Payday Loan 
Title Loan 
Personal Loan 
Business Loan When people experience financial difficulties and need fast access to cash, payday loans may seem like an attractive option. However, customers in Kegley, West Virginia should be aware that payday loans are prohibited in their state. Read on to find out why these loans are not permitted and what alternative options are available to those who need quick financing in a pinch.
What are payday loans?
Payday loans are short-term, high-interest loans that are designed to be repaid with the borrower’s next paycheck. These loans typically range from $100 to $500 and have a repayment term of two to four weeks. However, the interest rates on payday loans can be as high as 400 percent, making them one of the most expensive forms of credit available.
Why are payday loans prohibited in West Virginia?
In 2006, West Virginia passed legislation that made payday lending illegal. This law was enacted to protect consumers from the predatory lending practices that were common in the industry at the time. By prohibiting payday loans, West Virginia prevented lenders from charging exorbitant interest rates and fees that can trap borrowers in a cycle of debt.
The law also created a cap on the annual percentage rate (APR) that small loans, including payday loans, can carry. The maximum APR for a small loan in West Virginia is 36 percent, which is much lower than the rates charged by payday lenders in other states.
What are the alternatives to payday loans in Kegley, West Virginia?
Fortunately, there are several alternative financing options available to those who need fast cash in Kegley, West Virginia. Here are some of the most commonly used alternatives:
- Pawn Shop Loans: A pawn shop loan involves borrowing money against the value of an item you own. The amount of the loan will depend on the value of the item and the pawnbroker’s assessment of its worth. Pawn shop loans typically have lower interest rates than payday loans, and the terms are more flexible.
- Personal Loans: Personal loans are another option for those who need quick financing. These loans are typically offered by banks, credit unions, and online lenders. Personal loans have longer repayment terms than payday loans, and the interest rates are generally lower.
- Credit Card Cash Advances: If you have a credit card, you can get a cash advance to access funds quickly. However, be aware that cash advances come with high interest rates and fees, so this option should only be used as a last resort.
Interesting facts and statistics on payday loans in West Virginia
- West Virginia prohibits payday loans with an APR of more than 36 percent.
- The average payday loan in West Virginia is $375, with an average interest rate of 359 percent.
- In 2018, the average borrower in West Virginia took out nine payday loans, with an average total loan amount of $1,966.
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Although payday loans are prohibited in West Virginia, if you live in another state, TheGuaranteedLoans can help you connect with potential lenders in your area. We are a connector service, not a direct lender, and we strive to make the application process as simple and easy as possible for our customers.
If you need fast cash, fill out our online application today and get connected with lenders who can help you meet your financial needs.