Reward programs are not new. People have been rewarded for everything from flying with a specific airline to buying six cups of coffee at the corner convenience store for decades. Department stores, hotels, automotive service chains, and restaurants encourage repeat business by rewarding loyal customers. It is a win-win concept that has presented in one form or another in just about every industry.
The Latest Incarnation
Non-traditional lenders are now offering rewards to people who successfully complete the terms of installment loans. These loans have extremely high interest rates, incur stiff penalties for late payments, and should only be considered as a last resort. That information is included on most lender websites as part of their responsible lending policies. The reality is that many people do not, and will not, qualify for traditional loans currently, or in the near future.
Installment loans are a viable option in cases of emergency where fast cash is needed. Those who have gotten one loan may have to apply for another one at some point in the future. A rewards program makes that process easier. Loyal customers can enroll in programs free of cost once the first loan is paid off successfully. That means no payments were late or missed and were made in full for the length of the loan.
Programs will vary depending on the lender, but most are structured in levels. Customers start off at the entry level and can advance to higher levels as loans are taken out and repaid. Typically two loans have to be completed at each level to move to the next one. The program offered by Blue Trust Loans, for example, is called “Club Blue” and has four levels.
The first level is blue, followed by silver. Gold is next, with platinum being the highest level available. Rewards at each level include higher loan amounts, lower interest rates, and longer payment terms. The silver level allows customers to borrow up to fifteen-hundred dollars over a two-hundred and seventy day period, rather than the entry level payment terms of one-hundred and eighty days. The top level entitles people to loans of up to two-thousand dollars for three-hundred day terms.