Payday Loans in Hackensack, New Jersey

Payday Loans in Hackensack, New Jersey

If you’re considering a payday loan in Hackensack, New Jersey, you should know that it’s not legal in the Garden State. Because of this, you should look for alternative ways to obtain short-term financial help during emergencies. Payday loans often come with high interest rates, and the state of New Jersey prohibits such loans for consumer protection.

Why are Payday Loans Illegal in New Jersey?

Payday loans are a type of short-term loan that typically comes with high interest rates. Generally, a payday loan is paid back on the borrower’s next payday and can range from $100 to $1000. Many lenders charge extra fees for extending the loan and if the borrower is unable to pay back the loan, lenders may take them to court through a debt collection agency.

In the state of New Jersey, payday loans are prohibited by the New Jersey Industrial Loan Act (NILC) of 1939. This law was put in place to protect consumers from predatory lenders, and it bans any type of loan with an interest rate in excess of 30%. The act also regulates loan terms, repayment terms, and fees.

Alternative Sources of Financial Help in Hackensack, NJ

If you’re in need of financial assistance in Hackensack, New Jersey, there are legal sources you can turn to for help. Here are a few alternatives to payday loans:

Credit unions: Credit unions offer small loans to members. Credit union loans typically come with very low interest rates and no hidden fees. Since credit union members have a say in the organization, all rates and fees are negotiated and voted on by the members of the credit union.

Installment loans: Installment loans are available from banks and credit unions. Rather than due on your next payday, installment loans are typically repaid in multiple payments over several months or years, depending on the terms of the loan.

Short-term bridges: Short-term bridge loans are offered by banks and online lenders and are intended for short-term working capital needs. These loans are typically repaid with the proceeds from a long-term financing, such as a bank loan or venture capital investment.

Peer-to-peer lending: Peer-to-peer lending platforms such as Lending Club and Prosper allow individuals to borrow from other individuals. Interest rates and terms vary depending on the lender, but they generally feature lower interest rates than traditional loans.

Frequently Asked Questions About Payday Loans in New Jersey

Are payday loans legal in New Jersey?
No, payday loans are not legal in New Jersey. The New Jersey Industrial Loan Act of 1939 prohibits these types of loans.

What is the maximum interest rate allowed in New Jersey?
In New Jersey, the maximum legal interest rate is 30%, according to the New Jersey Industrial Loan Act of 1939.

What are alternatives to payday loans in Hackensack, NJ?
In Hackensack, NJ, there are several alternatives to payday loans, including credit unions, installment loans, short-term bridges, and peer-to-peer lending.

Apply Now

If you’re looking for short-term financial help in Hackensack, New Jersey, theGuaranteedLoans can help. We can connect you with lenders who offer alternative loans such as installment loans, short-term bridges, and peer-to-peer lending. Fill out the application on our website today and we’ll take care of the rest.

Please note that theGuaranteedLoans is not a lender, and we cannot make any decisions regarding your loan application. Please refer to the terms and conditions of the lender of your choice.