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Loans in California (CA)

Payday Loans and Installment Loans California: How They Work

Getting financing is never easy, especially when you need financial help ASAP. When your time is limited, your possibilities shrink, which is quite discouraging. However, there is still one option worth considering – that of payday loans. The odds are you’ve already heard of this type of financing, and you’ve been looking to get more information about payday loans and installment loans in California.

Payday Loans California

The good news is that you’ve come to the right place. We’d like to outline the main things you should know about this type of financing.

Payday Loans and Installment Loans in CA: Understanding the Basics

More or less, a payday loan features a rather small sum of money. That’s because this is an emergency type of loan, specifically created for those situations in which you find yourself in need of finances. Therefore, the amount of the loan is usually repaid at the next paycheck.

Usually, the application process for payday loans and installment loans California is rather simple and to the point. This is, presumably, what makes them widely accessible to almost anyone. Hence, what you have to do is simple: you are expected to facilitate your identification, banking info and details regarding your employment. Most applications are approved – a stable form of employment is the most important aspect.

After the approval, you will have access to the funds in as little as 24 hours or right away, depending on the lender.

Considering the rapidity of the entire process, payday loans are widely popular. At the same time, because they don’t entail a comprehensive credit check, people struggling with bad credit often choose them.

As for installment loans, they comprise of larger sums of money, and the payment is made in the form of installments.

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Are payday loans legal in California?

Yes. The biggest loan amount a consumer can borrow in a payday loan is $300. The maximum fee for payday loan is 15% of the face amount of the check up to a maximum of $45.

What Are the Downsides of Payday Loans?

While the benefits of payday and installment loans are pretty crystal clear, the downsides shouldn’t be overlooked. Each financial decision comes with its pros and cons, and it’s sensible to analyze them beforehand. With that said, the main disadvantage is that payday loans and installment loans are much pricier in comparison with traditional loans.

We’re referring specifically to the APR (annual percentage rate) of this type of loans. The APR for payday loans can exceed 100 percent several times. Of course, some direct lenders have more convenient offers than others, which is why it might be a good idea to do some research beforehand.

In addition, some lenders charge high fees, which significantly add up to the original cost of the loan. Thus, if you don’t manage to pay the loan at your first paycheck, the fees will add up over the course of time, which could further aggravate your financial situation.

As for the costs of installment loans, these vary depending on your credit rating, whether you go for a secured or unsecured loan, the lender’s criteria, and other elements.

To conclude, payday and installment loans come with both good and bad parts. It all depends on your individual circumstances. For some people, they could really be life-saving, especially in the case of unexpected accidents or any unfortunate events.

Nevertheless, if you’re dealing with persistent financial troubles, getting California payday loans on a regular basis might only worsen your situation, as opposed to helping you. In addition to that, make sure you collaborate with a lender that understands your financial situation, which is also reputable.

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Disclaimer

Short-term loans represent a type of emergency borrowing meant to help you with immediate financial issues. They can only become pricey products once you use them for long-term purposes.

 

MicroPaydayLoans.com‘s operator and owner is not a lender, so he isn’t involved in making credit decisions that include lending and making loan offers. This website actually works as a matching service, helping you contact with lenders and third parties. You are not charged any fee for our service. Moreover, you are not forced to initiate contact with any lender or third party or accept any of their offers.

 

The data that is presented on our website regarding short-term loans and the industry is here for information purposes only. We do not uphold a particular lender, and we’re not responsible for a lender’s actions or inactions. Moreover, MicroPaydayLoans.com doesn’t collect or store your data concerning fees and charges associated with the lenders. Basically, we don’t have access to this data in the first place.

 

Not every state approves of short-term loans. Also, not every lender in our network is able to provide loans of up to $1,000. We don’t guarantee that a consumer will get approval for any loan product or lender or will be matched with a lender. If matched, it doesn’t mean he/she will receive the requested short-term loan.

 

In addition, a lender may want to do a credit verification. This takes place to ensure that you have a reliable credit, and to determine the scopes of credit products to offer. Additional verification may be needed, including your driving license number, social security number, national ID or other documents that help with identification. Keep in mind that scopes vary from one lender to another based on various factors. These factors include the terms determined by each lender and credit standing of the applicant.

 

APR Representative

Annual Percentage Rate, or APR, is the loan rate that’s calculated for the annual term. Considering MicroPaydayLoans.com isn’t a lender and doesn’t own information about any detail of short-term loans offered by individual lenders, they can’t estimate the APR. So, the APR provided won’t be the exact one charged by any of the loan products lenders offer.

 

APRs are very different from one lender to another, one state to another and they depend on various factors, including the credit standing of an applicant. There may be additional charges associated with the loan offer. Some of these charges include late payment, late payment reporting, non-payment penalties, and debt collection actions.

 

These actions have nothing to do with our website. Moreover, we do not have any information about actions taken by the lenders. The financial and non-financial charges and actions can be disclosed in a particular agreement in a clean manner.

 

The APR is calculated as the annual charge, and it’s not a financial charge for a short-term loan.

 

Late Payment Implications

If something happens and you won’t be able to repay a loan on time, it is recommended you contact the lender. Once this happens, late payment charges and fees may be applied. Federal and state regulations may vary from one case to another, and they are determined for late payment cases. Information regarding costs and procedures when it comes to late payment should be discussed before signing any related document. So, make sure you review these with your lender, and they will be disclosed in the loan agreement.

 

Non-payment Implications

If you don’t pay a loan or miss the payment, there may be some financial and non-financial penalties. Any financial charges or fees in case of late payments should be disclosed in the loan agreement. Other actions related to non-payment, renewals, for instance, may be implied upon given consent. Renewal terms are going to be disclosed in each loan agreement individually. Keep in mind that renewal may also come with additional fees and charges.

 

Debt collection practices and any similar procedure will possibly be performed. Any action related to these practices is adjusted to the Fair Debt Collection Practices Act regulations. It is also adjusted to other applicable state and federal laws to ensure the consumers’ protection against negative borrowing and unfair lending experiences. Most lenders don’t refer to outside collection agencies. They will rather collect the debt through in-house means.

 

Late payment and non-payment may significantly impact a borrowers’ credit score and decrease it. Lenders may report these bad experiences to credit bureaus, including Transunion, Equifax, and Experian. If this happens, the consequences of late payment or non-payment will stay in a borrower’s credit reports for a certain amount of time.