Nearly everyone faces unexpected expenses and financial emergencies. Online loans can save the day when you've exhausted all your options and are at the end of your rope. But if you live in Utah, lenders are subject to the Utah Consumer Credit Code.
That means lenders must follow fair lending practices and state regulations, including implementing loan qualification standards. But consumers like you need to know where they can get fast loan approvals and funds for emergencies.
Fortunately, several options exist for Utah residents. These include payday loans, installment loans, and credit card cash advances. Let's examine each of these and more.
If you're unfamiliar with payday loans, they're mostly what they sound like. A payday loan gives you enough money to tide you until your next paycheck. You may be one of the millions of Americans who live paycheck to paycheck.
That often means your check is spent before you get it. You've already got bills in waiting once payday comes along. An unexpected utility bill or emergency medical expense leaves you coming up short. Where are you going to get the money to cover it in time?
A payday loan lets you borrow smaller amounts as long as you can verify your identity and income. In addition, you don't necessarily have to have a good credit score. However, borrowing costs can be higher because good credit isn't a requirement.
Nonetheless, online payday loans are there if you have nowhere else to turn and need a few hundred or a few thousand dollars until payday. You can go through online payday loan networks that match you with lenders. Or you can go directly to payday lenders.
Before you apply for an online payday loan, be sure to check out the lender. You want to ensure the state of Utah regulates the lender. At the very least, the company should follow U.S. federal lending regulations and requirements.
Second, you'll need to meet the approval stipulations the lender lists on its website and online application form. Typically, you'll need to provide proof of legal U.S. citizenship or residency, have a checking account, and proof of regular income.
Most people can qualify with a copy of their Utah driver's license or U.S. passport, a checking account statement, or a pay stub. However, you should also read the fine print of what you're signing. This includes borrowing costs, repayment terms, and any applicable fees.
Depending on the lender, you could deposit your funds in your checking account in as little as a day. However, some companies take two to three business days to wire the funds. That said, payday loans are meant to be short-term and paid back when you get your next check.
Online installment loans offer the convenience of payday loans, but they're not necessarily short-term. Installment loans in Utah from lenders like Simple Fast Loans give you more flexibility. For example, you can apply for a small loan of less than $500.
Or, you can apply for up to $3,000 if you're facing a more serious emergency. You can also choose a more extended repayment period if you need to. Some installment loan companies let you borrow more than $3,000. However, the requirements for installment loans are stricter.
You'll still need to provide proof of state or U.S. residency and income. You may also need to show you have a checking or deposit account so the lender can send your loan funds. Furthermore, an installment lender will pull your credit and examine your credit score.
A poor credit score won't necessarily disqualify you from getting approved. But it can impact the following:
Yet, many installment lenders will work with borrowers with less than stellar credit. You'll be in good shape if the loan conditions and lending practices meet Utah's lending guidelines.
Taking out a cash advance can help pay for emergencies for people with major credit cards. Examples of urgent expenses include:
Credit card cash advances are relatively easy to get. There isn't a separate application or approval process since you already have the card and a limit. However, your cash advance limit is smaller than your overall limit.
The costs of borrowing are also different with credit card cash advances. They're not the same as using the card to charge or pay for purchases. You can get a cash advance by withdrawing money from an ATM or writing a check up to your limit.
Financial experts recommend using cash advances if you don't have the option to charge or pay using your card. For example, most utility companies will let you pay with a credit card. Many hospitals and medical facilities will let you do the same. However, your mortgage won't.
Credit unions may offer payday loan alternatives. These are short-term loans for members that usually involve application fees. You can generally borrow anywhere between a few hundred dollars to $1,000 or $2,000.
Unlike payday loans, you may have up to a year to pay them back. Therefore, you can spread out the cost of borrowing and not have to use most of your next paycheck. In addition, credit unions may offer additional benefits you won't get with payday lenders.
These benefits include financial counseling and payday loan alternatives for people who want to rebuild or establish credit. In addition, if you demonstrate responsible behavior, you can qualify for more conventional loans in the future.
Getting an online loan in Utah is possible with payday and installment loans. You can also get a credit card advance or an alternative payday loan from a credit union. All lenders in Utah should comply with federal and state lending regulations.
However, you should verify that a lender is regulated and their loan requirements before you apply. Stipulations and loan terms can vary.