When you have unplanned expenses and are on a tight budget, a payday loan could be helpful. Payday loans, a type of short-term loan, give you quick access to money when you need it. Read on to find out about the laws in Utah and everything else you should know about how payday advances work.
If you’re short on cash and looking to borrow a small amount of money, you may be considering a payday loan. Payday loans have specific rules when it comes to how long you can borrow. Our guide helps you learn the ins and outs of payday lending in Utah.
How do payday loans in Utah work?
Utah Code Ann. 7-23-101 et seq., the Check Cashing Registration Act, governs the operation of all payday lenders in Utah. To provide payday loans to residents of Utah, a lender must register with the Utah Department of Financial Institutions. This rule applies to out-of-state lenders that wish to provide online payday advances in this state and in-state storefronts alike.
Utah law doesn’t specify the maximum you may borrow, but you are limited to a total loan term of ten weeks. You’ll have to read your loan contract very carefully when determining how much you’ll be required to pay because there is no limit on financing fees, charges or total APR in Utah.
Direct payday loan lenders in Utah must permit borrowers to make partial payments in increments of $5 at any time before the loan term expires at no additional charge.
You have the right to cancel a loan before 5 p.m. on the business day following when you received the loan.
Here’s what you’ll need to apply
Before you apply, you’ll need to have a regular source of income, be an American citizen or permanent resident and at least 18 years old.
If you meet those eligibility criteria, you’ll be able to apply most anywhere that lends payday loans. While all applications differ, they will require you to provide personal details about yourself, your bank account and your employment status. This can include your Social Security numbers, information from an ID and your employer’s contact information.
What are some other short-term options I could consider?
Baby Your Baby and the Home Energy Assistance Target (HEAT) Program are two assistance programs offered by the state of Utah to help with expenses. There may be others, so do your research before taking out more debt. It’s better to find help through a local program than to find yourself trapped paying for loans you can’t afford.
You may also want to ask family and friends for help, get a credit card cash advance if you can and seek credit counseling. These are cheaper ways to deal with your financial problems and can help you build better habits to avoid being stuck in debt in the future.
Our page on payday loan alternatives should help you find other options
Bottom line
When you’re stuck trying to afford regular bills and extra debt, a payday loan could be what you need to make it between paychecks. Knowing the laws in Utah and budgeting for the total cost will help you avoid further debt. Keep in mind that these are high-cost forms of credit and you should consider other options before settling on a payday loan.
Have any more questions about Utah payday loans?
How many times can I roll over a payday advance in Utah?
While Utah law doesn’t specify the number of times you can roll over a payday loan, your loan term can’t extend beyond ten weeks of the loan’s start date.
How long do I have to wait between payday loans?
Utah law requires a cooling off period of one day between payday loans.
Can I get a repayment plan if I can’t make my payment?
Yes. Once per 12-month period, you can have a repayment plan of 60 days. Lenders can’t charge you an extra fee for this, and you must pay back the outstanding amount of your loan over four equal installments.
How many loans can I have out at one time?
There is no limit to the amount of payday loans you can have at a single time.
I want to file a complaint about a Utah payday lender. Who should I contact?
You should get in touch with the Utah Department of Financial Institutions.
More guides on Finder
-
10 emergency loans for good and bad credit in 2024
Emergency payday loans can give you quick and easy access to funds. Compare your options and find a lender to help see you through.
-
Self credit builder review
Self offers rent and utility reporting, credit-building loans and more to help boost your credit score.
-
Kikoff Credit Building review
Kikoff offers several credit-building products, including a secured card with no monthly fee, no interest charges and a low minimum deposit.
-
Largest banks in the US in 2024
If the Capital One and Discover merger goes ahead, it will be the 6th biggest bank in the US.
-
Bitcoin Pizza Day
What would the 10,000 BTC spent on Bitcoin Pizza Day be worth today?
-
What is a SEP IRA and how does it work?
What you need to know about SEP IRAs and how these retirement accounts work.
-
Best home improvement loans of 2024
Learn about the top home improvement loans. Compare rates, terms and benefits from the leading lenders, plus other ways to finance your home improvements.
-
Primis Bank: Checking, savings, CDs and business banking
Primis Bank is a legitimate bank that operates mostly online and offers very competitive APYs, rewards accounts and few fees.
-
Experian Boost review: How it works
Experian Boost is a free credit-building tool that helps you build credit with rent payments, utility payments and streaming service subscriptions.
-
What is a SIMPLE IRA and how does it work?
SIMPLE IRAs can help small-business owners and their employees save for retirement with tax benefits.
Ask an Expert