When you’re ready to borrow, you should know how payday loans work in Des Moines. Iowa regulations play a big role, so carefully consider your options before signing on with a lender.
Yes, payday loans in Des Moines are legal. All payday lenders in this city have to abide Iowa Code Chapter 533D, called the Delayed Deposit Services Licensing Act. This act applies to payday lenders located in the state as well as online lenders that serve borrowers in Des Moines — but only lenders that operate out of Iowa can provide loans to residents.
Iowa limits the amount a borrow can borrow to $500 and the maximum term length to 31 days. A lender may only charge a financing fee of $15 for the first $100 borrowed and $10 for every additional $100.
This helps prevent high interest rates from piling up, but it can make it more difficult to repay your loan, especially if you borrow a large amount or have a term of only a handful of days. Other short-term loans, like installment loans, often have longer terms — but the specific regulations might vary from those set for payday loans.
Consider these lenders for a short-term loan in Des Moines
EZ Money Check Cashing. 904 Army Post Rd, Des Moines, IA 50315
Globe Acceptance. 1001 Grand Ave, West Des Moines, IA 50265
Globe Loan Company. 3410 Merle Hay Rd, Des Moines, IA 50310
Hometown Cash Advance. 1335 E University Ave, Des Moines, IA 50316
Mister Money USA. 3820 E 14th St, Des Moines, IA 50313
Payday Express Iowa. 3947 E 14th St, Des Moines, IA 50313
Be cautious of short loan terms
Although a term of only 31 days can prevent interest from piling up, like with installment loans and personal loans, it also means you won’t have much time to repay your lender. A $500 loan could end up costing $555 and may be due as soon as your next payday. If you aren’t sure you’ll be able to make your payment on time, consider your payday loan alternatives before borrowing.
What are my other short-term loan options?
Payday loans aren’t your only option when it comes to short-term borrowing in Des Moines, but it is the most heavily regulated. Installment loans don’t have as much borrower protection, so consider your options and make sure your lender is legit before signing a loan contract.
Installment loans. Installment loans work similarly to payday loans, but you’ll have more time to pay back what you borrow. This can be helpful, especially considering Iowa’s strict loan terms, but often means you pay more in interest.
Auto title loans. Auto title loans have been banned in the state of Iowa due to the high interest rates and extreme risk caused to many borrowers — if you can’t afford a payment, your car could be repossessed. Because of this, you won’t be able to borrow a title loan in Des Moines.
Bottom line
Qualifying for a payday loan in Des Moines isn’t difficult, but you’ll still want to make sure your lender abides by Iowa regulations. The limited loan amount and term can help prevent fees from stacking up, but you’ll have less time to pay back you loan — and financing fees are still quite high.
Yes. Iowa allows borrowers to have two payday loans at a time.
No. You can’t rollover, renew, refinance or consolidate a short-term loan, and you can’t pay off an existing short-term loan by using proceeds from another short-term loan obtained from the same lender.
If you have any problems with a lender, you can contact the Iowa Division of Banking.
Aliyyah Camp is a SEO content strategist and former publisher at Finder, specializing in consumer and business lending. Her writing and analysis has been featured in CentSai, the Dough Roller and the Chicago Tribune. She holds a BA in communication from the University of Pennsylvania.
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