West Virginia Payday Loan Resources
Payday QUICK CASH loans are special types of loans that are issued to those who need to borrow cash only for a very limited period of time. Payday loans get their name from the fact that the purpose of these loans was to spot you some money to get you through until your next payday but are often called fast cash loans as well.
A payday loan is usually granted for around 14 days, although the exact term of the loan can vary. You will pay a fee in order to borrow this money. The fees and costs associated with the loan are the effective annual percentage rate (interest rate) since they dictate how much it costs to borrow the money. In general, the fees and costs add up to a very high annual percentage rate that may be in excess of 450 percent. This is extremely high when compared with the annual percentage rate for other kinds of loans. Mortgages, for example, usually have an APR of around 6 percent or less while credit cards usually have an APR of less than 30 percent.
With the high interest rates, it may be a surprise that anyone takes on a payday loan. However, there are some benefits to these types of quick loans that can make them attractive in the right situations despite the costs associated with taking the loan. One of the biggest benefits is that pretty much anyone with a job can qualify for a payday loan. It can be really hard to get a credit card or a bank loan if you have bad credit or a bankruptcy on your record. This is not a problem for payday loans since usually no credit check is required and since a person can qualify for a loan just based on the fact that they have a job and a bank account.
You pay for the convenience, speed and ease - of qualification with the higher interest rates associated with quick cash loans. This means that they can make sense as long as the benefits and need for the short - term cash outweigh the cost. You should think carefully before taking on any type of payday loan to determine what the cost/benefit analysis is in your situation. If you need money right away in order to pay a necessary bill or handle an emergency like car repairs or a doctor's visit, payday loans can provide you with that cash.
West Virginia Laws on Payday Loans
West Virginia does not have laws specifically addressing payday loans but does require that lenders who issue payday loans comply with maximum interest rate rules and laws prohibiting usury interest rates (excessively high interest rates).
All payday lenders, therefore, are limited to the small loan rate cap of 31 percent. Because of these interest rate caps, obtaining a legal payday loan in West Virginia may be more challenging. Some who live near the border of Virginia choose to obtain West Virginia fast cash loans from outside of the state.
It is important to exercise caution when dealing with any payday lender in the state as a result of these laws. Payday quick cash loans lenders usually will not be willing to issue loans with interest rates of 31 percent or less because it is not profitable for them or worth taking on the risks of these types of loans. As such, if you are taking on a payday loan, you may be dealing with a company that is violating the spirit of West Virginia's payday rules. Be careful to ensure that the company is honorable and fair so you don't get caught in a bad situation.
Stay Educated About Payday Loans
For those living in West Virginia, it is important to understand your rights and the lending laws that protect you. Laws change routinely and lawmakers develop new enforcement mechanisms like in Georgia to ensure that lenders do not break the rules that have been put into place. You should, therefore, keep up - to - date on the payday loan laws within the state so you are aware of what your rights are when it comes to borrowing from short - term lenders.