Fast Cash New York
Budgeting your money to make sure you have enough of it is very important, but sometimes there is an unexpected expense or cost that comes up that was not in your budget. When this happens, you may find yourself running out of money before you run out of month.
If you do not have the cash to meet your necessary expenses, you may consider taking a short - term loan. You can use your credit card, if you have one, to take a cash advance or you can charge on your card to meet some basic living expenses. However, if you do not already have a credit card when you hit your financial struggle, then it may take too long to apply. Further, there are some situations where people are not able to qualify for credit for one of many reasons, including a past history of bankruptcy or other black marks on your credit report that result in a low score.
Bank loans are also not a really good option if you just need a little cash to get you through until payday, since bank loans have a lengthy and complex application process and also require good credit.
With no credit cards and no conventional bank loans available, it should come as no surprise that many people who need short term cash will turn to fast cash loans. Payday loans have a bad reputation and financial advisors hate them because they are one of the single most costly ways out there to borrow money. The amount you pay for the privilege of taking a payday loan - expressed in terms of the annual percentage rate (APR) may be around 450 percent or even higher than that. If you were to borrow money on a credit card, on the other hand, you could usually expect an APR of around 30 percent or less, which would mean you'd pay much less than you would with a payday lender.
However, the high APR doesn't mean payday loans are always inherently all bad. When you really need a loan right away and you don't have credit or other solutions, then a payday loan may be the best choice.
New York Laws on Payday Loans
In the state of New York, it doesn't really matter if a payday loan seems like the best choice for you because you are generally not going to be able to get one. This is because provisions of the New York Code, including N.Y. Banking Law 340; N.Y. Banking Law 373, and N.Y. Penal Code 190.40 all impose prohibitions on payday loans.
Fast cash New York loan lenders are not allowed because they are seen as predatory and as trapping borrowers in a viscous cycle of having to extend their loans. New York thus protects people from this type of abuse.
New York also imposes a maximum charge on small loans. This maximum is 25 percent per year. Unfortunately, most payday lenders would not be willing to loan money for only a 25 percent annual percentage rate per year. This means most payday lenders will simply choose not to do business in New York.
At the same time, you need to be aware that there are some dishonest lenders who will try to make loans to people who aren't aware of the rules. Some of the lenders are likely just breaking the law.
Stay Educated About Payday Loans
New York fast cash loans are an important financial product that fulfills a very specific niche. That New York doesn't allow this can result in customers being left without a viable option if they need a short - term loan. It is important to keep up with the laws in New York to monitor any changes that occur and also to understand the implications of decisions made that might affect your finances.