Payday loan alternatives at local banks
If you have relied on the occasional payday loan to handle a cash crunch, you are already aware of the danger of being unable to repay the loan. Short term payday loans can save a family from an emergency if they need to pay a utility bill, purchase a child’s medicine or repair a car in order to get to work. On the other hand, these loans dip into the cash you have available to pay your regular bills and can result in an ongoing financial crisis.
Payday loans and banks
A recent article in The Mercury News compared direct deposit advance loans from banks with typical short term payday loans offered by payday lenders. According to The Mercury News, Regions Bank, Wells Fargo, U.S. Bank, Guaranty Bank and Fifth Third Bank all offer loans that are similar to payday loans.
Typical Payday Loan Rates to Expect
Payday loan rates appeal to people with limited or no credit capability to obtain quick cash. Payday loan companies realize the limited options available to their credit-strapped clientele and charge high interest rates for these short-term loans. The most common loan amounts taken out are usually in the $100 to $300 range with a fee that is assessed on top of this amount.
Payday loans are very short term. The lender agrees to allow the borrower to write a check for a chosen amount that the lender will hold onto until the borrower’s next payday, which is usually one or two weeks or a month later. When the payday rolls around, the check is cashed. Interest rates can run up to 911 percent for one-week loans. For every $100 borrowed, up to $17.50 of interest can be assessed.
Wisconsin Payday Loan Laws & Legislation
Payday Loans and Wisconsin – A Good Compromise
Wisconsin payday loan regulators have stitched together a compromise bill that offers strong consumer protection and allows the very popular payday loan product to continue to be offered as one of many financial solutions for Wisconsin residents.
In essence, the proposed Wisconsin payday loan bill will limit payday loan consumers to a maximum $600 payday loan or 35% of a borrower’s 2-week gross income, whichever is less. This proposed $600 maximum payday loan would include any fees associated with the payday advance.
This payday loan legislation would not cap the annual interest rate that lenders can charge on payday loans. A previous bill would have limited them to 36 percent. Rep. D
How To Compare Cash Advance Payday Loan Lenders
When searching for a payday loan company online to get a cash advance through, there are a few factors you will want to compare with each lender to make sure you are getting the best loan for your situation. The following are some tips on how to compare cash advance payday loans lenders.
Here are a list of 6 factors that will help you in comparing each payday loan lender.
- What are the fees? Fees online can range from $10 – $30 or more per $100 loaned. There is a lender online that has no fees for your first loan. (To see this lender, click on the link below). Find out before you sign, what the fees are per week, per $100 loaned.
- How long will it take to get the money deposited into your account?