Everything You Need to Know About Payday Loans in Riverdale, Illinois
At some point in everyone’s lives, we all need quick cash. It could be an unexpected expense, like a car repair or medical bill, that has you reaching for your wallet. Unfortunately, not everyone has the funds to cover an unexpected expense. When that happens, people turn to quick cash loans such as payday loans.
If you are a resident of Riverdale, Illinois, and are considering applying for a payday loan, this is the article for you. Here, we’ll discuss everything you need to know about payday loans in Riverdale, Illinois, from the laws governing them to the benefits and pitfalls of this type of loan.
Payday Loans in Riverdale: What are they?
A payday loan is a short-term loan that typically must be repaid within two to four weeks of receiving the loan. These loans are generally for small amounts, ranging from $100 to $1,500, depending on the lender. They are given based on the borrower’s employment status and are often referred to as “payday advances,” “cash advances,” or “short-term loans.”
Laws Governing Payday Loans in Riverdale
Payday loans are legal in Illinois, and the state regulates them through the Illinois Department of Financial and Professional Regulation (IDFPR). In Riverdale, the law requires lenders to abide by the following regulations:
- Loan amounts cannot exceed $1,000 or 25% of the borrower’s gross monthly income, whichever is less.
- Loan terms must be between 13 to 120 days.
- Lenders are allowed to charge an annual percentage rate (APR) of up to 400%.
- Borrowers are allowed to have a maximum of two outstanding payday loans at a time.
- Lenders must provide a written agreement outlining all of the loan’s terms and conditions.
It’s important to note that lenders must also comply with federal laws, such as the Truth in Lending Act (TILA), which requires lenders to disclose the loan’s APR and any associated fees.
The Pros and Cons of Payday Loans in Riverdale
Like any financial product, payday loans have both benefits and drawbacks. Here’s what you need to know before deciding if a payday loan is right for you:
Pros:
- Quick access to cash: Payday loans are often a quick solution for those who need cash in a hurry.
- Easy to qualify for: Payday loans typically don’t require credit checks, making them accessible to people with poor credit or no credit history.
- No collateral required: You don’t need to put up anything as collateral for a payday loan.
- Can help build credit: If you pay off your payday loan on time, it can help build your credit score.
Cons:
- High interest rates: Payday loans come with high-interest rates, often exceeding 400% APR, making them an expensive way to borrow money.
- Short repayment terms: Typically, payday loans must be repaid within two weeks, which can be a challenge for some borrowers.
- Risk of falling into a debt cycle: Some borrowers take out multiple payday loans to make ends meet, which can lead to a cycle of debt that is difficult to break.
- Risk of predatory lending: Some lenders engage in predatory practices, such as offering loans to those who can’t afford them or withholding important information about the loan’s terms and conditions.
Interesting Facts About Payday Loans in Riverdale, Illinois
- As of 2021, over 4 million payday loans were taken out in Illinois, totaling over $1.5 billion in loan principal.
- The average loan amount was $354, and the average APR was 297%, according to data from the IDFPR.
- Approximately 80% of payday loans in Illinois are rolled over, meaning the borrower takes out a new loan to pay off the original loan, resulting in additional fees and interest.
Apply Now for a Payday Loan in Riverdale with TheGuaranteedLoans
If you’ve weighed the benefits and risks of payday loans and have decided to apply for one, TheGuaranteedLoans is here to help. We are a connector service that can help you connect with potential lenders who offer payday loans in Riverdale, Illinois.
Please note that TheGuaranteedLoans is not a direct lender and does not make credit decisions. Instead, we facilitate connections between borrowers and lenders.
To apply for a payday loan in Riverdale, simply fill out our online application form. We’ll match you with potential lenders who can offer you a loan that suits your needs and budget.
Conclusion
Payday loans in Riverdale, Illinois, can be a quick solution for those who need cash in a hurry. However, it’s important to understand the laws governing these loans and the potential benefits and pitfalls of this type of borrowing. If you’ve decided to apply for a payday loan, TheGuaranteedLoans can help you connect with potential lenders who can offer you a loan that fits your needs and budget.