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 North Dakota and everything else you should know about how payday advances work.
If you’re facing an emergency, you may have been thinking about visiting a payday loan store or website to take out a loan. Before you do, learn about the costs of a loan and alternative options available to.
How do payday loans in North Dakota work?
The North Dakota Century Code 13-08-01 et seq. governs payday lending. It requires lenders to be licensed and follow specific guidelines when financing loans.
- Maximum loan amount: $500
- Loan term: 60 days or less
- APR: A 14-day $100 loan has an APR of 520%
You may have any number of outstanding loans at once, but the total must not be more than $600. If you default, you are allowed to renew the loan once, but there is no specified repayment plan put in place by law.
What sort of fees will I have to pay?
North Dakota law outlines the fees you will have to pay for taking out a loan and the possible additional fees you may have to pay if you’re late making a payment.
- Financing fees: 20% of loan amount + a databasing fee
- Collection fees: $20 non-sufficient funds (NSF) fee
- Rollover fees: 20% of the remaining loan amount
- Finance charge: A 14-day $100 loan costs $120
How does the application process work?
All payday lenders will require that you be at least 18 years old, an American citizen or permanent resident and have a regular source of income before you apply. In addition, there will be some basic questions you’ll have to answer. These include information about your employment, your contact details and personal identification details like your ID and Social Security number.
Should I consider anything else before taking out a payday loan?
It can be difficult to pay for an emergency like a broken car or unexpected bill, and a payday loan might seem like a quick way to get through a tough time. However, because these are so expensive, you should use them as a last resort. Instead, consider some of the other options available to you in North Dakota.
There are assistance programs like Temporary Assistance for Needy Families (TANF) and Low Income Home Energy Assistance Program
that can help you with your daily bills. You may also want to look into an installment loan or a debt consolidation loan if you need more time to pay back what you owe.
Explore payday loan alternatives available in North Dakota
A payday loan can be a quick way to make it between checks, especially if you have limited income and are facing some big bills. There are decent laws in place to help protect you as a consumer from being charged too much. Remember that you should read over your loan contract before your sign to know the cost of the loan before you borrow.
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