Women store – Soutiens http://soutiens.org/ Fri, 12 Nov 2021 02:47:26 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://soutiens.org/wp-content/uploads/2021/11/profile-120x120.png Women store – Soutiens http://soutiens.org/ 32 32 Payday Loans No Credit Check: Are They Worth It or Should You Look Elsewhere? https://soutiens.org/payday-loans-no-credit-check-are-they-worth-it-or-should-you-look-elsewhere/ https://soutiens.org/payday-loans-no-credit-check-are-they-worth-it-or-should-you-look-elsewhere/#respond Fri, 12 Nov 2021 02:43:26 +0000 https://soutiens.org/?p=174 Taking out an installment loan or a no-credit-check loan as a last resort if you have low credit and need money to pay an unexpected payment is an option you should consider if you need money right now. No credit check online loans could be a quick and convenient option to obtain the funds you […]]]>

Taking out an installment loan or a no-credit-check loan as a last resort if you have low credit and need money to pay an unexpected payment is an option you should consider if you need money right now. No credit check online loans could be a quick and convenient option to obtain the funds you desire. They may even be able to assist you in rebuilding your credit if they are used correctly. A woman with a laptop is contemplating taking out a payday loan to cover her financial obligations.

Consider your options carefully before signing anything, especially if you’re considering a payday loan with no credit check. Before you sign anything, make certain that you understand what you’re getting yourself into before you sign anything. Read more about payday loans no credit check at https://oakparkfinancial.com/payday-loans-no-credit-check/.

What Exactly Is a Loan With No Credit Check?

A FICO score of 620 or lower is considered to be below average, making it difficult to qualify for many traditional payday loan programs. For a variety of lending choices, a credit check is not necessary. The repayment duration for these loans is typically between 15 and 30 days. When borrowing money, interest rates might reach as high as 400 percent, so proceed with caution.

The following types of loans do not require a credit check:

  • Loans for a short period of time
  • Loans made on the basis of a borrower’s creditworthiness
  • These forms of loans do not necessitate the use of credit checks.

Learn more about no credit check loans in order to determine whether or not they are a good fit for your financial situation.

Without a Credit Check, You Can Get a Payday Loan

Payday loans are divided into two categories: those that require you to submit a check for the loan amount plus a charge, and those that do not require you to do so. In order to retrieve your uncashed check back, you must return the money to the lender on your next payday or within a certain amount of time after you have received it. Failure to return the money before the due date will result in a cashing of your check, and you will be subject to a fee. In the end, you’ll end yourself paying a lot of fees, so hunt for an alternative to a payday loan before you take one out.

Loans based on the resale value of a vehicle are a type of loan.

A title loan is secured by the owner’s car title, which serves as collateral. It is still necessary to make payments on loans taken out from financial institutions such as banks and credit unions within 15 to 30 days. If you do not pay back the loan on time, you may lose your car.

Loans with no credit check can be obtained on the internet.

Payments on an online installment loan must be made on a monthly or weekly basis until the loan is completely paid off. It is possible that you will just have to pay interest on your loan, with a final payment covering the remainder of the period.

No-Credit-Check There are various advantages to taking out a payday loan.

No-credit-check loans are one of the greatest solutions because they do not require a credit check and can be finished in a matter of minutes or hours. This is because the organization does not do a credit check. Only a valid ID and proof of income are required in order to submit an application. When people find themselves in a tight financial situation and have exhausted all other choices, they turn to these loans for help.

Aspects of payday loans without a credit check that are disadvantageous

One of the drawbacks of this form of loan is that the interest rate is somewhat higher. Using a credit card or a payday loan to borrow money might result in interest rates as high as 400 percent annual percentage rate (APR), which is a huge increase.

People may become locked in a loop of relying on payday loans because they need to use them to fund the bills for the following month and because the entire amount is due at the beginning of each pay period, they may find themselves in this situation. Online loans with no credit check have minimal monthly interest payments, with a huge balloon payment due at the conclusion of the loan term. After being unable to return the debt, the borrower may seek another loan, which will allow them to keep repeating the cycle.

When compared to other loan options, a no-credit-check loan can be much more expensive than the alternatives. Assume you take out a $3,500 loan over two years with an amortization schedule computed according to the standard manner. There are three loan alternatives available: A, B, and C, all of which are supplied by lenders who take the borrower’s credit history into consideration.

