Online payday loans Colorado are very popular amongst consumers in need of instant cash. It is also a popular option for people who have bad credit and are still looking out for a loan. Payday lenders simply lend a small amount of cash to the borrower for a small period of time. However, the costs linked to these loans are very high. The interest rates and other fees involved usually make you pay a lot more than you initially borrowed. Considering these factors financial experts advise against payday loans. Payday loans are also regulated by state authorities with all states defining their own sets of rules and regulations.
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Short-term loans are legal in this state, however, they must be low-cost loans. They are regulated by the citation “Colo. Rev. Stat. 5-3.1-101 et seq.”. The rules described in this citation are as follows:
- Loan amount – Maximum loan amount can be $500 and no minimum limit.
- Tenure – The minimum loan term must be for 6 months.
- Finance rates and fees – A maximum interest rate of 20%. This is further divided in slabs such as $0-$300 charges a 7.5% interest rate; $300-$500 charges a 45% yearly interest rate. Along with this, a monthly fee for maintenance may be charged, which is defined at $7.5 for every $100 borrowed up to $30. Based on above information a 14 day $100 loan is not applicable.
- Borrower check – Basic checks on borrower like age limit, government ID, a source of income. These checks may vary from lender to lender.
- The Number of loans – The total amount borrowed by a consumer cannot exceed $500. You can borrow any number of loans as far as this condition is fulfilled.
- The Number of rollovers – A borrower is only allowed to renew their loan once. The charge of this renewal will be 45% interest.
- Repayment plan – No specific regulation is defined for the repayment plan.
- Non-Sufficient Funds – If a consumer does not have sufficient funds in their account, the lender may charge a onetime $25 collection charge and other costs related to courts and attorneys. However, here the lender cannot charge fees exceeding the loan amount. No criminal action is allowed on the borrower unless they close their account before the due date of the loan.
Payday loans have a positive and a negative side to them. When a sudden cash shortage falls on you, they can bail you out of a tough situation. However, with the high costs involved with them, you may get trapped in a financial cycle which may be difficult to climb out of. Keeping these things in mind, when you decide to take this loan make sure you check all the details in the documentation provided by the lender. If any lender is not complying with the state rules and regulations you can complain to the Colorado Office of the Attorney General.
You can find many payday lenders available for you with a simple search on the internet. Below listed are few of the online lenders available to you:
- Check into cash
- Ace cash express
- Bad Credit Loans
Select a lender based on your financial needs.