Greenline Loans

Greenline Loans – Not your average payday loan

 

You may have heard of Greenline loans, a short term money lender that offers loans to virtually anyone, regardless of their credit score. With approval all but guaranteed, and the loan money typically available the next business day, taking out a loan from Greenline loans might sound like an appealing option if you find yourself unable to cover an unexpected expense.  But before you take out that loan, lets make sure you understand what exactly Greenline loans is. And what you’re getting yourself into by lending from them.

 

What Is Greenline Loans

Much like other payday loan lenders, greenline loans is in the business of offering high interest, short duration loans for people who find themselves needing money for a temporary emergency.  The qualification requirements are loose, and are not based off your credit.  To qualify, you simply must meet the below requirements:

1. Must be employed (or receive a regular income)

2. Earn at least $1000 per month

3. Must be at least 18 years of age and a U.S. citizen

4. Must have a checking account

5. Other requirements may apply

See https://www.greenlineloans.com/faqs.php 

 

At first glance, Greenline loans might look like any other payday lender.  But if you look carefully, you’ll see that Greenline loans is located on the Lac Du Flambeau native American reservation in Wisconsin. This means that Greenline loans is not actually a payday loan lender, but rather a “Tribal Loan” lender. Tribal Loan lenders include the likes of “Better Day Loans”, “Mobiloans”, “Bright Lending”, “Spotloan”, “Plain Green Loans”, “America Web Loans”, “Big Picture Loans”,  and “Majestic Lake Financial” among others.

 

What is a Tribal Loan?

 

A tribal loan is often seen as a controversial alternative to a traditional payday loan.  The obvious difference between these two types of loans being that, you guessed it, a tribal loan lender is based on tribal land.  While this difference may seem arbitrary, its an important distinction because tribal nations (and the tribal lands they control) are seen as sovereign governments and are not subject to the laws of the US States in which they are located.  Only Federal and Tribal laws apply here.  Some Tribal lenders have used this reasoning to make the claim that the regulations that control and limit the terms of payday loans do not apply to loans originated from tribal lands (I.E. Tribal Loans)

 

Why a Tribal Loan is Worse than a payday loan?

 

37 states regulate payday loans in some form or another.  12 states ban them outright, 16 states cap the annual interest rate at 36%, while others restrict the actual loan terms or origination requirements in some form or another.  This is significant because Tribal loans often do not follow these interest rates. According to GoLoans, Greenline Loans’ interest rate starts at a whopping 762.33% APR.  That means that if you were to borrow $300 for an emergency, paid bi-weekly over the course of a year, you would end up paying an incredible $1993.02 to pay it back (see figure below).  If you weren’t in a bind before you took out that loan, you definitely would be afterwards. 

 

Why Both Payday loans and Tribal loans are terrible

Many people refer to these tribal loans and payday loans as loan traps.  These types of lenders often prey upon desperate, low income people in need of some quick cash.  What these people generally don’t realize though, is the total cost of the loan can be several times greater than the amount they are borrowing.  This can lead to the lendee becoming “trapped” in the loan where the interest rates are so high they struggle to ever pay off the principal balance, generating a long term revenue stream for the business, and long term debt for the customer.

 

Everybody rags on Credit Cards and tells you how bad they are, but the truth is Credit Cards aren’t nearly as bad as Payday Loans which aren’t nearly as bad as Tribal Loans.

Alternatives To Tribal Loans

 

Like I said above, Tribal Loans (and Payday Loans) are terrible.  Credit Cards, as bad as they are, are a much better option for short term debt.  The best option of all though if you need to take out a loan, is to take out a personal loan.  Below you can see comparison of the interest rates that actual Tribal Loan Companies, Payday Loan Companies, Credit Card Companies, and Personal Loan Companies charge to their customers.  As you can  see, Tribal Loans and Payday Loans don’t even compare to the other types of loan options. (See References 1,2,3, and 4)

 

 

Should I get a Greenline Loan?

No.  please do not even consider getting a greenline loan or other type of ‘Tribal Loan’.  Find another option – any option- for covering your short term spending need.  A loan from Greenline Loans will cost you dearly.

 

References:

  1. https://theintercept.com/2021/05/31/payday-lender-native-american-tribe-american-web-loan/
  2. https://www.creditkarma.com/personal-loans/i/advance-america-loans-review
  3. https://www.discover.com/credit-cards/cash-back/it-card.html
  4. https://www.nerdwallet.com/article/loans/personal-loans/chase-personal-loans

 

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