Is Better Day Loans Legit? We Investigate

Short Answer: Better Day Loans is a legitimate tribal lender and abides by all federal and tribal lending laws. However, the company is not accredited by the Better Business Bureau (BBB), and it has low ratings and customer reviews. Its small, short-term loans come with high interest rates — well over 600% — and many borrowers report problems with loan repayment. For more about the legitimacy of Better Day Loans, as well as details about its loan terms, see below.

Is Better Day Loans Legit?

Better Day Loans is a tribal lender based in California and operated by the Kashia Band of Pomo Indians of the Stewarts Point Rancheria (a sovereign nation in the U.S.). It claims to abide by all federal and tribal lending laws.[1]

The company is a legitimate lender, and it offers small, short-term installment loans to borrowers. These are essentially payday loans, but Better Day Loans refers to its loan options as installment loans for things like emergencies, small home or auto repairs, etc.[1]

While Better Day Loans is legitimate, there are several concerns to consider before applying for a loan. We detail these below.

Better Business Bureau Accreditation

Better Day Loans is not BBB-accredited, and the company has a C+ rating on the BBB website. Additionally, the lender has a customer review rating of around one out of five stars.[2] It’s also worth noting that the company is relatively young and has only had a BBB profile since late 2019.

Customer Complaints

Better Day Loans has accumulated a number of customer complaints and negative reviews on the BBB website and other forums. The main complaints are about extremely high interest rates that result in borrowers paying several times the initial loan amount.

Additionally, many borrowers report issues when trying to pay back their loans in full to avoid paying interest. The loan amounts are small, and many customers want to pay off their loan in a single payment instead of making the weekly, bi-weekly, or monthly payments with interest. However, multiple borrowers report difficulty communicating with Better Day Loans customer service to make this happen, despite claiming that it does not charge any early repayment penalties.[3]

Finally, some customers also have concerns about the fact that Better Day Loans collects borrowers’ bank account information for payment purposes; direct bank withdrawal is a payment option.[4] The company also collects bank account information during the application process, but its privacy policy discloses which information it shares and how it protects sensitive information.[5]

Lending Practices

Though it is legal for lenders to offer them, short-term loans like those offered by Better Day Loans are notoriously expensive, often charging high interest rates and fees. The U.S. Federal Trade Commission (FTC) issues warnings about the predatory nature of such loans.[6] Better Day Loans discloses on its website that its installment loans are an expensive form of borrowing and are not intended to be long-term financial solutions.[1]

Loan Terms and Rates

If you choose to apply for a loan from Better Day Loans, you’ll want to be aware of the following terms, rates, and requirements:

  • Loan amount: $200 to $500 (up to $1,500 for first-time borrowers)[7]
  • Terms: Vary, but Better Day Loans only offers short-term loans (no more than a few months)[3]
  • Immediate approval? Yes[8]
  • Fund disbursement: Typically the next business day[9]
  • APR range: 615% to 859%[10]
  • Late fee: $30 (if more than two days late)[4]
  • Credit requirement: None specified; the company claims to work with borrowers who have bad credit[11]
  • Other requirements: Must be 21 years old, have a job or regular income source, have an active bank account in good standing, have a valid email address and phone number, and reside in a state where Better Day Loans operates[12]

Note: Instead of pulling credit directly from the major credit bureaus, Better Day Loans uses alternative credit reporting agencies like Clarity (part of Experian), Factor Trust (part of TransUnion), and MicroBilt to determine a borrower’s creditworthiness.[1] This may result in a hard credit pull when you submit your loan application.

Availability

Better Day Loans only operates in certain states. Currently, residents in the following states cannot apply for loans with Better Day Loans:[1]

  • Arkansas
  • Colorado
  • Connecticut
  • Georgia
  • Kentucky
  • Minnesota
  • New York
  • New Mexico
  • North Carolina
  • Pennsylvania
  • South Dakota
  • Utah
  • Vermont
  • Virginia
  • West Virginia

If you prefer to borrow from a different lender, our related research has more about other options for tribal installment loans (some with no credit check), as well as tribal loans for bad credit.

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