Missouri Payday Loan Resource Guide
No matter how careful you are with budgeting your money, Murphy's Law says that sometimes things will go wrong. Unfortunately, if you don't have a credit card or cash saved up in the bank, something going wrong can be a major disaster.
When you find yourself needing money that you do not have, you are limited in what your options are. You can skip paying bills or wait until payday, but this may not be a viable solution if your need is truly pressing such as the need to make an emergency repair or the need to pay a bill that is due right now. You can use a credit card, if you have one and if you can get a cash advance quickly enough. Or, you can take a quick loan from a payday lender.
Most financial experts are going to tell you that taking a fast cash loan is a bad idea. If you are able to budget and avoid taking a payday loan or if you have other financial products available to you like a credit card that you can quickly get a cash advance from, then taking a payday loan is a bad idea because it is going to cost you a lot more. Likewise, if your expenses or bills are not really necessary and don't really have to be paid right away, taking a payday loan also doesn't make sense since you'll end up paying a lot of money for no reason.
However, if you do not have another source of money, if you have bad credit and are limited in you financing options, and if your needs are pressing and immediate, then taking a payday loan may be the very best possible solution for your situation.
You can qualify for a payday loan by providing info on your bank account and on your work status. You can then get the money you need to pay your bills or meet your expenses. You'll pay high fees for taking on the payday loan - fees which amount to an APR of around 450 percent or higher - but you will be able to avoid the undesirable consequences associated with not being able to meet your pressing financial expense.
Before you take on a payday loan, you need to understand just how expensive they are. An APR of 450 percent is far greater than the APR of any other kind of loan. For even high interest credit cards, for example, the APR is usually around 30 percent or less. Still, if you really have a financial need, you may decide that the expense of taking on a payday loan is worth it. Only you can make that choice.
Missouri Laws on Payday Loans
Missouri permits people within the state to take payday loans, even though some states have instituted bans on this type of lending in order to protect consumers. Although Missouri allows the loans to be issued, the state does not just give lenders free reign to do whatever they want to do. Instead, there are restrictions and limitations imposed in Mo. Rev. Stat section 408.500.
Fast cash Missouri laws state the maximum that a person can borrow from a payday loan is $500. Further, the law also says that this $500 is the total maximum you can take at a time, not just the maximum from one lender. In other words, you cannot go to multiple lenders to take multiple loans.
Missouri also imposes a minimum of 14 - day loan period and a maximum 31 - day loan period. There are six rollovers permitted for those who need them.
The fees and finance charges are left up to Missouri fast cash lenders, with no restrictions. This means that a person who borrows $100 for 14 days might pay $75 and would have an effective APR of 1950 percent.
Staying Educated on Payday Loan Laws
The protections provided by Missouri to those taking on payday loans are extremely limited. While you cannot borrow a lot of money, you pay an absolute fortune for the money that you do choose to borrow. As such, knowing the law helps to reinforce the position that payday loans should be an option of last resort only when you really need them.