Wondering if you can get a payday loan in Pennsylvania? Here’s the information you need to know.
You may be considering a payday loan if you’re short on cash and looking to borrow a small amount of money. This guide will take you through the ins and outs of payday lending in Pennsylvania.
Are payday loans legal in Pennsylvania?
Payday loans, also referred to as cash advances and short term loans, are not legal in Pennsylvania.
63 Penn Statutes Ann. § 2325 specifically prohibits check cashing services from offering payday loans. Lending is regulated by the Consumer Discount Company Act, 7 Pa. Cons. Stat. §§ 6201 et seq.
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 anything. It’s also a good idea to have a solid plan to pay back your loan, so you don’t find yourself needing to borrow more money to repay debt.
Even though you can’t get a payday loan in Pennsylvania, there are still ways you can obtain funding when you need it.
Installment loans you can apply for
If you have poor credit you can consider getting an installment loan. Providers of these loans look at more than just your credit history. They take your existing financial situation and your ability to repay into account as well. Similar to payday loans, the interest is very high and there are still risks.
What other options do you have for a loan in Pennsylvania?
While you can’t get a Pennsylvania payday loan, there are other ways to get money.
- 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 New York 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 Pennsylvania?
Getting credit requires that you repay the money you borrow along with interest and any applicable fees. The interest you have to pay varies significantly depending on the type of credit you seek, the lender you choose, your credit rating, the amount you wish to borrow and the loan term.
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.
Have any more questions about Pennsylvania loans?
I’m in Pennsylvania 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 Pennsylvania?
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 Pennsylvania. Is this legal?
No, it is not. Out-of-state lenders cannot legally provide payday loans to residents of Pennsylvania unless they are a tribal lender.
Is there anyone I can get in touch with to file a complaint about a payday loan lender in Pennsylvania?
You should contact the Pennsylvania Department of Banking.
Can I get an auto title loan in Pennsylvania?
No you cannot. Like payday loans, title loans are illegal in PA due to the high interest rates.