Cash Advance Colorado
There is no other state with cash advance laws nearly as complicated as Colorado’s. From the loan term limitations to the fee caps, Colorado takes the cake for the hardest to follow cash advance regulations. Don’t fret – we’ll do our best to steer you through the specifics and simplify them as much as possible. To get started with your loan request today, please fill out our secure loan request form. Just make sure you understand the rules, first.
Colorado Payday Loan Regulations
When you are looking at state legislation for short-term funding, the laws that relate to cash advance loans also apply to payday loans. You can scroll up for that information or see the main points below.
- How Payday Loans Work – Short-term funding can make it possible for those with less-than-stellar credit to access quick cash when it’s an emergency. The lender sends the funds to your account and then withdraws the money borrowed (plus fees) on a specified date that’s usually within a couple of weeks.
- Maximum Amount – Your loan cannot be greater than $500.
- Repayment Extensions – You’re allowed a single rollover, but it’s up to the lender if you get one.
Cash Advance Regulations for Colorado
When you take out a cash advance in Colorado, you are signing a long-term agreement. That’s different from other states where cash advance loans are supposed to be paid off when you get your next paycheck, but often get extended. In Colorado, the minimum loan term is six months. During that time, your financed loan is never allowed to exceed $500. The idea is that you’ll end up paying less over the course of six months than you would with an APR-heavy, 14-day loan that was extended for six months. An important thing to remember about Colorado cash advances, though, is that you don’t have to take the entire six months to pay them off. That minimum loan term is for your protection. If you can pay the loan off sooner, then you should.
Because the minimum loan term is six months, phrases like “finance charge for a 14-day $100 loan” are not applicable. That’s a good thing if you end up taking six months to pay off the loan. With a traditional cash advance, you would be hit with substantial rollover fees during that same period of time. In Colorado, you don’t pay extension or rollover fees for six whole months. What you will pay is 20-percent in fees for up to a $300 loan. The fees go up if you need more than that amount. If you’re borrowing $301-$500, you’ll pay the 20-percent, plus an extra 7.5-percent on however much over the $300 mark you borrowed. There are a few other fees you should be aware of, too. The lender can charge you another 45-percent interest rate per annum. After you’ve had the loan for 30 days, the lender can charge you a monthly maintenance fee of up to $7.50 for every $100 loaned, up to $30 a month.
Don’t worry if you’re a little lost. These rules are complicated, but they’re not there to confuse you – they’re there to help you. Let’s look at an example from a bellpolicy.org article. If you took out a $300 cash advance in Colorado and paid it off in 30 days, you’d only owe $21.75, according to our example. If you took the entire six months (180 days) to pay it off, then you’d owe $240, which is roughly 162-percent APR. Sure, that’s a higher APR than you’re likely to pay for a bank-issued loan, but it’s pretty good for a cash advance. (Keep in mind that this is just one example. While your specific fee will probably vary – it will not extend beyond the legal parameters we talked about earlier.)
We think Colorado cash advance laws are pretty good compared to other states, but that doesn’t mean you should dive right in. Make sure you plan out how you’ll pay off the loan. Colorado lets you extend your loan, but you should know that this one-time extension comes with a hefty 45-percent interest fee.
Requesting Title Loans in Colorado
If you are unable to take out a payday loan and need money immediately, a title loan is another alternative to consider. Title loans require an asset to be used as collateral in order for a borrower to qualify for a loan. Residents may be able to apply for a title loan in Colorado to pay off urgent debt or any expenses they may have.
The most common forms of title loans are car title loans. Borrowers use their cars as collateral in order to take out a loan. When applying for a title loan, there might not be a need to rely too much on your credit score, and loans may be approved for amounts as low as $1,000. Some lenders may offer car title loans if the borrower has equity in the vehicle. These types of loans last between 15 to 30 days and have an annual percentage rate (APR) over 100%, which is higher than most forms of credit.
Title Loans Laws in Colorado
Depending on which state you reside in, the laws regarding title loans may greatly differ. Car title loans are not legal in the state of Colorado. This may be due to the expenses and high APR often attributed to car title loans. While this form of a loan may sound appealing to individuals who have poor credit, the additional costs and APR may lead to a never-ending cycle of debt where borrowers cannot catch up to their payments. It is essential to thoroughly look over the loan documents and final contracts before agreeing to take out a title loan in Colorado. If you are having trouble repaying your title loan, it is best to speak with your lender and discuss extending the due date to avoid repossession of your car. Lenders may sell your vehicle to cover the cost of the loan if you are unable to repay them.
*OpenCashAdvance.com strives to present accurate information on each state’s regulations; however, we do not guarantee accuracy of data as presented. Please contact your state’s department of finance or visit your state’s official website for the most accurate information and inquiries. You can find your state’s site here: www.coloradoattorneygeneral.gov