usa map payday loans

States Where Payday Loans Are Legal

The number of payday loans issued each year is on the rise, with many people turning to them to help pay unforeseen expenses and emergency costs.

While they are not legal in every single US state, the majority do have some form of short term loan available.

Each state regulates payday loans slightly differently, capping the amount of interest that can be charged, limiting the total amount that can be loaned in one go, and various other loan terms.

In some states these regulations are so tight that lenders no longer offer payday loans, whereas other states have such lax rules that lenders can essentially loan what they want and charge what they want.

Here’s an overview of payday loan legality in the United States:

States With Little Payday Loan Regulation

legal payday loansA the time of writing 32 states permit payday loans outright with very little regulation.

This means there is a lot of choice, but you will have to do your research to make sure you’re getting the best interest rates and there are no hidden traps. These are:

Alabama, Alaska, California, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, and Wyoming.

Lenders in these states essentially charge as much interest as the market will allow, and will generally accept all applicants so long as they meet basic requirements such as having a bank account, and a regular source of income.

States With Tougher Payday Loan Regulations

5 states have reigned in what they consider high cost loans and have put in various protections that limit the amount that can be borrowed, the amount that can be charged, what happens if a borrower misses repayment, and whether multiple loans are allowed. These are all to protect the borrower from being exploited and getting stuck in a debt cycle.

Maine: The average interest rate paid in Maine as of 2014 in 2017% APR, with the upper limit 261%.

New Hampshire: Caps interest rates at 36 percent APR.

Oregon: Legit payday lenders in Oregon are not allowed to offer a duration less than 30 days and have capped interest rates at 36 percent APR.

Montana: Also prevents interest rates of over 36%

Ohio: Most of Ohio’s payday lenders are internet based because the cap is the lowest at 28% APR, meaning maintaining a storefront is not profitable.

While the District of Columbia officially limits interest rates at 24 percent, they also require a license which they essentially refuse.

This makes payday loans from lenders based in the district itself virtually impossible, though citizens can apply to lenders based elsewhere who do not require a license.

States With No Payday Lending

12 states have either outlawed payday loans altogether or have prohibited them through unprofitable caps and rules. Some of these states will offer loans that are similar, but for longer terms (such as 3 months). The 12 states are:

Arizona, Georgia, Arkansas, North Carolina, New York, New Jersey, West Virginia, Maryland, Pennsylvania, Connecticut, Vermont, and Massachusetts.

Exceptions

Some lenders are always looking for loopholes to get around tight payday loan regulations.

In the past, this has included opening up shop as a mortgage company, meaning payday loan laws don’t apply to them.

Other tactics include issuing multiple loans at once, so the pool of loans mimic that of a payday loan. This gets around interest and lending amount caps.

In some cases lenders have even turned to Indian land to run their business so the state laws no longer apply, a bit like how casinos are often operated by Native Americans.

Ultimately it is on the borrower to do their research and ensure that they are doing business with a reputable company that is adhering to the legislation of the state, and aren’t know for shady practices.

It is a good idea to Google the lender before applying to see if there are any horror stories about them. You should also reject any offer from a company that doesn’t seem to be adhering to interest caps and other rules.…

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How to Get Out From Under a Bad Auto Loan If You Already Have A Bad Credit?

All of us make some mistakes. Either we are having a problem to make bill payments, mostly auto loans and in search of a way to move out from this burden. Irrespective of the way you got into a bad auto loan there are some ways of getting out of it.

Refinance An Auto Loan:

If you are having a problem that you availed an auto loan with a very high interest rate, because you had a low credit score or you did not search around properly as you could have done, you must refinance your auto loan.

If you are having an auto loan, it repays to check occasionally that you are however be offered the best deal that is possible on your auto loan.

If you refinance with a new money lender, it can aid your credit history if you missed payments on the auto loan. You can become creative, refinancing the owed amount and then flipping it into a new auto loan.

You will be beginning with a healthy account. Remember that if you miss a payment, your present lender will already have reported some negative details to the credit bureau. Those details will be staying on your credit report for almost 7 years, even after your account is closed. You can also refinance your auto loan if you wish to change the loan duration.

