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 New Hampshire and everything else you should know about how payday advances work.
When you’re facing a financial setback or crisis, you may be considering a payday loan. Fortunately, New Hampshire law protects consumers from predatory practices by capping the maximum interest rate and requiring all lenders to have a license. Read more about how payday loans work and what costs you should expect when applying.
Are payday loans legal in New Hampshire?
Yes, payday loans are legal in New Hampshire. New Hampshire Statutes Chapter 399-A:1 et seq. govern the functioning of all payday lenders. It requires payday lenders to have a license in order to operate and enforces a strict cap on interest.
- Maximum loan amount: $500
- Loan term: 7 to 30 days
- APR: 36%
- Financing fees: A 14-day $100 loan costs $1.38
New Hampshire law forbids rolling over or refinancing a loan and prohibits having more than one outstanding loan at once, and you must also wait 60 days between taking out each loan.
There are no collection fees if you default on your loan, but an outstanding balance will continue to accrue interest at an annual rate of 6%. If you wish, you may make partial payments of $50 or more with no penalty.
You can also get an installment loan in New Hampshire. As an alternative to payday loans, installment loans are another type of short-term loan that comes with longer repayment periods and less interest.
How can I apply for a New Hampshire payday loan?
In New Hampshire, you’ll need to be at least 18 years old, be a US citizen or permanent resident and have a regular source of income before you apply.
Most lenders, whether you apply online or in-person, will require you to supply some personal information to varify your idenity. This usually includes your Social Security number, home address and employment information. An online lender may also require you to give access to your checking account in order to deposit your loan and debit the payments when they are due.
Cautions to consider before taking out a payday loan
Although payday loans can be a good way to get by when you’re in a tough spot financially, they are still costly forms of credit. If you’re struggling to pay down your debt and still afford everyday bills, you might want to consider applying to some assistance programs in New Hampshire. Medicaid, Food Stamps and the Fuel Assistance Program can all help you avoid taking on extra loan debt.
Your other options include asking friends or family for help, taking out a cash advance on a credit card if you have one or applying for a loan from a local credit union.
More alternative options to short-term loans
Have more questions about payday loans in New Hampshire?
More guides on Finder
-
5 signs you’re just not a credit card person
Credit cards can do more harm than good if you’re not careful.
-
What is an ACH Business Loan?
Small businesses with insufficient credit can take advantage of ACH business loans.
-
9 ways to build emergency funds using a high-yield savings account (HYSA)
What you need to know about preparing for unexpected expenses.
-
How to roll over a 401(k) to an IRA
Key factors you should consider before rolling over your employer 401(k) to an IRA.
-
Methodology: Credit-building products
Here’s how we rate credit building accounts, covering what we look for in credit score requirements, fees, credit reporting practices, customer service APR and account features.
-
CreditStrong review
Credit Strong is a division of Austin Capital Bank and offers many credit-building loans to choose from, but they can be costly.
-
Experian Smart Money™ Digital Checking Account review
The credit bureau Experian has a free digital checking account that works with Experian Boost.
-
Is it too late to buy bitcoin?
Bitcoin’s price is hitting all-time highs. Did you miss the boat?
-
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.
Ask a Question