Payday Advance Colorado
Unexpected expenses can pop up any time, but they are particularly common in tough economic times. It seems that it gets more and more difficult to make a paycheck stretch to the next payday even when a tight budget is being implemented.
Luckily, fast cash is available for these times via Colorado payday advance loans. Through such cash advances, financial responsibilities can be met, medical situations covered, repairs can be made, and even getaways can be more thoroughly enjoyed.
What Exactly Are Payday Loans?
Payday loans, or payday advances, are short-term cash loans that are obtained quickly and without much hassle. Payday advance Colorado loans are designed to provide the cash needed to meet pressing financial needs or supply extra cash between paydays.
Colorado payday advances have higher interest rates and fees than long-term bank loans, but they also can be quickly obtained (usually within 24 hours) by filling out a simple form and submitting a brief amount of information, all without being subjugated to background credit checks.
How to Obtain a Colorado Payday Cash Advance
Payday loan lenders can legally operate within the state of Colorado as long as they acquire a license. Payday advances can also be applied for through online lenders who must adhere to set guidelines governing such cash advances.
Normally, a short application form is completed and submitted along with a form of personal identification and proof of employment (past paycheck stubs, bank statement showing electronic deposits, etc.). A post-dated check is usually provided for the amount of the loan plus interest and other fees at a loan office. Your checking or savings account information is obtained from online lenders (and sometimes from Colorado loan offices) in order to deposit funds once your application is approved.
The term 'payday loan' comes from the amount borrowed to be paid back on the date of your next payday. Most states, that allow licensed payday advance lenders, generally require payday loans to be repaid within a 30-31 day period. However, the state of Colorado allows up to six months for payday advances to be repaid.
Colorado Payday Loan Guidelines
The state of Colorado allows a maximum of $500 to be obtained through payday advances with a minimum six-month loan term. Although six months is one of the most generous national payback terms, it should be considered that high interest rates are applied to such short-term loans.
In Colorado, the maximum finance rate for an amount up to $300 is 20 percent and amounts ranging from $301 to $500 having a maximum finance rate of 7.5 percent. On top of this amount, there is a 45 percent annual interest rate and a monthly maintenance fee of $7.50 per every $100 borrowed up to a maximum fee amount of $30, which can be applied to the loan after the first 30 days (the length of most state laws governing payday loans).
There is also no limit of payday advances obtained as long as the total amount of all loans does not exceed $500 and there is a 30-day period between loans. Rollovers (loan extensions) are allowed, but they are subject to the 45% annual rate of interest.
Should there not be sufficient funds in the account at the time of payment, then lenders can charge a one-time NSF fee of $25. If action is required to retrieve payment through litigation, lenders can attach court costs and reasonable attorney fees that are not to exceed the total amounts of Colorado payday loans.
Where to Obtain More Information on Colorado Payday Loans
If you require further information on laws and guidelines covering Colorado payday advances, or have unanswered questions, you can contact the following office.
Colorado Office of the Attorney General
1525 Sherman Street, 5th Floor
Denver, CO 80203