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Business Loan Understanding Payday Loans in Arcadia, Pennsylvania
Payday loans are a controversial topic across the United States, with some states banning them outright due to their high interest rates and potential to trap borrowers in a cycle of debt. Pennsylvania is one such state, where payday loans are illegal as per the state law. So, if you are in need of a short-term loan, let us look at some of the alternatives available to you.
What are Payday Loans?
Payday loans are short-term loans that are typically due on the borrower’s next payday. These loans typically have high-interest rates and fees, making them an expensive borrowing option. In Pennsylvania, the state prohibits payday lenders from operating and charging fees.
Why Are Payday Loans Prohibited in Pennsylvania?
Payday lenders charge incredibly high loan fees and interest rates, which can often be greater than 300% Annual Percentage Rate (APR). This can trap borrowers in a cycle of debt where they need to borrow repeatedly to pay off previous loans. Due to the high rates, Pennsylvania State has declared payday loans illegal in the state. This is done to protect the borrowers from financing they cannot afford, and to prevent them from falling prey to the debt cycle of payday loans.
What to Do as an Arcadia Resident in Need of Cash?
Living in Arcadia, you might be in need of cash in case of an emergency. Fortunately, there are alternatives to payday loans you can consider. For instance, you can approach friends, relatives, or use credit cards. Credit cards can offer a good alternative as they usually have lower interest rates than payday loans, but they come with their own set of rules and drawbacks.
If credit cards are not an option for you, and you need cash quickly, a car title loan might be a good option. With a title loan, you use your car as collateral to borrow money. However, title loan rates can be equally, or even more, expensive than payday loans, so ensure you understand the loan terms and associated costs before accepting the offer.
The Apply Now Section
If you need access to emergency cash, we at TheGuaranteedLoans can connect you to potential lenders online. We understand that payday loans are illegal in Pennsylvania, which is why we offer a range of loan options, including bad credit loans, personal loans, and installment loans. These loans come with their own set of requirements, including credit score and income level, but they can be a viable option in certain cases.
Just fill out our online application and we will connect you with a lender that meets your needs. We act as the connector service, meaning we don’t lend any money ourselves. Instead, we help you find a lender that’s right for you. Get started today by filling out our online application now!
Interesting Facts and Statistics about Payday Loans in Pennsylvania
- Approximately one in every six Pennsylvania adults have used a payday loan at some point in time.
- The Pennsylvania state prohibits payday lenders from charging interest rates above 6% APR. However, it is important to note that payday lenders are not allowed to operate in the state of Pennsylvania.
- In 2014, the average payday loan was $346 with an average interest of $55 for a 14-day period. This totals an APR of more than 300%.
- Pennsylvania’s Attorney General Office warns against payday lending scams that tout “official payday loans.”
Conclusion
Payday loans are illegal in Pennsylvania, so it’s important to consider alternative lending options if you need cash in a hurry. While some options might come with high-interest rates and fees, they are often a better alternative to payday loans. Remember to read the loan terms carefully, and ensure the terms are feasible before you borrow. TheGuaranteedLoans can assist you in connecting with lenders offering alternative loans, so feel free to apply today.