Payday loans are most suitable for people in urgent need of cash – for example, when some unforeseen bills emerge. The main features of this form of borrowing are short terms and relatively moderate amounts. The latter vary geographically, as they depend on state laws. So how much can a borrower ask for?
In the USA, in the states where the practice is legal, loaned amounts range from $100 to $1,000, with $500 being lent most commonly. Therefore, the amount you may expect to receive may not exceed your state maximum. For example, in Alabama and Alaska your loan will not surpass $500, while in Idaho you may get as much as $1000. You can find information on your state regulations online. This will also include the acceptable terms, as well as charges and fees, the maximum number of loans per customer and loan renewals. It is important to understand that legislation is not the only factor, as the lender will consider various other details: income and overall credit history, as well as expenses and other debts to see whether you can afford to repay the amount you requested.
Hence, do not expect to be lent the maximum amount by default. If you need more than you are eventually offered, you might want to consider other short-term borrowing plans, which may be harder to secure, or modify your spending. It is always better to pay any old debts before applying again, as payday lenders are wary of applicants with multiple existing payday loans. Going to another state is a bad idea: lenders may only lend to applicants in states they are licensed in, and people from a different state are simply forbidden from borrowing.
The term of a typical agreement usually spans 2 to 4 weeks, and this may be extended if you take advantage of the rollover option, with extra charges added. The simple interest rate (how much you are charged for borrowing) may vary from 15 to meaning that every $100 borrowed will cost you $15-30. Naturally, if this could be extended to a period of 12 months, the APR would constitute roughly. However, for a typical 2-week loan, this is hardly relevant, and many states have also set limits on the maximum rate of interest.
Thus, the amount you may expect to be offered depends on a few factors. If you need more than your state allows, you may either consider other credit options or restructure your budget. Remember that going to other states for a payday loan is a crime, and it is always best to borrow wisely and ask for sums you can repay easily.