Payday Loans in Lima, OH
Are you in need of money for rent, medical expenses, or even debts? Payday loans in Lima, OH, might be a good option for you. Payday loans are short-term unsecured loans, also known as cash advance loans, that require that the borrower repay the loan amount with their next paycheck. Payday loans are classified as bad credit loans because lenders don’t consider your credit score before deeming you eligible for a payday loan.
Do I Need Any Form of Collateral to Apply for Payday Loans in Lima, OH?
Payday loans in Lima, OH, are unsecured loans; this means that you do not require any form of collateral. The closest thing to collateral that you will need for a payday loan in Lima, OH, is a post-dated check of the amount you borrowed, including all interests and fees. The payday lender might cash the check if you fail to meet the payment plan. The fact that lenders do not require collateral for payday loans makes them have a higher interest rate than other types of loans.
Do I Need a Guarantor for a Payday Loan Application in Lima, OH?
A guarantor is a person who vouches for a borrower when the borrower applies for a loan. The financial institution asks the guarantor to sign some documents that make him liable if the borrower does not keep up with the loan agreement. Payday loans in Lima, OH, do not require a guarantor to make you eligible for a loan. If you do not meet up with a loan payment, no one but you will be held liable.
What Is the Interest Rate for Payday Loans in Lima, OH?
Most payday loans have a very high interest rate, owing to the fact that they are unsecured loans. However, payday loans in Lima, OH, are not as high as those in other states, which might have an interest rate of up to 200% per year. The interest rate of payday loans in Lima, OH, is capped at 28% per year. This is in accordance with the payday loan act passed in Ohio in 2018.
What Is the Term for Payday Loans in Lima, OH?
The term for a payday loan is the set time frame within which lenders expect you to repay a loan. The term for payday loans is highly variable from state to state. However, in Lima, OH, the minimum term for a payday loan is 90 days, while the maximum being a year.
How Long Will It Take for My Payday Loan to Be Transferred if I Apply for a Payday Loan in Lima, OH?
One of the good things about payday loans in Lima, OH, is that, unlike some other financial institutions, they do not take much time to transfer your funds once you have completed the application process.
Most payday lenders will transfer your funds immediately after the application is approved; others will take a few minutes to hours. On average, the maximum amount of time it will take to get your loan is 24 hours. This is extremely fast relative to financial institutions like banks, which can take as much as a month.
Requirements for Payday Loans in Lima, OH
Payday loans in Lima, OH, are quite straightforward to apply for. However, you must meet some conditions before a payday lender approves your application in Lima, OH. Failure to meet any of these requirements could affect your prospect of getting a payday loan in Lima, OH. Here are some of the conditions:
- You must be at least eighteen years of age. Applicants below eighteen years of age will not be considered by payday lenders in Lima, OH.
- You must have a government-issued ID or a social security number.
- You must provide your contact address to prove that you are a legal resident of Lima, OH.
- You must have a valid email address and phone number for communication with the payday lender.
- You must have a stable monthly income of not less than $1000 before your application can be approved. This is to ensure that you can repay the debt from your loan.
- You must have a valid checking account to receive the funds and make the required payments.
- You must sign a declaration form that you do not owe over $2500 in short-term loans.
Alternatives to Payday Loans in Lima, OH
As a result of the high interest rates associated with payday loans, you might want to consider other short-term loans with better interest rates. These short-term loans can stand in place of a payday loan without plunging you into debt.
- Title Loans: this is an example of a short-term loan. Just like payday loans, it does not require your credit score before approving a loan application. However, it is a secured loan and requires collateral in the form of the borrower’s car title. This mitigates the risk on the lender’s side, and as a result, they do not have interest rates as high as those of payday loans.
- Personal Loans: personal loans can be secured or insecure. Their payment plans are very flexible to meet the needs of a borrower. If you do not meet up with the payment plan of a secured personal loan, the lender can seize your collateral to service your debt. In an unsecured payday loan, you do not require any collateral. Moreso, unsecured personal loans have a higher interest rate than secured personal loans. Your credit history is not relevant for a personal loan.
- Installment Loans: This type of loan is where the borrower is lent a particular sum of money at once. The money borrowed is to be repaid in installments over a set period. An installment loan can be fixed-rate or variable-rate. In a variable-rate installment, the sum to be repaid changes over time due to interest rates. In a fixed-rate installment loan, the amount to be paid back does not change with time.
Amanda is a senior writer at AdvanceSOS. She has more than six years of journalism experience, mostly in the finance sector. She graduated with a Bachelor’s Degree from Drew University.