Iowa payday loan laws overview

In the last ten years, Iowa payday loans are attracting more and more borrowers.

The French were the first Europeans to visit the area which is known as Iowa today in 1673. In 1803, The United States took control of the area as part of the Louisiana Purchase. Iowa became a state in 1846, with Iowa City as its capital. The state of Iowa is producing one-tenth of the food supply in the United States. Biggest industries in the state are food and associated products, electrical equipment, non-electrical machineries, printing and publishing, and fabricated products. Iowa is the 26th largest state in the US and is the 30th most populated state with a population of over 3,123,899.

What is a payday loan?

Payday loans are basically short-term loans and you have the obligation to pay back the loan by the time you receive your next paycheck. They are also known as cash advances.

Iowa payday loans laws regulations

Iowa payday loans laws regulations

Iowa payday loans laws regulations

Payday loan lending in the state of Iowa is legal and lending companies can operate freely according to Iowa Code Ann. § 533D et seq. Iowa payday loan laws do not apply many restrictions on the lending business. However, Iowa loans lending companies still need to operate within certain limitations. The maximum payday loan amount a borrower can take at any one time is $500. Borrowers in Iowa are not allowed to have more than two payday loans at the same time. The length of any given payday loan in Iowa cannot exceed 31 days and no extensions allowed. Lending companies operating in the state of Iowa are not allowed to charge more than $15 for a $100 payday loan in fees and finance charges.

Payday loan lenders in the state of Iowa

Iowa payday loans lending industry is growing very fast and that is easily visible even from the number of payday lenders operating in each state. The number of payday loan lenders in the state of Iowa has increased a lot in the last years and one of the main reasons for that is the addition of online lending. In the state of Iowa you can apply for a payday loan by visiting a lender’s on-ground store of visiting their website online. Payday loans are amongst the most popular web searches in the state of Iowa.

Reasons why taking out a payday loan in the state of Iowa is a really good idea?

There are many factors contributing to payday loan’s leading position in the short-term loan business race. Even though, there is always a certain risk surrounding that type of loan, it can also be quite beneficial:

  • It gives you options

It doesn’t matter if you want to apply for your loan online from the comfort of your home or want to visit an on-ground lender’s store, payday loans covers both. Which means that you can submit your application in the way that suits you best.

  • You don’t have to wait around

You don’t have to wait around

You don’t have to wait around

When something unexpected comes up, you can’t really afford to sit around, waiting for days or even weeks for your money to arrive. When you apply for a payday loan you can start spending your cash just hours after you have submitted your application. If you decide that applying online is the way to go, it might take one business day in order for you to get your money.

  • Having a bad credit is not an issue

While with traditional banks, having a bad credit can really mess-up your chances of getting the loan you need, with payday loans it is a whole different story. Payday loan lenders don’t really care what your credit score is, as long as you are able to repay the loan within your next payday.

  • Buy whatever you want

When you take out a payday loan, once you have the money in your pocket, you can pretty much do whatever you want with it, as long as it is not something illegal.

Iowa payday loans fees and charges

There are some things you might want to know before taking out a payday loan:

  • APR

The annual percentage rate for a two-week $100 payday loan in Iowa cannot exceed 433%.

  • Fees and charges

In the state of Iowa, Lending companies can’t charge more than $15 for a $100 payday loan in terms of fees and finance charges.

  • Collection fees

Collection fees

Collection fees

In case of a failed payment, in the state of Iowa, lending companies are allowed to charge an NSF fee of $15

  • Rollovers

According to Iowa payday loan laws, payday loan lending companies are not allowed to rollover or renew any loans in case of nonpayment of the debt, which makes rollover fees irrelevant

  • Early pay fee

In the state of Iowa, there is no penalties in case you decide and are able to repay your loan earlier than scheduled.

Payday loans application and eligibility in the state of Iowa

eligibility in the state of Iowa

eligibility in the state of Iowa

Now that you know what payday loans ups and downs are, it is time to look at the eligibility requirements you need to meet in the state of Iowa:

  • You are not eligible if you are below 18 years of age
  • You have to be a permanent resident of the United States or an American citizen
  • You need to have a good source of steady of income

In order for your application to be successful you must provide the following information:

  • Your social security number, name and date of birth
  • Phone number, home and email address
  • Details regarding your employment and income

Cities in Iowa where you can find payday loan lenders:

  • Algona
  • Ames
  • Ankeny
  • Bettendorf
  • Brandon
  • Burlington
  • Carroll
  • Carter Lake
  • Cedar Falls
  • Cedar Rapids
  • Centerville
  • Clinton
  • Coralville
  • Corydon
  • Council Bluffs
  • Creston
  • Davenport
  • Denison
  • Des Moines
  • Dubuque
  • Fort Dodge
  • Fort Madison
  • Glenwood
  • Indianola
  • Iowa City
  • Iowa Falls
  • Keokuk
  • Le Mars
  • Maquoketa
  • Marion
  • Marshalltown
  • Mason City
  • Missouri Valley
  • Muscatine
  • Newton
  • Ottumwa
  • Sioux City
  • Urbandale
  • Waterloo
  • West Des Moines

Iowa payday loans alternatives

Many borrowers have found the solution for their financial problems in payday loans. This, however, does not mean they are your only option:

  • You can ask your family for a loan;
  • A small loan from a bank is also an option worth considering;
  • Asking for advance pay from your employer can be exactly what you need;
  • Sometimes, creditors are willing to give you more time to pay your bills, so you might want to ask for that option;