Payday loans have gained quite a bit of popularity in the past five years. Typically, these are short-term loans for $1000 or less, usually due by the borrower’s next payday. “Cash advance loans” or “check advance” loans are other names that people may be familiar with referring to payday loans. Depending on state regulations, these loans are offered via local storefronts and online. Due to state restrictions in North Carolina, Charlotte NC area customers can visit either of our South Carolina branches to get the money they need quickly. CashFast Loan Centers provides services at locations in both Fort Mill SC and Clovis SC and services the entire Charlotte Metro area.
Why Apply for a Payday Loan?
Payday loans are perfect for individuals who have incurred unexpected expenses due to emergencies or other urgent situations. Ordinary expenses such as rent, utilities, auto payments, and additional costs are also reasons why someone may seek a payday loan. Generally, anyone who requires a fast cash inflow can be considered the target market.
Are Payday Loans Legal?
The legality of payday loans has been challenged in recent times due to the high interest rates that are charged. In addition, the way payday loans are sold, along with governmental regulations, varies from state to state. On average, payday loan lenders request $15-20 of interest per every $100 borrowed. This interest amount may not seem significant but can quickly get out of hand with additional fees if not paid on time. Therefore, borrowers should know all contract terms to ensure they do not incur unnecessary expenses. The legality of payday loans is on a state-by-state basis. Under these varying laws come different requirements or stipulations for the loan to be legal such as requiring a post-dated check or accessing the customer’s savings account.
Many states have put a cap on the interest rate charged (between 24-48% annual rate of interest depending on the state), along with other more specific regulations. Also, usury laws exist in many states, limiting the interest between 5-30%. However, sometimes lenders can qualify for certain exemptions that allow higher interest rates.
Should You Get a Payday Loan?
Payday loans can certainly help in a bind, assuming the borrower can pay off in time without incurring unreasonable interest and other fees. Also, it is always good to research your state-specific regulations before taking out a payday loan.