Spotloan: Is Spotloan a Good Choice for Bad Credit Borrowers?

Payday loans may seem like an easy solution when you need cash fast. But their outrageously high fees, short repayment terms, and tendency to trap borrowers in cycles of debt make them a very good but risky choice.


That’s why Spotloan offers a much better payday loan alternative in the form of online installment loans.

How Does Spotloan Work?

Spotloan is an online lending platform owned and operated by BlueChip Financial. It provides access to installment loans for borrowers with bad credit or no credit history.

Unlike payday loans that come due in full on your next pay date, Spotloan installment loans allow you to repay the loan in multiple smaller payments spread out over 3 to 12 months. This makes the loan much more affordable to repay over time.

To qualify for a Spotloan, you need to:

  • Be at least 18 years old
  • Have an active checking account
  • Provide proof of income
  • Have a regular source of income

One of the best things about Spotloan is they do not do a hard credit check as part of the application process. This means applying will not negatively impact your credit score. They only do a soft credit inquiry to verify your identity and income.

However, Spotloan does report your payment history to the major credit bureaus. So, making on-time installments can help improve your credit standing over time.

Spotloan Loan Terms and Fees

While much better than traditional payday loans, Spotloan installment loans are still an expensive form of borrowing. Here are some of the key loan terms and fees to be aware of:

  • Interest rates range from 29.99% to 179.99% APR
  • Origination fees from 1.98% to 8% of the loan amount
  • No prepayment penalties if you pay off early
  • Late fees up to $15
  • Loan terms of 3 to 12 months are available

As you can see, interest rates are very high, even when compared to credit cards. And origination fees take a chunk out of your loan amount right off the top.

However, being able to spread repayments over 12 months makes the overall cost more manageable than a payday loan that comes due in just 2 weeks. Just make sure you can budget for the payment amount before borrowing.

How to Apply for a Spotloan

Applying for a Spotloan installment loan is quick and convenient through their online platform. Follow these steps to apply:

  1. Go to
  2. Click “Apply Now” and choose your desired loan amount
  3. Provide some basic personal information and proof of income
  4. E-sign the loan documents online

In most cases, you’ll get a loan decision within minutes. If approved, you can have the funds deposited directly into your bank account as soon as the next business day.

Repaying Your Spotloan

One requirement of Spotloan is that you must enroll in automated payments to repay your installment loan. Payments will be automatically deducted from your bank account every two weeks until the loan is paid in full.

Loan terms can be set for 3, 6, 8, 10, or 12 months. The longer the term, the lower your bi-weekly payment amount will be. You also have the option to pay off the loan early with no prepayment penalties.

If funds in your account are insufficient when an automated payment is due, you may incur a late fee of up to $15. Just make sure you closely monitor your checking balance to avoid any late payments and fees.

Is Spotloan a Good Choice for Bad Credit Borrowers?

For borrowers with bad credit or no credit history, Spotloan can be a decent alternative to predatory payday loans. Since they do not do hard credit checks, it’s possible to qualify for a Spotloan installment loan even with very poor credit.

And because on-time payments are reported to Equifax and TransUnion, responsible use of a Spotloan loan can help rebuild your credit over time. This in turn can make it easier to qualify for more affordable credit in the future.

However, keep in mind that interest rates for bad credit borrowers are at the higher end of Spotloan’s range, from 159.99% to 179.99% APR. So be sure you can handle the bi-weekly payments before taking on one of these loans.

Pros of Spotloan Installment Loans

Here are some of the top advantages Spotloan installment loans provide compared to payday loans:

  • 3 to 12 months instead of just 14 days
  • bi-weekly payments are more affordable and manageable
  • Get approved and funded in minutes
  •  On-time payments
  • Pay off early with no penalties
  • Easy to apply from anywhere
  • No hard credit checks

Cons to Consider

While a better alternative, Spotloan loans still come with some drawbacks:

  • Very high APR interest rates  can be up to 179.99%
  • Origination fees take a chunk out of the loan amount
  • Can damage credit if missed payments
  • Not available in all states as it is prohibited in some areas
  • Still, an expensive way to borrow

Before applying, be sure you understand the full costs and can budget for the bi-weekly payments. While more flexible than payday loans, Spotloans are still expensive for bad credit borrowers.

Alternatives to Spotloan Worth Considering

If you decide a Spotloan installment loan may be too costly, here are a few alternatives worth considering:

  • Credit union payday alternative loans as many credit unions now offer small-dollar loans at much lower rates.
  • Bank personal installment loans. Even with bad credit, some banks may offer installment loans.
  • Peer-to-peer lending from Online sites like Upstart lets you borrow from individual lenders.
  • Secured credit cards – Can help build credit by making on-time payments.
  • Paycheck advance apps Like Earnin allow you to access wages you’ve already earned.
  • For less expensive borrowing options, check if you qualify for any of the above first before applying for a Spotloan.

Frequently Asked Questions about Spotloan

What credit score do you need to qualify for Spotloan?

There is no official minimum credit score. Spotloan does a soft credit check only and looks at your overall income rather than just your credit score.

How long does it take to get approved for a Spotloan?

In most cases, you will get an approval decision within minutes after completing the online application. If approved, funds can be deposited as soon as the next business day.

How do you get the loan funds if approved?

If approved, the loan funds can be deposited directly into your bank account via ACH transfer. You also have the option to request a paper check.

Can you pay off a Spotloan loan early?

Yes, you can pay off your Spotloan installment loan early with no prepayment penalties. This can help you save on interest charges.

Does Spotloan call or contact your employer?

No, Spotloan does not contact or call your employer. The application only requires proof of income, which can be provided through bank statements or pay stubs.


While not perfect, Spotloan installment loans can still be one of the better alternatives available if you have bad credit and need funds fast. Avoid payday loans at all costs and explore other options like credit union loans if possible.

Use Spotloan as a last resort and make payments on time to start rebuilding your credit standing. Over time, responsible borrowing can improve your chances of getting approved for more affordable loans down the road.



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