Loans made without the need for a credit check

It may seem as if no credit check loans are the best choice when you are in a bind, but they should be avoided if you need to borrow money on a consistent basis. Take a look at the following choices.

Installment Loan for Individuals

A personal installment loan without a credit check is accessible through your bank or online, depending on your preference. The interest rates on personal installment loans are lower than those on payday loans, even if you have poor credit.

Loans from family and friends for personal expenses

Friends and family members may also be prepared to lend you money if they know you well enough. Make sure you have the financial means to repay the money you borrowed from a loved one in order to prevent putting them in financial danger and harming the relationship.

Credit cards are accepted for payment.

It is possible to save one’s life by using a credit card during a financial emergency. If you use a credit card, you may be able to save money on interest and spread payments out over a more extended period of time.

Advance payments are accepted.

In some cases, setting up a payment plan before taking out a loan may be possible. It may be possible to avoid taking out a payday loan by negotiating a payment plan with certain businesses and medical facilities.

That’s all there is to it!

In the event that you decide to take out an online installment loan, compare interest rates from various lenders. A credit check loan is easier to repay and has a higher chance of resulting in a financial gain than a loan that does not involve credit verification. You might want to consider setting aside money each month for an emergency fund, as well as making a budget to help you better control your spending and stay away from overspending.

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Before getting a credit card cash advance, read the fine print https://soutiens.org/before-getting-a-credit-card-cash-advance-read-the-fine-print/ https://soutiens.org/before-getting-a-credit-card-cash-advance-read-the-fine-print/#respond Tue, 09 Nov 2021 17:34:00 +0000 https://soutiens.org/before-getting-a-credit-card-cash-advance-read-the-fine-print/ SAN JOSE, California, November 9, 2021 / PRNewswire / – Being able to use your credit card to get cash can seem pretty handy. And this can be especially the case if you have an upcoming expense that cannot be paid for with a card. However, it is important to understand that credit card cash […]]]>

SAN JOSE, California, November 9, 2021 / PRNewswire / – Being able to use your credit card to get cash can seem pretty handy. And this can be especially the case if you have an upcoming expense that cannot be paid for with a card.

However, it is important to understand that credit card cash advances work differently from regular purchases on a credit card. credit card. In fact, a cash advance can be one of the more expensive ways to access emergency funds.

How does a credit card cash advance work? And are there any situations where a cash advance could make financial sense? Let’s take a look at their potential risks and benefits below, from myFICO.

For more information on loans and credit, visit the myFICO blog at https://www.myfico.com/credit-education/blog

What is a credit card cash advance?

Let’s say you come home from work one day and notice that your air conditioning isn’t working. You call a local repairer who quickly identifies the problem as a relatively minor issue that can be resolved to $ 300. You are relieved that you do not have to replace your entire air conditioning unit. But to your dismay, the repairman informs you that he only accepts payments in cash or by check.

You do not currently have $ 300 available on your checking account, and it will take you three more days before you receive your next paycheck. You planned to use your credit card to pay for the repair because your current balance is well below your credit limit. But unlike most debit cards, credit cards do not provide access to cash. Or are they doing it?

You call your credit card company, explain the situation, and the customer service representative tells you he has good news. Your credit card has a “convenient” cash advance feature. You can simply go to your bank or a supported ATM near you and use your credit card to withdraw cash. It’s that simple!

It turns out that many credit cards to do allow you to borrow cash without affecting your credit limit in this way. But the price you pay for that added convenience can be a tough pill to swallow. Let’s take a look at some of the fine print that you’ll need to pay attention to before you decide to take out a credit card cash advance.

What Fine Print Cash Advance Should You Read?

A credit card cash advance will almost always be more expensive than using your card to spend the same amount in-store or online. One of the reasons for this is that cash advances usually start earning interest immediately while interest charges are generally not reflected in purchase transactions until after a grace period.

