect for any lender. Overall, they seem to get decent feedback with an average 4 out of 5-star rating on sites like TrustPilot.
Here are some of the most common pros and cons I found from real SpotLoan users:
- Fast application and funding process
- Easy eligibility with minimal requirements
- Flexible 3 or 6-month payment terms
- Customer service is generally helpful
- Very high interest rates
- Origination fees take a chunk out of the loan amount
- Difficult to contact at times
- Payment tracking could be better
Alternatives to SpotLoan
If you’ve got less-than-great credit or income and need money quickly, here are a few alternatives to consider beyond SpotLoan:
- Payday loans: Basically the same as spotloan but you provide a postdated check as collateral rather than direct access to your bank account.
- Pawn shops: You can pawn an item of value and get cash based on its worth. Just be sure you can buy it back later!
- Credit cards: Balance transfer or cash advance could be an option if you have any available credit. Much lower rates!
- Friends/family: An interest-free loan from people you know can work in a pinch. Just be sure to pay it back!
- Employer advance: Some companies will provide an advance on your paycheck if you’re in need.
I always recommend exhausting other options first before resorting to a spotloan unless you absolutely need the funds ASAP and have no other choice. Their rates are just so high!
Tips for Managing SpotLoan Payments
If you do take out a SpotLoan, it’s important to be strategic about making the payments so it doesn’t spiral out of control:
- Pay early: Pay it off faster than the minimum payment schedule to reduce interest. Even one extra payment helps!
- Pay extra: Adding even $20 or $50 on top of the minimum payment makes a difference over time.
- Avoid rollovers: It may be tempting to just roll over the loan rather than pay in full, but the rates and fees add up fast.
- Contact them if you’ll be late: Being proactive can help avoid hefty late fees. They may be able to work with you.
- Cut expenses where possible: Reduce spending for those 6 months to put as much excess towards paying it off.
- Boost income if you can: Bring in some extra cash with a side gig to help tackle the payments.
Following these tips will keep your overall interest costs lower so you aren’t stuck paying back way more than you borrowed!
Is SpotLoan Legit and Safe to Use?
Yes – SpotLoan is a legitimate, legal lender accredited by the Better Business Bureau with an A rating. They are licensed to operate in all states they lend in.
However, as with any spotloan provider, there are risks and downsides to be aware of:
- Sky-high interest rates
- Potential for being trapped in predatory loan cycles
- Fees and penalties if you default on payments
- Possibility of overdraft fees if payments exceed your balance
While SpotLoan won’t scam you outright, you need to carefully consider whether a short-term loan is truly your best option given the high costs involved. Have a plan for repayment before borrowing.
SpotLoan Reviews FAQs
Here are answers to some of the most common questions I get about SpotLoan Reviews when I tell folks I’ve used them personally:
Do SpotLoans do credit checks?
Yes, they perform soft credit inquiries that don’t impact your score. They say credit scores of 600+ are generally approved.
How long does it take to get a SpotLoan?
Most borrowers report getting funds deposited as soon as 1 business day after approval. So very fast!
Can you get more than one loan with SpotLoan?
Technically yes, but it’s generally not advisable unless you absolutely need to and have paid off previous loans. Too many loans at once make it hard to keep up with payments.
Does SpotLoan call your employer?
No, they only verify your employment and income through your paystubs you provide or bank account transactions. They don’t actually contact employers.
What happens if you default on SpotLoan?
Like most personal loans, defaulting can tank your credit score and result in being sent to collections, wage garnishment, and lawsuits if the debts remain unpaid over time. Not good!
The Bottom Line
Hope this lil’ guide gave you the nitty gritty on whether SpotLoan is a smart choice for quick cash based on real customer reviews and experiences! Here’s my opinion in a nutshell:
For truly emergency, short-term financing when you’ve got no other good options available, SpotLoan likely beats super predatory payday loans or going into major debt. But the high-interest rates mean it should be used cautiously and strategically if you go that route. Exhaust all other options first and have a concrete repayment plan in place. And be diligent about paying it off early or extra when possible!
Let me know if you have any other questions on SpotLoans! I know picking a personal loan can be overwhelming and stressful. Happy to provide more insights from my own experiences borrowing from them over the years! Wishing you the best in getting out of your financial pickle.
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I'm Ellie, a freelance writer with years of experience in the loan industry. Based in the United States, I founded cuploan.net, a loan finance blog providing expert advice and insights. I specialize in creating high-quality content promoting financial literacy and consumer rights to ensure fair and transparent lending access.