For instance, say you that you originally availed an auto loan of 3 years, but the repayments are very high. You can refinance with a loan of 4 or 5 years instead.

If you refinance an auto loan it is always a great financial decision than availing a new car for getting out of the loan.

You usually need to pay some fees for refinancing but you avoid to pay sales tax on any new car and you also avoid the desire of buying a very costly car, just to move out of a bad auto loan. Ensure that you research well before refinancing an auto loan.

Renegotiate An Auto Loan:

If you only require some help to get back on track or make your repayments more inexpensive, you can converse with your present lender.

They can offer temporary hardship forbearance in specific circumstances that means they will let you have some additional time for catching up.

They will aid you by increasing the loan term so that your repayments are much lower. Become aware that if the loan term is longer you will have to pay more overall interest before your auto loan gets cleared off.

Clear Off An Auto Loan:

Do you wish to keep your car? Then lookout for some way of paying off your auto loan.

You can have savings that you may use if it can be done without jeopardizing any urgent fund or other goals.

Do not take out money from your retirement account. This is because you can owe a large penalty, as well as taxes to the Internal Revenue Service and moreover retirement funds, are only for retirement.

You can sell investments or any other vehicle to repay your loan or work some additional hours.

If all you can do is make some additional repayments on the principal each month, you will be paying off your auto loan very fast and save a notable interest expense amount.

If you do not wish to keep the car, for instance, if your household is having two cars and can go along with one, you can sell off your car for repaying your auto loan. You will be getting the best price if you will be selling the car on your own. You must gain too much from the car sale for paying the auto loan or else yourself come up with the difference.

Declare Bankruptcy

If because of your financial issues you are unable to repay your bills and you are unable to find any way out of your debt, you should probably consider bankruptcy.

It will actually assist you to keep your car, which may be vital if you require it to get to some work as well as earn your living. Declaring bankruptcy and filing for it will not get you out of an auto loan. You need to continue your auto loan repayments for keeping your car during bankruptcy.

But filing for it will give you some relief from the collection efforts made by other creditors. Thus it will easier for you to continue with your auto loan repayments. Reaffirming your debt is essential if you wish to consider bankruptcy and also keep your car and auto loan. By doing this you actually promise that you will repay your auto loan as if you have not filed for any bankruptcy in return of keeping your car.

You need to show that you are able to make repayments and your car is necessary. Your ability to keep the car will be depending on your equity in it as well as your state law. If you reaffirm your debt, but somehow fail to make a repayment, you will still lose your car.

You can also surrender your car if you declare bankruptcy. This will wipe out all your debt.

You can only keep the car until the bankruptcy gets finalized. Select a path that will lower your interest expense and overall debt.

Avoid any decision that will affect your credit report. Your long period financial health will depend on availing a longer-term outlook as you will decide on the perfect way of getting out of a bad auto loan.…

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How Can Taking Out A Safe Payday Loan Affect Your Credit?

Anyone can find himself in a tough financial condition at times. At such situations people can look out for safe payday lenders.

But be sure that like other loans, this one can also impact your credit score if you fail to abide by any conditions mentioned by the lenders.

Will Taking Out A Payday Loan Directly Affect Your Credit Score?

If you are running short of money or need an urgent loan for car repair or medical expenses you can apply for a payday loan. If apply for a payday loan it will never likely impact your credit score.

This is because most of the lenders of a storefront will not be running any credit check.

If a person makes timely repayments for his availed payday loan, it would not be improving his credit score as most of the lenders of payday loans never report to the National Credit Bureaus.

So if a borrower manages to repay the loan back in 2 weeks, it will not aid or even impact his credit score.

But as most of the people make a plan of repaying a loan within the scheduled time, not having sufficient income, as well as other sudden costs, can stop many borrowers from repaying their loans on a scheduled time.

If you default on a payday loan it can impact your credit score in a negative way.

How Can A Payday Loan Affect A Borrower’s Credit Score?

There are some ways by which a safe payday loan can affect a borrower’s credit score. Few ways are mentioned below:

Bounced Cheques:

Most of the payday lenders will ask a borrower to write them a post-dated cheque that corresponds with the borrower’s next payday.

