A payday loan can help you in a rough spot, but you’ll want to make sure your lender is legit
When you get an expensive bill or a sudden car repair, you might be thinking of taking out a payday loan. The laws in Mississippi help protect consumers from predatory lending practices, so it’s best to know how the regulations work before you borrow.
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- Min. Loan Amount: $500
- Max. Loan Amount: $5,000
- Turnaround Time: 1 business day
- Loan Term: 9 to 36 months
- Requirements: Must have direct deposit and meet minimum income requirements
What does a payday loan in Mississippi involve?
Payday loans in Mississippi are governed by Mississippi Code Ann. 75-67-501 et seq. Referred to as delayed-deposit transactions, you can either take out a payday loan or cash a check/money order.
- Maximum loan: $500, including all charges and fees
- Loan term, $250 or less: 30 days
- Loan term, $250 to $500: 28 to 30 days
- APR: The APR on a 14-day $100 is 520%
Where should I go if I want to borrow a payday loan?
Check the websites of any providers you’re interested in to confirm they operate in Mississippi.
What will a payday loan cost?
The fees you’ll have to pay vary depending on how much you choose to borrow.
- Financing fee for under $250: $20 per $100
- Financing fee for $250 to $500: $21.95 per $100
- Collection fees: Lenders may charge a $30 non-sufficient funds (NSF) fee
In addition to making loans, Mississippi law also allows payday lenders to provide check cashing services.
- Checks issued by the federal or state government: $5 or 3% of the check value, whichever is greater
- Personal checks: $5 or 10% of the check value, whichever is greater
- Money orders: $5 or 5% of the check value, whichever is greater
Remember that payday loans have high interest rates and fees, so you should be prepared to pay for the total cost of the loan, that’s the amount you borrow and the interest, before you apply.
How does the application process work?
Applying for a payday loan is simple as long as you have all your information ready. You’ll need to be at least 18 years old, be a citizen or permanent resident of the US and have a regular source of income. Lenders will likely require the following information:
- Personal details (your name, address, email, phone number and Social Security number)
- Banking details (your account number and routing number)
- Employment details (where you work, how long you’ve been employed and your income)
What else should I consider?
Before you take out a payday loan, it can be a good idea to look at all your other options. Mississippi has multiple prorams in place to help people struggling with low income, such as the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF). These can help you with your everyday expenses while you work on paying down your debt, instead of taking out a payday loan which has the potential of increasing you debt.
You can also visit our page and check out other loan options
Bottom line
When you’re in need, a payday loan can be the extra help you need. Because these loans are very costly and many people default, you should always know how much the total loan will cost and prepare for extra fees.
