Payday loans are available in Colorado, and eligible borrowers typically get between $100 and legally up to $500. The eligibility requirements for a payday loan vary by lender, but typically borrowers need to be eighteen years of age, have an active checking account, and have a steady source of income.
Although most payday loans require repayment within two weeks, you can get a long-term payday loan. Long-term payday loans provide an extended repayment length that lasts as long as five years. Instead of repaying the payday loan in one lump sum, you could make several small installment payments every month.
Long-term payday loans allow borrowers to make small monthly payments over the course of a few weeks or years. If you have the financial ability to repay your payday loan before the final payment date, talk to your lender first. Some financial institutions charge prepayment penalty fees to borrowers who pay the loan in full before the agreed-upon final payment date. Lenders earn money through interest fee charges. If you pay off the loan early, the lender doesn’t receive those extra interest payments.
Payday loans tend to have higher interest rates than other loan options, which is why financial experts advise people against taking out payday loans. In 2008, voters passed a ballot measure that capped interest rates for payday loans at 36%. This rate is the maximum you will have to pay. If you want to apply for a payday loan, take the time to compare lenders in order to secure the most affordable interest rate.
Payday loans are convenient for borrowers that have less than perfect credit. Your credit score is often not one of the main qualifying factors for eligibility. Instead, payday loan lenders focus on your ability to make on-time payments. But alternative loan options are available for people with bad credit scores. A personal loan can be a better option as borrowers can get competitive interest rates, extended repayment terms, and higher loan amounts.
You can use personal loans to help finance various expenses. Loan amounts vary from a few hundred to a couple of thousand dollars. Many personal loan lenders offer flexible qualification requirements. While lenders take your credit score into consideration, your income is more important. Carefully consider all of your financial options before deciding to apply for emergency cash.