Here’s what you need to know about getting short term loans in Alaska.
It’s easy to misstep and end up in a sticky financial situation. Whether it’s a car repair, an emergency bill or just needing help getting to the next paycheck, a short term loan may be a viable option.
Instances of Alaskan residents looking for short term loans are common. By the time you go through this guide you’ll know if these loans are right for you.
Are payday loans legal in Alaska?
Payday loans, also often known as payday advances and cash advances, are legal in Alaska. Alaska Statutes 06.50.010 et seq. presides over the functioning of all payday lenders in this state. Lenders that provide deferred deposit advances should have valid licenses under this chapter. These lenders require individual licenses for every physical location or website they use to conduct business.
You cannot have an outstanding balance of more than $500 through any one payday lender. The minimum loan term is 14 days. Alaska payday loan laws give you the right to rescind a payday loan at any time before the close of business on the business day following the day when you get the loan.
Consider these lenders for a short term loan in Alaska
Check the websites of any providers you’re interested in to confirm they operate in your state of residence.
Why should you consider taking out an Alaska short term loan?
There are various reasons that residents of this state seek short term loans, which include:
- Easy to apply. You can apply for an Alaska cash advance from practically anywhere, provided you have access to an Internet-enabled computer. You can find short term lenders that let you complete the identity verification process online, in which case you don’t have to fax any documents over. If you live near a short term lender’s store, applying can be easier still.
- Quick access to money. Applying in person at a storefront can give you access to the money you need as soon as a lender approves your application. Some online short term loan providers can transfer the approved money in your bank account on the day you apply or by the next business day.
- Use funds for different purposes. You can use proceeds from a short term loan in Alaska for any legitimate purpose, which can include taking a vacation, buying a present, paying bills, repairing an automobile or getting by following a temporary setback.
- Bad credit is alright. You can consider getting a short term loan even if you have less than perfect credit. This is because short term lenders tend to pay attention to more than your credit score and put your existing financial situation first.
What fees and charges do Alaska short term loans come with?
Here’s what your Alaska cash advance might end up costing:
- Finance rate and fees. Payday lenders can charge a non-refundable one-time loan origination fee not to exceed $5. They can charge fees not in excess $15 per $100 or 15% of the advance amount, whichever is smaller. The maximum APR for a 14 days $100 loan is 520%. The maximum finance charge for a 14 days $100 loan is limited to $20.
- Rollover fees. Lenders cannot renew payday loans for fees greater than those prescribed above.
- Collection fees. A payday lender in Alaska can charge one NSF fee of $30. You may also have to pay court costs of up to $700, which is in addition to the amount you have to repay towards the loan, provided the lender discloses this in the loan agreement.
How can I apply for an Alaska short term loan?
Applying for a short term loan in Alaska is straightforward. You can do so online or by visiting any short term lender’s store. Applying requires that you meet these eligibility criteria:
- You should be at least 18 years of age
- You should be an American citizen or a permanent resident of the US
- You should have a regular source of income
To complete your application successfully, prepare to submit some basic information:
- Your name, date of birth, social security number and a valid form of ID such as your driver’s license or passport
- Your residential address, email address and phone number
- Details about your employment and income
- If you’re applying online, details of your existing checking account
Important information about payday loans
While payday loans can be beneficial for some, they aren’t always the best option for everyone. Follow the link for more information on payday loan alternatives.
Have any more questions about Alaska short term loans?
Is there a limit to the number of times I can renew a short term advance in Alaska?
Yes. You cannot renew a short term loan more than twice. The minimum term of a renewal is 14 days.
Are installment loans in Alaska the same as short term loans?
No. You get to repay an installment loan over time, in equal installments that are normally in line with your pay schedule.
Who can I get in touch with to file a complaint about a short term lender in Alaska?
You should contact the Alaska Division of Banking and Securities.