Thinking about applying for a payday loan in North Carolina? Check this guide first.
While payday loans are often advertised as a good backup in case of emergency, if you’re a resident of North Carolina, you should consider other options.
Check out this guide to payday lending in North Carolina.
Are payday loans legal in North Carolina?
Payday loans are illegal in the state of North Carolina.
The North Carolina General Statutes 53-281 and the North Carolina Consumer Finance Act (N.C. Gen. Stat. 53-173) govern check cashing businesses and prohibit payday lending. Payday loans have been illegal in North Carolina since 2001, but more recent amendments make it nearly impossible for payday lenders to find loopholes.
All cash advance lenders in North Carolina who previously operated have either ceased business or have started complying with the required small loan interest cap of 36% APR.
Keep in mind that if you choose to apply for any kind of loan or line of credit, it’s very important read all the paperwork (including all the fine print) before signing.
Installment loans you can apply for
You can find lenders who provide installment loans to applicants who have poor or bad credit, provided they can demonstrate an ability to repay. Just remember that the interest on these loans is high so you will face similar risks as you would with a payday loan.
What other options do I have if I need extra cash in North Carolina?
You might not be able to get a payday loan in North Carolina, but there are other channels to go down.
- Tribal loans. You have the option of getting a payday loan if you go through a tribal lender like SWIFT or Blue Trust Loans. Since these lenders are based on tribal land, they are considered a sovereign entity and are able to give loans despite the laws of your state.
- Apply for a credit card. Whether you have good or bad credit, there is a huge selection of credit cards worth considering if you need extra money. Credit cards also have more reasonable payments and lower interest rates.
- Payday loans from other states. If you’re in North Carolina temporarily but are normally a resident of a state where payday loans are legal, you can apply for an online payday loan. To do this you’ll have to provide documented evidence of your residence in another state. Also make sure the lender is backed by the Online Lenders Alliance or similar.
- Pick up side work. Looking for side jobs, selling things online with a provider like eBay or LetGo, or signing up to drive with a company like Uber are some of the many ways people get extra cash when they’re in a bind. It’s a great alternative to getting a loan or credit card because there is nothing to repay.
What are the typical costs of a loan in North Carolina?
When you take a loan in North Carolina, you’ll have to pay the principal amount along with interest.
You may have to pay additional fees in different circumstances. If you don’t make a payment on time you may have to pay a late charge. If a check does not go through because of insufficient funds in your account, your lender may charge a non-sufficient funds (NSF) fee. Some lenders can also charge application fees and loan disbursement fees, and they might even charge you if you choose to repay your loan amount early.
Where are payday loans available?
Compare payday loans in your state
Have any more questions about North Carolina payday loans?
I’m in North Carolina temporarily but a resident of a state where payday loans are legal. Can I still apply?
Yes, but remember that your approval depends on your eligibility.
Why are payday loans illegal in North Carolina?
The high APR these loans come with and the high fees borrowers have to pay are some of the reasons payday loans are illegal.
I’ve come across an online lender who is willing to give me an payday loan in North Carolina. Is this legal?
No, it is not. Out-of-state lenders cannot legally provide payday loans to residents of North Carolina unless they are a tribal lender.
Who can I contact to file a complaint or report an irregularity about lenders in North Carolina?
You should contact the office of the North Carolina Attorney General or the Commissioner of Banks.
Are auto title loans legal in North Carolina?
No, they aren’t. This is due to the high interest rates and the frequency of borrowers defaulting on their loans.