Understanding Payday Loans in Chester Heights, Pennsylvania
If you are looking to borrow money in Chester Heights, Pennsylvania, and have been considering a payday loan, you should know that they are actually illegal in Pennsylvania. Despite this, an estimated 12 million Americans take out payday loans each year, according to a study by the Pew Charitable Trusts.
While many other states have laws limiting the interest rates that lenders are allowed to charge for these loans, Pennsylvania is one of the few that has banned them outright. Payday loans are also illegal in 14 other states across the country, including New York, New Jersey, and Washington, D.C.
What are payday loans?
A payday loan is a type of short-term loan that is designed to be repaid within a few weeks, usually on the borrower’s next payday. Because they are risky for lenders, payday loans typically come with high interest rates and fees.
While these loans can be useful for people who need money quickly, they can also be very dangerous. According to a report by the Consumer Financial Protection Bureau (CFPB), more than 80 percent of payday loans are rolled over or renewed, which means that borrowers are unable to repay them on time. This can lead to a cycle of debt that can be difficult to escape from.
What are the risks of payday loans?
In addition to the high interest rates and fees, payday loans can also be risky in other ways. For example, many lenders require borrowers to give them access to their bank accounts, which can lead to unauthorized withdrawals if the borrower is unable to repay the loan on time.
There are also many unscrupulous lenders out there who use deceptive practices to take advantage of vulnerable borrowers. Some lenders will offer payday loans to people who don’t qualify for them, or will charge borrowers hidden fees that they don’t know about.
Overall, payday loans can be a very risky way to borrow money, and you should be very careful when considering one.
Interesting facts or statistics about Payday loans in Chester Heights, Pennsylvania
- In 2017, there were 69 licensed storefront payday lenders in Pennsylvania, according to the Pennsylvania Department of Banking and Securities.
- While online payday lenders are not legally allowed to operate in Pennsylvania, many still do so by partnering with out-of-state banks that are not subject to Pennsylvania’s laws.
- A study by the Pew Charitable Trusts found that the average payday borrower in the United States takes out eight loans per year, and spends $520 on interest.
Apply Now
While payday loans are illegal in Pennsylvania, there are still many other types of loans available if you need to borrow money. At TheGuaranteedLoans, we specialize in connecting borrowers with lenders who can meet their needs.
We are not a direct lender, but instead work as a connector service to help you find the right lender for your needs. Our application process is quick and easy, and we can match you with lenders who offer a wide range of loan types and repayment terms.
If you are looking for a loan in Chester Heights, Pennsylvania, or anywhere else in the United States, apply now to see what options are available to you.