Looking for a good deal on a bad credit loan? If you have been researching your options for personal loans or installment loans, you may have come across loans like Slick Cash Loans or loans like Redwood Coast Finance. Redwood Coast Finance is a tribal lender operating out of California specializing in short-term loans. But is this lender the best choice for you?
Here, you will learn all about Redwood Coast Finance, how their installment loans work, and what your other options are when it comes to personal loans for good or bad credit.
Loans Like Redwood Coast Finance: Are They The Best Choice?
Is getting a bad credit loan with Redwood Coast Finance the best choice? Before applying for a loan with Redwood Coast Finance, consider more potentially sustainable options such as:
- Dipping into your savings
- Asking a friend or family member for a small short-term loan
- Bad credit personal loans from a better online lender
- Cash advances (watch out for payday loans and no credit check loans, though!)
- Credit cards (however, beware of accumulating too much credit card debt! According to CNN, Americans held a total of about $986 billion in credit card debt as of the beginning of 2023.1)
Keep in mind that these are not the only options available. However, if you do decide that applying for a loan is the right choice for you. It may be a good idea to prepare your finances a bit. You can prep your finances for a loan by:
- Getting a Credit Check and Reviewing Your Most Recent Credit Report
When applying for a loan, your lender will pull an official credit check (also called a hard credit inquiry), which will help determine if you are qualified for approval. Some lenders only offer installment loans to borrowers with a credit score within a certain range, so being familiar with your personal credit history will help guide you toward lenders you have a better chance of qualify for.
- Review Your Current Debts
Look through your loan balances and financial obligations. It may even be smart to pull some of your past bank statements to see how you normally spend your money from month to month. If you already have high loan balances or a long list of financial obligations, you may want to clean up your finances a bit before applying for a loan and accumulating more debt. According to CNBC, consumers between the ages of 56 and 74 have the most personal loan debt, accumulating to an average of $19,253. This is almost $15,000 more than the average personal loan debt for people between the ages of 18 and 23, which is $4,526.2
- Research Lenders and Products
Visit the website of multiple lenders and see what kind of products and services they have available. You can also check out online reviews to see if other borrowers had good experiences or reported red-flag issues. For example, if you see many reviews about borrowers finding hidden fees, not being able to get into contact with a loan agent, or getting unexplained charges, this may be a sign you want to stay away from that particular lender. On the other hand, if you see plenty of people talking about the ease of applying, helpful customer service agents, or other positive experiences, these may be lenders you will want to consider working with yourself.
Using a Broker
Borrowers may also use a broker to find a bad credit loan deal. Keep in mind that a broker is not a direct lender but instead acts as a middleman to connect borrowers to actual lenders. While using a broker may be a good start in finding lenders who may be a good fit, it may not be in your best interest to trust the opinion of a broker alone. Many times, brokers will work with direct lenders and earn special commissions when they bring in loan applications.
Finding the Right Personal Loan
When researching lenders and reviewing loan options, be sure to consider the following:
First and foremost, you will want to familiarize yourself with the qualification requirements of the lenders you are considering. Some direct lenders, such as a bank, typically only work with borrowers who have exceptional credit scores. Other lenders, such as federal credit unions or some online lenders, may be more open and willing to work with borrowers with less-than-perfect credit but may require that they earn a minimum income in order to receive approval.
Basic qualification requirements should be displayed clearly on the lender’s website, but you can also call lenders directly to speak with a loan agent and talk about what it takes to qualify for a loan.
Depending on the type of loan you go with, you may be required to include collateral in order to secure your loan. Collateral is an asset with equity, such as a vehicle or a home, that a borrower can use to prove they have the means to repay their loan balance. Installment loans that require collateral are referred to as secured loans. If a loan does not require collateral, it is referred to as an unsecured loan. Unsecured loans use the borrower’s income, credit history, and other financial information to determine whether they have the means to repay their loan.
Your loan amount is the amount of funding you are approved for by your lender. Your loan amount will also be a major contributing factor in determining your loan terms and interest rate charges. Usually, the higher the loan amount, the longer the terms and the more the borrower will pay in interest over time.
While it is important to make sure that your loan amount covers all the expenses you are looking to pay for, it’s also crucial to make sure you can afford to repay your total loan amount, especially when considering the interest rates and repayment terms the lender offers.
