Where To Get A $1000 Loan From Lenders In California?

If you live in California, the local lenders are allowed to provide payday loans although there are several restrictions in place whether you like it or not. Due to the high risk nature of such short term financing, each state may have very different laws governing payday loans, installment loans etc. So the next time you need a $1000 loan from direct lenders in California, you will understand the specific lending terms applicable and why you cannot borrow much.

Online Loan Lenders For California Residents

Firstly, the maximum amount you can borrow from California payday loan lenders is only $300, thats right - you can get a $300 payday loan in California and nothing more. Borrowers are also not allowed to rollover or extend the loan payment dates. The borrowing fees for a $100 payday loan in California is $15, so the maximum APR works out to be 460% based on a 2 week loan. That also means the maximum loan fees you pay is $45, based on a $300 loan for 2 weeks.

California loan lenders are also not allowed to prosecute borrowers in court criminally for not paying back the loan, though they are not likely to bother since litigation fees are likely to be much higher compared to the 300 dollar loan given in the first place.

From the above loan restrictions, you can understand that payday loans in California are severely limited for both lenders and borrowers. You are not able to get a large payday loan above $300 and lenders are not allowed to give you a bigger loan. However, you do not need to pay any late fees or loan extension fees if you cannot pay back on time. Although this may sounds good for your wallet, note that the damage is done to your credit history instead. eventually, you still have to pay back the lender if you want to improve your credit score.

Payday Loan Laws In California

You can say that payday loan laws in California favors the consumers and borrowers. California is one of the few states with no-recourse payday loans where the lenders cannot bring legal charges against borrowers who do not pay back. But more importantly, you know that the maximum fees you need to pay for a $100 loan will be $15 - all legit lenders that are registered with the state must comply with this rule. No additional fees can be added for non payment or late payments, although a one time bounced check fee of $15 is applicable.

Since you are only limited to a $300 loan in California with a maximum interest fee of $45, and you are not allowed to take another similar loan, it is less likely to incur a lot of debts via consumer borrowings. Thus, one can say that these harsh loan laws are good for protecting less financially savvy people from misusing high interest rate personal loans.

Borrow $1000 From Lenders In California

Even though you are limited to $300 loans from real lenders in California, the law does not restrict you from borrowing from more than 1 direct lender in California concurrently. However, not many legitimate loan companies are willing to give you a new loan when you have existing loan or cash advance from other lenders. You may have to try several times in order to successfully borrow $1000 several lenders. If you really need to borrow money fast, the local laws can be a hindrance. Remember that while you do not have to pay additional interest or penalty fees for late payments, it can hurt your credit score.

If you feel that a payday loan lender has charged more fees than legally allowed, you can seek help from the following agencies: California Department of Corporation (1-866-275-2677) or National Foundation for Credit Counseling (1-800-388-2227)