Payday Loans in Gateway, Colorado
Payday loans are popular all across the United States, and Colorado is no exception. These types of loans provide an easy way to access cash when you need it most, but they should be used with caution. It’s important to understand the terms and regulations around payday loans in Gateway, Colorado before you apply for one.
The Basics of Payday Loans in Gateway, Colorado
A payday loan is a type of short-term loan that is usually due on your next payday. It’s a way to get quick cash when you need it most, without having to go through a lengthy loan approval process that you might experience with a traditional loan. In Colorado, payday loans are legal and regulated by the Colorado Attorney General’s office, which enforces strict regulations related to interest rates and fees.
To apply for a payday loan in Gateway, Colorado, you must be at least 18 years old and have a steady source of income. You’ll also need to provide proof of residency, such as a utility bill or lease agreement. Most payday loan lenders do not perform credit checks, which makes these loans available to people with bad credit.
Regulations in Gateway, Colorado
Payday loans in Gateway, Colorado fall under the Colorado Deferred Deposit Loan Act. This law requires that payday lenders be licensed by the state and follow specific rules related to interest rates, fees, and loan terms. The maximum loan amount that you can borrow in Colorado is $500, and lenders are not allowed to charge more than 20% in interest fees for the first $300 borrowed. For amounts borrowed over $300, lenders can charge an additional 7.5% interest.
Additionally, lenders are required to give borrowers a repayment plan that allows them to pay off the loan in installments. This repayment plan must be free of charge and must be offered to all borrowers in Colorado. The repayment plan must be for a duration of at least six months, and borrowers must be given at least four installments to pay off the loan.
Interest Rates and Fees
As mentioned, the maximum interest rate that payday lenders in Colorado can charge is 20% for the first $300 borrowed. If you borrow more than $300, lenders can charge an additional 7.5% interest. Additionally, lenders are allowed to charge a one-time origination fee of up to $5 for each loan. Late fees are also allowed, but they cannot exceed $25. Lenders are not allowed to charge borrowers for any additional fees or services beyond interest, origination fees, and late fees.
Interesting Facts and Statistics
- Colorado has some of the strictest regulations related to payday loans in the country. In addition to strict interest rate limits, Colorado law requires that lenders give borrowers a repayment plan that allows them to pay off the loan in installments.
- In 2019, Colorado payday lenders charged an average interest rate of 129% on their loans.
- The average payday loan in Colorado was $392 in 2019.
- In 2019, the total amount of payday loans given out in Colorado was $213,932,951.
- In Colorado, there are more payday lending storefronts than there are McDonald’s locations.
Apply Now
If you’re considering a payday loan in Gateway, Colorado, TheGuaranteedLoans can help you find a lender that meets your needs. We are a connector service, not a direct lender, which means that we work with a network of reputable lenders to help you find the right loan for your needs. To get started, fill out our online application, and we’ll connect you with potential lenders who could provide you with the cash you need today.