Wyoming Payday Loans for Westerners
Anyone who has an unexpected expense come up knows how stressful it is when you need money for something and you do not have the cash available. For many in this situation, there are very limited places to turn. Those with bad credit, for example, will be unable to obtain credit cards and will often not have the option of getting a bank loan. Even for those who could qualify for credit or traditional bank loans, the application process can be long and these types of loans are generally not designed to meet your fast cash needs.
For those facing this type of financial issue, often the only option or the best option is to obtain a payday loan. Payday loans are short - term and usually the borrower will need to repay the loan within around 14 days time, although there may be different repayment terms agreed to by borrowers and lenders. The idea behind these loans is that you will borrow money to meet an immediate and pressing need like, repairing a broken car for example, and that you will then pay that money back when you get your next paycheck.
Payday loans are valued for their speed and convenience as it is possible to get a quick loan with little paperwork and a minimal application process. Payday loans are also a choice for many people who have bad credit and who might otherwise be unable to borrow money. Unlike most conventional types of loans, your credit score does not have an impact on your ability to obtain a payday loan. Instead, the only relevant issue is whether you have a job, income and a bank account.
Speed, convenience and easy qualification requirements may make payday loans seem like the best type of loan for anyone. Unfortunately, there are some significant downsides to these types of loans that have many financial experts cautioning against anyone ever taking on a payday loan.
The big problem with payday loans is that you pay a lot for the benefits and convenience. The fees that you will pay to borrow money are very high with a payday loan and you are going to have an effective APR (annual percentage rate) that may exceed 450 percent. The high cost of borrowing is because you borrow small amounts for short periods of time but pay really high fees to do so. With a credit card, on the other hand, you might have an APR of only around 30 percent or less - much lower than for a payday loan.
Wyoming Laws on Payday Loans
Payday loans are permitted in Wyoming but they are carefully regulated in order to ensure that consumers do not get taken advantage of. One issue is that the loans cannot just be granted indefinitely for long periods of time. The maximum loan tenure (length of the loan) for a payday loan is a one - month period of time. A Wyoming fast cash lender cannot issue a payday loan with a repayment period exceeding one month.
There is also a cap on the amount of interest that can be charged by a fast cash Wyoming lender. Under WY Stat. 40 - 14 - 362, a lender is permitted to charge $30 or 20 percent per month, whichever is greater.
At first glance, 20 percent a month may not seem like a huge amount since credit cards can have an interest rate of around 20 - 30 percent. However, remember that you determine the actual cost of borrowing money in terms of annual percentage rate. This means that Wyoming allowing a 20 percent or $30 per month fee on a small loan can result in you paying an annual percentage rate of 780 percent if you take a $100 loan for 14 days.
Stay Educated About Payday Loans
While it is good that Wyoming has imposed some limitations on what payday lenders can do, the law still allows payday lenders a lot of leeway to charge high fees to customers. You need to be aware of what protections the law does, and does not, provide and you must make sure you understand what you are getting into when you take on a payday loan.