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Payday Loans in Missouri?


Many believe that a payday loan targets people that practice some tough times by offering them a loan with a super high interest rate. However, payday loans are probably one of the best alternatives to traditional loans if you're in a pinch and need cash fast. 

With the increase of online lending, you can apply for a cash loan remotely and have your money deposited into your account without leaving your house. All you really have to do is look for a suitable lender and fill the credit application online. Under Missouri law, payday loans are considered legal; thus, you may pick up one once financial hardship knocks on your door. 

 

How do Payday Loans Work in Missouri? 

 

You need to consider that payday loans are short-term unsecured loans meant to be paid back upon your next paycheck. Apart from being non-collateralized, they also involve no credit check, which means the lender may qualify you for a loan despite your poor credit history. 

Unlike personal or customer loans, payday loans work differently. Depending on where you reside, you may apply online or visit storefront offices in your neighborhood. As soon as you are approved for a payday loan, you may receive cash directly into your checking account. You will then have to settle your loan in full on its maturity date, typically by your next paycheck in two to four weeks. 

 

Features of a Payday Loan? 

 

  • Some states set limitations on a payday amount and credit terms in order to prevent borrowers from predatory lending. Perhaps, $2500 is the maximum limit you may potentially get. However, the range of funds mainly depends on the state's law and, of course, your financial health. 

  • Payday loans are due in full on the borrower's paycheck. Specifically, the loan maturity date is something individual and depends on what you agreed upon in your agreement. 

  • Credit repayment occurs based on your post-dated check for the principal amount of your debt plus calculated fees. No partial payments or monthly installments are acceptable. At first glance, it may seem difficult to pay off altogether in a lump sum payment. However, you get a chance to settle your debt in a short period and get back to your debt-free lifestyle.

  • Most payday lenders can qualify you for cash loans irrespective of your credit. However, payday loans for poor credit may suggest higher interest rates compared to traditional loans. 

  • The loan proceeds can be provided entirely electronically by depositing the loan amount into your bank account.

Will a Payday Loan Affect My Credit Score? 

 

Practically, your credit score cannot be damaged because of getting a payday loan until you meet your contractual obligations on time. However, what can happen if you fall behind on your payment? As soon as you cannot pay back a cash loan, your lender may send past-due accounts to a collection agency. Usually, it happens when your account is past due at least for 90 days. Having a bill sent to collections is quite stressful. Apart from being annoyed by collection agents, you may have your credit hurt. 

Attention

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.


Regulations of Payday Loans in Missouri?
Status     Legal
Annual Percentage Rate (APR)     443%
Minimum Loan Amount     N/A
Maximum Loan Amount     $500
Minimum Loan Term     14 days
Maximum Loan Term     31 days
Number of Rollovers Allowed     6 times
Finance Charges     No interest and fees in excess of 75% of the initial loan amount on any single loan
Cooling-off Period     N/A

Useful Sources

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 lending is considered legal in the state of Missouri according to Mo. Rev. Stat. 408.500 et seq.
The Consumer Financial Protection Bureau (CFPB) makes the financial marketplace work more effectively and educates consumers to help them take more control over their financial lives. Click here to learn more.
Payday lenders are allowed to operate in the state provided they have got a license issued by the state’s Division of Finance.


[ Updated on 19-Aug-2021, 20:33 ]

We've been in the industry for more than six years.