Thinking about applying for a payday loan in Vermont? Here’s the information you need.
Being short on cash and needing to borrow a small amount of money may have you looking into payday loans, also referred to as cash advances or short term loans. This guide covers what you need to know about payday lending in Vermont.
Are payday loans legal in Vermont?
No, they’re not. Vermont Statutes Annotated Title 9-41a applies on all providers of small loans in this state. The reason payday lending is illegal in Vermont is because of the high interest these loans attract.
The Vermont small loan act states that lenders cannot charge more than 18% per annum interest. Since payday lenders charge noticeably higher interest than this, lending in Vermont does not appear viable for them. Some lenders make use of loopholes in Vermont payday loans laws to provide online payday loans in this state. However, the state is taking steps to prevent this from happening.
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. Go through this guide to find out about your alternatives.
Installment loans you can apply for
An installment loan requires that you repay the money you borrow in installments over a predetermined timeframe. Some lenders offer these loans to applicants with less-than-perfect credit, provided they can demonstrate an ability to repay. Similar to payday loans, the interest is very high and there are some risks you should consider when applying.
What other options do you have for a loan in Vermont?
While getting Vermont payday loans legally is not really an option, you have other alternatives from which to choose. These include:
- Apply for a credit card. Whether you have good or bad creditworthiness, 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.
- Tribal loans. If you live in a state like New York where payday loans are illegal, you still have the option of getting one if you go through a tribal lender like Blue Trust Loans. Since these lenders are based on tribal land, they are considered a sovereign entity and are able to abide by their own laws.
- Payday loans from other states. If you’re in Vermont temporarily but are normally a resident of a state where payday loans are legal, you can consider applying 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 OLA 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.
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What costs can I expect with a loan in Vermont?
When you get any kind of credit in Vermont, you have to repay the money you borrow along with associated costs. These come in the form of interest, fees and charges. The kind of credit you get affects the interest you have to pay. For example, a personal loan will usually attract lower interest than a credit card cash advance. Other factors that can affect the interest rate you get include your credit rating, the amount you wish to borrow, the loan term you desire and the lender you choose.
Most types of credit will also attract fees. These can include application fees, disbursement fees, settlement fees, prepayment fees, and late payment charges. Going through a loan contract should give you a clear indication of all applicable fees at the very onset. If you find the fees unacceptable, you don’t have to accept a contract.
Have any more questions about Vermont payday loans?
I’m a resident of Ohio who lives in Vermont temporarily. Can I apply for an Ohio payday loan online?
If you can provide acceptable documents that show you to be a resident of Ohio, you can apply for an Ohio payday loan online.
What information do I have to provide to apply for a personal loan in Vermont?
You’ll have to submit your name, contact details, information about your employment as well as details about your income and expenses.
Who should I contact to file a complaint about a payday lender in Vermont?
You should get in touch with the Vermont Banking Division.
Can I get an auto title loan in Vermont?
No, you can not. Due to the high interest rates and the frequency of borrowers defaulting on their loans, title loans are illegal in Vermont and many other states.
Where are payday loans available?
