Colorado Payday Loans

Those who live in the state of Colorado may sometimes find themselves in situations where they need to get extra cash. If your savings are low and you are in between paychecks and in need of money, you may find that Colorado payday loans offer a quick solution to what could be a big problem. It’s important to realize, however, that payday loans do carry a degree of risk and when not used properly can lead to financial distress. They are best used on a one time basis when you are 100% positive you can afford to repay the loan with the required fees and interest rates. Those who find themselves in a trap where they borrow one payday loan to repay another (rollover), and continually make these loans quickly find themselves in a tight situation. As many consumers nationwide have encountered past difficulty with payday loans, the state of Colorado has enacted several rules in order to help protect citizens.

Colorado payday loans are legal in the state and you may borrow up to $500 and the loan may only be given for a maximum of forty days. In order to help reduce the amount of risk involved with payday loans, Colorado residents may only take out one payday loan at a time. To prevent the amount of rollovers, Colorado residents are limited to taking out one rollover loan to pay off another loan. Another area where Colorado has enacted laws to protect consumers from the dangers of payday loans is in interest rates. Colorado residents will find that interest rates for payday loans have maximum limits on interest rates. There are also limits put in place on interest rates. Colorado has determined that the maximum interest rate for the first $300.00 is 20% and 7.5% more on loans $300.00 or more. Those who take out a $100.00 loan for two weeks (14 days) may face an additional finance charge of $20.00. The annual percentage rate can be up to 520%.

Many consumers are drawn to payday loans as these lending agreements don’t require credit checks. Those with poor credit or a history of bankruptcies and foreclosures may qualify easily for Colorado payday loans. Often, all one needs to qualify for these loans is proof of a paycheck and the finances to secure the loan. Make certain that the lender is licensed to operate in the state and is registered before entering a contract with them. Also, lenders should be upfront and readily reveal all rates and fees to potential borrowers. Check within the building as these rates should be clearly visible and shouldn’t be kept secret. When comparing various Colorado payday loans you may want to consider checking different companies and check their reputations with the Better Business Bureau. Look for past records of complaints by consumers and see how the company resolved them. Choose a payday loan lender that has a good history with the BBB and doesn’t have a history of unresolved issues or complaints from consumers.

Payday loans may be referred to by many other names including check advance or cash advance. Because these loans are quick to receive, they remain one of the most popular lending forms for those in need of money. Most Colorado payday loans are approved with the funds transferred within 24 hours. It’s important to understand that though payday loans can be risky business, they can be very beneficial to those who use them wisely. Those who use payday loans should consider them as a last resort and after the loan has been successfully repaid, the borrower should concentrate on establishing a savings account upon which to fall upon during times between paychecks. If you don’t have the funds readily available and know that you can repay the loan with interest without facing further financial setback, then consider Colorado payday loans.

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