If he does not maintain sufficient balance in his account when that scheduled date comes and the loan is not renewed, it typically results in bouncing of a cheque. If he is unable to repay the bounced cheque, your account can be closed by your bank and it will be sent to a collection agency.

A collection agency can report such an incident to the credit bureaus. Or in other words, a payday loan needs that you give a cheque for the overall amount of the payday loan along with extra fees. The cheque will be held until your payday loan is due.

Then the lender can cash out the cheque. If there is no fund in your bank account for covering the overall cheque amount, you will be ending up with a bounced cheque. Bounced cheques will never impact your credit directly.

But if a cheque gets bounced and you do not repay it, the bank will send your account to collections. If the collection agency reports your issue to the credit bureaus it will impact your credit score in a negative way.

Collection Agency:


A safe payday lender can also send any debt of a borrower to collections if he is unable to keep up with his scheduled repayments.

If a debt collection agency reports it to the national credit bureaus, it will affect your credit score negatively.

If a lender of a payday is seen to file a lawsuit against a borrower and he fails to attend his court date or lose the case or do not pay the judgment, this reported information will be impacting your credit till seven years.

Lawsuits:

A payday lender or any collection agency can sure borrower for collecting unpaid loans along with fees.

Taking a safe payday loan will not necessarily impact your credit score negatively, but the repercussions of a payday loan debt might.

With almost most of the payday loans that are renewed or rolled over, it is quite obvious that the debt trap of a payday loan is real.

For various people it leads to monthly repayments that are unmanageable and availing one payday loan after another for covering the increased interests as well as fees from the previous loans.

Such a cycle will lead any people into different financial situations unfortunately where they will never be able to clear off their debt and it will result in some negative repercussions on a person’s credit.

Other Loans:


A payday loan can affect your credit score indirectly by making you a defaulter on any other loan or credit card.

For instance, if you are unable to pay your student loan as you require to put the money on a payday loan, this will impact your credit score.

A payday loan debt can look to be different from a standard personal loan or any credit card debt, they actually work similarly if you are unable to repay the borrowed money.

The debt will be sent to collections and it will end up affecting your credit score negatively.…

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Get An Idea About Safe Payday Loans

A safe payday loan is a short term and unsecured loan that must be repaid on an individual’s next payday.

It can be received against personal post-dated cheque which lenders cash out on a payday or is repaid when the due amount is withdrawn by a lender on due date.

Although safe payday loans have been there for a long time, they are a part of short duration lending sector hugely.

The high interest rate that is charged by the lenders of payday loans is criticized highly by consumers and government agencies.

But people, who are in sudden financial crisis, keep on opting for these loans and also do their best to repay them later on.

When you will apply for a payday loan, no credit check will take place. It will be helpful to people who have a huge number of debts and thus are unable to obtain any further credit.

So everyone who applies for a payday loan completely believes that they are in a financial crisis of short duration. Before you apply for this loan, you must seriously have a look at your financial condition and find out if any change can be made.

According to survey on payday loans, it was found that they include the following features:

  • Safe payday loans are cash loans that are offered in small amounts for a short duration with average APR 300-500% and are supposed to be paid back in 2 week time.
  • An average of 12 million Americans make use of payday loans and pay an average fee of $520 for a loan amount of $375.
  • 69 % of the people have used payday loans for covering recurring expenses.
  • 16 % used it for cases of any sudden expense.
  • The average median amount of the loan is $428.
  • The average median cost of the loan is $113
  • The average median term of the loan is 20 days
  • The average median yearly indebted days are 73.

A specific percent of the people are very much inclined for accepting the option of small cash that is offered by banks regardless that they are more costly than the offers of normal credit cards or alike products.

Paying Back

A post-dated check is signed for the total loan amount and the fee. If there is any electronic transaction then a lender will withdraw the entire amount form a borrower’s account who will pay it back in due time (next payday).

If required, the loan can get rolled to another pay time and have each and every finance charges properly included.

Loan Amount And Rate Of Interest

Safe payday loans come in small amounts starting from $100-$1000 on an average. The maximum loan amount will depend on the state and a borrower’s income.

These loans are very costly with respect to the rate of interest and it is their distinguishing feature. Since they are unsecured as well as can often be availed without any credit checks, lenders charge a huge amount for the ease and anonymity. So normally a rate of interest will range from $10-$20 depending on a state as well as a lender.

