Since there is no exact definition for a payday loan, it's often characterized as a small-dollar loan aimed to help borrowers get to the 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. Luck for you, 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.
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 traditional credit checks.
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 tons of benefits, these loans may go along with a risk of dependency. Let's have a closer look at the structure of payday loans and consider what kinds of drawbacks they may be reasonable for.
The Debt Cycle
As we know, 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 scenario accompanies the term well-known as credit renewal or rollover. In simple terms, you pick up a new loan to pay off the old one. 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 are struggling to make ends meet between your paychecks, emergency cash loans may help you make it out. However, before taking out the one, you need to consider the exact specifications featuring these loans. Otherwise, you may stick to the 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%|
|Minimum Loan Amount||N/A|
|Maximum Loan Amount||$500|
|Minimum Loan Term||N/A|
|Maximum Loan Term||30 days|
|Number of Rollovers Allowed||6 (loan must be reduced by at least 5% for every rollover)|
|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.
|Mississippi is one of the most impoverished states in the country and, thus, there is hardly a surprise that short-term loans are in demand here.|
|Real APR for payday loans in Mississippi can reach 521 % (*According to the Center for Responsible Lending 2019.|
[ Updated on 28-Nov-2021, 20:38 ]