The simplest way to deal with unexpected bills is to take out a payday loan. Many borrowers in Colorado ask for a $500 loan when they urgently need money to handle a short-term financial crisis. You can use your money from 500 dollar loans in less than 24 hours after it has been transferred to your bank account.
The fact that lenders don’t perform hard credit checks is the primary benefit of a quick 500 dollar loan. This means that applicants with low credit scores are welcome and have a good chance of receiving a 500 dollar cash advance. While deciding whether to approve a loan, all lenders in Colorado take other factors into account. You will be qualified or not, depending on your capacity to repay the loan in full and on time.
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What is a $500 payday loan?
Many states have a cap on the size of payday loans, and the loans in Colorado are for relatively small sums. The typical borrowing limit is $500, but there are also limitations above and below this figure.
When money is obtained from another source, such as a pension or Social Security, or on the borrower’s next payday, a payday loan is typically repaid in a single lump sum. The payment deadline is usually two to four weeks after the loan was approved. The terms of the payday loan contract specify the precise due date.
You typically have two options for paying back a loan: either you write a post-dated check for the entire amount, plus costs, or you give the lender permission to electronically withdraw the money from your bank, credit union, or prepaid card account. If you don’t pay back the loan by the deadline, the lender has the right to cash your check or take money out of your account electronically.
How much does it cost to take out a 500 dollar loan?
The loan amount and a financing charge are included in the check’s amount. For instance, you write a $515 check to get a $500 loan. The $15 finance charge, supposing timely repayment of the loan over a fairly standard two-week term, results in an APR of close to 400%.
If your backdated check is returned unpaid by the bank and you don’t make other efforts to pay on time, the lender will roll over your loan into a new two-week term. The lender will normally impose an additional late fee or penalty on top of another finance charge. And it turns out that you are responsible for debts that are several times the size of your original loan.
Colorado Payday loan lenders are now required by law to offer longer repayment options to borrowers who run into financial difficulty and are unable to repay their debts.
Am I eligible for a $500 payday loan?
A valid ID, an active bank account, and income documentation like a paycheck are normally required to be approved for a payday loan. At least being 18 years old is required. A Social Security number is also necessary for some Colorado’s lenders.
However, despite having a job and a bank account, you could still get turned down for a payday loan. For instance, lenders in Colorado are not permitted by law to lend to active-duty service personnel, their spouses, or their children when the APR is greater than 36%.
Although approval criteria may differ from lender to lender, The Consumer Financial Protection Bureau (CFPB) of the government claims that the most common requirements for consumers to be approved for a loan from payday lenders are as follows:
- be at least 18 years old,
- have a current checking account,
- present some form of identity,
- income documentation.
A loan shouldn’t be used frequently to borrow money. You should be completely aware of how and when you can repay this loan. However, there are several advantages of this type of borrowing. Options for borrowing are excellent for emergencies because they may be obtained quite fast. It’s possible to apply for financing and get approved the same day, usually within a few hours. In some circumstances, short-term credit may even help you to save money. However, missed payments and additional borrowing can increase overall costs and damage credit. Payday loans are a type of emergency credit. You won’t have to live with it for a long time.