Spotloan Review

Spotloan ReviewSpotloan says they can get you money as soon as tomorrow but there’s a catch. You’re going to have to pay back a lot more than you borrowed if you follow their payment plan. This one has us scratching our heads wondering if anyone has gone through with this, and if so why.

There are so many different options out there, including payday loans, that appear to put you in a better position than a loan like this. Let’s say you borrow some money from your friend, and to be nice you say you’ll give them 10% when you pay them back. So they give you $800 and when you pay them back you give them $880. Your friend is happy, you are happy, and you carry on with your business.

Or lets say you take out a payday loan and they charge you a ton for it and you borrow $800 and they charge you $100 when you come back on your next payday. You still need the money so you borrow it again and they charge you another $100 when you bring it back. This process continues for a full 6 months when finally your income tax comes in and you pay off the entire loan and you don’t need to reloan it. Your total charges are $1200 but the most you ever needed to pay at one time was $100. Crisis averted.

With this same loan you’re going to be making $133 payments for over a year and a half just to pay back the first simple loan for $800. That means they will put $800 and you don’t have to have the money in your account on your next payday, the way you do with a payday loan. Instead they’ll just take $133, and they’ll do so 16 more times totalling over $2k!

Spotloan Review – Utter Insanity

Spotloan makes it very clear that you shouldn’t take a loan out with them by running the numbers past you on their homepage. There’s just no reason to pay nearly triple what you borrowed just for the luxury of making installment payments. A payday loan can be looked at as an installment loan, you just have to bring in the principal each payday.

Borrowing $800 with $120 Payments
Lets say you need $800 and you’re willing to make payments of $133 a month. You’d think maybe they’d want 8 payments at $133, which would be $1,064 so $264 in fees which almost sounds reasonable and like something you’d want to do. But no. They expect you to make 17 payments for a total of $2,261 which means you’re paying $1,461 in fees but what it really means is that your $800 problem became a $2,261 problem, nearly 3 times as worse!

Better Alternatives
Spotloan can’t be serious. Why anyone would want to pay so many extra payments after they’ve already paid back their principle is beyond reason. If you can take out a payday loan and let’s say that the max you can get is $600 but you can take two loans out at a time so you can get $1,200 at once, when you repay the loans you would have to pay about $150 for both. This is a similar scenario, and if you need to reloan the money you would essentially be making $150 payments on it until you don’t need it anymore. That’s just one example using the payday laws in Michigan, it might be different in your state so it’s best to check.

Anything is better than this sort of set up and they have the audacity to say that you can save 50% compared to payday loans. We can’t figure out a scenario where their payment structure beats out a payday loan. Maybe if you kept taking out a payday loan again and again, for more than 17 months, but in order for it to be twice as much you’d have to take out a payday loan every month for nearly 3 years to make this make sense.

Our Recommendation
Spotloan is one example of the sort of online loan you should stay away from. There is no way in the world that it will help your financial situation at all, and in fact is only going to put a drain on your monthly income, making it more likely for you to have further financial strife.

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