When money is tight and bills are due, you may decide that you needs a short-term loan. Just be sure you know the laws and regulations before you sign a contract.
What laws do lenders in Colorado Springs need to follow?
All lenders in Colorado Springs are required to abide by Colorado law. This means they can lend up to $500 for terms of six months or more. Although short-term lending is legal, APR is capped at 45%, meaning the amount you’ll have to pay is lower than in other states. Unfortunately, this also means that lenders are less likely to offer short-term loans, so you’ll have to shop around more and compare rates to make sure you’re getting the best deal possible.
Unlike many other states, Colorado caps the annual percentage rate (APR) at 45%. It might seem high, but compared to the fact that other payday loans have APRs in the hundreds, it’s relatively cheap to borrow a short-term loan in Colorado. For residents of Colorado Springs, this means you won’t be paying much extra for a small loan.
In addition, you won’t have to repay it all in one go. If you find the right lender, you may be able to get a contract that states you have months, not weeks, to pay off your debt. More time means you might have to pay more, but you also won’t be forced to pay back hundreds of dollars by your next payday.
It’s all about reading your contract and finding out what works for you.
Some short-term loan features you’ll want to consider
Monthly maintenance fee and renewal charges. Lenders are allowed to charge a fee of $7.50 per $100 (no more than $30 total) for each month a loan is outstanding. If you choose to renew your loan, a lender can’t charge more than 45% APR for the renewed amount.
Quick processing once approved. If you applying online, you’ll be able to get your money as soon as the next business day. If you decide to visit a storefront, the lender may be able to give you cash before you leave..
Bad credit is accepted. Most short-term lenders focus more on your current financial situation. As long as you meet other eligibility criteria, it’s likely that bad credit won’t impact an approval decision.
Abby can't afford her vet bill
Abby’s cat was injured and needed immediate treatment, but the pet insurance Abby had didn’t cover the entire cost. She had already depleted her savings the month before, and due to some missed payments in the past, Abby’s credit wasn’t great. Since she didn’t qualify for a personal loan, she opted for a short-term loan instead.
She applied for a loan of $200 at a storefront. The lender charged a $7.50 fee per $100 borrowed for every month the loan was outstanding. Her payments were broken up over a six-month period and were automatically debited from Abby’s account. All she had to worry about was making sure she had enough that she wouldn’t be assessed a non-sufficient funds fee.
Abby decided to pay the entire loan amount off by the end of the second month so she wouldn’t keep being charged the $7.50 fee. Now her cat is healthy and she doesn’t have to worry about the extra debt she had to take on to pay for her vet bill.
How to apply for a short-term loan in Colorado Springs
You’ll need to be at least 18 years old, a US citizen or permanent resident and have a steady source of income.
Lenders will ask for your personal information in order to confirm your identity and process your loan application.
Your name, address, email and phone number
Your date of birth, Social Security number and a state-issued ID
Check Lenders of Colorado, LLC. 1138 E Fillmore St, Colorado Springs, CO 80907
Checkmate. 5746 Palmer Park Blvd, Colorado Springs, CO 80915
M S Paycheck, Inc. 19 N Circle Dr, Colorado Springs, CO 80909
Mister Money. 211 E Colorado Ave, Colorado Springs, CO 80903
Moneytree. 1508 Academy Blvd N, Colorado Springs, CO 80909
Pioneer Services Military Loans. 1803 E Cheyenne Mountain Blvd, Colorado Springs, CO 80906
Quik Cash. Erindale Center, 5617 Academy Blvd N, Colorado Springs, CO 80918
Frequently asked questions
You can borrow as many loans as you need at one time provided the combined total doesn’t exceed $500 and there is a 30-day gap between loans.
There isn’t much of a difference between short-term loans in Colorado and installment loans offered in other states. Your best bet is to compare both and find the terms that work for you. Just keep in mind that installment loans still have to follow Colorado’s short-term laws, even if they’re from a provider located outside the state.
Rhys Subitch is a writer and editor at Finder who tackles topics across the site. With half a decade of experience researching, editing and writing for a Fortune 500 company, university and several independent publications, Rhys brings readers the most up-to-date and curated info on all things finance.
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