What a tribal lines of credit is
A tribal line of credit is a revolving account from a Native-American-owned lender: instead of one fixed loan, you get a credit limit you can draw against, repay, and draw again.
Mobiloans, owned by the Tunica-Biloxi Tribe of Louisiana, is by far the best-known — genuine tribal lines of credit are rare, and most brands marketed as one are ordinary installment loans.
Unlike an installment loan, there is no fixed number of payments — and that open-endedness is the trap.
How it works
You are approved for a limit — commonly $500 to $3,000 — and draw what you need. The cost comes in two parts that are hard to compare to a simple APR: a cash-advance fee on every draw, plus a fixed finance charge each billing cycle you carry a balance.
Each cycle you can pay a small minimum, which keeps the account open and the finance charges coming. Because the minimum is a percentage of the balance, it shrinks as the balance falls, dragging payoff out for a very long time.
Paying only the minimum is the single most expensive way to use the product.
What it really costs
The two-part fees translate to an effective APR of roughly 73% to 405%. Paying only the minimum on a $1,000 balance can total around $3,000 over about 14 months. Our minimum-payment trap calculator shows the gap between paying the minimum and a fixed amount — the difference is often thousands of dollars.
Pros & cons
- Draw only what you need, when you need it, up to your limit.
- Rewards ladders (on Mobiloans) can cut fees for consistent on-time payers.
- Effective APR can be lower than a payday loan — if you repay quickly.
- The two-part fee structure hides the true cost and is hard to compare.
- Low minimum payments stretch payoff for years and balloon the total.
- Revolving access makes it easy to re-borrow and stay in debt.
- Reporting is non-committal, and some refuse "pay-for-delete."
Who offers tribal lines of credit
These brands are in our lender database — read each review for its exact rate, states served, complaints and lawsuits before you apply.
See all lenders in the database
How it compares to other tribal loans
A line of credit is revolving with no fixed end date, unlike a tribal installment loan that amortizes to zero over a set term. It is open-ended, unlike a one-time tribal payday loan. If you need a single, definite sum, a fixed loan is easier to control than a line you can keep drawing on.
Frequently asked questions
Is Mobiloans a loan or a line of credit?
A line of credit. You draw against a limit of up to $3,000 and pay a cash-advance fee per draw plus a fixed finance charge each cycle you carry a balance — an effective APR up to about 405%. See our full Mobiloans review.
Why does a tribal line of credit cost so much if I only pay the minimum?
The minimum is a small percentage of the balance, so it barely covers the finance charge while the balance stays high. Payoff drags on for many months or years. Paying a fixed amount above the minimum clears it far faster — our minimum-payment calculator shows the difference.
Can I still owe on an old Mobiloans balance?
Cash advances taken before May 6, 2017 were covered by the Think Finance settlements (debt forgiveness and tradeline removal). Later balances may still be owed, and defaulted accounts are sold to a debt buyer — see the Mobiloans review for details.