But exactly How many you pay for a cash advance by credit card varies depending on the fine print of the specific credit card you own. Here are the top three factors that can affect the cost of cash advances:

  • Interest rate (APR): In most cases, the APR of a cash advance will be higher than the standard APR of your card.
  • Cash advance fees: Most credit card issuers charge transaction fees on cash advances. These fees can be a percentage of the amount advanced, often ranging from 3% to 5%. Or it can be a package deal, often between $ 5$ 10. Yet other cards use a combination of these two fee structures. For example, cardholders may be billed for the bigger by 5% or $ 10 for their cash advance transactions.
  • Third-party ATM or bank fees: In addition to the fees from your card company, you can expect the third-party bank or ATM provider to charge a transaction fee as well. You can look at the off-network ATM fees of a few banks and online ATM providers to find the cheapest option.

Cash advance fees and third party fees are easier to calculate because they are only billed once. But the amount you pay in interest on the money you borrow will depend on how long it takes you to pay off the balance. The sooner you are able to repay your advance, the less interest charges you will pay.

The last piece of fine print you’ll want to look at is your Credit limit because your cash advance line may be less than your overall credit limit. If you only need enough money to buy produce at a local farmer’s market, the lower limit shouldn’t be a problem. But if you’re trying, for example, to pay for a car repair, you’ll want to make sure that you can withdraw enough money to cover the full expense.

Are there better ways to borrow money?

A credit card cash advance can actually be a more cost effective emergency cash option than payday loans, which often charge an upfront fee that equivalent to APRs of almost 400%. A cash advance may also be more accessible to people with just damaged credit than a personal loan application because it does not require a new credit check.

However, there may be other ways to borrow money that are more flexible and less expensive. An example is This program that allows eligible cardholders to borrow against their credit limit at a inferior interest rate than the card’s standard APR for purchases. These loans do not require a new credit check, are offered free of charge and the money is deposited directly into your bank account. However, the minimum loan amount is quite high at $ 500.

Want to use a peer-to-peer payment app to send money to a friend or entrepreneur, but don’t have enough money in your bank account to cover the transaction? With this product, you can use your credit card to make Venmo or PayPal payments without having to pay standard credit card fees. A linked bank account is not required and transactions are treated as purchases rather than cash advances.

Finally, you can consider using a third-party payment service. With Plastic, for example, you can pay pretty much any expense with a credit card (even things like utilities or rent) and your recipients are paid the way they prefer (ACH, paper check, or wire transfer ). Plastiq’s 2.85% fee is lower than most credit card cash advance fees. And since their transactions are generally treated as purchases, you should receive the standard APR and grace period for your card.

The bottom line

A credit card cash advance can be an expensive way to borrow money. Despite this, a cash advance might be worth considering if it would help you avoid predatory borrowing options like payday loans and if you are confident that you can repay the amount borrowed quickly.

But most cardholders will have better options available to them to use their credit card to cover expenses in cash only. Still, it’s important to note that even the best of these options will still involve paying interest if your card statement balance is not paid in full by the due date.

Ultimately, the best way to avoid interest and fees on expenses that require cash payments is to build up your reserves in your bank account. Check out our guide to setting up an emergency fund for tips to help you reach your savings goals faster.

About myFICO
myFICO makes it easier to understand your credit with FICO® Scores, credit reports and alerts from the 3 bureaus. myFICO is the consumer division of FICO – get your FICO scores from the people who do the FICO scores. For more information visit https://www.myfico.com.


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Top 10 Payday Loan Calculators https://soutiens.org/top-10-payday-loan-calculators/ https://soutiens.org/top-10-payday-loan-calculators/#respond Fri, 05 Nov 2021 19:51:35 +0000 https://soutiens.org/top-10-payday-loan-calculators/ Reading time: 4 minutes An online loan calculator has been launched to help a borrower correctly calculate loan payments and interest payments on any type of loan. It calculates the current credit taking into account your personal loan. If you are considering taking out your personal loan for the first time, whether secured or not, […]]]>
Reading time: 4 minutes

An online loan calculator has been launched to help a borrower correctly calculate loan payments and interest payments on any type of loan. It calculates the current credit taking into account your personal loan. If you are considering taking out your personal loan for the first time, whether secured or not, it is essential for you to:

Apply the online interest calculator as they offer to offer you a breakdown of regular loan payments with separate terms and different interest rates;

Before entering into a credit agreement, familiarize yourself with all aspects of individual financing;

When taking out a personal loan, make sure it is worth taking out a personal loan with a sizable monthly interest payment plan.

