Loans in Pennsylvania (PA)

Finding Payday Loans and Installment Loans in Pennsylvania (PA)

For people that do not live in Pennsylvania, this state seems like the most tranquil place where you can live your life in peace. For some people with high-income (and good fortune), that might be true. For other people, however, things can be rather difficult.

Almost 13% of Pennsylvania’s population lives in poverty – and the percentage can go up to 30 if they are African American, Asian American, Native American or Latino. If you are an immigrant in this state, no matter if you are a citizen or not, you might be pushed into poverty.

This is precisely why so many people are opting for payday loans and installment loans in Pennsylvania nowadays. The cash is quick, and it can take them out of a great bind.

Are payday loans legal in Pennsylvania?

No. Check cashers are prohibited from lending short-term loans. The small loan rate is capped at $9.50 per $100 in interest per year with a service charge of $1.50 per $50. You might want to consider an online installment loan. You can borrow up to $3,000 and pay the loan back in as long as 2 years.

What Are Payday Loans and How Much Do They Cost?

Pennsylvania payday loans and installment loans are loans that are given on the short-term (typically two to four weeks) until the borrower gets his next paycheck. On the due date, the entire sum gets deducted from their bank account.

These loans have a very high interest rate – and depending on the lender and the amount, you can pay from 15% to 30% extra from what you have borrowed. This can be very costly if you borrow a fairly high amount. For example, for every $300 borrowed, you may end up paying almost $100 only in interest – without including the amount that you have borrowed.

If you want to borrow higher amounts, that can also be possible – by means of installment loans. Practically, these loans are payday loans in an extended term. If you know that you can’t pay the money in just one installment, you can choose to do so in two or three. The interest rate may be higher this way, but the monthly payments will be smaller and more manageable.

Dangers of Payday Loans and Installment Loans in Pennsylvania

If paid on time, payday loans can be dealt with immediately. However, many people in Pennsylvania seem to underestimate the power of interest – which keeps piling up with every delayed payment.

If not careful, here are the dangers you might come across:

• Renewal Fees: If a borrower finds him/herself in an inability to pay the money back on time, they have two options: they can renew the loan, or they can take out a new one to pay the old one. These fees can be very expensive – which will obviously add to your loan.
• Credit Impact: Payday lenders don’t care about your credit score – but if you fail to pay your debt, they will announce the credit bureau. This may leave a dark mark on your credit score.
• Debt Cycle: When you can’t pay the loan in installment, you keep borrowing and borrowing to cover last month’s payment. Because of this, you might find yourself in a cycle of debt.

Be very careful when you take out payday loans or installment loans in PA. Unless you are certain that you can cover the fees and payments, you might want to try some alternatives – or at least speak with your financial advisor.