Make sure you understand the costs of a payday loan in Florida.
Payday loans, a type of short-term loan, can help you in an emergency if you’re low on cash. Read on to get a better picture about what short-term lending is like in Florida.
Check into Cash Loans
Check into Cash allows you to directly apply for a payday loan and have your cash when you need it.
- Min. Loan Amount: $50
- Loan Term: Varies by state
- Turnaround Time: 1–2 business days
- Total Costs: Varies depending on the amount and your state of residency.
- Must be 18+
- No collateral or down payment needed
- Confidential and secure
Are payday loans legal in Florida?
Yes, short-term loans are legal in Florida. Florida requires all payday lenders to be licensed with the state and follow regulations. You can find the main regulations in Florida Statutes Chapter 560.402 et seq. Let’s take a look at how they break down.
- Maximum loan amount: $500
- Maximum loan term: 31 days
- Minimum loan term: 7 days
- Rollovers: None
Florida doesn’t just regulate how much you can borrow and how long you can take to pay it back. It also has rules about how much your lender can charge you for a short-term loan.
- Finance charge: 10% of the loan, or $10 for every $100 borrowed
- Verification fee: $5
- APR: The APR of a 14-day $100 loan is 419%
What do Florida’s new regulations mean for me?
As of March 2018, payday lenders are approved to offer up to $1,000 with repayment terms between 60 and 90 days. Previously, the amount an alternative lender could charge was capped at $500, and the loan couldn’t extend more than 31 days. With the new law, Florida now allows consumers to borrow loans of up to $1,000 from these short-term loan providers. The loan term would last between 60 to 90 days, giving borrowers more time to pay back what they owe. This law makes it possible for borrowers to seek installment loans for their short-term needs but doesn’t eliminate smaller payday loans.
What's a deferred presentment provider?
Florida law technically regulates deferred presentment providers, not payday lenders. What’s the difference? For the borrower, they’re basically the same thing.
Deferred presentment providers work the same way as other payday lenders. They’re required to be licensed in order to service loans. You’ll need to provide either a check or access to a checking account, and the lender will cash either the check or debit the account on the date the loan is due.
A selection of payday loans you can apply for
Check the websites of any providers you’re interested in to confirm they operate in your state.
A brief warning about payday loans
While payday loans can be a good way to get ahead of your bills, they can be extremely expensive for people without a budget. You loan will always come with a contract that states the total cost — the principal, interest and other charges —that come with borrowing. Because Florida law has a maximum loan term of 31 days, you may struggle to meet the payment deadline.
Borrowing responsibly is your best bet against going further into debt. In addition, applying for assistance programs can also help you avoid further debt. The Florida Food Assistance Program is one of the ways you can get help paying for your everyday expenses while still saving money to also pay for your debt.
What do you need to apply?
You’ll need to be at least 18 years old, a US citizen or permanent resident and have a regular source of income in order to meet the minimum eligibility requirements set by most payday lenders.
During your application, you’ll need to be prepared to submit personal details, such as you Social Security number, details from your ID and access to your checking account.
Planning for payday loan expenses keeps you out of permanent debtAs the federal government determines how to regulate the payday loan industry nationally because of the high cost to consumers, it’s important to remember that a payday loan can be helpful–if you use it right. Because Florida already has helpful regulations in place, the rate of default is lower than the national average. This is due to Florida’s 60-day repayment plan and the credit counseling that comes with it.
Creating a budget for yourself or your family is one of the best ways to combat debt. Until banks and credit unions offer similar services to people with bad credit who need payday loans, government officials in Florida intend on keeping the laws in place. Many consider this the only way out of an emergency, even if it costs more in the long run.