A borrower can only have two outstanding payday loans in Iowa. Lenders also cannot issue more than $500 to one borrower. Suppose you already have two payday loans or a single payday loan worth $500. In that case, you will be unable to apply for more money until you repay any existing loans.
Payday loans are a short-term cash solution in Iowa. To get a payday loan, you must provide the lender with a post dated personal check or electronic access to your bank account. Payday loans usually have a two-week repayment period, but there are longer-term options. Lenders typically roll over a payday loan if the borrower cannot repay the loan amount and finance charge on time. But rollovers are not permitted in the state of Iowa. Instead, the loan will default, and you will have to pay a $15 collection fee.
Many states offer a cooling-off period, which is a short period that allows borrowers to back out of financial contracts. Borrowers typically get three business days to cancel a contract for a full refund. However, Iowa does not require lenders to provide a cooling-off period. If you have buyer’s remorse, talk to your lender about their cancellation policy.
Financial experts typically advise borrowers to avoid payday loans due to predatory lending practices. Many borrowers end up stuck in a debt spiral due to high-interest rates and inflexible repayment terms. Even if you borrow a small loan amount, the added fees can significantly increase the lump sum you must repay to the lender. Consider alternative options if you need emergency money as soon as possible.
A personal loan is an excellent alternative option that provides more time to pay and more significant loan amounts. Personal loans are installment loans that you can repay over the course of a few months or years. Loan amounts range from a few hundred dollars to a couple thousand.
Most people settle for payday loans due to low credit scores. But you may be able to qualify for personal loans without excellent credit. Qualification requirements are generally flexible, and many personal loan lenders offer bad credit solutions.