When faced with an unexpected expense, it can be difficult to find the financial resources required to cover it. In situations like these, payday loans may seem like a viable option, especially considering they are legal in Wisconsin. For residents of Springfield, Wisconsin, payday loans are available from a variety of lenders. In this article, we’ll take a closer look at what payday loans are, how they work, and what to consider before applying for one in Springfield, Wisconsin.
What Are Payday Loans?
A payday loan is a short-term loan designed to provide immediate access to funds. This type of loan is typically due on the borrower’s next payday. Payday loans are usually small amounts ranging from $50 to $500 and are usually borrowed for a period of two to four weeks.
The way payday loans work is quite simple. The borrower writes a post-dated check for the loan amount plus interest and fees to the lender. The lender holds onto the check until the borrower’s payday, at which point they cash it. Alternatively, the borrower can authorize the lender to withdraw the loan amount plus interest and fees from their bank account on the due date.
How Do Payday Loans Work in Springfield, Wisconsin?
Payday loans in Springfield, Wisconsin are legal and regulated by state law. To qualify for a payday loan, borrowers must be at least 18 years old, have a regular source of income and an active checking account. In Springfield, Wisconsin, lenders are prohibited from rolling over or refinancing payday loans.
The maximum amount you can borrow in Springfield, Wisconsin through a payday loan is $1,500, or 35% of your gross monthly income, whichever is less. Lenders are required to disclose their fees, terms, and conditions before the borrower signs the loan agreement. The maximum finance charge on a payday loan in Wisconsin is $15.50 per $100 borrowed, and the annual percentage rate (APR) for a 14-day, $100 loan is 391%.
What To Consider Before Applying for a Payday Loan
While payday loans can be a convenient way to access funds quickly, they come with high-interest rates and fees. As such, borrowers should carefully consider their options before taking out a payday loan.
It’s important to understand the terms of the loan, including the interest rate, fees, and due date. Borrowers should also make sure they can repay the loan in full on the due date to avoid additional fees or penalties. Additionally, borrowers should consider alternatives to payday loans, such as personal loans from a bank or credit union, credit card cash advances, or borrowing from family and friends.
Interesting Facts and Statistics About Payday Loans in Springfield, Wisconsin
- According to the Wisconsin Office of the Commissioner of Insurance, consumers in Wisconsin borrowed more than 247,000 payday loans totaling $122 million in 2019.
- The average payday loan in Wisconsin in 2019 was $494.12.
- According to a report by the Center for Responsible Lending, the typical payday loan borrower in Wisconsin takes out an average of 12 loans per year and pays $530 in fees for a single $375 loan.
Apply Now
If you have carefully considered your options and decided that a payday loan is the right choice for you, TheGuaranteedLoans is here to help. We work with a network of lenders to connect borrowers with the option that best meets their needs. Fill out our online application to get started, and we’ll do the rest. It’s important to note that we are a connector service, not a direct lender, and we do not make credit decisions. Instead, we facilitate connections between borrowers and potential lenders.
Conclusion
Payday loans in Springfield, Wisconsin are legal and regulated by state law. They can be a useful option for those in need of immediate access to funds, but they come with high-interest rates and fees. Borrowers should carefully consider their options and understand the terms of the loan before applying. If you do decide to proceed with a payday loan, TheGuaranteedLoans can help connect you with a lender that meets your needs.