Cash Advance and Payday Loans in New Orleans, LA
Payday loans are cash advances that borrowers repay with their next paycheck. These short-term advances are used for a number of purposes, from vehicle repair costs to medical expenses.
Advantages of Taking Out a Payday Loan in New Orleans
Unlike conventional loans from banks and credit unions, short-term lenders may have less strict rules regarding application requirements. Applicants with poor credit, who do not have access to a regular bank account, and who work nontraditional jobs or rely on government benefits are still eligible to apply. Nontraditional income may include self-employment, government benefits, or income from investments, royalties, alimony, or child support payments.
Lenders often charge high-interest rates because most short-term loans only earn interest for two to four weeks. Out of the profit, lenders may need to pay administrative costs and cover consumers who default on their loans. Payday loans are therefore not best for long-term financing but can be better-suited for people that need a little extra cash. Popular reasons for taking out a short-term loan include:
- Emergency home or auto repairs
- Child-related expenses
- Personal expenses
- Living expenses
- Medical expenses
- Extra cash for travel
There are many other reasons why consumers use short-term loans.
How to Get a Cash Advance and Payday Loan in New Orleans?
Residents can apply for a payday loan in Louisiana at a storefront lender or online. The application process can take as little as 15 minutes. Applicants must be at 18 years of age or older and may need to provide the following information upon applying:
- Legal state or federal ID proving age, identity, and current address
- Bank account information
- Social Security number
- Employment information
- Information on alternate sources of income for people without regular employment
Short-term lenders may base loan approval on each applicant’s income and debt-to-income ratio, determining whether a borrower can afford to repay a given loan. Once approved, borrowers may get their loan funds within at least one business day.
Cash Advance and Payday Loan Requirements
To request a payday loan in New Orleans, Louisiana, a consumer will need to meet the lender’s requirements. These may include the following:
- Be 18 years or older
- Have a Social Security number
- Have proof of residence in New Orleans, Louisiana
- Have a stable source of income
- Have a phone number and email address
Requirements may vary by lender.
Cost and Regulations of Cash Advance and Payday Loans in New Orleans, LA
Louisiana regulations limit short-term loans to $350 or less, and interest to 16.75% of the amount advanced. The loans must not be rolled over. The APR in the state of Louisiana is limited to 391%. Recent legislation has been introduced to expand these limits, but some of these laws have yet to be approved.
Short-term loans can carry higher interest rates than other loans. While state law limits interest charges to 16.75% of the amount borrowed, those unable to meet loan terms may incur additional charges. In such cases, some borrowers might take out additional loans to cover their original loan debts. This is why borrowers need to make a strong effort to determine if a given loan is affordable. Consumers who find it difficult to afford a loan or are struggling to manage their monthly expenses can reduce their spending to lessen financial strain.
Installment Loans in New Orleans
Installment loans are another type of short-term funding. These loans are paid back in small monthly sums as opposed to one large lump sum. Installment loans are typically offered to borrowers taking out large amounts, but some lenders extend installment loans to people taking out small amounts as well. Installment loans can typically be paid back in periods up to a year.
Requesting Title Loans in New Orleans
New Orleans residents can also apply for title loans, a type of loan that is secured with vehicular collateral. Usually, that collateral is a car, truck, or motorcycle. The application and approval process for title loans is similar to that of payday loans, with the additional step of presenting your vehicle’s title. The lender will then evaluate your vehicle and extend a loan offer based on the vehicle’s value.
New Orleans residents may need to present the following documentation to be eligible for a title loan:
- Government-issued photo identification
- Name, address, email address, and phone number
- Photos of vehicle
- Proof of residence
- Name of employer or revenue source
- Hard copy of a vehicle title
Requirements may vary by lender. For a vehicle to be eligible as collateral, it must be lien-free, meaning it is not attached to any existing loans.
Favorite New Orleans, LA, Cash Advance and Payday Loan Companies
New Orleans, LA, residents have many payday lending options, whether storefront or online.
Tulane Cash Advance has a couple of storefronts in New Orleans. They offer payday loans up to $350 and title loans up to $2,500.
Advance America is another great option for New Orleans residents. Those seeking payday loans can apply in-store or online. Those seeking title loans must apply in-store.
Cash Cow has convenient hours and several locations in New Orleans. They offer payday loans in-store in amounts from $100 up to $300. They offer car title loans in amounts up to $1,400.
Whichever lender you choose, be sure to check that they have a license to operate in the state of Louisiana. You can find this information and more on the Nationwide Multistate Licensing System website.