If you are in need of quick cash, payday loans can be a great solution, especially if you live in Jacksonville, Missouri where payday loans are legal. However, before you dive into a payday loan, it is essential to understand how they work and ensure you are borrowing from a reputable source. This article will help you understand everything you need to know about payday loans in Jacksonville, Missouri.
What is a Payday Loan?
A payday loan is a short-term personal loan that is usually between $100 and $1000 borrowed against your next paycheck. To get a payday loan in Jacksonville, Missouri, you need a steady source of income and a checking account. When you take out a payday loan, you agree to pay it back along with interest and fees on your next payday, usually within 14 to 30 days. Payday loans offer minimal requirements and quick access to cash, making them a popular option for people facing financial emergencies.
How do Payday Loans Work in Jacksonville, Missouri?
In Jacksonville, Missouri, payday loans are governed by Missouri Revised Statutes 408.500 et seq. According to these laws, payday lenders are required to be licensed and regulated by the Missouri Division of Finance. The laws also mandate that payday loans cannot exceed $500, and the loan term cannot be less than 14 days or more than 31 days.
To get a payday loan in Jacksonville, Missouri, you must provide the lender with a post-dated check for the repayment amount and fees or give them authorization to withdraw the amount from your checking account on the due date. If you are unable to pay back the loan on time, the lender can charge you additional fees or even take legal action against you.
The Pros and Cons of Payday Loans in Jacksonville, Missouri
Like any financial decision, payday loans come with their upsides and downsides. Here is what you need to know:
Pros:
- Fast access to funds
- No credit check requirement
- Simplified application process
- Short borrowing term prevents long-term debt
Cons:
- High-interest rates and fees
- Can lead to a cycle of debt if not paid back on time
- May negatively impact credit score if not paid back on time
- Unlicensed lenders may engage in predatory practices
Interest Rates and Fees in Jacksonville, Missouri
Payday lenders in Jacksonville, Missouri can charge up to 75% interest on a loan and up to $75 in fees for a $100 loan. Lenders are allowed to charge up to 6% interest per year on a judgment if a borrower defaults on a loan.
Interesting facts about payday loans in Jacksonville, Missouri
- In 2019, payday lenders in Missouri lent approximately $1.05 billion in payday loans, with an average interest rate of 462 percent.
- According to the Missouri Division of Finance, there are currently 1,274 licensed payday lenders operating in the state.
- While payday loans are legal in Missouri, some cities, including Kansas City and St. Louis, have enacted ordinances to regulate payday lending and limit the number of payday lenders in their jurisdiction.
Apply Now
If you are in need of a payday loan in Jacksonville, Missouri, TheGuaranteedLoans can help connect you with potential lenders. However, it is important to remember that TheGuaranteedLoans is a connector service and not a direct lender. When you submit an application on our website, we will use our network of lenders to match you with those that best meet your needs. To get started, fill out our online application form now.
The Bottom Line
Payday loans can be a great financial tool to help you overcome short-term financial difficulties. However, it’s crucial to make sure you understand the terms and conditions of the loan before borrowing. Jacksonville, Missouri payday loans are legal, but it’s important to make sure you’re working with a reputable lender, as unlicensed lenders can engage in predatory practices.