A tribal lender offering $200 to $2,500 lines of credit — with high fees.
|Product Name||Mobiloans Line of Credit|
|Min Loan Amount||$200|
|Max. Loan Amount||$2,500|
|Interest Rate Type||Variable|
|Requirements||Must 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 — minus the card. After completing an online application, you may be approved for a credit limit of $200 to $2,500. You can 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
- Washington, DC
- New Hampshire
- New Jersey
- New York
- North Carolina
- South Dakota
- West Virginia
How much does a Mobiloans line of credit cost?
Lines of credit come with high APRs that range from 206.79%–442.31%. Because these are short-term loans, it’s generally helpful to look at the actual fees it charges: A fixed finance charge and a cash advance fee.
We provide a breakdown of finance charges, cash advance fees and minimum payments below. You can 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. And 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 based on the amount you withdraw, which you’ll pay for each $20 you withdraw.
The amount you pay each billing cycle is a percentage of each withdrawal and its fees.
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
What are the benefits of a Mobiloans line of credit?
- No prepayment penalties. You can pay off what you borrow early without penalty.
- Employment isn’t 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 customer support. Need help outside of business hours or on the weekend? Mobiloans has 24/7 customer service — but it’s automated. If you want to speak to a person, you’ll have to call when Mobiloans offers live support.
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.
- 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.
- Limited availability. Mobiloans lines of credit aren’t available in every state.
- Slow alternative payments. If you don’t want to use autopay, Mobiloans sends your loan amount as a paper check. Unfortunately, this can take several days to arrive.
Case study: Marshall gets a 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 bills.
Here’s how his payments break down:
|Billing cycles||Minimum principle payment||Fixed finance fee||Cash advance fee||Minimum payment due|
|2 to 5||$20||$45||$0||$65|
|6 to 10||$20||$35||$0||$55|
|11 to 15||$20||$25||$0||$45|
|16 to 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 and reducing his balance to $200. With the new loan, he’s responsible for a new fee schedule:
|Billing cycle||Minimum principle payment||Fixed finance fee||Cash advance fee||Minimum payment due|
|2 to 7||$30||$65||$0||$95|
|8 to 10||$30||$45||$0||$75|
|11 to 14||$30||$35||$0||$65|
|15 to 17||$30||$25||$0||$55|
|18 to 20||$30||$10||$0||$40|
For his second loan, Marshall pays 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 use Mobiloans?
Beware of the arbitration provision
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 December 2018, Mobiloans is not accredited with the Better Business Bureau (BBB), but it still earns an A rating. However, there are a high number of customer complaints filed against Mobiloans. Out of the 11 customer reviews, only one is positive.
Mobiloans does much better on Trustpilot, where almost 12,000 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, you need to meet the following minimum requirements:
- You must be employed or have a regular source of income
- You must have an open checking account
- You must reside in an eligible state.
- You must not be in default on a Mobiloans line of credi.
- You must be least 18 years old (19 in Alabama and Nebraska)
How do I apply?
- Go to the Mobiloans website.
- Click Apply Now..
- 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.
- Review and submit your application.
- Review your potential credit limit and rates, and follow directions to complete the application and sign your loan documents.
If you’re approved, 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, which may take a few days to arrive.
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. CT. You can also email Mobiloans by filling out the form on its contact page.
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.