Be on the lookout for short term loan traps.
Anyone can find themselves in a tough situation and in need of financial help. If you feel that you’ve tried all of your options, taking out a short term loan may be what you need. Short term loan companies like Check City come in when you have less than perfect credit and are in need of emergency financing.
Is Check City Loans legit?
Yes. Short term loans lenders like Check City are not a scam. However, payday loans are heavily regulated in an attempt to protect consumers. Laws around these loans change often as legislators refine what is needed in terms of interest rate and fee limits, as well as limits on the amount that can be borrowed. Lending laws can change from one week to the next.
What does Check City Loans have to offer?
Here are some key features about Check City Loans:
- Loan term. Up to 60 days.
- APR. 214.71% to 920.17% depending on state of residence and loan term.
- Fees. 25% of the original loan amount.
- Maximum loan amount. Anywhere from $500 to no limit, depending on state of residence.
- Application turnaround. One business day.
Protect yourself from predatory lending
While Check City is a legitimate lender, there are other providers who are less reputable.
When looking for a payday lender, here are some things to keep an eye out for:
- High interest rates. Interest rates can be more than 1,200% can make the smallest loan turn into a mountain of debt.
- Steep fees. Over $100 could be added to the cost of your loan.
- Risk of debt spiral. If you take on a loan that you can’t repay on time, you risk having to refinance or roll over the remaining amount. This can expose you to fees and charges and damage your credit.
Almost 12 million Americans take out short term loans annually, according to the Pew Charitable Trusts. A significant amount of those people end up as repeat borrowers. There is such a market for repeat borrowers that some companies even incentivize regular borrowing.
Check City Loans goes beyond just short term loans
Check City offers a wide array of products outside of short term loans including:
- Installment loans. Up to $2,500 loans are available with no penalty for early payments.
- Title loans. Get a secured loan by using your car title as collateral.
- Money orders. Free money orders are offered through Western Union, though terms may apply in Virginia.
- Prepaid debit cards. Netspend Prepaid Debit card is accepted anywhere that accepts Visa and Mastercard,
- Prepaid wireless. All major service providers are supported.
Is applying online for a short term loan safe?
With lenders using 128-bit secure secure socket layer (SSL) encryption, your information is protected when transmitted over the Internet. It’s also important to look for a lender’s privacy and security policies so that you have a clear understanding of what happens to your information once they have it. It’s a good sign if their policies and contact information displayed on the website.
What else do I need to know?
Check City is a direct lender, so you will apply for your loan with them directly and can contact them if you have any questions.
Lending brokers can be useful, because they can connect you with lenders you may not reach otherwise. But illegitimate brokers could sell your information to lending companies long after you’ve applied. Before you apply for any loan, be sure to read the fine print. Lenders are legally bound to telling you what they do with your information. If you can’t find this information, consider another lender instead.
How do Check City Loans compare?
What other options are available?
If Check City doesn’t meet your needs or you just want to shop around more, you can compare the products offered by similar lenders.
Other options to taking out a short term loan:
- Balance transfers. If you’re looking to use the money to consolidate your debt, a balance transfer might be a reasonable alternative. Balance transfers allow you to get all of your debt in one place, potentially with a lower interest rate.
- Credit Cards. A credit card may be what you need if you’re looking to make a big purchase. Some credit cards have significantly better APRs than short term loans, and a few even have introductory offers.
- Personal loans. Personal loans options include secured personal loans, debt consolidation loans, peer-to-peer loans and home equity personal loans.