Payday loans are often characterized as a small-dollar loan aimed to help borrowers make it to their next paycheck. The term “payday” makes reference to a paycheck when a borrower writes a postdated check against the payday sum. Despite each state having its individual payroll rules, there are some states that have banned payday lending. However, Mississippi is one of many locations where payday lending is absolutely legal.
If you are struggling to make up for cash shortage problems, picking up a payday loan may be a good option to get cash fast. Here is everything you need to consider before getting a payday loan in Mississippi online.
Payday Loan Definition
A payday loan is a short-term unsecured credit that you may pick up whether online or from brick and mortar lenders. Compared to in-store practice, online lenders may offer a much quicker method to get fast cash directly into your bank account. By filling out a credit application online, you boost up your chances to get the much-needed amount. After submitting your credit request, you get it forwarded to multiple lenders available on our website. A payday loan is a good option for those with bad credit as most lenders don't imply credit checks to quickly you for a credit.
Things to Know Before You Get a Payday Loan in Mississippi?
Payday loans are designed to help borrowers overcome short-term financial needs quickly and securely. However, aside from its benefits, they may also impose some risks. Let's have a closer look at the nature of these loans and find out what you can expect when opting for them.
Payday loans offer short-term payment terms, commonly a couple of weeks, to settle your credit in full. But what happens if you are unable to pay off your debt on its maturity? The first option is asking for a rollover. It is a way to extend your loan term. However, once you roll over your credit instead of settling it on an agreed date, you're paying renewal fees. By no means credit renewal reduces the principal amount you owe; it simply delays your payment in exchange for extra fees. This sort of dependency may critically cripple your financial state and force you to stick to a never-ending debt cycle.
Negative Impact On Your Credit
In common, taking out a payday loan won’t damage your credit as soon as you meet your contractual obligations on time. However, once you fall behind on your payment, your loan can be sent to a debt collection agency. It's more likely that the debt collector will report your delinquent debts to the credit bureaus. Information on accounts that have been sent to the collection agency may remain in your credit report for seven years. This sort of information may lower your credit score, thus reducing your ability to borrow in the future.
The Final Thoughts
If you live in Mississippi and are struggling to make ends meet between your paychecks, emergency cash loans may help you make it out. However, before taking out one, you need to consider the exact specifications featuring these loans. Otherwise, you may stick to a debt cycle, hurt your credit, thus worsen already poor financial health.
As a result of changes CFPB has made, from July 2020 the lenders don't have to check if the borrower is able to repay the loan. Thus, we encourage you to be careful and make sure you can afford the loan before applying.
|Annual Percentage Rate (APR)||521% APR|
|Minimum Loan Amount||Not specified|
|Maximum Loan Amount||$500|
|Minimum Loan Term||Not specified|
|Maximum Loan Term||30 days|
|Number of Rollovers Allowed||6|
|Finance Charges||<$250 = not more than $20 per $100 $250 - $500 = not more than $21.95 per $100|
Real interest rate map /PDF/ of payday loans in the United States calculated on a typical loan.
Payday loans regulation /PDF/ by state 2020.
|Payday loans are called “Deferred and delayed deposits” (§75-67-519) in Mississippi and their regulations are written in the act together with the ones for check cashers.|
|In case of loan default a lender can collect one $30 NSF fee; rarely, also court fees in case of disclosure. However, in Mississippi, late payments and non-sufficient funds are not allowed to be criminally prosecuted.|
[ Updated on 18-May-2021, 01:36 ]