Mobiloans line of credit review October 2018 | finder.com

Mobiloans line of credit review

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A tribal lender offering $200 to $2,500 lines of credit — with high fees.

Mobiloans is a tribal lender that advertises itself as a “new twist on emergency cash loans.” You certainly won’t find short-term lines of credit with just any lender. But flexibility doesn’t come cheap: APRs start at 206.79%–442.31% for lower amounts.
Product NameMobiloans Line of Credit
Min Loan Amount$200
Max. Loan Amount$2,500
APR206.79%–442.31%
Interest Rate TypeVariable
RequirementsMust have a valid checking account, reside in an eligible state, have no previous default on a Mobiloans line of credit and have regular source of income or benefits.
  • Employed or receive benefits.
  • At least 18 years old (19 in Alabama and Nebraska).
  • Owner of a checking account that isn’t frozen or subject to garnishment.
  • Resident of an eligible state.
  • Not in default on a Mobiloans line of credit.

What is a Mobiloans line of credit?

A Mobiloans line of credit is a type of short-term financing that works like a credit card, though without the card. After completing an online application, you’re approved for a credit limit of $200 to $2,500. You then withdraw from your credit line as needed, paying it back in minimum payments at least twice a month, including interest.

The term you’re extended to pay off your balance depends on how much you borrow. Loan terms start at 13 billing cycles — about six months — and can go as long as 60 billing cycles.

Billing cycles are either twice a month or every two weeks:

  • Loan term with twice-a-week payments — 6 to 27.6 months
  • Loan term with twice-a-month payments 6.5 to 30 months

Mobiloans is not available in more than 20 states

  • Arizona
  • Arkansas
  • Colorado
  • Connecticut
  • Washington, DC
  • Georgia
  • Illinois
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Minnesota
  • Montana
  • New Hampshire
  • New Jersey
  • New York
  • North Carolina
  • Pennsylvania
  • South Dakota
  • Vermont
  • West Virginia

How much does a Mobiloans line of credit cost?

It comes with high APRs that range from 206.79%–442.31%. Because these are short-term loans, it may be more helpful to look at the actual fees a lender charges.

Mobiloans charges two types of fees: A fixed finance charge and a cash advance fee.

Explore a breakdown of finance charges, cash advance fees and minimum payments below or skip to a fictional case study to get an illustration of how much a Mobiloans line of credit could cost.

Fixed finance charge

The fixed finance charge applies to your loan balance each billing cycle. But it’s not so straightforward when you consider a billing cycle is about every two weeks.

Despite Mobiloans waiving finance charges for the first billing cycle, fees add up quickly.

Cash advance fee

Each time you withdrawal from your line of credit, Mobiloans charges a cash advance fee that also depends on the amount. Here too fees aren’t straightforward: You’ll pay the fee for each $20 you withdraw.

Minimum payments

How much you end up paying each billing cycle is a percentage of each withdrawal plus the many fees it attracts. Remember that a billing cycle is about every two weeks.

With so many fees and caveats, we had a difficult time calculating what you might face for the amounts in our data below. We’ve rounded up the charges and fees to the nearest dollar.

Compare more short-term loan providers

Rates last updated October 23rd, 2018
Unfortunately, none of the short term loan providers currently offer loans in your state. Learn more about short term loans in your state to find an alternative.
Name Product Product Description Term of Loan Turnaround Time Max. Loan Amount
CashUSA Installment Loans
A connection service for quick cash loans up to $10,000.
90 days to 72 months
As early as 1 business day
$10,000
OppLoans Installment Loans
Installment loans with competitive rates from a top-rated direct lender.
9 to 36 months
1 business day
$5,000
LendYou Short-term Loans
Apply online with this loan-connection company offering unrestricted short-term loans at high maximums — fast turnaround.
Varies
1 business day
$15,000
Check into Cash Payday Loan
With 1,000 branches in 30 states, get $50 to $1,000 in days from this direct lender.
Varies by state
1–2 business days
$1,000
CashNetUSA Loan
Apply for a short-term loan with an easy online application and dedicated customer service.
Varies by state
1 business day
Varies by state
Jora Installment Loans
Installment loans with repayment terms up to 30 months, depending on your state.
4–30 months, varies by state
1–2 days
$2,600
ACE Cash Express Payday Loans
Quick payday, installment and title loans with no prepayment penalty and a 72-hour satisfaction guarantee. Funds can be loaded on an ACE Elite™ Visa® Prepaid Debit Card.
Varies by state
Generally receive the money the next business day
Varies by state

Compare up to 4 providers

What are the benefits of a Mobiloans line of credit?

  • No prepayment penalties. You can pay off what you borrow early without penalty.
  • Employment not required. You’re eligible for a Mobiloans line of credit as long as you receive regular income or benefits.
  • Quick turnaround. You could get access to your funds as soon as the next day if you sign up for autopay.
  • Rewards. Frequent users who repay on time qualify for rewards points. Use points toward discounts of 15% to 80% on your cash advance fee.
  • 24/7 support. Call for help weekdays from 7 a.m. to 7 p.m. CT or Saturdays from 7 a.m. to 3 p.m. CT.

