Everything You Need to Know about Payday Loans in Ohio and Illinois
In a financial bind and need to access quick cash? Payday loans are a popular option across the country, including in Ohio and Illinois. These short-term loans are designed to help you cover unexpected expenses until your next paycheck, but they come with high interest rates and fees. Here’s what you need to know before you consider taking out a payday loan in Ohio or Illinois.
Overview of Payday Loans in Ohio
In Ohio, payday loans are legal, but there are restrictions on the amount of money you can borrow and the length of time you have to pay it back.
- Maximum loan amount: $1,000
- Maximum loan term: 6 months
- Interest rate cap: 28% APR
- Maximum finance charge: 10% of loan amount
- Cooling-off period: 45 days between loans
It’s important to note that payday lenders in Ohio are not allowed to rollover or extend loans, and they are required to provide borrowers with a written agreement that spells out the terms and conditions of the loan. Borrowers can cancel a loan within one day of taking it out without penalty, and lenders are prohibited from charging prepayment penalties.
Overview of Payday Loans in Illinois
In Illinois, payday loans are legal and there are few restrictions on loan amounts or loan terms. However, the state has implemented regulations to protect borrowers from predatory lending practices.
- Maximum loan amount: $1,000 or 25% of monthly gross income
- Maximum loan term: 120 days
- Interest rate cap: No cap
- Finance charge: $15.50 per $100 borrowed
Payday lenders in Illinois are also required to provide borrowers with a written agreement that spells out the terms and conditions of the loan, including the APR and finance charges. The state also prohibits lenders from rolling over or extending loans more than twice, and borrowers can cancel a loan within two business days without penalty.
Interesting Facts and Statistics about Payday Loans in Ohio and Illinois
- The average payday loan borrower takes out eight loans per year in Ohio.
- Ohioans pay the highest payday loan interest rates in the country, with an average APR of 677%.
- In Illinois, the average payday loan is $354 and is paid back over the course of five months.
- Payday loans in Illinois cost borrowers $229 million in fees and interest in 2020.
If you’re considering a payday loan in Ohio or Illinois, it’s important to carefully read and understand the terms and conditions of the loan before signing on the dotted line. As with all financial decisions, make sure you can afford to repay the loan on time and in full to avoid costly fees and penalties.
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Ready to apply for a payday loan in Ohio or Illinois? TheGuaranteedLoans can help connect you with potential lenders who may be able to offer you a loan. Remember, we are a connector service, not a direct lender, and we will facilitate your connection with potential lenders. Fill out our online application today and get started on the path to financial relief.