Online Payday Loans in Illinois
Are you a resident of Illinois and require immediate financial assistance? Online payday loans Illinois can help you get fast cash while avoiding a hard credit check. Illinois is among a few US states that have established a cap on the APR and defined the maximum loan amount to better cater to borrowers.
MoneyWise will discuss Illinois payday loans and the laws and regulations surrounding them to help you make the right decision. You will also learn about the loan application process and the benefits of getting online payday loans in Illinois.
How Do Online Payday Loans Illinois Work?
Online payday loans in Illinois offer the best solution to address urgent financial needs before the next paycheck arrives. You apply for the short-term loan against the income you will receive in the next paycheck or earlier. Generally, the payday loan duration is about two to four weeks in Illinois. You can use the payday loan for various cash emergencies, including car repair, medical and utility bills, and home renovation expenses. The money lenders review your personal and financial credentials to assess your credibility to repay the loan on time.
After the application assessment, the lender makes the loan offer. When you and the money lender agree on the loan terms, the lender will send the funds to your active checking account. Then, when you receive your monthly paycheck, you can pay the loan back along with interest rates and additional charges. The Illinois state law allows the borrower to apply and get two loans.
However, the borrower has a seven-day extended cooling-off period between two consecutive loans. Hence, per this rule, if you have taken out a loan in the last thirty to forty-five days, wait for seven days to apply for the new loan.
Eligibility Criteria for Payday Loans
The premium money lending platforms have made it quick and easy to apply for an Illinois payday loan while sitting within the comfort of your home. However, there are a few simple criteria you must pass through to apply for a payday loan in Illinois. The loan applicant should;
- Be at least 18 years old
- Be a permanent US resident
- Provides social security number or other identification documents
- Have stable income
- Provide an active bank account or checking account to receive and repay the payday loan
- Have a valid email address and contact numb
Application Process for Payday Loans in Illinois
Getting a loan is nearly impossible for people with bad credit scores. Traditional installment loans offered by banks or credit unions have strict eligibility requirements. These financial institutions only consider people with good credit scores above 579.
The credit score is evaluated by three major national credit reporting bureaus: Experian, Equifax, and TransUnion. These agencies collect your credit information and analyze your financial behavior to evaluate the final credit score. This credit score is between 300 and 850. The higher the credit score, the better the chances of getting a loan.
A fair credit score ranges between 580-669, and a good credit range is 670-739. Anyone with a credit score below 580 will not be eligible to get traditional personal loans from banks and credit unions. However, payday loans have made borrowing money feasible in crucial financial situations. Multiple trusted direct lenders offer payday loans to people with poor credit situations. A reputable payday lender will only perform a soft credit check of your current financial situation to measure your reliability and will ignore the credit score.
Online Payday Loans Illinois vs. Installment Loans in Illinois: An Overview
Anyone can relate to having financial hiccups in their life. At one time or another, we can all have an urgent need for money to resolve all sorts of financial issues. Dealing with such money problems is especially hectic when you live paycheck by paycheck.
In Illinois, payday loans, otherwise known as cash advances, can offer you money when you need it urgently. Then, you can pay the loan back on our next payday. Moreover, many payday lenders in Illinois offer legally permissible loan amounts even if you have a bad credit score. Thus, a payday loan is the best option if it is difficult to get an installment loan from banks or credit unions.
However, as the money lender is taking a chance by lending you money regardless of the bad score, the loan agreement will come with a high-interest rate and additional fees.
Additionally, Illinois law advises lenders to offer reasonable payday loan amounts per the borrower’s income capacity. Overall, applying for a payday loan in Illinois is quick, hassle-free, and beneficial.
Rules and Regulations of Online Payday Loans Illinois
The Illinois General Assembly manages the rules and regulations of Illinois payday loans under the Payday Loan Reform Act. Illinois offers a higher maximum loan limit compared to several other US states. The money lenders can provide 25% of the borrower’s monthly income up to $1,000. If you need a higher loan amount, up to $35,000, you should apply for an installment or personal loan.
Furthermore, Illinois caps the APR (maximum annual percentage rate) for a payday loan at 404% or approximately $15.50 for every $100 of a loan amount. Also, there is an additional $1 verification fee.
The loan duration for short-term loans is seven to thirty-one days. Generally, the money lenders set the scheduled repayment time till the borrower’s next paycheck. The money lender may increase the payday loan term duration, but the limit is 120 days at most.
If the loan account defaults, the money lender cannot make criminal charges against the borrower. However, the lender may charge a $25 NSF (Non-Sufficient Funds) fee. Finally, rollover charges or renewals are not permissible.
Bad Credit And Online Cash Advances
Getting a loan is nearly impossible for people with bad credit scores. Traditional installment loans offered by banks or credit unions have strict eligibility requirements. These financial institutions only consider people with good credit scores above 579.
The credit score is evaluated by three major national credit reporting bureaus: Experian, Equifax, and TransUnion. These agencies collect your credit information and analyze your financial behavior to evaluate the final credit score. This credit score is between 300 and 850. The higher the credit score, the better the chances of getting a loan.
A fair credit score ranges between 580-669, and a good credit range is 670-739. Anyone with a credit score below 580 will not be eligible to get traditional personal loans from banks and credit unions. However, payday loans have made borrowing money feasible in crucial financial situations. Multiple trusted direct lenders offer payday loans to people with poor credit situations. A reputable payday lender will only perform a soft credit check of your current financial situation to measure your reliability and will ignore the credit score.
Frequently Asked Questions
Q1. How Do Payday Loan Repayments Work?
The money lenders will automatically extract the scheduled loan repayment from your bank or checking account on the designated date. Therefore, keeping the required loan amount in the account ahead of the upcoming repayment date is essential to remain safe from late penalties.
If it is not feasible for you to repay the loan on the scheduled time, then it is preferable to discuss the situation with the money lender directly. The money lender may amend the loan terms to benefit both parties.
Q2. How much can I borrow with online payday loans in Illinois?
Generally, you can apply for as low as $100 to $1,000 with online payday loans. However, some money lenders may offer high loan amounts based on your gross monthly income. The maximum loan amount differs for every lender, but the loan offer must be less than 25% of the borrower’s monthly income.
Q3. Are there one-hour payday loans available in Illinois?
Many direct payday lenders may access your loan application in less than an hour and offer you the loan agreement for analysis. You may receive funds within the same or the next business day. However, the speed of the application process depends on the payday lender.
Q4. Are payday loans available in all cities of Illinois?
All Illinois residents can apply for online payday loans, considering they fulfill the basic eligibility criteria. However, the most popular Illinois towns having multiple brick-and-mortar locations for getting payday loans are Tazewell, Champaign, Kankakee, McLean, Sangamon, Madison, Kendall, Peoria, Winnebago, DeKalb, and Macon.
Apply for Payday Loans in Illinois Now!
Online payday loans in Illinois are an excellent option to go through a cash emergency. The best feature of Illinois payday loans is the ban on rollover or renewal fees; thus, there is no need to worry about paying additional refinancing charges if your loan account defaults. So what are you waiting for? Reach out to MoneyWise today to check out the best payday loans available and get quick funds.
