Are you in need of some quick money? Whether it’s for overdue car payments, credit card debts, or unexpected family costs, one thing’s for certain: pay-day is too far to count on. Not to worry though, as payday loans in Colorado have got you covered!
What are Payday Loans?
Payday loans are short-term, high-stake solutions for emergency use. These loans are typically issued in small amounts ($500 being the customary extent) and are intended to solve financial issues of a smaller scale. Borrowers usually pay back the money owed in full on their next payday. Other-source incomes (Social Security, pension, etc.) are also applicable as reimbursement.
You can apply for a payday loan over the phone, online, in certain banks as well as payday loan stores. The application process is quick and uncomplicated, with your loan approval becoming clear within minutes. Good credit is not necessarily a requirement either, as lenders rarely conduct a full credit check. Some online lenders and payday loan stores are best to turn to for same-day cash, while others might require a few business days to complete a deposit.
Is it possible to get a payday loan in Colorado?
Unlike some states, payday loans in Colorado are legal and protected under The Deferred Deposit Loan Act. Their popularity, however, tends to flip-flop. In 2016, the number of people who took out payday loans in Colorado reached about 207,000. Later on, in 2019, a ballot initiative resulted in a 36% annual percentage rate (APR) being placed on payday loans in Colorado, resulting in an applicant decrease.
To avoid mishandling, payday loans in Colorado have placed a limit on the amount one can borrow. This is not an uncommon practice within the United States. With $500 being the highest amount, borrowers are given a minimum term of six months to pay back the money owed. Lenders offer certain guidelines for the amount borrowed, which can depend on your area of residence.
To be eligible to apply for payday loans in Colorado, you must:
- Be 18 and over
- Have a stable source of income
- Be a US citizen or a permanent resident
- Have an active checking account
The application, though effortless, does require the submission of the following information:
- Your name, date of birth, Social Security Number, and a legitimate, government-issued form of ID
- Your email address, address of residency, and phone number
- Information and proof of employment and source of income
Payday loans in Colorado do come with a few fees upon borrowing:
- For the first $300 borrowed, a lender may charge up to 20%.
- If the borrowed amount exceeds $300, a lender may add an additional 7.5% per $100.
- In the case of non-sufficient funds, a lender can charge you $25.
- If the loan fails to be repaid, a lender can charge you the full amount alongside additional attorney fees if the case is taken to court.
Be mindful before applying
Before you’re set on filling out a payday loan application, carefully go over your finances. As payday loans in Colorado do not require lenders to examine your ability to repay, you might find yourself stuck in a cycle of debt. A repeated borrowing cycle results in an increase of interest where the inability to repay can substantially damage your credit score. If this might be the case for you, the state of Colorado offers a handful of alternatives.