Worried sick about how you’re going to make it to the next payday? If you live in Pennsylvania, payday loans aren’t an option since they’re prohibited by state law. That doesn’t mean you can’t get the relief you need, though.
Let’s take a closer look at lender regulations in Pennsylvania and some safe, viable options to help you get cash in hand.
Options For Payday Loans in Pennsylvania
Since payday lending is prohibited in Pennsylvania, many lenders have found a loophole to capitalize on the subprime market. Many offer installment loans to credit-challenged customers who can’t get approved for a loan elsewhere.
Pennsylvania residents can choose from online or brick-and-mortar lenders to get the cash they need. Both offer a streamlined application process and rapid funding options. Some lenders automatically deduct payments from your account each month, while others require you to make manual payments.
The industry is regulated by the Pennsylvania Department of Banking.
The qualification criteria for installment loans vary by lender. In most instances, you will be asked to provide:
- A copy of your driver’s license or state-issued photo ID
- Your Social Security number
- Your routing and checking account number
- Your phone number, email address and physical address
Some lenders in Pennsylvania check credit during the application process and report loan activity to the credit bureaus. Others offer no credit check installment loans, but these products come at a higher cost since the lender is assuming more risk.
Max Loan Amount and Terms:
State law does not cap the maximum loan amount or repayment term. But there are limits on the maximum amount of interest and fees a lender can assess:
- Interest: $9.50 annually for every $100 borrowed
- Service charge: $1.50 per $50 borrowed (capped at $150)
Also, know that there’s no limit on the number of outstanding installment loans you can have at once. It’s at the discretion of the lender. And there aren’t any cooling-off periods between loans.
Are there consequences for defaulting on the loan? In short, probably. The lender may tack on a late fee each time you miss a payment. If the delinquency goes on for an extended period, accelerated collection efforts are sure to follow.
This could mean the account is sold to a debt collector and reported to the credit bureaus. The latter means your credit score could take a hit of up to 100 points. So, it’s best to reach out to the lender at the first sign of trouble to work out a modified payment plan.
Payday Loan Alternatives in Pennsylvania
Before you apply for a high-interest installment loan, consider the following options:
- Pawnshop loans that allow you to hand over your valuables in exchange for cash. If you repay the loan by the due date, you can retrieve your item. Otherwise, ownership reverts to the pawnshop, and they will sell the items in exchange for cash. The key benefit is there’s no impact on your credit score if you don’t pay the loan back.
- Credit cards are another way to get over the hump if you have them at your disposal. Be sure to cover the purchases before the next billing cycle to avoid high interest and fees.
- A loan from a family member or friend may be a good option, but you want to get the agreement in writing, so both parties are on the same page.
Still no luck? It may be worthwhile to give the loan products from MoneyLion a try.
Instacash from MoneyLion allows you to request an interest-free cash advance anytime you need it. There are no credit checks, and you won’t have to submit application after application.
Here’s how it works: download the MoneyLion app, customize your online profile, connect your bank account and view your offer. Cash advances of up to $250 are available, and you’re not obligated to draw the entire amount. Simply request what you need and pay it back without interest within a few weeks. No strings attached.
You’re free to request a cash advance at any time of the day or night. It is fast and easy, and funds arrive in your account within minutes.
Start using Instacash today!
Credit Builder Loan
Want an installment loan that works a little harder for you? Consider the Credit Builder Loan from MoneyLion to give your account and credit score a boost.
You can get approved for up to $1,000 and access the portion of the funds right away. Any withheld amount is placed into a Credit Reserve Account and available for your use when you pay the loan off. Plus, the loan payments are affordable, and MoneyLion draws directly from your bank account.
How does it improve your credit score? Payment activity is reported to the 3 credit bureaus – Experian, Equifax and TransUnion. So, if you make timely payments on all your other debts, your credit score will start to increase.
Interested in this credit-building program? It’s only $19.99 per month and includes optional access to banking, managed investing, and the Instacash feature. That’s a small price to pay to increase your credit score and get fast cash right away.
Apply for a Credit Builder Loan
Find An Online Loan In Pennsylvania
|Instacash||Credit Builder Loan|
|How Much Can You Borrow?||$250||$1000|
|Fees & Interest||0% APR||Competitive APR, 0 fees|
|Availability||Online & Mobile||Online & Mobile|
|Next Steps||Sign Up||Sign Up|
Get Approved for a Loan in Pennsylvania!
Online installment loans with steep interest rates are easy to get but scary for your finances. A better option: explore the loan products MoneyLion has to offer. Get an interest-free cash advance or a low-interest installment loan that helps build your credit.