Compare your loan options in Rhode Island

If you’re short on cash and need a small loan, you may be thinking about a payday loan. Finding reliable payday lenders in Rhode Island can be easy as long as you know what to look for and what laws lenders should be following. This guide will tell you everything you need to know before committing to a payday loan.

What are the laws regarding payday loans in Rhode Island?

Rhode Island Statatutes Ann. 19-14.4-1 et seq. govern payday lending. Under these statutes, payday lenders are required to obtain a license before extending loans. The amount a person can borrow is also limited.

• Maximum loan amount: $500
• Loan term: 13 days or more
• Financing fees: 10% of loan amount
• APR: A 14-day $100 loan has an APR of 260%
• Collection fees: None specified

You are allowed to have three outstanding loans at any time of $500 each and are permitted one rollover per loan.

What do I need to apply for a payday loan in Rhode Island

The application process is relatively easy whether you apply in-store or online. You’ll need a valid form of ID, your Social Security number and bank account details during the process, and you’ll want to be sure you’re willing to give a few pages of personal information to a lender before approval.

Every application is different, but all payday lenders require that you have a regular source of income, are at least 18 years old and are a citizen or permanent resident of the US.

Should I consider anything else before taking out a payday loan?

Rhode Island offers programs like the Supplemental Nutrition Assistance Program (SNAP) that can help you get by between paydays. There are other credit options you may want to consider as well.

• Get a loan from a local bank or credit union. Depending on your credit, you may be able to get a small loan from a traditional source. These come with lower interest rates and better terms than a payday loan, so be sure to check before you take out a loan you may have a hard time repaying.
• Credit card cash advance. If you have a credit card, you may be able to borrow against your line of credit. While this has a similarly high interest as a payday loan, the repayment terms are longer.
• Ask friends or family for help. When all else fails, asking a friend or family for help could be what you need to afford a bill or expense. They may be more willing to lend to you than you think, you just have to remember to pay it back to avoid hurt feelings or strained relationships.

You can also check out our page on payday loan alternatives

Bottom line

If you’re thinking about taking out a payday loan to cover an unexpected bill or expense, Rhode Island law has decent regulations to help make this type of credit affordable. Use a payday loan as a short-term solution, and if if need help in the future, consider contacting a credit counselor to help work through your financial troubles.

Have any more questions about Rhode Island payday loans?

• Where can I file a complaint about a payday lender in Rhode Island?

  You should contact the Rhode Island Department of Business Regulation.

• Is there a cooling off period between payday loans?

  Rhode Island doesn’t specify a cooling off period, but it’s a good idea to wait between loans. These are high-interest products that can be costly when borrowed in quick succession.

• Does Rhode Island enforce a repayment plan?

  No. There is no state mandated repayment plan for payday loans, but you may be able to request one through your lender. The best thing you can do is try, otherwise, you are permitted one rollover.