Payday Advance Connecticut
Regulations on payday advance loans in Connecticut are severely restricted to a point that companies offering rapid cash advances, such as payday loans, are almost non-existent. Therefore, if you are in need of quick cash, you may have to turn to another source to meet your financial needs.
Payday Loans Explained
Payday loans, or payday advances, are short-term loans that can be obtained rapidly in order to meet financial needs between paychecks. They are easily applied for, are quickly obtained, and are repaid using your next payday as collateral. Payday loans require very little information to obtain and normally avoid credit checks as long as initial criteria are met.
Payday advances are popular because they provide rapid cash when a financial situation pops up unexpectedly or money is needed for a trip or other event before the arrival of the next paycheck. When you need cash now, a short-term loan, such as those that payday advances supply, help people and families handle financial situations until regular job income arrives.
How Payday Advances Are Obtained
Although payday advance Connecticut lenders are practically non-existent due to harsh state restrictions, those requiring a quick cash advance can still turn to companies operating on the internet that provide short-term loan options. Therefore, it is good to know the basic process for applying for and obtaining a payday loan.
Payday loan lenders usually only require that a simple application be filled out containing some personal information. You will also be required to provide personal identification and information to prove your current employment. Employment verification is normally provided through current paycheck stubs or bank statements showing direct payment entries from your employer.
You will also be asked by online lenders to provide bank account information so that the loan amount can be deposited once approved and payment can be deducted at the agreed upon date. Approval of Connecticut payday loans usually occurs within hours. Credit checks are rarely made but, instead, lenders use your banking info and payday amount as collateral.
Connecticut Laws Governing Payday Loans
Although small loan lenders are allowed to operate within the state of Connecticut, they are governed by very strict regulations, which make it quite unattractive for companies to operate. Besides being required to obtain a license, Connecticut small loan lenders must also adhere to very low interest rates. The small loan APR interest rate cap is set at 30.03 percent, which is equal to $17 per $100 and can be applied up to $600 and $11 per $100 for greater amounts up to $1,800. Add-on interest also applies.
Online payday loan companies must also follow these guidelines (minus the licensing requirement). However, since such Internet companies can do business in multiple states, they are much more likely to meet these strict guidelines and provide Connecticut residents with rapid cash advances.
Alternatives to Payday Loans
As suggested, online payday loans can be obtained through Internet companies offering short-term loans and who follow Connecticut laws governing them. However, there are additional alternatives to short-term cash advances that you might consider.
The state of Connecticut encourages banks to make small loans available based on the interest guidelines stated above. You might also look into such alternatives as Credit Unions, title loans, social services, and government assistance programs. To avoid interest altogether, you might seek a small cash advance from your employer, family members, or close friends.
Obtain Further Information
If you are interested in obtaining a Connecticut payday advance, you can contact the following source for more information on laws governing such transactions.
Connecticut Department of Banking
260 Constitution Plaza
Hartford, CT 06103