It will actually amount to 391 % APR for a loan of 14 day. The shorter will be the term of any payday loan, the more costly it will be in interest terms.

Criteria

A payday loan is very popular because of its easiness as well as convenience to obtain it.

If you wish to qualify for a payday loan, you must meet some criteria that are very simple.

  • You must be aged at least 18 years
  • You must be a citizen of U.S.
  • You must be employed
  • You must have a source of income
  • You must have a valid checking account

The process of application will take few minutes and it is such a service that offers 100% approval.

A payday lender will probably not carry out hard credit checks. Thus your credit history and score will never matter in availing a payday loan.

Law Enactment

Safe payday loan are subjected to regulations of state laws in U.S. Thus every payday lending companies will be obliged to reveal the cost of loans and give the complete as well as transparent details about each and every financial charge related to a payday loan.

It includes rate of interest along with APR.

The APR must be provided in dollars and before the real agreement gets signed by a borrower as well as a lender.

Thus a payday loan can be a great thing for people who require immediate financing for a short duration of time. But having a stable cash income is essential to cover up the availed loan within a very rigid time period.

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How Can You Improve Your Chance Of Getting An Auto Loan If You Have Bad Credit?

Have you decided that you wish to apply for an auto loan?

What must you do for improving your chances?

From where can you avail a loan for having your dream car?

Here are few tips mentioned below that you can follow to improve your chance of getting an auto loan.

Use A Co-Signer:

If you visit a bank or a lender with no guarantor or without having any credit history and affirm that you are someone who actually repays their debts, there will be a high chance that you might not get an approval for your loan.

But if you get a co-signer then you will find that things are changing.

The presence of a co-signer will aid you in practically borrowing with the help of their credit history. You will seem as if you are more trustworthy.

But be very careful because your actions will be affecting your co-signer in the long run too.

For example, if you become a defaulter and you are unable to repay your loan, your co-signer will be too responsible for repaying for you.

Moreover, if you make a late repayment or miss one completely, it will be going permanently on your co-signer’s credit score and not yours.

As a result of this if you decide to opt for a co-signer, ensure that there are sufficient funds for making the necessary payment for your auto loan whenever there is any due.

Look Out For Any Alternative Credit Information:

If you do not own credit cards or have a mortgage, it means that you actually do not have anything to aid you in building your credit history.

But you still will be having your checking account, utility bill, mobile phone and rent.

When any traditional proof is unavailable, lenders can use non-traditional one for demonstrating your ability for making timely repayments.

They will be using some credit scoring formulas.

But not all lenders will be using this type of alternative credit score model. So you need to perform some research well before you lock into a specific lender.

In few cases, you may wish to move past some auto loans and move towards personal loans.

These are more flexible and the rate of interests is known to be more convenient.

Opt For Dealer Financing:

Have you come across advertisements such as “no credit, no problem”?

So if you have a poor or no credit to show up, you can still avail a loan from an average brand auto dealer? This will depend mostly on the dealer.

If it is such a dealership that has a great brand name and great reputation that has connection with a big auto marketer it can be in your profit for making few calls to the financing manager and then get hold of some details on the auto loan.

But will they work with anyone who has no credit? If so what will they require from such an individual to offer him this loan?

It can be his job history, a co-signer or if you can provide them whatever they ask from you, you might be able to get a great deal.

The perfect dealer can also fix you with some great auto insurance.

Think About Community Bank Along With Credit Unions:

Small community banks and credit unions will be more clement in providing you an auto loan if big banks will not. So you must be aware of where to look for.

For example, you may wish to look for lenders who include programs for any first-time buyer. These have been designed for those people who have little or no credit history.

As they will look past an individual’s credit score, they can become interested in some other factors such as stability of job, pay stubs, utility payments each month and the reason why a person has no credit.

If they find it acceptable, you might become eligible to avail a loan.

Drawing On Your Retirement Account:

Have you been placing your money into your retirement account, you can draw into that account as well as borrow some money to buy a car even if you have no such credit.

