The Ins and Outs of Payday Loans in Pelham, Tennessee
If you’re looking for a quick loan and you live in Pelham, Tennessee, you may have heard about payday loans. While these loans can be helpful in a pinch, it’s important to understand what they are, how they work, and what regulations apply in the state of Tennessee before taking one out. In this guide, we’ll cover everything you need to know about payday loans in Pelham.
What are Payday Loans?
A payday loan, also known as a cash advance, is a short-term loan that you can take out against your upcoming paycheck. These loans are designed to help you cover unexpected expenses that arise before your next payday. Most payday loans have to be paid back within two weeks, but some lenders may offer payment plans of up to 4 weeks.
One thing to keep in mind is that payday loans are not intended to be a long-term financial solution. They are meant to be used as a last resort when you have no other option.
How Do Payday Loans Work?
If you decide to take out a payday loan, the first step is to find a lender. There are numerous online loan providers in Pelham, such as TheGuaranteedLoans, that connect you with potential lenders. You’ll need to provide some basic information about yourself, including your income, employment status, and contact information.
Once you’ve been approved for a loan and agreed to the terms, the lender will transfer the funds directly into your bank account. You’ll be responsible for repaying the loan, plus interest and any fees, on your next payday. If you’re unable to pay back the loan in full on your next payday, you may be able to extend the loan by paying an additional fee.
What Are the Requirements for a Payday Loan in Pelham, Tennessee?
While the specific requirements vary by lender, most payday loan providers in Pelham typically require borrowers to:
- Be at least 18 years old
- Be a United States citizen or permanent resident
- Have a steady source of income
- Have an active checking account
Some lenders may also require borrowers to provide a post-dated check or sign an electronic agreement authorizing the lender to withdraw funds from their account on the due date.
What Are the Fees and Interest Rates for Payday Loans?
The fees and interest rates for payday loans in Pelham, Tennessee are regulated by state law. According to Tennessee law, payday loan providers can charge up to 15% of the loan amount in fees. In addition, they can charge an annual percentage rate (APR) of up to 460% for a 14-day loan period.
It’s important to note that while these fees may seem high, they are intended to cover the cost of lending to high-risk borrowers. The fees and interest rates on payday loans are typically higher than traditional loans because the lender is taking on more risk.
Are Payday Loans Regulated in Pelham, Tennessee?
Yes, payday loans are regulated in Pelham and throughout the state of Tennessee. The Tennessee Department of Financial Institutions regulates payday loan providers and ensures that they comply with state laws and regulations.
Payday loan providers in Pelham must be licensed by the state and follow specific guidelines regarding fees, interest rates, and loan terms. It’s important to choose a reputable lender that is licensed and regulated by the state to ensure that you’re getting a fair deal.
Interesting Facts about Payday Loans in Pelham, Tennessee
- The average payday loan amount in Tennessee is $375.
- The average APR for a payday loan in Tennessee is 460%.
- In 2019, Tennessee lawmakers passed a bill that limits the number of payday loans a borrower can take out in a year to 4 loans.
- The average payday loan term in Tennessee is 28 days.
Apply Now for a Payday Loan in Pelham, Tennessee
If you need a payday loan in Pelham, Tennessee, TheGuaranteedLoans can help. We connect you with potential lenders who can provide you with the funds you need quickly and easily. Keep in mind that we are not a direct lender but a connector service, meaning we facilitate the connection between you and potential lenders. Fill out our online application today to get started!