What to watch out for

  • It’s very expensive. With APRs of 206.79%–442.31% and fees on each withdrawal, you’re likely to find more affordable short-term options elsewhere.
  • Twice-a-month payments. Minimum payments are due either every two weeks or bimonthly, not every month.
  • Potential overdraft fees. If you sign up for autopay, you risk overdraft fees if the funds aren’t available.
  • Slow alternative payments. If you skip autopay, Mobiloans sends your loan amount as a paper check, which can take several days to arrive.
  • Limited availability. Mobiloans lines of credit aren’t available in every state.
  • Arbitration provision. Mobiloans terms and conditions contain a provision that waives your right to sue the lender and requires you to settle any disputes with the lender in arbitration.

Case study: Marshall gets a line of credit

Here’s a fictional scenario to illustrate the costs of Mobiloans line of credit. Let’s say Marshall needs to pay utility bills, but his next paycheck is in another two weeks. He applies for a Mobiloans line of credit with a $0 balance and withdraws $400 to cover his needs.

Here’s how his payments break down:

Billing cyclesMinimum principle paymentFixed finance feeCash advance feeMinimum payment due
1$20$0$60$80
2–5$20$45$0$65
6–10$20$35$0$55
11–15$20$25$0$45
16–20$20$10$0$30

If Marshall avoids another withdrawal from his line of credit while making minimum payments:

  • He’d pay an overall total of $590 in fees.
  • It’d take between 9.2 and 10 months to pay off.
  • He’d pay it off at a rate of 365.24% APR.

Marshall withdraws an additional $400 after making 10 payments, when his balance was $200. With the new loan, he’s responsible for a new fee schedule:

Billing cycleMinimum principle paymentFixed finance feeCash advance feeMinimum payment due
1$30$25$60$115
2 – 7$30$65$0$95
8 – 10$30$45$0$75
11 – 14$30$35$0$65
15 – 17$30$25$0$55
18 – 20$30$10$0$40

For his second loan, Marshall pay a total $1,055 in fees over 9.2 to 10 months. The APR on his new loan is 352.86%.

After he’s paid off both loans, he calculates what he paid:

  • Amount borrowed — $800
  • Total cost in fees $2,025
  • Time to pay it off — 13.8 to 15 months

Is it safe to apply with Mobiloans?

Your personal and financial details submitted online are protected with industry-standard SSL. After you submit your info, the lender restricts access to authorized employees, protecting it with a firewall.

Beware of the arbitration provision

These days it’s common for companies to hide arbitration provisions in their terms and conditions — and Mobiloans is no exception. When you agree to an arbitration provision, you agree to waive your right to a trial by jury for legitimate disputes.

Rather than sue Mobiloans or participate in a class action lawsuit, you’re required to settle your dispute with an arbitrator. Opting out of this provision requires an official email or letter to Mobiloans.

Keep in mind that Mobiloans is a tribal lender. As a tribal lender, it’s subject to laws of the Tunica-Biloxi Tribe of Louisiana, the Indian Commerce Clause of the constitution and some federal laws. In other words, you still might not have as many legal protections as you would with another payday lender.

What does the Internet say about Mobiloans?

Mobiloans earns mixed online reviews. As of September 2018, Mobiloans is not accredited with the Better Business Bureau, but it earns an A- from the BBB based on a high rate of customer complaints filed against the business. Out of the 11 customer reviews, only one is positive.

But Mobiloans does much better on Trustpilot, where more than 11,000 customers have left a review. It scores an average 9.2 out of 10 rating — high for a short-term lender. Many customers say they’re happy with how fast they got their loan. Not surprisingly, complaints focus on overall costs and limited payment options.

Am I eligible?

To qualify for a line of credit, Mobiloans looks for borrowers who are:

  • Employed or receive benefits.
  • At least 18 years old (19 in Alabama and Nebraska).
  • Owners of a checking account that isn’t frozen or subject to garnishment.
  • Residents of an eligible state.
  • Not in default on a Mobiloans line of credit.

How do I apply

  1. Go to the Mobiloans website.
  2. Click Apply Now.
  3. Enter basic personal information. Read and agree to the privacy policy, and click Continue.
  4. Follow the steps to complete your application, submitting info you’ll typically find on your Social Security card, pay stub, personal check and driver’s license.
  5. Review and submit your application.
  6. Review your potential credit limit and rates, and follow directions to complete the application and sign your loan documents.

After approval, you can request to borrow funds from your line of credit. If you request a withdrawal before 4 p.m. CT on a business day, you’ll typically see a deposit to your checking account the next business day. Otherwise, it can take another business day to process your request.

I got a line of credit from Mobiloans. Now what?

Nothing happens until you withdraw money from your line of credit. After a withdrawal, your first payment is typically due in the next month. After that, your next payment is due in 14 to 17 days.

Signing up for automatic payments can help you get funds faster. Otherwise, Mobiloans sends you a paper check.

For questions about your account or balance, call 877-836-1518 weekdays from 7 a.m. to 7 p.m. CT or weekends from 7 a.m. to 3 p.m.

Bottom line

Mobiloans might be an option for consistent access to quick cash. But it’s expensive, even for a short-term loan. And because it’s a tribal lender, your rights as a borrower are subject to Tunica-Biloxi laws.

You can likely find a more affordable loan with another lender. Start with our guide to short-term loans to learn more and compare your options.

Frequently asked questions

Anna Serio

Anna Serio is a staff writer untangling everything you need to know about personal loans, including student, car and business loans. She spent five years living in Beirut, where she was a news editor for The Daily Star and hung out with a lot of cats. She loves to eat, travel and save money.

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