Using the online loan calculator, a borrower can calculate and find out what the monthly interest payments would be. The best online loan calculators provide you with a multi-year monthly payment plan and analyze the chosen monthly payment term each year.


Such online payday financial calculator helps you to manage monthly payments. Enter the amount of credit you want to determine, the term and the interest rate in the fields below and click to calculate. The price of your loan depends on the type of credit, your lender, financial market conditions, your credit rating and your income. A borrower with a favorable credit profile gets the best interest rates. Before getting a loan, check a personal credit rate and review a credit report to make sure it is correct.


With that https://moneyzap.com/blog/payday-loans-calculator/ effective online financial calculator, you will find out your current payments which might look like each month and how much interest you might end up paying for them. Choose what the loan is for, then say how much you want to borrow and how long you need to pay back the money. Additionally, if borrowers apply for a payday loan, they will need to assess their current financial situation. It would also change the suggested interest rate and monthly payments.


Try this practice salary financial calculator to know a monthly payment, its interest rate, the number of months, or the principal of the loan. Find an ideal payment while changing the loan amount, loan term and see how that might affect the payment amount. When you take out a payday loan, you have to repay the loan plus interest through your regular payments to the bank. Thus, you can view your payday loan and the annuity you are paying to the lending institution.


This online calculator displays the repayment amount, and the total amount for the entire loan, and the total interest rate accrued. Note that it does not cover payday loan fees which vary depending on the current financial institution and a particular payday loan agreement. Gigacalculator.com can also be used for the most popular mortgages, auto loans, student loans, and personal loans.


This online financial calculator is a handy tool to quickly self-calculate an online loan taking into account the amount of the personal loan. CIBC is universal. It doesn’t matter which bank you take out a payday loan from. The type of loan is also not important consumer loan, mortgage loan, cash loan because the result is always reasonably accurate.

  • As a result, a borrower receives:
  • Monthly payment amount;
  • The amount of interest (overpayment) for the entire period;
  • Detailed loan repayment schedule per month;
  • A clear diagram; List of adapted offers from banks with the possibility of leaving a request online.


This online calculator will help you accurately calculate your personal loan repayment amount. It’s quick and easy to get a solution in minutes! The money will be transferred to your bank account the same day if your request is approved between 9:00 a.m. and 8:30 p.m. Otherwise, you will receive your money at 9:00 a.m. the next business day.

The second advantage of the Halifax calculator is its flexibility. Take up to two weekends a year (depending on the app) and make additional payments at no additional cost. You can also prepay the loan and remember that the prepayment will be charged with interest of up to 58 days.


An IME for short is the amount payable monthly to a bank or other financial institution before the loan is fully repaid. It consists of the interest on the loan as well as the part of the principal to be repaid. The amount of principal and interest is divided by the tenure which is the number of months during which the loan must be repaid. This amount must be paid monthly.

The percentage of EMI will be higher in the first few months and gradually decrease with each payment. The exact percentage allocated to repaying the principal depends on the interest rate on your personal loan. Even if your monthly EMI payment doesn’t change, the principal to interest ratio will change over time. With each subsequent payment, you’ll pay more on principal and less on interest.


This is an accurate online calculator to help you calculate your payday loan. This calculator can help you make an informed decision about paying off your current payday loan. The following online calculator is useful for planning the cash flow associated with servicing a personal loan. It offers loans with additional features like flexible repayment options and credit replenishment. With its low interest rate and long maturity, Calculator.net guarantees you a convenient calculation for a personal loan.


It is an easy and convenient way to calculate payments and determine monthly payments taking payday loans into account. Use this loan payment calculator to pay off or any other loan payment today. You will see the exact amount of principal and interest that you will pay for the month or year.


The Financer.com calculator can help you make an informed decision before signing a contract you can’t afford. Find out how much the prepayment loan will cost and your monthly payments. The two most important factors that affect the value of your payday loan are the interest rate and the term. Use this finance calculator to find the best payday loan that suits your needs. Financer.com’s payday loan calculator is completely free and allows you to find and compare multiple loans at once without affecting your credit score.

