Payday Loans in Marathon, Ohio
Payday loans, also known as cash advances, are small-dollar loans typically used to cover unexpected expenses or emergencies. In Ohio, payday loans are legal and regulated by the Ohio General Assembly’s House Bill 123, passed in 2018.
If you are considering a payday loan in Marathon, Ohio or the surrounding area, it is important to understand the regulations and requirements to make an informed decision.
The Cost of Payday Loans in Ohio
Under Ohio law, payday loan lenders are limited to charging a maximum interest rate of 28% on loans up to $1,000, and a 10% fee on loans between $1,001 and $2,500. Lenders are also limited to providing a maximum loan amount of $1,000.
It is important to note that while the interest rate and fees may seem lower than some other states, the short repayment terms on payday loans can lead to APRs (annual percentage rates) well over 400%, making them a costly option.
Requirements for Payday Loans in Marathon, Ohio
In order to qualify for a payday loan in Ohio, you must meet certain requirements, including:
- Be at least 18 years old
- Have a valid government-issued ID
- Show proof of income
- Provide your bank account information
It is important to note that payday lenders may also consider your credit score when determining loan eligibility and terms.
The Risks of Payday Loans
Payday loans can be a helpful resource in times of financial need, but they also carry significant risks. The short repayment terms and high interest rates can lead to a cycle of debt, where borrowers struggle to keep up with payments and fees.
According to a study by the Pew Charitable Trusts, 12 million Americans take out payday loans each year, with an average of eight loans of $375 each per year. The study also found that the average payday loan borrower spends five months per year in debt, and pays an average of $520 in fees for borrowing the same amount repeatedly.
It is important to carefully weigh the costs and risks before taking out a payday loan, and to consider exploring alternatives such as personal loans, credit counseling, or assistance from community organizations.
Interesting Facts and Statistics About Payday Loans in Marathon, Ohio
- In Ohio, the average payday loan borrower takes out 10 loans per year, with an average loan size of $388 and an average APR of 591%.
- In 2020, Ohio payday loan borrowers paid $185 million in fees alone, with an average fee of $15 per $100 borrowed.
- A study by the Ohio Coalition for Responsible Lending found that payday lenders are disproportionately located in low-income and minority neighborhoods.
- According to a 2018 survey by the Federal Reserve Bank of Cleveland, 1 in 10 Ohioans have taken out a payday loan in the past five years.
Apply Now
If you are in need of a payday loan in Marathon, Ohio, TheGuaranteedLoans is here to help. We are a connector service that works with a network of trusted lenders to help you find a loan that meets your needs and budget.
Our online application process is simple and secure, and you can receive your loan funds as soon as the next business day. It is important to note that while we are not a direct lender, we will work with you to find a lender that is a good fit for your needs.
Apply now to get the payday loan you need, and take the first step towards financial stability.