How Many Payday Loans Can You Have In Illinois?
Last updated on October 14th, 2023 at 12:22 am
Hello!
My name is Randy and I work at Ready Payday Loans. In this article I am going to answer your burning question, How Many payday loans can you have in Illinois. I will go into detail how many payday loans you can have out at once, and in addition, I will talk about the dangers of payday loans.
As the cost of living rises, more and more people are turning to payday loans to make ends meet. But what do you need to know about payday loans in Illinois before taking one out?
Payday loans are short-term, high-interest loans that are offered to borrowers in need of quick cash. In Illinois, payday loan lenders must be licensed by the Illinois Department of Financial and Professional Regulation. The maximum amount borrowers can borrow is $1,000 for up to 45 days, with a maximum fee of 15% for the first $500 borrowed and 10% for any remaining balance.
Borrowers should be aware of the risks associated with payday loans. Interest rates on payday loans can be exorbitantly high – often surpassing 500%. This means that if you don’t pay back your loan within the specified time frame, you could end up owing much more than your original loan amount. Additionally, many lenders will roll over or “renew” your loan if you cannot pay it back on time, which can lead to a cycle of debt that is difficult to escape from.
Finally, keep in mind that Illinois state law limits borrowers to having no more than two outstanding payday loans at any given time. While taking out multiple payday loans may seem like an easy way to get extra cash quickly, it can have disastrous consequences if you are unable to pay them all off before their due dates.
Where Is Illinois?
Where is Illinois and how many payday loans can you have in Illinois? The state of Illinois is located in the Midwestern region of the United States. It is bordered by the states of Indiana, Kentucky, Missouri, and Iowa. Illinois is the 25th largest state in the country with a population of over 12 million people. The capital city of Springfield is located in central Illinois. Chicago is the largest city in the state and is located in northeastern Illinois on Lake Michigan.
What Are The Major Industries In Illinois?
What are the major industries and how many payday loans can you have in Illinois?
-The major industries in Illinois are agriculture, manufacturing, and service.
-The agricultural industry employs over 12% of the state’s workforce and is responsible for $19 billion in annual economic activity.
-The manufacturing industry is a major contributor to the state’s economy, accounting for $57 billion in annual economic activity.
-The service industry is the largest sector of the economy, employing over two million people and responsible for $116 billion in annual economic activity.
What Is The Average Income In Illinois?
What is the average income and how many payday loans can you have in Illinois?
The average income in Illinois is $50,000. However, the median income is only $48,000. This means that there are a lot of people in Illinois who make less than the average income. The median household income in Illinois is only $60,000.
This is important to know because it means that a lot of people in Illinois are struggling to make ends meet. It also means that a lot of people are turning to payday loans to help them make it through the month.
Payday loans are short-term loans that are typically due on your next payday. These loans can be very expensive, with interest rates as high as 400% sometimes.. That means if you take out a $500 loan, you could end up owing $2,000 by the time you pay it off.
Before you take out a payday loan, consider other options such as borrowing from friends or family, using a credit card or personal loan from a bank or credit union, or getting a cash advance from your employer. Payday loans should only be used as a last resort.
Illinois Payday Loan Laws
In Illinois, payday loan laws are governed by the Payday Loan Reform Act. This act was enacted in 2005 in an effort to protect consumers from the predatory lending practices of payday lenders. The act contains a number of provisions that regulate the payday lending industry in Illinois.
The most important provision of the Payday Loan Reform Act is the maximum interest rate that can be charged on a payday loan. Under the law, the maximum interest rate that can be charged on a payday loan is 99% APR. This means that if you take out a $100 payday loan with a two-week term, you will owe $199 at the end of those two weeks if you do not repay the loan in full.
Another important provision of the Payday Loan Reform Act is the maximum fees that can be charged for a payday loan. Under the law, the maximum fee that can be charged for a payday loan is $15 per $100 borrowed. This means that if you take out a $100 payday loan, you will owe $115 at the end of your two-week term if you do not repay the loan in full.
The Payday Loan Reform Act also requires payday lenders to provide borrowers with certain disclosures before they enter into a loan agreement. These disclosures must explain the terms of the loan, as well as the borrower’s rights and responsibilities under Illinois law.
If you are considering taking out a payday loan, it is important to understand all of your rights and responsibilities
How Do Payday Loan Lenders Get Licensed In Illinois?
In order to become a licensed payday loan lender in Illinois, you must first submit an application to the Illinois Department of Financial and Professional Regulation. This application must include a $1,000 non-refundable application fee, as well as proof that you have met all the requirements for licensure. These requirements include:
• You must be a licensed business in good standing with the Secretary of State
• You must have a physical location within the state of Illinois
• You must have at least $50,000 in capital
• You must have surety bonding in the amount of $10,000
• You must provide a detailed business plan
How Many Payday Loans Can You Have In Illinois?
If you are considering taking out a payday loan, make sure that you can afford the repayment amount. You should also only take out a loan if you truly need the money. Payday loans should not be used as a way to get extra money for unnecessary purchases.
It is important to remember that payday loans come with a high-interest rate and can be difficult to pay back. If you are unable to repay the loan, your credit score may take a hit. Therefore, it is best to only take out one payday loan at a time and make sure that you can afford the repayment before taking out the loan.
Types of Payday Loans
There are a few different types of payday loans available in Illinois. The most common type is the short-term loan, which is typically due on your next payday. These loans can range in amount from $100 to $1,000, and the interest rate is typically around 300%.
Another type of payday loan is the installment loan, which is repaid over a period of time with set payments. These loans are usually for larger amounts, up to $2,500, and have lower interest rates than short-term loans.
Finally, there are also online payday loans available in Illinois. These loans work similarly to short-term loans, but you apply and receive the money online. The interest rates on these loans are typically higher than offline loans.
Prohibited Activities
In Illinois, it is illegal for a lender to make a payday loan to a borrower without a license from the state. It is also illegal for a lender to charge more than 36% APR on a loan.
Lenders who violate these laws can be fined and may have their licenses revoked. Borrowers who take out loans from unlicensed or unregulated lenders are not protected by Illinois law and may be charged higher interest rates and fees.
Some lenders try to get around these regulations by offering loans that are structured as lines of credit, installment loans, or title loans. However, these types of loans are still subject to the same 36% APR limit.
Borrowers should be careful when considering any type of loan, but especially payday loans. Payday loans should only be used as a last resort after all other options have been exhausted. Borrowers should never agree to terms that they do not fully understand and should always shop around for the best terms before taking out a loan.
Sources:
Illinois Department of Financial and Professional Regulation. “Payday Loans.” Accessed October 14, 2020.
Final Thoughts On How Many Payday Loans Can You Have In Illinois
So there you have it!
We talked about payday loans in Illinois, and how many of them you can have in that fine state. Always remember, online payday loans might be a good solution for you, but for someone else, they could be a bad idea.
Payday loans can be a viable solution for those in need of quick cash, but like any other loan, you should be aware of the risks and consequences associated with them. It’s essential to understand Illinois state laws regarding payday lending and make sure you are fully informed before taking out a loan. With proper research and due diligence, anyone can benefit from using this type of financing. Armed with enough information about how payday loans work in Illinois, you will be able to responsibly access the financial resources needed to take control of your finances.
If you have any questions about online payday loans, please feel free to reach out to us. We would be more than happy to answer any questions that you have.
Until next time!
Randy