Interest Rates and APR
Interest rates are one of the most impactful factors of a loan and will play a huge role in determining the overall cost of borrowing money. While most lenders have interest rate minimums and maximums, they will also usually consider the borrower’s credit history when determining rates. Typically, borrowers with higher credit scores and a healthy credit history will qualify for lower rates than bad credit borrowers.
The repayment term of a loan indicates how long the borrower has to pay back their loan balance, plus any accrued fees. Repayment terms for a loan can range from a few weeks, to a few months, to several years. You will want to pay close attention to the repayment terms offered by different lenders and make sure they fit in with your financial plan. For example, if you need a long-term loan, you may want to stay away from cash advance lenders who typically require full repayment of a loan within about two weeks or less.
Your monthly payments are how much of your overall loan balance, plus interest, you are required to pay back each month. To pay off your loan balance ASAP and potentially save money on interest rate charges, you may consider paying more than the minimum amount due each month. Otherwise, it is important to make sure that your monthly payments are affordable to avoid missing payments or falling into default.
Fines, Fees, and Other Charges
Last but certainly not least, you will want to review any extra charges that your lender requires. Some common fees you may come across with various lenders are:
- Prepayment penalties
- Late payment penalties
- Origination fees
- Returned check fees
- Payment processing fees
Keep in mind that not all of these charges come with every loan. In fact, you may want to shop around and see if you can avoid lenders that include unnecessary fees such as prepayment penalties.
Installment Loans Like Redwood Coast Finance: What You Need To Know
Before applying for installment loans with Redwood Coast Finance, you should know about some of the rules and restrictions these loans can come with. To start, the maximum APR of any Redwood Coast Finance loan is 699%, which is exceptionally high. Typical loan amounts for consumers who borrow money from Redwood Coast Finance are between about $300 and $1,000, with $1,000 being the maximum loan amount any borrower may receive. However, something important to note is that the maximum loan amount for first-time borrowers with Redwood Coast Finance is $500.
Redwood Coast Finance installment loans are not available for military personnel, their dependents, or for consumers who reside in the following states:
- New York
- New Mexico
- North Carolina
- South Dakota
- West Virginia
What Is a Tribal Loan?
Tribal loans are funding (usually short-term loans) offered by tribal lenders. Tribal lenders are financial institutions owned and operated by a federally recognized Native American Indian tribe. When it comes to Redwood Coast Finance, they are owned and operated by the Kashia Band of Pomo Indians of Stewarts Point Rancheria.
What makes a tribal lender different from a traditional personal loan lender? Well, since tribal lenders are owned and operated by Native Americans, they also fall under the jurisdiction of tribal law. This means that if there is some kind of issue with their Redwood Coast Finance loan, borrowers may have to deal with authorities who represent the Kashia Band of Pomo Indians of Stewards Point Rancheria.
What Application Info Does Redwood Coast Finance Need?
Redwood Coast Finance will ask for the following information during their application process:
- Driver’s license number
- Bank account information (checking account number and routing [ABA] number)
- Debit card number
Will Redwood Coast Finance Share My Information?
Redwood Coast Finance collects consumer data from several categories and shares this information with affiliates or other interested parties. Some reasons why Redwood Coast Finance collects consumer information include the following:
- To process transactions, maintain your general account, respond to court orders or legal investigations should the need arise, or report to any of the three major credit bureaus.
- For marketing purposes that allow Redwood Coast Finance to provide appropriate products and services to borrowers.
- For affiliates to have proper records for their everyday business needs.
Redwood Coast Finance Loan Example
Say you received approval for a $300 loan with a maximum 699% APR from Redwood Coast Finance. If you paid back the entire loan balance in two months, making bi-weekly payments, you would end up paying over $563 for that $300 loan!
Below is a breakdown of how paying back a loan like that would work:
|Principal + Interest
CreditNinja: How Does It Compare?
CreditNinja knows how hard it can be to find an affordable loan when you have a bad credit score. That’s why we work to offer loans to borrowers from a wide range of financial backgrounds, including borrowers with a less-than-perfect credit score or even past bankruptcy.
While CreditNinja offers unsecured installment loans, that doesn’t mean we base approval solely on credit history. We take other factors into consideration, such as your monthly income and other assets you have that could help repay your loan. That way, we can help the most people possible get the financial assistance they need!
