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Considering Pennsylvania Payday Loans, Do It Well Informed

Pennsylvania State Map
Pennsylvania State Map

When in the market for Pennsylvania Payday loans there are a few points that you should be aware of. Pennsylvania does not have specific payday loan safe-harbor legislation. What this means in effect is that your payday loan agreement with the deferred deposit provider (i.e. payday loan company) will be based entirely upon what you and the lender agree upon. This can be a good news or bad news situation for you depending upon how you approach the matter and how much work you are willing to put into the effort of finding a suitable lender to provide you with a payday loan.

The more enlightened you are about your true cash worthiness (what you can really afford) the better you are going to fair at this endeavor. If you are seeking a payday loan because the big game is coming up and you wish to have the latest and greatest television with all of the bells and whistles on it, dude you are already jacked. It is just a matter of time before a lender hooks you and causer you to pay 10 times for that television. Now this may sound farfetched to some but there are people in the world so into instant gratification that they are willing to deal with these consequences. Subsequently these are the people that mess things up for the rest of us that occasionally like to utilize the services of a payday lender, and ours is a great experience because we are borrowing money on a really need it (last resort) basis, and therefore we are probably responsible enough to do the proper thing with our cash flow and pay back the loan in a timely manner if not before time.

Pennsylvania State Flag
Pennsylvania State Flag

Because of the nonexistent laws in the state of Pennsylvania governing the Pennsylvania payday loan industry, your loan can be as large as you can convince a lender to make it for you. Because of this you also run the risk of borrowing more money than you can actually afford to pay back. The rule of thumb is that you should never borrow more money than you are able to comfortably pay back in 30 days or less from a payday loan provider. You will probably receive a much better rate of interest by keeping your loan conservative but in the realm of your financial reality, rather than maxing it out just because you can. Please remember no matter how much money you borrowed it is just that “borrowed,” is not your money you are just using it for a moment and you are paying for the privilege to do so. So when considering payday loans certain that is a genuine need or financial emergency; and by the way going away for the weekend with your best buds does not constitute a genuine financial emergency.

As I previously stated, in the state of Pennsylvania is no limit to the amount of money that you can borrow from a lender. Because of usury laws is the maximum fees they can be charged on $100 is $9.50. There is also an additional $1.50 for every $50.00 not to exceed $150.00. Yes you can roll over the principal amount of your loan according to your own personal situation; you are allowed to have multiple outstanding payday loans simultaneously. Has there are no laws governing the loans in this state, the state itself does not offer any borrower protection, and you will be required to pay the full amount at the end of the loan period.

Pennsylvania payday loans
Pennsylvania payday loans
In light of the circumstances of the state’s lack of laws in this matter, it would behoove you to go the extra mile while shopping for a loan and do some intelligent comparison shopping before you make a decision on what you will take. Some of the things that you need to compare are:

  • the APR;
  • the finance charge (or the interest rate charged);
  • the minimum loan amount;
  • the maximum loan amount;
  • the length of the loan;
  • if your credit file is checked;
  • if you need to fax in documents;
  • if the loan is transferred to your bank account same day;
  • any additional charges

For the record any additional cost and the finance charges should be bundled all together, and this is what is commonly referred to as the Annual Percentage Rate. So why not just look at that rate, the APR? Well, the problem with APR is that lenders have to display the typical rate they charge customers, or the rate they charge the majority of their customers. But this does not necessarily mean it will be the rate applied to you! You might be in the minority of people that have to pay a higher charge. So you can initially look at the Typical APR figure but please, also compare the finance charge and the additional charges. Watch out for other charges that you may not have thought about such as transfer fees for same day cash transfers which you have acquired your loan. Some lenders do not charge for a same day transfer as it may be the only way they send you the money. Other lenders may charge you a fee for a same day transfer but then also give you the option of receiving the loan money over 2 or 3 working days but at no extra cost, i.e. for free!

Senior actual APR for the first time can be a hair raising experience for the uninitiated, and in some cases it is generally hair raising. To be balanced about the situation, or short term loan industry, APR is an inferior way to gauge expense of such finance. The primary problem with a short term loan is that the lender still must pay all of the original processing cost that it would do for loans with a longer expiration date, and then must turn around in charge you this amount on short dated small-amount loans. So when considering Pennsylvania payday loans, make certain that you take everything in proper perspective.