California Cash Advance Laws
Posted on: 22 February 2016
A cash advance can be a valuable tool if you need to get some money before payday, but you also need to be careful of how you use these financial tools. If used without the proper foresight, a cash advance can end up costing you quite a bit of money. Furthermore, you should do some research on the laws of your state in order to determine exactly what your rights are. To give you an idea of what your cash advance will look like, here is an overview of how cash advances work in California:
Loan Amount Restrictions
The amount of money that you can ask for is limited to $300. This may not seem like a large amount of money, but that is mainly because payday loans are so easy to access. With a payday loan, you can get money despite poor credit rating, and you can also get the money in an extremely short amount of time.
If you need more than $300, then you should probably look into alternative lending options.
Loan Term Restrictions
Many states also restrict the maximum duration of the loan, and California is no different, requiring that loans last a maximum of 31 days. In other words, the loan will generally last two payment cycles. If you are unable to pay back the money on your next payday, then you can schedule the payment date to be on the payday after that, which can give you a bit of room to breathe.
While 31 days may not seem very long, you need to remember that a payday loan is much different from mortgages, student loans, and other long-term lending plans. A payday loan is meant to help you deal with unexpected expenses, and as a result, are meant to be paid back as soon as you get the money that you need.
Fee Restrictions
Finally, California restricts the amount of money that you can be charged for your payday loan at 15%. If you want to get a loan for $100, then you will need to pay back $115 on the assigned date. Of course, this can grow higher if you fail to pay back the loan on time. As long as you make your payment on time and return the money as quickly as possible, the financial burden will remain relatively small.
To help make sure that you pay the money back on time and that you don't forget, many cash advance services have you sign a check for the date on the payday in question.
For more about payday loans, click this link http://www.paydayexpresscashadvance.com or do an online search.
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