California Payday Loans and Cash Advances
Payday loans are controversial and yet indispensable tools in the world of financing. They have a high-interest rate, this is true; but they also cannot be replaced by any other type of loan, since they are right there when you need them, and almost everyone can get approved. This article focuses on how to apply for a payday loan in the state of California, as well as gives a basic insight into the law system regulating short term advances for citizens here.
Are payday loans legal in California?
According to the legislation of California, payday loans are legal in the state. As throughout the country, the principles of crediting are regulated by the statutes that protect the interests of borrowers and prevent usury. In California, the statute regulating payday loan issuing is cited from Cal. Fin. Code §§ 23000 to 23106.
How to get a payday loan in California
In order to be approved as an applicant for a payday loan in California, you need to meet basic requirements: be 18 or above, be the resident of the state and a citizen of the U.S., have a stable source of income and a checking account. Different lenders ask for different specifics like some may request your state-issued ID scan or details about your employer, but the essentials do not change.
Apply for a loan online or at the lender’s store by filling out the blanks and providing documents outlined by the company you apply with – submit and wait for several minutes to get your answer. If you get approved – and at our service, we guarantee that you will – you will receive your loan within 24 hours or sooner!
What are the minimal and maximal loans I can count on in California?
According to the state’s legislature, you can borrow up to $255 for the maximal amount of days equaling 31, or a calendar month. There is no minimum sum stipulated by law, but you will probably have a hard time finding a lender working with sums under $100.
Payday loan lenders CA are not allowed to charge more than 459% in APR, or $17.65 per every $100 borrowed. The fees applied to every loan for issuing should not exceed 15% of the check you receive.
What motivates California citizens to apply for a loan?
What can be a reason to apply for a payday loan? In California, people most commonly cite the following reasons:
- Having some sort of urgent bills to pay (utilities, medical bills, repairs that cannot wait)
- Consumer loans – people with low income sometimes cannot make ends meet before their next paycheck
- Big-ticket items that cannot be afforded otherwise
- Family emergencies
- Traveling, especially during high season
- Spoiling family members, especially kids, gifts for near and dear, wedding gifts
The bottom line is that it doesn’t matter what you take out your loan for, the reason is not stated anywhere. It is best though to only take one when you actually need it because they are rather pricey and therefore intended for real emergencies!
Users often ask us:
How many payday loans can you get in California?
If you have applied for one loan, you shouldn’t go shopping around and apply for more. You are only entitled to one payday loan in California by law.
How many payday loans can I have at once California?
You can only have one.
How many payday loans can you get in a day in California?
Given that at any given moment you can only have one payday loan in the state of California, you cannot apply for another loan if you have a current outstanding loan.
We will be happy to answer any other questions that you might have – just let us know how we can help you through our Contacts page.
This is how you calculate the interest on your loan, with examples:
Given that the amount of your loan is maximal, $255, and you take it our for say 30 days, at the APR quoted at 299%, you need to do the following:
- Calculate the loan interest charged per day, for that divide the APR by number of days in the year (365) 299% / 365 = 0.008191
- Calculate the loan interest applied to 30 days: 0,008191 x 30 = 0.2457
- Calculate the cost of loan for the sum borrowed: $255 x 0.2457 = $62.66
- Finally, calculate the sum payable on the maturity date: $255 + $62.66 = $317,66
- Loan Amount: $255
- Loan Term: 30 days
- APR (Annual Percentage Rate): 299%
- Total Repayments: $317.66
- Cost of Loan: $62.66