Having a valid bank account, home phone, and email address under your name
To begin with, let’s check is Red Arrow Loans legit website for taking out cash if you need it. The site presents us with a fairy tale, instant loans with same-day approval. The company gives personal loans for various needs, such as covering unexpected expenses and even medical emergencies. Everything goes smoothly since you only need to fill up your personal information and wait about 10 minutes.
Knowing that legit lenders take much longer to process your request and determine whether or not you are a suitable candidate for the loan, we suspected this offer. Thus, we started digging deeper. Make sure to read our Red Arrow Loans review carefully; you’ll want to stay away from their shady offer.
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Red Arrow Loans Pros & Cons
While we were all in a situation of needing extra cash here and there, choosing the right lender was crucial. After all, you don’t want to end up indebted for life or pay an advance fee and never hear from the firm again. While every lender has pros and cons, we see many more drawbacks in Red Arrow Loans’ offer. Here’s what we found.
First of all, any legitimate company dealing with any sort of finances must have transparent information and legal documentation. We should be able to find the owner, phone number, way to contact the firm in case of need, etc. With Red Arrow Loans, there are no such details. Their contact page gives you a form to fill out and wait while the rest of the information is not disclosed.
Additionally, the disclaimer points out that the firm in question is not a lender but only connects lenders and borrowers. Yet, they’re not registered as a financial institution, nor can we see their partners in this business.
Most loans, including personal ones, fall under Regulation Z. It’s a part of the Truth in Lending Act (TILA), passed by Congress in 1968. According to it, consumers are protected from predatory loans. On top, each institution involved in the lending business must be transparent and provide costs and fees. According to it, the lender must specify the loan’s rate, terms, fees, and an estimate of how much you will pay in the end. Yet, we haven’t seen such a thing with Red Arrow Loans. All the expenses, such as prepayment, late fee, origination fee, and other costs, are unknown.
Moreover, the firm says in its obscure T&C that the only way to resolve the issue is through arbitrage. They are directly banning you from taking the problem to any relevant courts.
Finally, the website owner’s identity is hidden, so we cannot trace the person behind it, even through cyberspace.
With all the cons indicating that Red Arrow Loans is nothing but a scam business, here are some things that may be considered pros. The firm doesn’t view credit scores, meaning that even those with a low score can apply for a loan. The funds are typically available within one business day, which is also good but not enough.
What fees does Red Arrow Loans charge?
Red Arrow Loans says it doesn’t charge any fees for using its online platform. The lender allegedly charges all the other fees, and they vary depending on the one you choose.
This, per se, makes no sense. Why would any company provide its services free of charge? While claiming to work only with lending partners who abide by the law and are legally authorized to lend money to consumers, we haven’t found any detailed listing. It’s entirely possible that they will be the ones lending you the money. But, of course, with insane repayment terms or various traps through the fine print. Make sure to read everything before putting your signature, whether on paper or online form.
Does Red Arrow Loans Charge an Origination Fee?
An origination fee is a fee charged on top of your loan. It usually covers the costs of processing the request and administrative work. It typically varies between 1-5% but can go as high as 10% for personal loans.
In the Rates and Fees section, Red Arrow Loans says that the lender will determine this fee once you are connected with them. However, the other part of the website claims that no credit history checks are needed. Also, you can be pre-approved within 70 seconds, thus no paperwork.
It is hard to believe that any reputable lender would take such a risk on themselves, approving a loan without a basic background check of your finances and credit history.
We suspect that Red Arrow Loans fictitiously approves the loan to get your data and charges various fees, including the origination fee. If asked to pay any amount higher than the average for your type of loan, make sure to decline it!
Does Red Arrow Loans Charge a Late Fee?
As the name suggests, late fees must be paid if you’re late with loan repayment. Typically, the cost can range from $25-50, depending on the amount you borrowed. In some cases, if you’re late for more than 30 days, your lender must notify the credit reporting agency. Then, your credit score will suffer from it.
As nothing with Red Arrow Loans is explicit and transparent, neither is the late fee. The firm implies that there may be some fees. However Red Arrow Loans reviews indicate that those who have contacted the firm were assured that they wouldn’t owe anything if they miss one of the monthly payments.
Such discrepancies in the information are not allowed because everything has to be perfectly clear when it comes to money.
Does Red Arrow Loans Charge Prepayment Fees?
A prepayment or payoff fee is a fee you must pay in case you pay off your loan earlier than you’re supposed. Each personal loan has a specified loan term (up to 12 months with Red Arrow Loans). The amount for repayment is calculated as the balance plus the interest. If you repay the loan earlier, the lender loses money from all the due interest, which the prepayment fee should cover.
Once again, the website tells us about other lenders and their specific terms and fees. What’s clear, you will be obligated to pay the prepayment fee. This is regardless of whether the loan is provided by Red Arrow Loans or one of their highly unlikely existing partners.
Is Red Arrow Loans Reputable?
Red Arrow Loans, a.k.a. Red Arrow Committee Loans, is not a reputable financial services provider. This website has not been registered with any monetary authorities in the US and has no legal coverage for their business.
Furthermore, their offer is quite confusing, as they claim to be only a networking partner, a connection between lenders and borrowers. However, they promise no credit history check and approval within one business day.
If you’re in need of quick cash, it’s much better to go to reputable loan agencies or banks. While their approval may take longer, you will be sure that you’re signing a loan under fair terms and that you won’t be scammed or misled. With Red Arrow Loans, you have no such guarantee.
Red Arrow Loans says to be available in all 50 states of the US. You have to prove that you’re over 18 years old and a citizen or a permanent resident of any state. Then, you’re already halfway there to getting your cash.
This is another suspicious thing. Most lenders specialize for certain states as the monetary laws are different, and it’s hard being compliant with them all. Yet, it seems that Red Arrow Loans doesn’t care much about laws.
Red Arrow Loans Summary
With everything being said, it’s time to summarize what we know about Red Arrow Loans.
The website has no legit owner behind the scene nor the phone number for direct contact.
The T&C is obscure and missing all the relevant legal information.
It’s unclear who will be the lender if you decide to deal with the company.
There are no clearly specified loan terms and fees.
Hence, staying away and finding a reputable loan issuer is your best bet if you want to keep your money safe.
Is Red Arrow Loans a legit site?
Red Arrow Loans is not a legit site, and the firm has no legal coverage or any sort of license.
Who owns Red Arrow Loans?
The owner’s name has not been specified; neither is the company address nor a valid phone number.
Is Red Arrow Loans credible?
Red Arrow Loans is not a credible website, and you should avoid dealing with it for your own fund safety.
The FinTopiAuthor, who prefers to remain anonymous for now due to privacy reasons, has a bachelor’s degree in finance and over 10 years of experience in financial planning and bank loans.
For the last 3 years, they’ve been working as a freelance copywriter in the niche of financial products, investing, and money lending, with the special attention to pros and cons of different loan types.
Besides an interest in financial topics, they’re keen on traveling and various adventures.