Mobiloans line of credit review

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

How much does a Mobiloans line of credit cost?

Lines of credit come with high APRs that range from 206.79% to 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.
Table of finance charges based on balance

Balance	Fixed finance charge
$0	No fee
$0.01 to $100	$10
$100.01 to $200	$25
$200.01 to $300	$35
$300.01 to $400	$45
$400.01 to $600	$65
$600.01 to $900	$95
$900.01 to $1,000	$105
$1,000.01 to $1,400	$110
$1,400.01 to $2,000	$125
$2,000.01 to $2,500	$135

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.

Amount	Cash advance fee	Range
$500 and under	$3 for every $20 you draw	$3 to $75
$500.01 to $1,000	$2 for every $20 you draw	$50 to $100
$1,000.01 to $1,400	$1.60 for every $20 you draw	$80 to $112
$1,400.01 to $2,000	$1.40 for every $20 you draw	$98 to $140
$2,000.01 to $2,500	$1 for every $20 you draw	$100 to $125

Minimum payments

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.

Balance amount	Minimum principle payment	Fixed finance charge	Advance fee
$400 or less	$20	$10 to $45	$3 to $60
$400.01 to $1,099.99	5% of the balance amount	$65 to $105	$63 to $110
$1,100 to $1,399.99	3.3333% of the balance amount	$110	$88 to $112
$1,400 to $1,999.99	2.5% of draw amount	$110 to $125	$112 to $140
$2,000 to $2,500	2.0833% of draw amount	$125 to $135	$140 to $125

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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% to 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

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 bills.
Here’s how his payments break down:

Billing cycles	Minimum principle payment	Fixed finance fee	Cash advance fee	Minimum payment due
1	$20	$0	$60	$80
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
1	$30	$25	$60	$115
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?

Your personal and financial details submitted online are protected with industry-standard SSL. After you submit your info, Mobiloans restricts access to authorized employees and protects it with a firewall. Its privacy policy also covers instances where it shares your information — and how you can limit that sharing.

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.

Mobiloans line of credit reviews and complaints

Mobiloans earns mixed online reviews. 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?

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.

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.

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

• Does Mobiloans conduct a credit check?

  Yes, but not necessarily with the three main credit bureaus. Like other payday lenders, Mobiloans may use a different system to check elements of your credit history.

• Will late payments affect my credit score?

  They can. If you fail to make a payment, eventually Mobiloans sends your loan to collections, which affects your credit score. Most short-term loans don’t report payments to credit bureaus directly, however.

• How do I get rewards points?

  You get 250 points just for signing up, another 250 each time you pay an extra $50 on top of your minimum payment, 1,000 points for fully paying off the balance of a loan and another 500 for making those payments on time.
  You need 500 points to qualify for a 15% fee reduction and 40,000 points to get that 80% fee reduction.

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