Payday Loans in Manassa, Colorado

Payday Loans in Manassa, Colorado

Payday loans, also known as cash advances, are short-term loans that cater to individuals who need quick cash. These loans usually have a high annual percentage rate (APR) and are due by the borrower’s next paycheck. They are a legal option in Colorado, but it’s essential to understand the regulations surrounding them before getting one.

How do Payday Loans work in Manassa, Colorado?

In Manassa, Colorado, payday loans can be granted in amounts between $100 to $500 with a loan term of up to 40 days. Borrowers have to pay a finance charge of 20% of the amount borrowed and an application fee of $5. Colorado law requires lenders to verify a borrower’s ability to repay the loan. Hence, the borrowers should provide proof of income before the loan is granted.

What are the regulations for Payday Loans in Manassa, Colorado?

Colorado law requires lenders to comply with certain regulations regarding the terms of payday loans:

• The amount borrowed must not exceed $500.
• The loan term must not be less than six months and must not exceed 40 days.
• Lenders are allowed to charge a one-time origination fee of $5.
• The maximum annual percentage rate for payday loans is capped at 36%, including all fees.
• Borrowers may apply for one rollover, which adds an additional 12 weeks to the repayment period. At this point, lenders cannot charge any additional fees.
• A lender may not use any coercion or undue pressure to collect on a loan. They cannot threaten criminal prosecution for a check that bounces due to insufficient funds.

What are the Advantages and Disadvantages of Payday Loans?

One advantage of payday loans is that they provide quick access to cash, making them useful for emergencies. The application process is fast and straightforward, making it an ideal option for borrowers with low credit scores since lenders usually do not check the borrower’s credit history. Another advantage is that payday loan repayments are often flexible, allowing borrowers to choose the repayment period that suits their needs best.

The primary disadvantage of payday loans is the high APR. According to Colorado law, the APR of payday loans is capped at 36%; still, this is still a high rate. Payday loans also have a reputation for trapping borrowers in a cycle of debt since borrowers take out another loan to pay off the previous one. The high interest rates and fees make it challenging for borrowers to pay off the loans on time, leading to a cycle of accruing debt with high-interest rates.

Interesting Facts about Payday Loans in Manassa, Colorado

• Colorado has the lowest maximum payday loan APR of all states in America.
• According to the Colorado Attorney General’s office, payday loan borrowers in Colorado took out 414,284 loans worth $166 million in 2019.
• The average payday loan interest rate in Colorado was 129% in 2019.
• The Consumer Financial Protection Bureau (CFPB) reported that more than 80% of payday loans in Colorado are re-borrowed within a 14-day period.

Apply Now

If you reside in Manassa, Colorado, and need quick cash, TheGuaranteedLoans can connect you with potential lenders who can provide payday loans. Our application process is straightforward, and lenders often provide quick approvals.

Fill out our online application here, and we will match you with a lender best suited for your needs. It’s important to note that TheGuaranteedLoans is not a direct lender. We connect borrowers to potential lenders and assist in facilitating the lending process.

Before you apply for a payday loan, ensure you understand the regulations and the full terms of the loan, including interest and fees. You must ensure you can repay the loan on time before taking it out to avoid accruing high-interest debt.

Disclaimer: The information provided in this article is not financial advice and should not be construed as such. TheGuaranteedLoans is not a financial advisor and does not provide financial advice. The article’s information is for educational purposes only. Borrowers should consult with a financial advisor before making any financial decisions.