Payday Loans in Cannon, Kentucky: What You Need to Know
If you’re in a financial pinch and need a quick cash infusion, a payday loan may be a viable option. While some states have strict regulations regarding payday loans, Kentucky is a state where they are legal, applying only to check cashers. Cannon, a small town in Eastern Kentucky, is no exception.
What is a Payday Loan?
A payday loan is a short-term loan typically used to cover emergency expenses, such as medical bills or car repair costs, that cannot wait until the borrower’s next payday. The borrower writes a postdated check to the lender for the amount of the loan, plus interest and any additional fees. When the loan term is up, the lender cashes the check, or the borrower can roll the loan over and pay additional fees to extend the loan.
It’s important to note that payday loans come with high interest rates and fees, making them an expensive option compared to traditional loans. Because of their short-term nature and high cost, payday loans should only be used as a last resort.
How Do Payday Loans Work in Cannon, Kentucky?
In Kentucky, payday loans are legal, but they are heavily regulated. The Kentucky Office of Financial Institutions regulates payday lenders in the state, ensuring they follow the law and protect consumers. Check cashers, such as those in Cannon, are the only type of lender authorized to offer payday loans in Kentucky.
Under Kentucky law, payday lenders can loan up to $500 for a maximum term of 60 days. The lender can charge a maximum of $15 per $100 borrowed, plus additional fees, which can quickly add up. Borrowers can only take out two loans at a time, with a combined total of $500.
For example, if you borrow $300 for 14 days, the lender can charge a maximum of $45 in fees, plus interest. The total amount due would be $345, due on the borrower’s next payday.
What are the Requirements for a Payday Loan in Cannon, Kentucky?
To qualify for a payday loan in Cannon, you must meet the following requirements:
- You must be at least 18 years of age.
- You must be a United States citizen or a permanent resident.
- You must have a valid government-issued ID.
- You must have a steady source of income.
- You must have an active checking account.
Apply Now
If you meet the requirements and need a payday loan in Cannon, Kentucky, TheGuaranteedLoans can connect you with potential lenders. Simply fill out our online application, and we’ll match you with lenders who may be able to provide funding. Remember, TheGuaranteedLoans is a connector service, not a direct lender. We’ll facilitate your connection with potential lenders, but the terms and conditions of the loan will be determined by the lender.
Interesting Facts and Statistics about Payday Loans in Cannon, Kentucky
- According to a study by the Kentucky Coalition for Responsible Lending, the average annual percentage rate (APR) for payday loans in Kentucky is 391%, which is among the highest in the nation.
- A survey conducted by the Center for Responsible Lending found that Kentucky residents paid an estimated $145 million in payday loan fees in 2019.
- In 2020, Kentucky lawmakers introduced legislation to cap payday loan interest rates at 36%, but the bill did not pass.
- According to the Kentucky Office of Financial Institutions, there were 539 licensed payday lenders in the state as of December 2020.
Conclusion
While payday loans can provide quick cash when you need it, they come with high fees and interest rates, making them a costly option. If you find yourself in a financial bind, it’s crucial to exhaust all alternatives before taking out a payday loan. And if you do decide to go this route, make sure you only borrow what you can afford to pay back, and try to pay it back as soon as possible to avoid additional fees and interest.