CreditNinja Personal Loans vs. Payday Loans
When researching bad credit loans, you have undoubtedly come across payday loans and personal loans. But what is the big difference between these two types of funding? To start, payday loans and traditional personal installment loans can vary drastically when it comes to repayment terms and interest rates. For a payday loan, lenders usually expect full repayment of the loan within about two weeks or less (usually the amount of time it takes for the borrower to receive their next paycheck). For personal installment loans, lenders can be much more lenient. Repayment terms for a personal installment loan can last anywhere from a few weeks to a few months, or even years!
Interest rates can also vary wildly between a personal and payday loan. Payday loans almost always come with extremely high-interest rates, while personal loan rates can be more competitive. While a payday loan may be a viable option for borrowers looking for small loan amounts they can fully repay in a few days; they can also lead to a vicious cycle of debt. Usually, personal installment loans are considered a much more sustainable option than an in-person or online payday loan.
How Do CreditNinja Personal Loans Work?
Getting a bad credit loan can be fast and simple when you work with the experts at CreditNinja. Here’s how it works:
- Fill out a quick application online. We’ll ask for some basic info like your name, address, income, desired loan amount, and bank account number.
- Find out your approval status. Upon approval, you will receive a loan contract from CreditNinja that you can read over and sign. Remember, if there is anything that is unclear to you about your loan contract, feel free to ask a knowledgeable CreditNinja loan agent!
- Get your money! After you sign your loan contract, you can expect your approved funds delivered directly to your checking account!
FAQ: Loans With Redwood Coast Finance
No! Borrowers can make loan payments at any time on or before the designated due date without penalty.
Origination fees will depend on several factors, including loan amount, interest rates, and credit score.
Late fee amounts will vary from loan to loan. The best way to avoid late payment fees is to make on-time loan payments.
Redwood Coast Finance specializes in bad credit loans. So, borrowers with either a high or low credit score may be able to qualify. Unfortunately, Redwood Coast Finance doesn’t give specific information as to the minimum credit score required for loan approval.
There is no specific debt-to-income ratio required for loan approval with Redwood Coast Finance. However, if your debts outweigh your income by a good amount (about 35% or more), you may want to work on paying off your debt before applying for a loan.
Monthly payments will depend on your specific loan amount, interest rates, and repayment terms.
Ultimately, the lender decides if you are eligible for a loan or not. Before applying for a loan, it may be a good idea to perform a credit check to gauge your overall creditworthiness. Consumers are entitled to at least one official credit check and a copy of their credit report from each of the major three credit bureaus at least once a year.
You may complete a loan application for Redwood Coast Finance online or over the phone.
You may make loan payments directly to Redwood Coast Finance.
Yes, many online lenders specialize in offering both short-term loans and installment loans to borrowers with various credit backgrounds, including bad credit. Short-term loans are typically for smaller amounts and shorter durations, while installment loans allow for longer repayment periods. Online lenders often have different eligibility criteria and a credit check may be performed to assess the borrower’s creditworthiness.
Credit bureaus collect and maintain credit information about consumers, and this information is used to calculate your credit score. Both credit unions and online lenders may use this credit score to determine your eligibility for an installment loan or short-term loan. A higher credit score may lead to better loan terms, while bad credit might limit your options. However, some online lenders specialize in loans for bad credit and may not weigh your credit score as heavily.
A short-term loan is usually paid back in a single lump sum within a few weeks or months, while an installment loan is paid back over a longer period through regular payments. Online lenders may offer both types, and your credit score can affect the interest rate and terms. A higher credit score may lead to more favorable terms, while bad credit might result in higher interest rates or additional credit checks.
To improve your chances with online lenders, consider demonstrating stable income, reducing existing debts, and understanding the specific requirements of the lender. Some online lenders specialize in bad credit loans, so researching those might be beneficial. It’s always a good idea to perform a credit check and take a look at your recent financial history before applying for any type of loan.
Who Are CreditNinja Loans For?
CreditNinja personal installment loans are meant for any consumer going through a stressful financial emergency. While it is always a good idea to seek out borrowing alternatives or credit counseling before applying for a bad credit loan, sometimes it’s the only option. CreditNinja aims to be a more sustainable option over predatory payday lending so borrowers with all types of financial histories have access to affordable emergency cash when they need it.