Before you sign on for a short-term loan in Denver, take a look at this guide.
When you need a little extra cash and your credit isn’t perfect, you may benefit from a short-term loan. We work to clear away the mystery of short-term lending and give you the information you need to make an informed decision.
What short-term lending laws should I be aware of in Denver?
All short-term lending in the state is governed by Colorado Revised Statutes 5-3.1-101 et seq. This means you can’t borrow more than $500. Loan terms are long, lasting a minimum of six months. Colorado law limits the amount of interest a lender can charge, capping the annual percentage rate (APR) at 45%.
Consider these lenders for a short-term loan
What should I be aware of when taking out a short-term loan in Denver?
- Monthly maintenance charges. Lenders can charge a maintenance fee, but the total can’t exceed more than $7.50 per $100 loaned and must not go over $30 per month.
- Renewal charges. Additional charges for a renewed loan cannot exceed 45% APR.
- Financing fees. A lender can charge up to 20% of the loan amount for the first $300 borrowed, and they can charge an additional 7.50% per $100 for amounts over $300.
Del's expensive medical billsDel received a medical bill five months ago that he’d forgotten about, and now the amount is due immediately. The credit card Del regularly uses is maxed out, and his credit score is low from some missed payments in the past. Knowing that he wouldn’t qualify for a personal loan, Del decided to apply for a short-term loan.
He applied online for a loan of $300, which would be broken into payments over the next six months. Before he signed the contract, the lender made it clear that there would be a $7.50 fee per $100 borrowed every month the loan was outstanding.
Each month his account was automatically debited the scheduled amount. Del was able to pay his medical bill and budget for the relatively small payments to his lender every month without any trouble.
Here are some benefits to short-term lending
- The application is quick. Whether you visit a store or go online, the process of applying for a loan should only take five to ten minutes.
- Multiple ways to get your loan. When you apply online, you’ll likely get your loan deposited directly into your bank account, although some lenders can get you a debit card. If you decide to visit a store, you can get your loan in the form of a check, cash or bank deposit.
- Bad credit is accepted. As long as you meet other eligibility criteria, it’s likely bad credit won’t impact an approval decision. A regular source of income and long-term employment work in your favor.
Here’s what you’ll need to apply for a short-term loan in Denver
Before you apply, remember that all lenders have the same basic eligibility criteria: you’ll need to be at least 18 years old, a US citizen or permanent resident and have a regular source of income.
When you start filling out an application, you’ll be able to make the process faster if you know your basic personal information and have some important documentation with you.
- Your name, address, email and phone number
- Your date of birth, Social Security number and a state-issued ID
- Your employer’s name, address and phone number
- Your gross monthly income
- Your bank account information if applying online
Short-term loans in the Denver area
Short-term loan offices in Denver
- Loan Stop. 1390 S Colorado Blvd #140, Denver, CO 80222
- Moneytree. 7357 E 36th Ave, Denver, CO 80238
- New Money Express. 901 E Colfax Ave, Denver, CO 80218
- Payday Now Loans. 320 Broadway, Denver, CO 80203
- Speedy Cash. 6501 E Evans Ave, Denver, CO 80224
How much a short-term loan might end up costingAll loan contracts vary, but if you know the legal maximums lenders are allowed to charge, you’ll be able to figure out how much a short-term loan will cost.
Short-term loans can’t exceed 45% in their APR. That means the total you have to pay back in principal and interest can be no greater than 45% of the initial amount of the loan. It may seem high, but when you compare it to other states where the APR is allowed to reach hundreds of percent, you’ll see that the cap is a benefit to consumers.
The most important thing you can do is read your contract before you borrow. Lenders are required to state exactly how much you’ll need to pay back over the course of your loan, so familiarizing yourself with the fine print is the best way to prevent unexpected charges.