Payday loans or also known as cash advance is a good solution to an unforeseen financial problem. There are hundreds of companies that offer payday loans in different states. Thus, wherever you are in the country, you can be sure that there is a lender who will help you. However, before you finally ask for loans, you have to be aware that there are rules for payday loans in different places. These rules vary from state to state. As a member of the society, you are expected to know the rules in your own state specifically rules related to your place. For sure, you don’t want those greedy loan companies to take advantage of your cash advance. If you think they don’t exist? Well, they do! Check the internet and do some online searching and you will come up with hundreds of selfish lenders. That’s why as early as now, you have to know the rules of payday loans in different states so anywhere you are in the country you know your rights and you can protect your credit.
Minimum or maximum term –Term refers to number of years, months or days that a borrower can use the loans. After which, he is expected to repay the credit to his payday lender. It is a period of time, where the borrower can prepare the money for reimbursement. Payday loans in most states have a maximum term of 31 days like in Alabama, Arkansas, California, District of Columbia, Florida, Iowa, Michigan, Montana and Nebraska. You will see the rest of the states who have maximum term of 31 days if you will search online or check the internet. You might be interested to know that in some places, it is longer. In Colorado, Oklahoma and Washington, payday loans last for 40-45 days. But who can beat the 60 days term in Delaware, Kentucky and Louisiana?
Minimum or maximum loan – This is the amount of loans a person can borrow. Most of the payday lenders do not allow first time applicants to make use of the maximum credit. Until the customer established a good credit record, that’s the only time they will let the borrower loan for bigger cash. The amount of loans varies also from one place to another. Payday loans in Alaska, Arizona, Colorado and Delaware have maximum amount of 500 USD. However, maximum payday loans in other places could be lower like California, Montana and South Carolina have maximum payday loans of 300 USD.
Charges and Status of Laws – Like what was mentioned earlier, rules and laws regarding payday loans are different in each state. For instance, payday loans in Connecticut allow payday lenders to charge any fee with no ceiling interest as long as the borrower agrees. The situation is different in Georgia; payday loans in this place are prohibited if the loan is less than 3,000 USD. Thus, loan companies are only allowed to operate if the borrower needs 3,000 USD. If you will check their law, the annual percentage rate should not be more than 16%. Unlike in Kansas, loan companies have an annual percentage rate of 15%. Administrative fees are allowed in this state; however, payday lenders are not permitted to have two outstanding loans to the same defaulter.
If you want to learn more about the laws in various places, you can use the internet and check for information. Searching online is the easiest way for you to get all the details you need.
Verifying the laws in connection with payday loans in different states will not only secure your personal interest. These laws were not made for the payday lenders alone. It should serve as your guide also in getting cash advance. So in case you reside in other parts of the country, at least you are knowledgeable enough about the payday loans in your place.