Thinking of getting a payday loan in Iowa? Make sure you understand their ins and outs.
Many residents of Iowa look for payday loans, also known as short term loans. This guide will help you understand how they work and help you figure out how to choose the right one.
Are payday loans legal in Iowa?
Yes, payday loans are legal in Iowa. Iowa Code Chapter 533D, referred to as the Delayed Deposit Services Licensing Act, governs the functioning of all Iowa payday lenders. Operating as a delayed deposit services business requires getting a license from the superintendent of banking in Iowa. Only operators that are physically located in Iowa can provide payday loans to residents of this state.
Iowa payday loan laws stipulate that you cannot borrow more than $500 through any payday lender at one time. You cannot repay, refinance or consolidate a payday loan using proceeds from another payday loan provided by the same lender.
A selection of payday lenders in Iowa
Check the websites of any providers you’re interested in to confirm they operate in your state of residence.
How an Iowa short term loan might help you
Here’s why you might consider taking out a payday loan:
- Bad credit is alright. If you have poor or bad credit rating, your chances of getting a loan from a bank or a conventional lender are slim. However, you can apply for a payday loan because providers of these loans pay due attention to your existing financial situation.
- Multiple options. Given the legal status of payday loans in Iowa, you have multiple options to choose from. These include lenders who have physical stores and those that operate online
- Get money quickly. If you need cash fast in Iowa, a payday loan can work in your favor. In-store applicants can receive approved funds as soon as they accept their loan contracts. If you submit an online application the money can get to your bank account within one business day.
- Use money for different purposes. What you do with the money you get through an Iowa payday loan is basically up to you. You can use the money to travel, to repair your vehicle, to pay bills or to get by after a temporary setback.
What fees and charges do Iowa payday loans come with?
State laws define the fees that payday loan companies can charge in Iowa. Here’s what your payday loan can end up costing:
- Maximum finance rate and fees. A lender can charge a $15 fee for a loan of up to $100, and $10 for each additional $100 you borrow. The maximum finance charge for a 14-day $100 loan is limited to $16.67. The maximum APR for a 14-day $100 loan is 433%.
- Collection fees. A lender can charge one NSF fee of $15.
- Rollover fees. Under Iowa law you cannot roll over a payday loan, so rollover fees are irrelevant.
How can I apply for an Iowa payday loan?
Cash advance companies in Iowa let you apply in-store as well as online. To apply, you’ll have to meet some eligibility criteria, which include:
- 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 Iowa payday loans?
How much time do I get to repay a payday loan in Iowa?
The maximum loan term of payday loans in Iowa is 31 days.
How many outstanding payday loans can I have at the same time?
You can have up to two payday loans concurrently.
Who should I contact to file a complaint about a payday lender in Iowa?
You should get in touch with the Iowa Division of Banking.