Illinois payday loan
A payday loan is a short-term loan for $100 to $500. It is sometimes called a cash advance because the loan is taken with a promise to repay from the next paycheck. Payday loans are provided to help working people to cover their unexpected costs and emergencies and not to break their bank accounts.And this is the reason that a landmark payday loan Reform Act was passed which regulates the payday loan industry in Illinois. This Act strengthens the protection provided to consumers in particular to the working families and members against predatory and abusive practices.
There are several restrictions on payday lending enforced by the Act:
- Limits the interest that can be charged for each loan to $15.50 per $100;
- Sets a ceiling on total loan amounts to $1,000 or 25 percent of a customers monthly salary, whichever is less;
- More than two loans cannot be borrowed by borrowers at a time;
- Payday loans are limited to not more than 45 days.
- A new 56-day repayment period with no additional interest charges has been created for those borrowers who have trouble repaying their loans;
- Protects borrowers from facing criminal prosecution for unpaid loans
- Special protections to members of the military have been extended.
- To enforce these rules a new state database will be created which will help the lenders to view the applicants payday loan record.
Illinois Payday Loans
Illinois payday loan give s immediate payday loans when needed during a financial emergency.Illinois Payday Loans are quite convenient and confidential and the borrower can secure the loan within a short span of time.
Requirements for Illinois Payday Loans:
- To get an online Illinois payday loan the basic requirement is that the person should have a savings account.
- He/she should have been employed with the same employer for at least 90 days.
- The person must also be a permanent citizen of the United States. He/she must be above 18 years of age.
- The monthly take-home pay should be at least $1,000 even after the tax has been deducted.
- Credit history not taken into account:
- Illinois payday loan does not require a credit check. This allows a person to get a loan even if he/she is on the verge of becoming bankrupt or have filed bankruptcy.
- Illinois payday loan amount is deposited directly in the bank :
- The loan amount will be directly deposited into the bank account once all the necessary paperwork along with the application form has been submitted.
- The service is reliable and confidential.
- All transactions of Illinois payday loan are confidential. If the borrower cannot pay the loan by the next payday, then they must contact the company at least two days in advance so that the borrower can make arrangements to receive an extension. Usually an extra fee from the Illinois Online Payday Loan Company is charged to extend the loan period.
Mode of Repayment
To repay the loan the borrower will redeem his/her post-dated check with cash, money order, or let the loan company deposit the check directly to the bank. Another option is to rollover the loan. This means that the loan can be repaid at a later date than the due date. An additional fee is added onto the first loan in case of roll over. The loan can be rolled over two, three, or more times, before it is due. But each time the loan is rolled over, a charge of an additional fee will be made. As a result, this type of loan can be very costly
Default in repayment:
If the repayment agreement is not followed the loan company can cash the check already given by the borrower. If the check bounces extra charges from the bank and charges from the lender will have to be met. Writing bad checks is illegal and a person doing so can be threatened with criminal action.
Points to be considered before going in for payday loans:
Payday loans may sound like a good source of quick and easy money.
But before going in for such loans the following points are to be considered:
- The total fees, the payback plan, and the penalties when repayment is not done on time should be considered.
- A comparison for the best rate has to be carried out.
- The need for emergency money.
- How to make the loan that is less costly? Can the required money be borrowed from friends or relatives?
- Should a financial counselor be consulted to solve the money problems?
Payday Cash Advance Illinois
This is a totally online payday loan service of Illinois. Not all payday lenders offer quick and easy online service as paydayok.com does. The services at paydayok.com is a totally fax-less application process, with no credit and no stressful waiting period.Because the process is 100 percent online the requirements are an email address, banking account information, and proof of income. As early as the very next business day, the amount will be directly deposited into the account.
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