Having financial difficulties is quite ordinary happening these days. Millions of Americans struggle to come up with unexpected expenses that are out of their monthly budget. Of course, in such cases having extra money set aside may save the situation. But what if neither your emergency fund nor your credit rating is the thing you may brag about.
First of all, detect the leading causes of a financial emergency only after that find the solution that meets your needs perfectly. If you are short on money, payday loans may seem like a lifesaver to help you tackle unexpected costs. These loans are available to pick up in 36 states of the US (9 of which accept payday loans with some restrictions), and Kentucky is one of them.
What is a Payday Loan, and How does it Work?
Payday loans are meant to be small unsecured loans featuring short repayment terms, typically from two to four weeks. These loans are also well-known as a quick way to get extra money between your paychecks. Here is where the name comes from.
Financial experts strongly encourage you not to shop for a payday loan unless you are confident you can pay it off on time. Unlike other types of conventional loans, payday loans offer only lump-sum payments. So you need to settle your debt all at once upon the agreed date.
What if I cannot Return my Payday Loan?
Once you cannot pay off your debt, you need to extend (rollover/renew) your loan. Loan renewal doesn't lower the principal amount you owe; it simply extends the terms once you fall behind on your payment.
What may happen in case of loan default? In this scenario, you may have difficulties with the debt collector and have your credit score affected by the account under the collection. Keep in mind, information about the collection will stay on your credit report for seven years.
How much can I get in Kentucky?
Our lending partners offer up to $2500 payday loans, depending on the state’s law. In Kentucky, the maximum amount reaches up to $500. However, apart from the state regulation, you need to consider your financial state. It also affects the range of funds you may qualify for.
3 Things to Consider Before Applying for a Payday Loan!
Relatively High-Interest Rates: Payday loans are an unsecured form of credit. Thus, you don't need to worry about backing up your debt or risk your assets in case of nonpayment. On the contrary, you may have higher interest rates than other conventional tools such as a personal loan. We strongly encourage you to check and understand the credit terms before you enter into a contract.
Rollover: Debt renewal, also known as a rollover, is the credit extension instead of paying it off on maturity. Theoretically and practically, you may roll over your credit to the next month once you have difficulties liquidating your debt. Credit renewing extends the payment terms while obliges you to pay more in interest and fees.
Unreliable Lenders: Getting a loan quickly and securely is what most borrowers expect to get when dealing with payday lenders. However, in fact, the payday industry is full of illegitimate lenders that may take advantage and enforce unreasonable credit terms. That’s why you have to be critically conscious not to face predatory lending or encounter a money-draining trap.
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)||460%|
|Minimum Loan Amount||N/A|
|Maximum Loan Amount||$500|
|Minimum Loan Term||N/A|
|Maximum Loan Term||60 days|
|Number of Rollovers Allowed||0|
|Finance Charges||$15 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 in Kentucky are regulated by Stat. Ann. 286.9-010 et seq. (Deferred Deposit Service Business and Check Cashing) and, thus, they are officially called “deferred deposit transactions” and should be officially licensed as check cashers.|
|One of the peculiarities of the Kentucky state law concerning payday lending is a statewide database, the Kentucky Deferred Presentment Transaction System, introduced in May 2010.|
[ Updated on 05-Aug-2021, 21:19 ]