If you find yourself in a financial emergency, an option of a $2,700 payday loan might seem like a life-saver. It is definitely useful, but there are some states that allow such loans and some that don’t. If your state laws prohibit payday loans, don’t rush to another state or online to get one, there’s more to it than meets the eye. Read on and get to know how to get the money you need.
- 1 Is It Possible to Take Out a Loan in an Another State
- 2 What If I Cannot Get a Payday Loan
- 3 That’s right: if a payday loan isn’t legal in your state, the lender offering one is probably scamming you.
- 4 Can Multiple Payday Loans Be Taken Out at the Same Time?
- 5 Do You Have to Pay Off a Payday Loan if It’s Illegal in Your State
Is It Possible to Take Out a Loan in an Another State
Generally, lenders are only allowed to provide service to clients registered in the same state as they are licensed in because loan laws vary from state to state. Therefore, you can borrow from a lender that is licensed in the state where you’re registered but not currently residing. The provider will ask for documents that prove your registration, and the options might be a little limited, but it is still doable.
What If I Cannot Get a Payday Loan
It may happen, however, that the state you’re registered in prohibits payday loans and there’s nothing you can do. Don’t despair, there’re still ways to solve your financial problems. Most common ones include:
- Installment loans that you can use for virtually anything. It differs from a fast payday loan because you wouldn’t have to repay it on the next payday – your interest and principal would be due in a few months. This is why such loans are thought to be safer alternatives and are allowed in more states, than payday ones. You still have to make sure, if they are lawful in your state, that the provider you’ve chosen is legit and has good feedback from other clients, and that you have a repayment plan in order.
- Loans from tribal lenders, that belong to sovereign Native American tribes and are not bound to the lending laws of the state. However, they typically have much higher APRs, fees and worse terms, even though they are a safe option, so calculate your expenses very carefully while considering them.
- Borrow from a family member or a friend. Even though you might find this option embarrassing, asking for help might be a much safer and sustainable solution to your financial situation than a loan that you’ll have to pay off later.
- Try credit counseling to get your budget in order and get out of the financial rut.
- Look for charities, non-profit and government-funded organizations that can help you with the basic expenses, like food, shelter, medical emergencies, etc. There are usually some in any residential area.
- Try to extend your payments. Talk to your landlord or your creditor and negotiate other, better terms, so you can have time to get your finances together and pay off your bills or debts in full.
- Consider taking on another job, getting a side gig, or signing up for an additional shift at your main place of work.
- Ask your supervisor for an early paycheck or a bonus, if you feel like your quality of work can be good leverage in the negotiation process.
Bottom line is – there are other options for you to get out of the financial trouble rather than taking on a payday loan which may be expensive and, at times, illegal. To get a legal loan with bad credit history, visit Bad Credit Loans in Idaho.
That’s right: if a payday loan isn’t legal in your state, the lender offering one is probably scamming you.
Watch out for dirty lenders that trap their clients in the cycle of debt with high APRs and fees that are much higher than allowed by the state, as they work around the state legislation.
There are known to be even worse scenarios with such illegal providers when a scammer would pretend to be a collector for a loan that a person applied for but didn’t get.
If you feel like you have fallen into such a scam, or you know someone who might be a victim of said predatory lenders, get in touch with the police or a state attorney general immediately.
Can Multiple Payday Loans Be Taken Out at the Same Time?
The answer to this question may vary from state to state and from lender to lender. Even if it is legal in your state to get a couple of loans simultaneously, the particular lender might still refuse to work with you or require you to pay off a certain amount of the previous loan to get a new one, therefore you have to know the chosen provider’s rules and policies on this matter.
And in case a lender does allow you to borrow a couple of times consequently, it is not generally advised to do so. This might be the easiest way to get trapped into a cycle of debt, default and wreck your finances even further. If your credit score has suffered, check out Bad Credit Loans in Illinois to know more.
Do You Have to Pay Off a Payday Loan if It’s Illegal in Your State
Each state has its own laws regarding high-risk borrowing, which includes payday loans. If you think that you’ve taken out an illegal loan, it’s best to follow these steps:
- Check to make sure the loan you got is indeed prohibited in your state. To determine this, look at the amount, rates, fees and terms – do they meet the state’s legislation requirements. This is because a loan can be marketed as “payday”, but, in fact, not be of such type by the legal definition.
- Check if the provider you’re working with is registered and licensed in your state.
If you’ve confirmed that it is unlawful, or a lender that you’ve dealt with is not licensed in your state – get to research to see if you have to pay it off. Some states would make you pay only principal, while others have stricter rules and you’d have to pay in full, including interest and all of the add-ons. To find out which is the case for your situation – contact your local consumer protection office, and they will take you through the repayment process.
Even an online payday loan is out of your reach in a particular state, it doesn’t mean you’re out of options when it comes to solving financial problems. Just don’t sign up for anything illegal.Get Started Now!
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