If it is not anything that you wish to do when you are thinking about your future, but if you are able to put it back as you have promised yourself then there will be no such harm.

No one will ask you any question regarding your credit history, job or any other thing.

Remember that some retirement account have penalties as well as fees involved when you borrow.

Moreover based on how much you have kept aside, there will be a limit on what you can borrow similar to how it happens with a 401 K retirement plan.

So you will wish to make sure that the sum you avail can actually cover the money that you require from your car.

Availing an auto loan with no credit history can be a simple thing for doing. It can also take some time. Further with some patience, you will be able to use a great offer.

Just find the perfect lender and you will be driving your way between the streets.…

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Benefits Of Safe Payday Loans

You may have thought about taking a loan for meeting any unforeseen cash emergencies while waiting for the next payday.

But the reason online safe payday loans stand out as the best alternative is because of the simplicity and fast approval of the loans as well as the flexible regulations.

Minimum Eligibility Criteria

Attaining the age of 18 plus and legal address proof of the United States can make you qualified for applying for a safe payday loan.

You must also have a stable income source of a minimum of $1000 per month. Satisfying all these criteria will allow you to apply for one right now.

Readymade Cash

One important benefit of payday loans is their speed of getting approved. It’s so fast that in some scenarios, people have got immediate approvals and have got the fund in less than 24 hours.

This is so beneficial for people who are in huge financial emergencies of any kind as most of the other personal loans always include a lengthy application process causing the funds to be transferred after a prolonged period.

Safe payday loans can be applied fastest and most conveniently through the lender’s website.

Because of these reasons, these loans are so popular amongst people who wish to have some financial back up before they get their salary.

Easy Regulations

Generally, the maximum of the applicants see their application getting approved, which is actually very advantageous, in particular for those people who needs money but has a bad credit rating.

But in these cases, people can apply for payday advances without showing any credit ratings.

Even if some reviews them, it doesn’t affect the credit scores as they tend to be mostly “soft” reviews. So, they are also termed as no credit check personal loans, as no hard checking gets conducted.

However these terms vary from lender to lender as some may ask for other information like income levels and future pay dates and even may ask for collateral, but in the end, the rules remain very easy and simple.

Poor Credit is Not An Obstacle

It always feels bad to get rejected by financial authorities because the credit ratings are not up to the mark, but a payday loan doesn’t stop because of a bad credit score.

The underwriters try to assess other factors like level of income and employment status to decide upon a final decision.

Flexibility of Amount


Many online lenders lending out personal loans put caps on minimum amount of money to be lend, but these payday lenders adds a degree of flexibility as per the borrowers request.

For example, Bonsai Finance can offer safe payday loans of $5000. So this flexibility acts as a big plus for borrowers needing varying amounts before getting their pay checks.

Automation Of Transfers And Checks

While applying for this, people are requested to give the details of an account that can be checked in their name.

This helps the money lenders to transfer the money directly into the customer’s account and the repayment also will happen automatically, there is absolutely no requirement for writing out checks or manually transferring.

Absence Of Any Long Term Responsibility

When you will opt for a personal loan usually you will lock yourself into many months or years of repayments.

But payday loans are actually short-term loans without any such installments. A single payment is done on or after your next payday. After that you can move on and you do not have to worry about anything.

Get Hold Of Various Direct Lenders Simultaneously

It is often seen that borrowers complain that they have problem to reach out one lender after another until they find the ultimate solution. It is not only time consuming but also inefficient.

So a loan matching service has been developed that will tap you into one network of 100 or greater payday lenders simultaneously.

You just need to submit all the details through a loan request form and if it gets matched, you will be informed about it.

Easily Build Your Credit Score

All types of credit usually boosts up your credit score after successful repayment of payday loan, so that getting loans get easier in the future.

Also, as such loans are repaid generally as soon as one gets salary; you can get the profit out of it very fast.

Security and Safety of Details

The moneylenders have access to all sort of modern encryption technologies to make sure of it that no personal details gets misused or gets sold to any outside parties, thus keeping them safe and sound.

Lenders of payday loans can provide cash loans on emergency basis during emergency.

But always remember that although these loans are much easier to avail and the terms are very easy for the customers, one unwise decision while using such loans can pave the way for more such loans.…

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