When the economy takes a turn for the worst, even the most financially responsible individuals can find themselves a little strapped for cash at times. Many of us tend to enjoy nice things and this leads us to spend more than we have available for spending at the moment. It never fails that when we go on a spending spree like this, an unexpected bill comes around that challenges our financial health and makes times hard. A cash advance in Salem might be just the answer many people have been looking for to solve their problems.
Cash advances exist in various forms, from title loans and credit card cash advances, to payday loans. The latter is generally the most popular form of cash advance in many parts of the country. The reason a payday loan is so popular is the lack of a minimum credit score requirement. Individuals are guaranteed a short term loan, regardless of their credit history, so long as they have a valid checking account.
A cash advance in Salem is easy to find and secure. Individuals just need to find the nearest payday loan store and stop in with their check book in hand. Once a loan amount is agreed upon with the lender, borrowers write a post-dated check to the lender for the amount of the loan plus fees and interest and they will have a loan in hand. When the loan period expires, the lender cashes the check to finish the loan agreement.
In the event an individual lacks funds in their checking account, the lender may cash the check anyway, resulting in overdraft charges from the bank and a negative impact on credit reports. However, some states allow lenders to offer borrowers the option to rollover their loan. In other words, borrowers extend the loan period another two weeks to a month in order to boost funds in their account and cover the check written to the lender.
Individuals seeking a cash advance in Salem should make themselves aware of the laws and regulations governing the payday loan industry in the state. The following regulations are used to govern cash advances in Salem:
- Loan Amounts: Borrowers may not receive payday loans in excess of 25% of their gross monthly earnings
- Loan Period: Loan terms can last between 31 and 60 days
- Extension: Oregon law allows lenders to rollover their loans no more than two times
- Fees: Lenders may not charge additional fees beyond origination fees, insufficient fund fees, and interest
New laws have been instituted in the state of Oregon to try and make cash advances in Salem safer for customers. Serious attempts have been made to control the interest rates payday lenders charge. Another important regulation prevents lenders from filing criminal lawsuits against negligent borrowers who fail to repay their loans. Only civil lawsuits may be filed against negligent borrowers.
Although cash advance laws in Oregon have improved, it could still be a costly endeavor for borrowers because of a lack of detailed regulations. Other sources of short term lending may be a better alternative to a cash advance in Salem. Regardless of the type of loan an individual is considering, in any situation they should make sure the reason for their loan is a true emergency. Wanting to make a big purchase or make a car payment are not good reasons to take out a payday loan; medical emergencies however are a good reason to take out payday loans.