|
Here are a few things that you need to look out for when getting a payday loan. The fees they charge and the penalty if repayment is late can be substantial. Details of the term of the loan can be buried in the fine prints. Talk to a few loan merchants and find the one you are comfortable dealing with. You do not have to deal with less helpful vendors. Opt for the loans which you can pick up at the local Western Union stores if you are getting a loan over the internet. Getting a short term loan over the internet is becoming more and more common nowadays because of ease of use and privacy. And you can apply and even be approved anytime during the day. Simply log on the internet, go to one of the websites, fill out an easy application, and you are done. Generally they charge $10 per $100-$300 loaned. And they may set a upper limit on how much you can borrow. If large amount is needed, you can get loans from multiple vendors. Payday loan merchants usually use teletrack system to learn how many outstanding loans you have, and if you have default on any in the past. Have your documents like paycheck, or utility bill ready. Some may ask you to fax them employment proof or voided pay check to verify you do have a checking account in good standing. If you have good credit, they may not ask for any document at all, and save you and them all the trouble. Do not concern about getting turned down if you have bad credit because most of their applicants have bad credit. Make a larger deposit into your rainy day fund next time. Cut discretionary spending, like drinking tab water instead of bottled water, or home brewed coffee instead of gourmet coffee. But if unfortunate thing does happen, at least you know where to turn to after reading this article. Payday lenders may charge you way too much on fees. For this reason states set up rules to regulate them. Quick reference on state regulations of the maximum loan amount and fees on payday loan: Alabama AL ($500, 17.5%), Alaska AK ($500, 15%+$5), Arizona AZ ($500, 17%), Arkansa AR ($400, 10%+$10), California CA ($300, 17%), Colorado CO ($500, 20% for first $300 and $7.5% after that), Delaware DE ($500, no limit), Florida FL ($500, 10%+$5), Hawaii HI ($600, 17%), Idaho ID ($1000, no limit), Illinois IL ($400, 15.5%), Indiana IN ($500, 15% of first $250, about 12% after that), Iowa IA ($500, 10%+$5), Kansas KS ($500, 15%), Kentuky KY ($500, 15%), Louisiana LA ($350, 16.75% max $45), Minnesota MN ($350, 6%+$5), Mississippi MS ($400, 18%), Missouri ($500, 75%), Montana MT ($300, 25%), Nebraska NE ($500, 15%), Nevada NV (no limit, no limit), New Hampshire NH ($500, no limit), New Mexico NM (no limit, no limit), North Dakota ND ($600, 20%), Ohio OH ($800, 5%+$5), Oklahoma OK ($500, 15%), Oregon OR (no limit, no limit), Rhode Island RI ($500, 15%), South Carolina SC ($300, 15%), South Dakota SD ($500, no limit), Tennessee TN ($500, $15), Texas TX ($350, 48% apr+$10), Utah UT (no limit, no limit), Virginia VA ($500, 15%), Washington WA ($700, 15%), Wisconsin WI (no limit, no limit), Wyoming WY (no limit, 20%), Washington, D.C. ($1000, 10%+$20).
|