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Top Benefits of Joining a Credit Union – Forbes Advisor https://soutiens.org/top-benefits-of-joining-a-credit-union-forbes-advisor/ https://soutiens.org/top-benefits-of-joining-a-credit-union-forbes-advisor/#respond Fri, 05 Nov 2021 11:00:32 +0000 https://soutiens.org/top-benefits-of-joining-a-credit-union-forbes-advisor/ Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but this does not affect the opinions or ratings of our editors. If you are looking to change banks or are looking for a new mortgage, car loan, savings account, or other financial product, you may want to […]]]>

Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but this does not affect the opinions or ratings of our editors.

If you are looking to change banks or are looking for a new mortgage, car loan, savings account, or other financial product, you may want to consider starting a banking relationship with an organization that is not at all a bank: a caisse.

Credit unions serve many of the same purposes and offer products similar to those of banks. But if you want to keep your money in a non-profit organization that supports your community with special benefits and financial support, a credit union might be the right choice.

Take a closer look at what credit unions are, how they work, and why organizations can be such a special place for your personal finances.

What is a Union credit?

A credit union is a non-profit cooperative financial institution owned by its members. Unlike banks, which are owned by shareholders and must distribute profits to their owners, credit unions are owned by their members, who are also their customers. More than 122 million Americans are members of credit unions.

Credit unions offer many of the same types of financial products and services as banks. However, a credit union may use slightly different names for its accounts and features, such as “shared checking account” instead of “checking account”. Because the customers of a credit union are member-owners, the credit union pays “dividends” instead of “interest”.

If you choose to keep your money with a federally insured credit union, you will also benefit from the credit union equivalent of FDIC insurance: the National Credit Union Administration (NCUA) provides federal insurance. up to $ 250,000 of eligible deposits per depositor, per insured credit union, for each category of account holder, in the event of credit union bankruptcy.

The bottom line is that credit unions are meant to serve as a safe place for people to save and borrow at reasonable rates. Due to their non-profit status and community-driven mission, credit unions can sometimes offer significant differences from banks and offer surprising benefits to their members.

Benefits of credit unions

The overall mission of credit unions is to improve the financial well-being of their members and to serve their communities. There are several important benefits you can expect from credit unions if you join a credit union.

Better rates on loans and savings accounts

Credit unions strive to provide reasonable rates to their members. Because they don’t have to pay shareholder profits like banks do, credit unions can often pass that money on to their members, offering higher APYs on savings accounts and CDs and Lower APR on loans. Credit unions offer some of the best checking accounts, high yield savings accounts, and CD rates.

Excellent customer service

Credit unions tend to score higher than banks in customer satisfaction surveys. For example, Consumer reports found that 96% of credit union members were “very satisfied” with their credit union. Since the customers of a credit union are also its owners, these institutions tend to focus heavily on providing customer service in a way that not all banks may be inclined or able to. to match.

Credit for small businesses and borrowers in need

Credit unions tend to give loans to smaller businesses that might be overlooked or underserved by big banks. If you are a small business owner or just want to support small businesses in your community, being a member of a credit union can help.

As non-profit organizations, credit unions also focus on providing loans to those in need. Many credit unions offer emergency loans of up to $ 5,000, or short-term cash advances / alternative payday loans of up to $ 2,000. Instead of going to a payday lender, many people can get a better deal at a credit union.

Community involvement

Almost 50% of credit unions have the specific mission of serving low-income communities. No matter what type of neighborhood, town or city people live in, credit unions intend to connect their local community to affordable financial services. Credit unions help their members save $ 12.6 billion per year by offering lower fees and higher returns on deposit accounts, as well as $ 5.6 billion in savings on auto loans.

Credit unions can make a big difference in the financial lives of people who might otherwise be charged high fees for check cashing services or paying higher interest rates on car loans they need to go to work. Simply by being present in the local banking markets of their communities, credit unions generate $ 4.9 billion in economic benefits annually.

Support for diversity and inclusion

Perhaps because they are so community-driven, with local connections in communities that might otherwise be underserved by traditional banks, credit unions place a strong emphasis on supporting diversity and diversity. ‘inclusion.

Compared to banks, credit unions have more than 10 times more women as CEOs. Credit unions are also more likely than banks to be Minority Depository Institutions (MDIs); there are more than three times as many MDIs from credit unions as there are MDIs from banks.

Many companies say how much they care about diversity and inclusion. Credit unions make this part of their day-to-day work by meeting the financial needs of various communities.

