Increasing number of people are looking towards payday loans whenever they experience financial woes and the residents of Illinois are no exception. Illinois payday loans are getting more popular nowadays.
The state of Illinois is a leader in producing soybeans, corn and hogs. Illinois also manufactures transportation equipment, industrial machinery, chemicals and computer equipment. The state of Illinois is the 25th largest state in the United States and is the 5th most populated state with a population of over 12,859,995 residents.
Looking for payday loans? Check out the local loan lenders.
What is a payday loan?
Payday loan or cash advance is a short-duration loan. The borrower has to repay the full amount by his next paycheck.
Illinois laws regarding payday loans
Payday loan lending is completely legal in Illinois and the lending companies operate according to 815 Ill. Comp. Stat. Ann. 122/1-1 et seq., 2011 Public Act 97-0421. However, many measures are being taken to protect borrowers of Illinois payday loans. There are many restrictions and limitations that both borrowers lending companies must comply with.
According to Illinois payday loan laws, a borrower is limited to take out upto $1,000 and an amount that is not more than 25% of the borrower’s monthly income prior to taxes. Borrowers are also not allowed to take out more than 2 Illinois payday loans at any one time.
Payday loan terms in Illinois are allowed for periods between 13 and 45 days. The laws also state that there should be 28 days before a lending company can sue a borrower in case of a default repayment. However, lending companies are not allowed to take any of the borrower’s possessions and are also forbidden to take money to cover attorney’s fees or any court fees.
Payday loan lenders in Illinois
The payday loan industry is growing really fast. More and more people find the service to be very flexible and is a service that can meet their needs. In recent years, the number of companies offering payday loans in Illinois has increased significantly.
One of the main reasons is the prevalence of the Internet. In Illinois, like in most states in the US, you can easily make an application for a payday loan (cash advance) by making a trip to the lender’s physical store or visiting one online. Payday loan searches on the web from residents of Illinois are one of the highest searched topics in that state.
Why borrowing a payday loan in Illinois is a good idea
Payday loans are one of the most popular type of short-term loans around, and there are lots of reasons contributing to that. Here are some:
A lot of options to choose from
Payday loan lenders have offices in almost every city in the state of Illinois that you can go visit to apply for your loan. However, you have the option to apply for your loan without leaving your home. You can do that just by visiting a lender’s store online and submitting your application there.
High amount limit
In most states, payday loan borrowers are limited to $300, or $500 at best. In Illinois, however, you can take up to $1,000 which is an amount a lot higher compared to other states.
Payday loans are very fast
If you are out of cash and need to pay urgent bills, you can be sure that no other service can get you the money you need as fast as a payday loan. After you finish the application for a payday loan, there is a good chance that your money will come to you within a few hours. If you do this application process online, it may take as little as one business day to receive your cash.
There is no fee for canceling your loan
In the state of Illinois, you can cancel your payday loan by the second business day after you received the money. What you will need to do is to return the money you have taken and there will be no penalty.
You may apply with bad credit too
Usually, having poor credit can seriously jeopardize your prospects of a loan approval. However, with Illinois payday loans, you may apply for a loan with a bad credit score as well.
That way, you will be able to pay your bills, get your finances back on track and make your life a lot easier overall. The fact that you are able to do that with poor credit score is one of the major attributes for the popularity of payday loans nowadays.
It is yours to spend
If you manage to take out a payday loan, then you are free to spend it on anything that is legal. Buy a car, repair what need fixing in the apartment…it is completely up to you.
Payday loans fees and charges Illinois
It is important that you understand the terms, conditions, and what you are getting into before you apply for a payday loan in Illinois:
In Illinois, the annual percentage rate charged by a lender for a two-week $100 payday loan cannot exceed 403%.
In Illinois, lending companies are not allowed to charge you more than $15.5 for a $100 loan.
If you happen to skip or fail to make a payment, then lending companies are allowed by law to charge an NSF fee of $25.
According to Illinois payday loan laws, rollovers are not allowed in the state, so there are no rollover fees for you to worry about.
Repay your loan sooner than scheduled
If you are able (or plan) to repay your loan sooner than scheduled, you can do it as soon as you want to without facing any penalties.
What you need for successful application for a payday loan in Illinois
We’ve already talked about how fast and easy it is to apply for a payday loan in Illinois. However, there are still some requirements you need to meet to be approved for your loan:
- Your age should be 18 years or up
- You need to be a US permanent resident or an American citizen
- You should have a steady source of income
To successfully complete your application, you will need to provide the following documents:
- Your full name, social security number, and date of birth
- Contact number, home address, and email
- Employment and income details
Cities in Illinois where payday loan lenders operate:
- Arlington Heights
- Buffalo Grove
- Carol Stream
- Crystal Lake
- Des Plaines
- Downers Grove
- Hoffman Estates
- Mount Prospect
- Oak Lawn
- Oak Park
- Orland Park
- Rock Island
- Tinley Park