Know the costs of taking out a payday loan and what alternative options are available.
If you’re facing a tough financial situation, you might be considering taking out a payday loan. Find out what you need to know before you apply — including local laws and fees to expect.
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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: Direct deposit, meet minimum income requirements
Are payday loans legal in Nebraska?
Yes. Payday loans are legal in Nebraska and governed by Nebraska Statutes Annotated §§ 45-901, defined as the Delayed Deposit Services Licensing Act. These laws state you may have no more than two loans taken out at a time and limit the amount of fees a lender can charge.
The maximum you can borrow is $500.
More regulations being considered
Early in 2017, some senators of Nebraska were considering limiting the total APR to 36% like many other states, but it failed to be written into law. However, as more states adopt payday lending regulations, it’s quite likely some lawmakers in Nebraska will attempt to enact similar laws in the coming years. These consumer protections are meant to help the borrower avoid a nasty cycle of debt. Keep an eye out to see what happens.Compare short-term loans available in Nebraska
What fees and charges do Nebraskan payday loans come with?
When you borrow a payday loan, you’ll be expected to pay a financing fee. If you miss a payment or default, lenders can charge you extra. The list below is a simple breakdown of all the potential costs of a loan.
- Financing fees: $15 per $100 borrowed
- Financing charge: A 14-day $100 loan costs $117.65
- APR: A 14-day $100 loan has an APR of 459%
- Collection fees: A lender may charge a $15 non-sufficient funds (NSF) fee
How can I apply for a payday loan in Nebraska?
When you apply, whether it’s online or in-store, you’ll need to give your lender some basic information about yourself. This generally includes your name, address, a way of contacting you, details about your income and your Social Security number. In addition, if you apply online, a lender will likely want access to your checking account in order to deposit your loan funds and then debit your payment when it’s due.
Before you apply, you should be at least 18 years old, an American citizen or permanent resident and have a regular source of income.
What should I consider before taking out a loan?
Before you take out a payday loan, you should be sure to check out all your other options. There are assistance programs available in Nebraska if you’re in need of a little extra help paying for everyday costs. These include the Emergency Cash Assistance Program, Supplemental Nutrition Assistance Program (SNAP) and the Nebraska Low Income Energy Assistance Program.
You might also want to consider other options like getting a loan from a credit union or finding an online installment loan. These give you more time to pay back your debt and generally have slightly better interest rates.
More payday loan alternatives in Nebraska
Bottom line
If you’re a looking into a payday loan, be sure you have enough to pay back the principal and interest. These can be a suitable way to recover from an expensive financial situation, but don’t forget to consider your other options before you apply.