New Hampshire Payday Loan Guide
Hitting a tight spot financially can be really stressful, especially if you do not have a credit card available to you that you can use to help you get through until you receive your next paycheck. Many people find themselves in this situation and wonder where they can turn. One possible answer that comes up is payday loans, although there are both upsides and serious downsides to this type of short - term lending option.
A payday loan is a loan that is issued on a very short - term basis and is often referred to as a fast cash loan. The most common length of time for a payday loan is around 14 days but these quick loans can also have a different duration depending upon the needs of the borrower. The loans are designed as a stopgap measure to help people meet necessary financial problems before their paycheck comes in. They are available very quickly, with minimal paperwork and qualifying requirements, so you can get your payday loan right away and pay for your necessities.
Payday loans are a viable solution for many people who not only need money fast, but who also may not have very good credit. A bad credit score caused by late payments and past bankruptcy filings can make it impossible for you to get a credit card or most types of loans. However, a bad credit score does not have any impact on your ability to obtain a payday loan since you can qualify for this kind of loan with a job and a bank account.
All of these things - the easy qualifying requirements and the speed and convenience associated with payday loans - are the upside to this kind of financial product. Cost is the downside. Cost is expressed as an Annual Percentage Rate (APR), which is the percentage that you would pay in order for the privilege of borrowing money. APR is always expressed in terms of the yearly interest, even for shorter term loans like a payday loan, because this makes it possible to compare different kinds of financial products. For example, when you compare a payday loan with a credit card, you'll see that payday loans usually have an APR of around 450 percent or higher while a credit card usually has an APR of around 30 percent or lower.
Using APR comparisons lets you make informed choices about how to borrow, and as you can see, payday loans are a really expensive way to borrow when compared with other options. Still, if you do not have an alternative solution and you need to borrow money, a payday loan may be the answer.
Payday Loan Laws in New Hampshire
If you are considering a payday loan, you need to be aware of the laws in New Hampshire. N.H. Rev. Stat. Ann. 299 - A:1 addresses payday loans within the state. According to the laws and restrictions that have been passed in New Hampshire, loan tenure for a payday loan must be between seven days and 30 days. There are no rollovers permitted and a person can take on only one fast cash New Hampshire loan at a time.
New Hampshire law also limits how much can be borrowed, preventing people from taking payday loan for more than $500. Finally, there is a limit on the fees and the finance charges that lenders can assess when issuing a payday loan. The limit is 36 percent annual interest. This is a much lower limit than most payday loans, which means that you might have a hard time finding a New Hampshire fast cash lender.
Stay Educated About Payday Loans
Understanding the payday loan laws in New Hampshire is important because you need to know the types of protections that exist for you and because you need to understand what areas are not clearly regulated. This information will help you to make a decision on whether to use payday loans or not, should you ever be in a situation where finances are tight.