Payday Loans in Ridgeville, Indiana: What You Need to Know
Life can be unpredictable, and even the most financially responsible individuals might find themselves in need of quick cash. When unexpected expenses pop up, like medical bills or car repairs, it can be challenging to make ends meet.
What are payday loans?
Payday loans are short-term loans that usually range in value from $100 to $1,000. They’re designed to provide a cash advance to borrowers who need quick money, typically due to an unexpected financial situation that could happen between paychecks. The loan is typically due on the borrower’s next payday, hence the name “payday loan.”
Are payday loans legal in Indiana?
Yes, payday loans are legal in Indiana, including Ridgeville. However, Indiana state law regulates the payday loan industry to protect consumers, including the following regulations:
- Maximum loan amount: $550
- Maximum finance charge: 15% for the first $250; 13% for $250.01 – $400; and 10% for $400.01 – $550
- Maximum loan term: 14 days
- Loan extensions: One permitted, but after paying off an additional fee
- Cool-off period: 7 days after six consecutive loans
- Rollovers: Not permitted
It’s essential to work with a reputable lender to ensure that the borrower is aware of all the terms and details of the loan before committing to it.
Things to consider before applying for a payday loan in Ridgeville, Indiana
Before applying for a payday loan, several things should be considered to ensure that this type of loan is the best option for the borrower’s financial situation. Here are several primary factors to keep in mind:
- Interest rates and fees: Interest rates and fees can vary based on the amount borrowed, loan duration, and other factors. Indiana has a regulatory maximum amount that lenders can charge to consumers per terms specified above, but it’s still essential to shop around and compare interest rates before committing to a lender.
- Eligibility: Not all payday loan lenders in Ridgeville, Indiana provide loans to all people. The eligibility requirements can vary from lender to lender, so it is best to research which lenders are the best match for your financial situation.
- Credit Score: Payday loan lenders usually don’t take a borrowers’ credit score into account when determining eligibility for a loan. It makes payday loans one of the options for those struggling with bad credit.
- Alternatives: Although payday loans can be a helpful option in an emergency, they aren’t the only financial assistance available. Borrowers should consider other options, such as asking for a salary advance from their employer, using a credit card, or, in some cases, borrowing from friends or family members.
Interesting facts and statistics on payday loans in Indiana
- In 2016, the average payday loan was $304, and the average finance charge was $51 in Indiana.
- Indiana’s 262 payday lenders gave 2.5 million loans to customers, worth more than $550 million in 2017.
- According to a survey conducted by the Federal Reserve, 40% of Americans would need to borrow money or sell something to cover an unexpected $400 emergency expense.
Apply now for a payday loan in Ridgeville, Indiana
At TheGuaranteedLoans, we’re here to help you connect with a trustworthy payday loan lender in Ridgeville, Indiana, and provide you with the cash you need to cover your unexpected expenses. We aren’t direct lenders, but we connect clients with lenders who can provide them with the assistance they need. Applying takes just a few minutes, and funds can be available in as little as one business day. Fill out our online application today to get started!