Payday loan lenders offer $500-$1500 loans, which depends on your monthly income. Some states also have regulations about capping payday loan limits that amount less than $1500. What if your financial emergency amounts to more that this? You might start thinking, how many cash advances can you apply for? As stated earlier, payday loan regulations differ from state to state. Take as an example the state of Arizona where they prohibit payday loans while in Oregon, they do not regulate either the number of payday loans one can apply for nor the amount of a loan that one can apply for.
As of 2011, CFA lists states and their payday loan regulations as follows:
States that Prohibit Extremely High Cost Payday Lending
There are a total of eighteen states and the District of Columbia that prohibit or limit payday lending. These states include Georgia, New York, New Jersey, Arizona, Connecticut, Maryland, Massachusetts, North Carolina, Pennsylvania, Vermont, West Virginia, and the District of Columbia.
- Five states permit loans but at a much lower rate than the typical payday lending. These states include:
- Maine, which caps interest rates at 30%.
- Oregon, which permits a one-month minimum term payday loan at 36% interest rate.
- New Hampshire limits cash advance interest rates at 36% effective since 2009.
- Ohio has the lowest-cost payday loan law which limits interest rates to 28% and started in 2008.
Montana citizens have voted and limited loan interest rates at 36% effective last 2011.?Colorado has set a minimum of six month term for loans including a 45% per year interest rate, a monthly maintenance fee of 7.5% per month after the first month.
In Arkansas, almost all payday lending stopped due to the violation of the state’s constitutional usury cap and in 2010, citizens voted for a 17% annual limit for consumer credit under the state constitution.
States that Authorize High-Cost Payday Lending
Thirty-two states adopted a safe harbor law for small, short-termed cash advances which allows the lenders to compute the amount of loans based on checks written on consumers’ bank accounts and has no limitations on interest rates. These states include Alabama, Alaska, California, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin and Wyoming.
*For more information on your states’ regulation regarding cash advances, visit the CFA PayDay Loan Information at http://www.paydayloaninfo.org/.
Before thinking about applying for more loans, step back and think again if you really need that much of a debt. Most citizens end up in long-term dilemma because of short-term loans rather than help them with their financial needs. Cash advances may give you temporary remedies for immediate cash needs, but with carelessness and being irresponsible, people end up in a deeper mess than when they were before applying for a loan. If you are considering for a second loan to pay off a bad credit, think of consulting a financial counselor first before deciding on any financial matters.