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 South Carolina and everything else you should know about how payday advances work.
South Carolina has a few laws that restrict how much you can borrow and how much a lender can charge, but it can still be expensive. When you’re thinking of borrowing, consider the cost and your alternatives before signing a loan agreement.
Are payday loans legal in South Carolina?
Yes, payday loans are legal under South Carolina Code §§ 34-39-110 et seq., the South Carolina Deferred Presentment Services Act. In order to lend in South Carolina, a lender must obtain a separate license for each of its locations, and each license must be renewed annually.
You can borrow up to $550, and loan terms must be 31 days or less. Lenders are able to charge 15% of the principal as a financing fee, which means a 14-day $100 loan has an APR of 390% and costs $115. If you fail to repay your loan on time, your lender may charge you a non-sufficient funds (NSF) fee.
Do I qualify for a payday loan?
While every lender has different criteria for its borrowers, nearly every one will require that you meet some basic criteria:
- Regular source of income
- U.S. citizen or permanent resident
- At least 18 years old
What will I need to fill out an application?
It varies by lender, but you’re typically required to provide some basic information about yourself, including:
- Your name, date of birth, Social Security number and a valid form of ID
- Your residential address, email address and phone number
- Your employment status and income
- Your bank account details or a post-dated check
Are there other options beside payday loans?
If you’re struggling with your finances, a payday loan may not be the best solution. South Carolina has a few public assistance programs that may be able to help.
- Temporary Assistance for Needy Families (TANF)
- Supplemental Nutrition Assistance Program (SNAP)
- SC Voucher Program
- Food and Nutrition Programs
You may also want to consider a payday loan alternative if you need some short-term relief. But remember: Some options may still be expensive, so review your options carefully before making a final decision.
A payday loan may be able to provide quick money when you’re facing an emergency, but the high cost in South Carolina may make it difficult to pay back. Be sure to learn more about payday loans so you know exactly how the process works and how much you can expect to repay.
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