Payday Loans in California (CA),
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If you live in California and are in urgent need of a financial helping hand, then you’re in luck! There are several cash advance options available that you can use to address any tight financial needs one of these is a payday loan. Taking out a payday loan in California is actually easier than you think!
The majority of payday loan options in California offer favorable conditions and requirements that even borrowers with bad credit scores can be eligible for. This article explains the essential things you need to keep in mind if you’re looking to take out a payday loan in California.
How to Get a Payday Loan in California
To get a payday loan in California, you’ll need to meet the minimum eligibility requirements. So, borrowers should check to be sure that they are eligible before applying. However, because of most lenders’ flexible and relatively easy requirements, many individuals will find that they’re qualified, including people with low credit ratings.
One important thing to keep in mind is that the fees associated with payday loans in California are relatively high. But once you’re confident that you meet the eligibility requirements, you can go ahead to fill out an online form so lenders can begin to process your request.
What Will I Need to Request for Payday Loans in California?
Here are the requirements you’ll need to have:
- All applicants must be at least 18 years old
- You must have a government-issued ID.
- You must be a citizen or a permanent resident in the US
- You must have a valid Social Security Number (SSN)
- You must be living in California
- You must have a valid checking account
- A regular monthly income of at least $1000 this is to ensure that you can repay the loan within the stipulated time. It doesn’t matter whether you’re self-employed or earns a regular salary.
How Much Can I Borrow?
Although the largest amount that payday loan lenders approve in California caps at $300, some lenders may offer up to $5,000. However, this generally depends on your kind of work, your credit score, where you live, and whether there are any legal restrictions relating to loans in your city or not.
Many lenders have loan offers starting from 100 dollar loan to 500 dollar loan. You also to consider that the maximum term for repayment of your payday loan is 31 days.
What Are the Associated Fees for Payday Loans in California?
In California, the annual percentage rate (APR) for a payday loan can go as high as 372%. Keep in mind that the interest rate for payday loans in California varies from one lender to another some borrowers may offer loans to people with bad credit but will usually charge high APRs.
Generally, the majority of lenders do not charge processing fees, but a few do. Some of these fees include origination, application, late payment penalty, and insufficient funds fees. To be sure of the fees you’re going to pay along with interests, ensure to read the terms and conditions before accepting any loan.
When Will I Receive the Funds in My Account?
Since payday loans are instant cash loans, typically, within 24-48 hours, the funds will arrive in your bank account. But in most cases, the money hits your bank account the next business day.
Quick cash or instant cash loans do not go through the same approval process as traditional bank loans. They’re designed to meet your needs in an instant exactly as when you need them. It takes only a few minutes to process your application after you have completed and submitted the online form. If, for some reason, your request is declined, you will also get a notice letting you know that your loan application didn’t make it through approval.
Regulations Surrounding Payday Loans in California
Unlike in 34 other U.S. states where payday loans are not allowed, the state of California allows individuals to take out payday loans to manage personal needs. If you’re looking to take out a payday loan in California, it’s advisable to stay informed of state laws and regulations surrounding payday loans.
For instance, California law does not permit borrowers to roll over a payday loan into another. But they could take out another loan from the same lender shortly after paying off the existing loan. Also, borrowers can take out multiple loans from different lenders as long as they can repay them. While the state caps interest rates on consumer loans of up to $2,500 to an average of 30%, it does not have a limit on interest rates on loans above $2,500.
Payday Loan Alternatives in California
If you think that you may not be able to pay back a payday loan after considering all the terms involved, you’re still in luck. Fortunately, there are other loan alternatives that you take advantage of.
Bad Credit Loans
Bad credit loans are payday loans that are accessible to borrowers with low or bad credit scores. Not all lenders offer personal bad credit loans, and most who do often provide them at higher APRs. It is probably best to consider this option if you do not qualify for traditional payday loans.
A title loan is a secured loan in that you will need to provide collateral, such as a vehicle, before you can apply for a loan from a lender. Although the rates are high, they are lower than those of payday loans. You can opt for a title loan if you do not qualify for a payday loan.
No Credit Check Loans
No credit check loans are pretty expensive because they do not require any credit checks on the borrower. Note that this type of loan can trap you in a cycle of debt.
Payday Loans for the Unemployed
As an unemployed person, you may want to stay away from payday as payday loans are cash advances meant for people who have a constant income. However, a lender may consider you if you have entitlement to benefits, either from the government or from a family estate.
Amanda is a senior financial copywriter at AdvanceSOS. She has more than six years of journalism experience, mostly in finance. She graduated with a Master’s degree in finance from the University of Oklahoma.