In Hawaii, a payday loan could give you quick access to emergency money.
If you’re short on cash and need extra money for a financial emergency, a payday loan might be on your mind. Before you borrow, read our guide on the regulations surrounding them and the laws your lender should be abiding by.
Can I get a payday loan in Hawaii?
Yes, payday loans are legal in Hawaii. All payday lenders in this state have to follow the guidelines laid out in Hawaii Revised Statute 480F-1 et seq.
Payday lenders in Hawaii must abide by the following guidelines.
- Maximum loan: $600
- Maximum term: 32 days
- Minimum term: None
- APR: A 14-day $100 is 459%
- Rollovers: Rolling over or refinancing your loan isn’t permitted.
In addition to payday loans, you have more short-term borrowing options including installment loans that are repaid over several months.
Consider these payday lenders
Check the websites of any providers you’re interested in to confirm they operate in Hawaii.
Are payday loans a good idea?
If you’re in a financial bind, a payday loan may be able to help you pay for an unexpected bill or emergency expense. Still, it’s important to remember that these are high-cost forms of credit. Before you borrow, consider these alternatives.
What are the fees and charges of a payday loan in Hawaii?
Lenders in Hawaii are permitted to charge the following fees:
- Financing fees: 15% of check value
- Collection fees: $20 non-sufficient funds (NSF) charge
- Rollover fees: None
If you find a payday lender charging higher fees that permitted by the state or asking for upfront fees before issuing the loan, the company may be trying to scam you. Read our guide on payday loan scams to protect yourself.
How can I apply for a payday loan?
Every lender will have different criteria for those who apply, but these are the basics you’ll need to meet: be at least 18 years old, a US citizen or permanent resident and have a regular source of income.
In addition, you’ll likely have to provide your Social Security number, details about yourself such as your date of birth and address, where you’re employed and how much you make, details from a valid ID and your checking account numbers.
You can apply online with most lenders, and some have store locations where you can apply in-person. Store locations have the added benefit of cash pickup, which usually means a faster turnaround. Though some may prefer a completely online process for the convenience.
New regulations may be comingAs of October 2017, the Hawaiian state government is considering a bill that would reduce the maximum APR from 459% down to 36%. This follows the regulations put in place by many other states and would help reduce consumer debt. The national spotlight is currently on payday loans, and while they are an important part of the lending sphere, the high interest rates and short terms make it nearly impossible for borrowers to pay their loans back on time.
This bill, SB 286, has failed to pass in previous years. Keep an eye out for further development.
When thinking about a payday loan, it’s important to consider how much it will cost before you borrow. The interest rates are quite high, but if you’re smart about it and know you can afford the total you’ll need to pay, borrowing might be a good idea. As always, read your loan contract thoroughly before you sign. It can be the difference between a dangerous debt cycle and a quick fix for a problem.