Payday Loans in Mathews, Alabama: Everything You Need to Know
If you’re living in Mathews, Alabama, and find yourself in dire need of cash, you’re in luck: Payday loans are legal in Alabama. While payday loans can provide quick access to cash, they can also be a pitfall for those who don’t fully understand the terms of the loan. In this article, we’ll go over everything you need to know about payday loans in Mathews, Alabama.
What are Payday Loans?
Payday loans are typically small-dollar loans, which means that loan amounts are generally below $500. Borrowers must pay back the loan on their next payday. Payday loans offer a convenient way to get quick cash, but because they are high-interest loans, the borrower must be able to repay the loan in full, plus any fees, by their next payday.
Who is Eligible for a Payday Loan in Mathews, Alabama?
Eligibility for a payday loan in Mathews, Alabama is relatively easy, as long as you meet the following requirements:
- You must be at least 19 years old
- You must be a U.S. citizen or a legal resident
- You must be able to prove that you have a steady income
- You must have a checking account in good standing
If you meet these requirements, you can easily apply for a payday loan in Mathews, Alabama.
Interest Rates and Fees for Payday Loans in Mathews, Alabama
The interest rates and fees for payday loans in Mathews, Alabama are capped by state law. Lenders can charge a maximum of 17.5% of the loan amount as finance charges. For example, if you borrow $100, the lender can charge you up to $17.50 in finance charges. Additionally, lenders can charge up to 3% per month after the loan is in default.
It is important to note that if you cannot repay the loan by your next payday, lenders in Mathews, Alabama are allowed to charge you an additional fee called a rollover fee to extend the loan. This fee can add up quickly and can make the loan even more difficult to repay.
Benefits and Drawbacks of Payday Loans in Mathews, Alabama
Payday loans can be a great option for those who need cash quickly and temporarily. However, there are drawbacks to keep in mind. Here are some benefits and drawbacks:
Benefits:
- Quick access to cash when you need it most
- No credit check required
- Easy to qualify for
Drawbacks:
- High-interest rates and fees
- Short repayment terms
- Potential for rollover fees and other fees
- Potential for a cycle of debt if the loan is not repaid on time
Interesting Facts and Statistics about Payday Loans in Mathews, Alabama
- There are approximately 1,000 payday loan stores operating in Alabama.
- Alabama has the highest payday loan usage rate in the country, with 18.6% of adults having used a payday loan at least once.
- The average payday loan borrower in Alabama takes out 10 payday loans per year.
- In 2019, the Alabama Senate passed a bill to cap payday loan interest rates at 36%, but the bill did not pass in the House.
Apply Now for a Payday Loan in Mathews, Alabama
If you meet the above requirements and would like to apply for a payday loan in Mathews, Alabama, simply fill out our online application form on TheGuaranteedLoans website. We will match you with potential lenders in our network who can provide you with the cash you need. Remember, TheGuaranteedLoans is a connector service, not a direct lender. We are here to facilitate your connection with potential lenders.
Apply now and get the cash you need!