Review this important information if you’re thinking about getting a payday loan in Colorado.
In Colorado it’s not uncommon to take out a payday loan, also referred to as a short term loan. If you’re considering getting one, going through this guide is in your best interest to help illuminate the differences between lenders and loan types.
Are payday loans legal in Colorado?
Yes. Payday loan lenders in Colorado can operate legally. The Deferred Deposit Loan Act under the Colorado Revised Statutes 5-3.1-101 et seq. governs the functioning of all payday lenders in the state. Payday loans, deferred deposit loans and payday advances refer to the same type of credit.
The amount you borrow in payday loans through any one lender cannot exceed $500, and the minimum loan term is six months. You have the right to rescind a payday loan before 5 p.m. the next business day after the loan transaction takes place. Payday advances in Colorado don’t have any maximum loan terms.
A selection of loans you could apply for
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 a Colorado short term loan?
Short term loans in Colorado offer these features:
- Easy application process. Applying for a short term loan takes no more than a few minutes, whether you apply at a storefront or online. If you apply using the Internet you can find lenders that complete identification verification online, so you don’t have to worry about faxing any documents.
- Quick access to funds. The quickest way to get money through a short term loan is to apply in-store. This is because you can get cash as soon as the lender approves your application. If you apply online, while some lenders may require that you wait until the next business day, some may have you waiting for longer.
- Bad credit is alright. Many short term loans in Colorado provide finance to people who have less than perfect credit histories. What lenders look at is your existing financial situation coupled with your ability to repay.
- Use money for different reasons. What you do with proceeds from a short term loan in Colorado is up to you. You can use this money to get past a temporary setback, go on a holiday, repair your car or even buy someone a gift.
What fees and charges do Colorado short term loans come with?
- Finance charges. Payday laws of Colorado prohibit finance charges in excess of 20% for the first $300, plus 7.5% for any amount loaned in excess of $300.
- Interest. There are no specified APR regulations on payday loans in Colorado. If you prepay the loan ahead of schedule the lender should refund a prorated portion of the APR depending on the time left before the loan term’s expiry.
- Maintenance fees. A payday loan lender in Colorado can charge a monthly maintenance fee, not to exceed $7.50 per $100 loaned, up to a maximum of $30 per month. Lenders can charge this monthly maintenance fee every month the loan remains outstanding 30 days after the loan’s initiation.
How can I apply for a Colorado payday loan?
You can apply for a Colorado short term loan online or by visiting a storefront. While applying is easy you have to 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 Colorado short term loans?
What is the maximum number of outstanding payday loans I can have in Colorado?
There is no maximum limit, provided your debt does not exceed $500 and there’s a gap of 30 days between loans.
Do payday loan laws in Colorado permit rollovers?
Yes, you can get one renewal. The lender can then charge an APR of 45%.
Is there a limit to collection fees with payday loans in Colorado?
Your lender can charge one NSF fee. You may also have to pay reasonable attorney fees that cannot exceed the loan amount.