Payday loans can be a convenient solution to your financial problems when you need quick cash, but they are not a long-term solution to your debt issues. Suppose you choose to take out one of these loans and fail to negotiate repayment terms with the lender. In that case, it is possible that interest rates could rise exponentially, and the balance you owe can become insurmountable.
Payday loan lenders have been criticized for their lack of transparency in collecting and using the information on borrowers and for providing poor quality service.
Many payday loan borrowers are often surprised at how easy it is to get a payday loan and how easily it can be applied. Most lenders require no collateral, background checks, or credit checks to be performed. However, it is wise to take advantage of lower interest rates and longer repayment terms available on other types of loans in today’s economy. Repayment options are costly when owed on a payday loan because interest accrues during the extension of your loan period.
Payday loans are short-term loans that can pay daily expenses such as rent, car repair, medical bills, or credit card payments. The lender approves the loan, and the customer’s bank account is drafted the next business day. Payday loan borrowing comes with high-interest rates and fees but can provide a valuable service to people in a pinch if they are careful.
How to Find a Good Direct Lender in Fargo, North Dakota Online?
While it may be easier to apply for a payday loan online, it is imperative to check the details of the institution and the associated local authority first. Many scam websites take applications under pretenses, offering them loans with artificially low-interest rates. They are not entitled to any government-issued license or consumer protection in North Dakota. Before taking out a payday loan, it is important to check that the lender is fully licensed and issued a registration certificate by the city district. Online payday lenders who do not hold any valid permit to operate in the state may be operating illegally. This may leave you liable for legal charges, penalties, fines, and even imprisonment in case of default on your loan.
The following are common terms and conditions which apply to a payday loan in Fargo, North Dakota:
- Interest rate – The payday loan interest rate is usually extremely high, forcing borrowers to pay back the full amount of their loan within a short period. The typical rate is around 39% but depends on the lender. Borrowers can also opt for a payday loan with installment options to spread the payments over different installments with an interest rate lower than the original one. The Federal Trade Commission lists the average short-term interest rates recorded in 2011 and 2012.
- Fees – Payday loan fees are prepayment fees charged to the borrower before the lender releases the funds, such as $15 for pre-approved payday loans, $25 for cash advances, and $10 for direct payments payment loans. Pre-approved payday loans are generally easier to obtain and require minimum documentation from the borrower, such as a bank statement or an email address from an employer or financial institution. Cash advances are more difficult to get approved. They require the borrower to have a bank account in their name with a positive balance, which needs to be verified through electronic means. Direct payment loans are granted only to borrowers eligible for direct deposit.
- Documentation – Payday loans require very little documentation from the borrower, and most of this documentation is self-reported by the customer. The lender may need to see an applicant’s bank account statement and proof of employment. Some lenders may also ask for a driver’s license or social security card if they need a credit check. The borrower can upload scanned copies of all required documents per the lender’s website instructions when applying for a payday loan.
- Application and application form – Some payday loan websites require applicants to fill in an application form that can include personal details such as the applicant’s name, address, phone number, emails, and bank accounts. All direct lenders will ask for certain information such as current employment status, monthly income, and records of other loans paid back in full. The application process usually takes about 10 minutes, but some may request more applicants’ documentation, such as a scanned copy of their bank account statement.
- Timing – Payday loans are usually approved within a short period, and the funds are transferred to the borrower’s bank account within a few short hours. However, they can take up to 30 days for direct payment loans. Cash advances are quite rare, and most payday loan lenders will only apply for this type of loan after borrowers have cleared their previous obligation with another lender.
- Loan amount – A payday loan depends on the borrower’s amount to use it for. It is advisable to request larger amounts than one can afford to help borrowers save on interest. Although lenders may require borrowers to repay the full amount of their loan, some may offer extensions.
24 Hour Payday Loans in Fargo, North Dakota
On average, payday loans cost between $15 and $25 per $100 borrowed. However, they are not covered by banks or credit unions in most states. The Fannin County District Court prohibits the collection of any interest or charges on payday loans.
Cash Advance Loans in Fargo, North Dakota
Direct Lenders offer cash advances to borrowers with a bank account. They provide speedy service and a wide choice of repayment options with flexible dates for repaying the loan. Direct payment loans do not come with any set repayment period as they are usually granted on a case-by-case basis.
Figure out the total amount you will need for your needs and not exceed that limit. Failing to repay the loan on time may enhance your credit rating. Also, consider the amount that is affordable to you. You do not want to take a loan just because you can afford it, but you also want it to be affordable.
However, there are times in which customers may opt for payday loans because they cannot wait for some time for their needs to be met. And this is when payday loans prove themselves as more than helpful options. Here are the requirements for getting a loan in Fargo, North Dakota:
- A person must have a minimum of $1,000 to pay back the loan.
- Any loans from another institution must not damage a person’s credit rating.
- There is no maximum amount as to how long a person has been without making their monthly payments before they can get assistance from the payday loan store.
- The total amount of loans one individual can take in is capped at 50 and cannot exceed that.
- -The total period of all those loans does not exceed three years or 250 days.
Can I Get a Payday Loan for Bad Credit in Fargo, North Dakota?
The short answer is yes. The longer answer is that you will usually need to put up some collateral to secure the loan. If you own a home, a car, or have any other type of valuable asset, the lender may ask you to use it as collateral for the loan. The lender will take your property or help if you fail to make your scheduled payments. Some lenders will allow you to borrow up to $1,000 even if you have bad credit, but this amount is usually very small compared to the money you would typically pay back.
Can you get a payday loan in Fargo, North Dakota without a bank account?
Yes. You can get cash advances if you do not have a bank account. However, you will need to find a lender that will allow you to borrow money without having a bank account. You might have to pay the lender a higher interest rate when compared to people with bank accounts, but it is still possible to get cash advance loans without bank accounts. The average interest rate for loans made without bank accounts is between 300 and 500 percent compared with the 15-17 percent charged by institutions that do not allow payday advance loans.
FAQ
Fargo, North Dakota, payday lenders, and cash advance loans are easy to get approved. Depending on your state, you may require a minimum wage job or a credit check.
Yes, these are real and well-founded options for borrowers that cannot wait for more time. There are no hidden fees, and the required documentation is minimal.
The lender may require you to submit some form of documentation, such as your social security number or your bank statement. Also, depending on the lender, you may be asked for your paycheck stubs and previous bank records to prove steady employment and current income.