Payday Loans in Springfield, OH
Do you have financial constraints that prevent you from purchasing basic needs? Payday loans in Springfield, OH, offer a solution to your problem! Payday loans are short-term loans where a customer needs to repay the loan amount when their next paycheck arrives; they are unsecured loans and do not require any form of collateral. The fact that payday loans are unsecured means that lenders have to make up for the risk they take on by charging higher interest rates. As a result, some payday loans can be very predatory. Borrowers in some states can get charged as much as 200% per year in interest. Many states have put in regulations to curtail the predatory nature of some payday loans.
Are There Payday Loans Regulations in Springfield, OH?
Like all cities in Ohio, there are payday loan regulations in Springfield, OH. Legislators passed the Payday Loan Act in 2018 to protect the borrowers in Ohio from the excesses of payday lenders. The Payday Loan Act contains regulations on interest rates, loan terms, and many other issues that affect payday loans in Springfield, OH.
What Are the Regulations Guiding Payday Loans in Springfield, OH?
In 2018, legislators in Ohio passed a bill to place restrictions on Payday Loans in Ohio. Lawmakers created these restrictions to reduce back-to-back loans and the reincidence of debts. Some of the measures put in place to manage payday loans in Springfield, OH, are:
- 28% Interest Rate: The loan Act passed in 2018 placed a 28% cap rate on all payday loans in Ohio. This means that payday lenders cannot charge above 28% per year as the interest rate for loans. This is a reasonable interest rate for most borrowers to pay as it makes it easier for borrowers to repay their debt without getting into more debt.
- Cost of the Loan: The cost of a loan refers to the fees and interests paid on that particular loan. The cost of a payday loan in Springfield, OH, as regulated by legislators in Ohio, and should not exceed 60% of the initial amount of the loan.
- Income Tests: Monthly payments for a loan can not surpass 6% of the borrower’s income for loans that last for less than 90 days. The income test prevents customers from being exploited by lenders and splurging all their income on debt repayment. With this law, customers still have 94% of their income left to cover other expenses and prevent further borrowing.
- Reasonable Amount of Time to Payback: Payday loans in Springfield, OH, must offer a term duration of at least 91 days and a maximum of one year. This makes it easier for borrowers to be able to repay what they owe.
- No Rollovers: The new Payday Loan Act put a stop to the rollover of loans borrowers are not allowed to compound their debt by taking money from a lender they still owe.
- Flexibility of Loan Repayment Time: The laws regulating payday loans in Springfield, Ohio, allow you to return the money you borrowed within three days if you have changed your mind. You can cancel your loan within three days without having to pay any interest.
Do I Need a Good Credit Score to Apply for a Payday Loan in Springfield, Ohio?
If you have a poor credit score, you do not have to worry while applying for payday loans in Springfield, Ohio. While most financial institutions might need to verify your credit score to make you eligible for a loan, the same can not be said about payday loans in Springfield, OH. As is the case with most payday lenders, lenders in Springfield, OH, do not require your credit score before accepting your application for a loan.
Can I Use a Payday Broker to Apply for a Payday Loan in Springfield, Ohio?
A payday broker refers to a person or company that helps you find payday lenders. While applying for a payday loan in Springfield, OH, it is legal for you to employ the services of a payday broker.
Notwithstanding, you should be careful while using the aid of a payday broker to apply for a payday loan. This is because payday brokers can make the process of getting a loan more expensive than it ought to be with their fees.
Is There a Maximum Amount I Can Borrow?
In Springfield, OH, there is a maximum amount you can borrow. You can borrow just $1000 from a particular lender at a time. However, you are not allowed to borrow more than $2500 at any given time. This means is that if you borrow from a different payday lender, the amount you borrowed from the lenders, when summed up, cannot exceed $2500.
Criteria to Get a Payday Loan in Springfield, Ohio
Even though getting a payday loan in Springfield, OH, is relatively easy, you still have to meet the requirements. The requirements for a payday loan in Springfield, OH, are pretty straightforward and have little effect on the time it will take to apply for a payday loan.
- You must be at least 18 years or above. It is illegal to lend money to someone below the age of 18 in Springfield, Ohio.
- You must be a legal resident of Springfield, OH. To prove this, it is necessary for you to provide your contact address.
- You must provide a valid email address and a phone number. This allows payday lenders to contact you easily.
- You must provide a valid government-issued ID or your social security number.
- You must have a stable income above $1000. This is a way of ensuring that you can repay the loan.
- You must have a valid checking account for transactions with the payday lender.
- You must sign a declaration stating that you do not have above $2500 in loans.
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.