California Payday Loans - A Guide to Payday Loans in California

From the crystal clear waters of Lake Berryessa, through San Francisco’s’ Mission district, to the San Diego ports, California citizens face the highest cost of living rates in the United States. A large number of Californians live paycheck to paycheck, and many don’t earn enough to accomplish that. It is no great mystery why so many turn to payday loans to manage their expenses. Far too many get caught in the cycle of paying the previous loan, then taking out a new loan.

Payday loans are small, normally for $100.00 to $500.00, short term, high interest loans that come in handy for unexpected expenses, such as car repairs, medical expenses, and so on. You can get these loans from local payday lenders as well as lenders who do their business on the internet. Many of these internet payday lenders operate under the laws of a state other than California, and may not be subject to the laws of California. This could cause you problems if you have a problem with them. Payday lenders are starting to partner with banks, allowing them to use the exemptions contained in the Banks charter to insulate themselves from local and state consumer protection laws.

A payday loan can be a solution to a temporary financial set-back, and if you are able to pay it back within the time limits of the loan and not have to renew it or take out another loan immediately after you redeem the original check. If you have a job and a checking account, getting a payday loan is fairly easy to accomplish. You’ll need proper identification, paycheck stubs, proof of residence, and usually, a working phone number. A recent utility bill should serve as proof of residence. If you use one of the internet payday loan companies, you would fax or e-mail copies of your documents to them, and authorize them to electronically deposit your loan proceeds, and to withdraw the loan amount plus fees on the due date. Under California law, the fee cannot be more than 15% of the loan, and the check advance cannot exceed $300.00.

You can pay it by redeeming the original check by the due date, or the check can be deposited upon coming due. It may also be withdrawn electronically if authorized in the contract.

In most cases, payday lenders offer cash advances for a fee. Generally, the loans are short term, until the next payday. When fast cash loans are not repaid on time the annualized interest can quickly grow to triple digits. But, those who cannot repay wind up borrowing more for longer periods of time, accruing a crushing amount of debt quickly. For that reason alone, it would be prudent to look for other solutions to a cash shortage. A small loan from family or friends is a possibility, and normally would have no fees attached. You might consider swallowing your pride and seek assistance from one of the many emergency assistance organizations.