Payday loans in Connecticut
| Rank | Lender | Amount | Fee | Notes |
|---|---|---|---|---|
| 1 | AmeriAdvance |
No details disclosed, see below | No details disclosed, see below |
High approval rates No Faxing |
| 2 | Check City |
No details disclosed, see below | No details disclosed, see below |
Popular choice No Faxing |
Terms specific to Connecticut by law
Maximum Amount: $600
Maximum Days of Loan: Not Specified
Maximum Charge for a 14-day $100 loan: $17
Number of Outstanding Loans at One Time allowed: Not Specified
Rollovers Permitted: Not Specified
Cooling-off Period: Not Available
Repayment Plan: Not Available
What are Payday Loans and How Does it Work?
- Payday loans are short term, high interest cash loans that a borrower can use in case of an emergency. These loans can also be used to cover expenses and are also known as “paycheck advance” loans. With the current state of economy, it is difficult for an individual to survive with paychecks only. Compared to other long-term loans, acquiring a payday loan is relatively simple. However, the only drawback here is that there are higher interest rates involved.
- In order to qualify for a payday loan in Connecticut, the borrower must possess valid identification, steady employment as well as a bank checking account. Mostly, payday loan lenders do not process a credit check for these loans. Credit checks take a lot of time and people usually avail these loans in times of a financial crisis.
- Since there is always a risk on the lender, interest rates and processing fees are relatively high. On the other hand, borrowers are willing to pay these fees if they were to receive some cash in times of an emergency. The lender would often take a post-dated check from the borrowers, in order to ensure payment on time. Payday loans are also given out in cash.
- The loan amount is to be paid in full on the next payday. However, if the borrower is not able to pay, the lender may perhaps extend or rollover the debt to the next payday. In simple terms, the lender may sometimes renew the agreement and start a new loan altogether.
- Financial experts do not recommend these short-term loans. These loans should not be taken, unless there is a financial emergency. If payday loans are rolled over three or more times, it could garner an interest equal to or more than the original loan amount.
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