When you’re short on cash, you might be tempted to go with the obvious solution – a payday loan. But the obvious answer isn’t always the right one. A payday loan could quickly get you the money you need, but they can also come with limitations and a hefty price tag. Not to mention, borrowers are often required to repay the money within a very short time frame. (See the Florida Office of Financial Regulation for more information.)
Before you make any decisions, make sure you’re dealing with a lender that is licensed in the state of Florida. It might be tempting to apply online, but if your lender is out-of-state, your legal options might be limited. You may need to go to a physical location where you can see their license (it should be clearly displayed) to ensure you’re dealing with a legitimate lender.
Payday Loan Restrictions in Florida
You should also know the state of Florida restricts a payday loan to $500 or less. On top of that, if you already have a payday loan, you probably won’t be able to get another. The state of Florida keeps a database of active payday loans and won’t allow you to have more than one open loan at a time.
If you just paid off one loan and are looking for another, you’ll need to wait 24 hours before borrowing again. It’s illegal for a lender to advance you more money so soon after paying off your previous loan.
The length of the loan is also restricted. A payday loan can’t be for less than seven days and can’t last more than 31 days. This prevents the lender from rolling over the loan (and the charges) and protects you from paying more for the money you’ve borrowed.
Using Payday Loans for Emergency Cash Can Be Expensive!
How much will a payday loan cost you? Florida state law restricts the finance charge (the cost of borrowing money) to 10% for the term of the loan. Lenders can also charge a verification fee, but this is restricted to $5 for each payday loan.
For example, if you need $500, your finance charge could be a maximum of $50 (10% of the $500 you’re borrowing) and your verification fee could be an additional $5. This brings your total payback to $555.
Let’s say this isn’t a problem. What are the next steps? If today’s the 1st of the month and you know you’re getting paid on the 15th (fourteen days from now), you’d write the lender a check dated the 15th for $555 ($500 borrowed, $50 finance charge, and $5 verification fee.) The lender would then keep the check and deposit it on the 15th – when, theoretically, your paycheck would be deposited.
While this is straightforward in principle, in practice there are several potential pitfalls:
- $500 may not get you far! If you need more money, you’ll need to look elsewhere since you won’t be able to get another payday loan until you’ve paid off this one!
- You can’t extend the term past 31 days. If you don’t pay off the loan when it’s due, you have a 60 day grace period—but options may be limited.
- If you borrowed $500 and promised to pay it back after two weeks with a 10% finance charge, that means paying an APR of 260%!
Other Emergency Cash Options in Florida
Unfortunately, borrowing from family and friends might not be an option. Maybe they don’t have money to spare or maybe you feel uncomfortable asking for money. Whatever the reason, friends and family aren’t always an option for emergency cash.
For many of us, the bank isn’t an option either. Banks typically only lend to borrowers with excellent credit and, ironically, they’re only willing to lend to those who don’t actually need the money! Those well-qualified borrowers may have savings or credit cards they could use instead – but not everyone has those options.
Banks often take too long too. Applying for a bank loan might only take a few minutes, but potential borrowers then have to wait weeks for a final decision. Most people can’t wait that long!
So what’s the solution?
ChoiceCash Title Loans – No Hassle, Emergency Money in a Hurry
If you’re a responsible borrower who’s frustrated with the bank and need cash in a hurry, a title loan can be a good option to consider. Fortunately, there’s now a less expensive, customer friendly title loan option available in Florida.
ChoiceCash Title Loans serviced by LoanMart may help you receive the money you need without all the problems of a payday loan or the stumbling blocks of the bank1.
- Convenience: Need the convenience of an online inquiry without the hassle of driving to a store? You can apply for a ChoiceCash Title Loan from the comfort of your home! Plus, you have the option of having the money deposited directly into your checking account or picking up the funds at your local MoneyGram1.
- More Funds: Need more than $500? ChoiceCash Title Loans can give you anything between $1,000 and $10,0001(depending upon the value of your vehicle.)
- Longer Repayment Terms: Need more than a month to pay back the loan? ChoiceCash Title Loans gives you three years to repay the loan in full3. Want to pay it off sooner? No problem! There are no prepayment penalties, so you can pay off the loan at any time additional fees or charges2.
- Borrow More with a Loan: Need more money before you’ve paid off the loan? ChoiceCash Title Loans has your back. You could qualify for additional funds after only 90 days1.
- Fast Process: Need money urgently? ChoiceCash Title Loans could give you a loan decision in minutes and the money you need within 24 hours or less!1
Here’s the best part. Unlike other title loans, ChoiceCash Title Loans could reward you for being a good customer by lowering your rate each month2. As long as you continue to make payments on time, your interest rate could decrease2.
As the rate drops, so does your monthly loan payment. By the end of the loan, your monthly loan amount could be half as much as your first payment2!
When someone is faced with a financial emergency, it often seems as though no one is willing to help. You deserve a chance, and a ChoiceCash Title Loan serviced by LoanMart might just be the affordable funding solution you need1.
Call (888) 742-7153 or visit the ChoiceCash Title Loan website to learn more and apply for the money you need today1!