Cash Advance and Payday Loans in Charlotte, NC
A payday loan is an unsecured, short-term loan that is paid back within two weeks of taking out the loan. Payday loan companies are banned from operating in the state of North Carolina; however, residents of Charlotte, NC, can request short-term funding from online lenders.
Advantages of Taking Out a Payday Loan
Payday loans provide a short-term, small-dollar cash advance to tide consumers over until payday. Payday loans are most often used for emergencies or living expenses but can be used for many different purposes. The application process is simple, and loan approvals tend to be fast. Unfortunately, this product is not available in North Carolina.
In other areas, payday loans are among the most flexible loans. Borrowers can use them for a wide variety of purposes. The most common uses for a payday loan include:
- Maintenance and repairs
- Home improvements
- Paying medical expenses, including copays and the cost of prescription and over-the-counter drugs
- Utility expenses
- Family emergencies
- Paying taxes
- New appliances
- Making a down payment on a significant purchase
- Covering emergency travel expenses
How to Get a Cash Advance and Payday Loan in Charlotte
Because cash advance companies based in North Carolina have been outlawed since 2001, there are no storefront locations you can apply at in Charlotte. You can, however, apply to online short-term lenders. Online applications only take about 15 minutes, and it typically doesn’t take more than a few minutes for lenders to verify the applicant's credit record and eligibility requirements. Loan approvals are often made on the same day that the application is filed. Once approved, applicants might receive their loan funds as soon as the next business day.
Cash Advance and Payday Loan Requirements
If this form of short-term lending is ever available again, then the following information will likely be needed to request a payday loan in Charlotte:
- Proof that the applicant is at least 18 years old
- Federal or state identification that proves identity and current address
- Bank account information or details of a loadable debit card
- Social Security number
- Contact details, such as phone number and email address
- Employer and income information
- Information about applicable alternative income sources
Some lenders might also require a postdated check for the full loan amount plus interest charges to ensure complete repayment.
Costs and Regulations of Cash Advance and Payday Loans in Charlotte, NC
As mentioned earlier, the payday loan product is prohibited in North Carolina. The Consumer Finance Act, passed in 2001, caps APR at 36% for North Carolina residents; however, there is no limit on additional fees and charges. It is incredibly important to research before signing a contract. Predatory lenders may try to sneak hidden fees into their contracts.
Installment Loans in Charlotte
If you’re wary of taking out a payday loan but still need money, consider an installment loan. Installment loans allow you to borrow more and offer longer repayment terms. Installment loan applicants may have to undergo a more thorough credit score check, but the criteria for approval are not necessarily stricter than payday lenders’. Online lenders tend to be more lenient than traditional financiers. Meaning those with a low credit score may still be approved.
Charlotte residents can request installment loans of up to $2,000. In comparison, payday loans average $200 to $300. Installment loans allow you to repay the loan in small monthly increments, which may be a more sustainable option than a payday loan, which requires you to repay the loan in one lump sum.
Requesting Title Loans in Charlotte
Title loans are another alternative to payday loans. Title loans require collateral. In this case, the required collateral is a vehicle, including trucks, cars, and motorcycles. Title loans are illegal in North Carolina. Be wary of any car title lender with a storefront; these are not legal businesses.
To request a title loan from another area, you must first fill out an online application and upload the required documents. The lender will appraise your vehicle and send you an offer. How much you can receive for the vehicle varies depending on the lender and perceived value of your vehicle.
Before filling out the online application, be prepared to present the following documents:
Proof of ownership of a lien-free vehicle in your name
- Proof of income
- Proof of residency
- A government-issued ID
- The hard copy of the vehicle title
To qualify for a title loan, you must own your vehicle and be at least 18 years of age.
Favorite Charlotte, NC, Cash Advance and Payday Loan Companies
You cannot borrow from a payday lender in North Carolina. Any storefronts operating in Charlotte, NC, may not be reputable and should be avoided. There are other lending options that might be available. To find a lender, begin by searching online and be sure to do the proper research before settling on a company from which to borrow.