How to join a credit union

Credit unions may have limits on who can qualify for membership. For example, some credit unions serve the military community, and you can only join if you are an active duty military, veteran, certain other government employees or contractors, or their family members. Other credit unions may have a scope of membership based on a particular employer, university, union, or geographic area.

While some credit unions are limited to certain employers, types of workers, or geographic areas, in general, many credit unions are open to all members and will be happy to accommodate you. Some credit unions are digitally driven and have a nationwide membership base. No matter where you live or work, you may be able to join a national credit union and access their rates on loans, CDs, and savings accounts.

As part of the process to join a credit union, you may be required to pay a fee or donate, usually between $ 5 and $ 25, which is the cost of purchasing a share of the property. the credit union. You can join a credit union by going in person to a branch or by opening a new account online.

Credit unions versus banks

After seeing the benefits of a credit union, you might be wondering why someone would choose to put their money in a bank. It is true that credit unions have valuable benefits and attractive offers. There are complex reasons why people choose their banking relationship. Some banks may offer a full range of financial products, better mobile banking app features, easier international banking, or better digital banking tools.

Depending on what you need from your banking relationship and day-to-day financial management, keeping your money in a credit union can help you save on fees, get a higher return on your savings, and get a better rate. on a loan and improve your financial well-being, while supporting an organization that makes a special contribution to the economic empowerment of your community.

If this all sounds like a good deal, then a credit union may be right for you.

Frequently Asked Questions (FAQ)

What is a stock trading account?

A stock trading account is a credit union checking account. It works the same as a bank account, but you may be more likely, as a member of a credit union, to earn dividends (i.e. interest) with a checking account than ‘with a bank account.

What financial benefit do members receive as part of their membership in a credit union?

According to the June 2021 Membership Benefits Report from the National Association of Credit Unions (CUNA), the direct annual financial benefits of membership in a credit union were $ 109 per individual member or $ 229 per member household. The more you use your credit union for additional products and services, the more benefits you are likely to receive.

For example, the report also found that by getting a car loan from a credit union for a new car of $ 25,000 for 60 months, members would save an average of $ 199 per year in interest, or about $ 1,000. savings over five years compared to a typical bank auto loan.

What are other examples of how credit unions support their communities?

Credit unions offer community participation and financial support in several important ways beyond their day-to-day operations, such as providing financial education, small business loans, and home loans to low-income borrowers. For example, more than half of home loans from credit unions go to people with average or lower incomes.

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State law requires payday loan stores to close https://soutiens.org/state-law-requires-payday-loan-stores-to-close/ https://soutiens.org/state-law-requires-payday-loan-stores-to-close/#respond Thu, 04 Nov 2021 15:51:06 +0000 https://soutiens.org/state-law-requires-payday-loan-stores-to-close/ “Outside of business”. This sign is not new in the past 18 months. Thanks to the coronavirus pandemic, sales for many traders have dried up, doors have been closed and employees have been laid off. But across Illinois, state law passed earlier this year closed hundreds of certain types of stores, including at least one […]]]>

“Outside of business”. This sign is not new in the past 18 months.

Thanks to the coronavirus pandemic, sales for many traders have dried up, doors have been closed and employees have been laid off.

But across Illinois, state law passed earlier this year closed hundreds of certain types of stores, including at least one in Evanston. And that’s exactly what many lawmakers and consumer advocates wanted to happen.

The companies in question offered payday loans and other short-term, high-interest loans that critics say keep borrowers trapped in a never-ending cycle of debt. They can’t pay it all off, these reviews say, so customers end up borrowing even more.

The term “payday loan” refers to the usual length of the loan, approximately two weeks, the interval between pay days for many borrowers. Payday loans require full repayment on the due date, plus borrowing costs. There are also short-term loans where a borrower’s auto title is held as collateral and short-term installment loans, which allow for a longer repayment period than payday loans.

The amounts borrowed are generally a few hundred to a few thousand dollars, from customers who often have “subprime” credit ratings, making it unlikely that a bank will transact with them.

Kesha Warren, from a southern suburb of Holland, says she borrowed $ 1,250 on a car title loan to help keep her business afloat, but ended up owing not only the principal, but also $ 4,200 in interest and fees, according to a video produced by the Chicago community. Trust, an organization that promotes interest limits on such loans.

