Payday loans in Sacramento Payday Advance Credit ™ USA
You would have seen ads with slogans like “Get Money Now with No Credit Check!” And would have wondered what these ads are about. These advertisements are for payday loans also referred as quick cash loans. Traditionally, these loans are obtained by giving a post-dated cheque for a date just after your payday. After the day you get paid the lender will cash the cheque and move on. But nowadays the lenders might ask for your account details instead of post-dated cheques
Payday lending is roughly a $40 billion dollar industry, and the business has been booming because of the low credit scores of the borrowers. When you have a low credit score it becomes difficult for you to get a traditional loan from the bank, this is where payday lenders come to your aid by providing you loans of smaller amounts to handle tough economic situations.
Some states have declared payday lending as illegal, but California still permits it albeit in a tightly regulated manner. According to the payday advance California Law, the lenders can offer you a loan maximum loan amount of $300 for a time period of 31 days. The borrower can only have a single outstanding payday loan at any given moment. The interest fee for any overdue balance is limited to 15%, but the charged upfront fee can be charged to almost 500%.
Also the lenders are not permitted to refinance or roll over your loan. You must pay back the loan on its due date. This is to prevent the borrower from paying a compounded fee on the same loan amount and saving them from falling into a debt trap. All payday lenders operating in Sacramento are required to possess a deferred depositor originator license issued to them by the California Department of corporations. This license gives them the right to hold onto the cheques given by the customer and encash it on a specified date. While dealing with unlicensed lender you won’t have similar protections..
While residing in California, if you have received an offer for a loan amount above $300, chances are that the lender is from a different state. Payday lenders can reach borrowers across the country through the internet, so the lenders from state with lenient laws can easily take advantage of borrowers anywhere since the laws applicable in the state are only applicable on the businesses operating in California. This loophole combined with the problems in tracking businesses through the internet, makes the borrower vulnerable.
All the online payday application forms would only ask for your name and the details of your checking account along with the amount that you need in the form of loan. The lender will not perform a credit check. Making the online payday loans all the more lucrative. It is extremely important that the lenders to take extreme caution when handing over their account details over the internet. Also apply for a payday loan only with a lender who is physically present in your region. This way of the lender indulges in any unfair practice it will be easier to prosecute the lender in accordance with the Law valid in California.