Charla Rios, a researcher at a national group, the Center for Responsible Lending, says payday loans and the like “do a lot more harm than good.”

Before Illinois passed its Predatory Loan Prevention Act, payday loans and other short-term loans could reach an annual percentage rate of 404 percent. The new law caps those rates at 36% APR, in line with similar legislation in 17 other states and the District of Columbia.

Even 36% is more than double what a person with bad credit would pay for a car loan, according to US News & World Report, although car loans are typically for much higher amounts borrowed with longer repayment periods. long.

In addition to impacting payday loans and auto titles, the Illinois Interest Cap Act also affects installment loans from online lenders.

The national organization representing online lenders says consumers are in fact wronged by Illinois law, with fewer borrowing options available to those who may not be entitled to money from them. a bank, a savings and credit union or a credit union.

Andrew Duke, executive director of the Online Lenders Alliance, calls the law “a solution in search of a problem”.

A federal consumer agency, he says, saw just 1% of public complaints in 2020 were about personal loans.

“This data,” says Duke, “indicates that customers generally don’t have problems with small loan products. ”

“Cap rates,” Duke adds, “do not reduce the cost of credit, but rather reduce access to credit.”

Lenders also claim that the emphasis on the annual percentage rate can be misleading, because even though 300-400% is the annual rate and may seem extremely high, the actual amount repaid for a small loan is relatively small if the loan is reimbursed on time. For example, before the new Illinois law came into effect, the $ 100 loan fee was $ 15.50 for a two-week loan.

But supporters of the law say borrowers often can’t meet the due date, the loan rolls over, and the customer is buried in ever-growing debt. Or, the customer repays the loan on time, to borrow again a few weeks later.

Brent Adams of the Illinois-based Woodstock Institute, a liberal policy study group, says borrowers initially think they’ll be able to repay, say, $ 500 on time.

But, he says, “research shows that a trap is more common than not,” as the borrower cannot meet the due date and has to extend the loan, “buying more time with new fees. added. The average payday loan borrower, ”Adams says,“ renews the loan a lot ”

Duke of the Online Lenders Group says short-term, low-value loans can be a much better alternative to missing bill payments, accumulating credit card debt, or even filing for bankruptcy.

When loan volumes decline, says Duke, “other harmful options increase.”

He says the interest cap in Illinois will force many online lenders to go out of business here because it would be impossible to make a profit.

“I suspect there has been a pretty big setback,” he says.

But critics say that high interest on such loans can cause exactly the same problems, like missing other payments or ultimately going to bankruptcy court.

One of the driving forces behind Illinois law was the Legislative Black Caucus.

Adams of the Woodstock Institute says payday loan stores are typically located in low-income minority neighborhoods.

According to the state of Illinois, more than half of short-term, high-interest borrowers earned less than $ 30,000 per year, during the period 2012-2019. The value of the transaction during this period was almost $ 7 billion.

“These products,” Adams says, “almost with surgical precision target black and brown communities.”

Although Evanston has a significant population of all races, it is primarily a well-to-do community with less appeal to brick and mortar payday loan stores, even before Illinois’ new law. .

AmeriCash Loans at 1801 Dempster St. closed a few months before the new state law came into effect. (Google Maps image from November 2018.)

In fact, nine years ago Evanston City Council limited the location of payday loan stores to a handful of industries. The three such stores at the time did not have to relocate, but any new stores would have been limited to a few locations.

There are several financial literacy programs available in Evanston, for consumers who want to learn how to manage money better, or perhaps, with lack of money.

The City plans to renew a program with First Northern Credit Union, which has been suspended due to the coronavirus pandemic. The local YWCA, as well as the Wintrust and Byline banks also have similar offers.

The interest cap law has had a huge impact on the short-term loan industry in Illinois. A state study found that there were 1,578 licensees offering short-term loans of different types and terms at the end of 2019.

According to Adams of the Woodstock Group, 75% of those had closed last July.

And Evanston, it seems, may not have any more. A search using Google Maps shows that most payday loan stores are gone.

And what may have been the last, in 1828 Dempster, is also empty. An employee at the nearby check-cashing business told Evanston Now that the payday loan store closed four to six months ago, shortly after the rate cap went into effect. Illinois interest.

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