Modesto Payday Loans: Subprime Report
An OppLoans Guide to Getting The Help You Need


Life is not a math equation; there is rarely only one solution to the problems life throws our way. Sometimes the answer to an unexpected emergency can be as easy as taking out a personal loan. But even then, what kind of loan is best? Some loans come with short repayment terms and high interest rates that can cause even more problems down the line. (Life may not be like a math problem, but doing the math when looking at a loan is always a good call) Other problems are bigger than the kind that can be fixed by a loan. Addiction, homelessness and mental health issues require different solutions than a loan can provide. Luckily, whether it’s a getting a loan, getting sober or getting legal assistance, there are many different ways to find help in Modesto and Stanislaus County.

Borrowing Money in Modesto

A loan is like any other tool — a jackhammer, for instance. Use it properly and you’ll be amazed how much you can get done with it. Use it improperly and you’ll find yourself in pretty dire circumstances. (Loans, unlike jackhammers, probably aren’t going to burst a water main, but you never know.) And some loans are barely tools at all, they’re more like traps. These kinds of loans have hidden fees, high interest rates and abrupt repayment terms, and they are often the result of a predatory lender.(1) These lenders lure borrowers into a continuing cycle of debt that can follow them around for years on end. Even if someone needs quick cash in an emergency, they should still take the time to learn The Truth about Payday, Pawnshop, and Car Title Loans.(2)

Payday Loans in Modesto
Payday lenders make big promises that hide unpleasant realities.

Payday loans are often advertised with phrases like “no credit check” or “fast cash now.” And if it sounds like a quick, easy loan with no credit check is too good to be true, that’s because it is. The name “payday loan” comes from the idea that these are loans people take out to tide them over until their next payday. Once they have their paycheck in hand, they pay back the loan. Easy-peazy, lemon-squeezy. Except it’s not. It’s more like difficult-difficult, lemon-difficult.

Payday loans are regulated by the State of California, and the law mandates that these loans are capped at $300 with a maximum fee/interest rate of 15%.(3) Now, a 15% interest rate might not seem so bad, but this is where the abbreviated repayment terms come into play. These loans are rarely for longer than 30 days. Many are to be paid back within 2 weeks. And a 14-day loan with a 15% interest rate would come out to an annual percentage rate (APR) of 390%. For comparison, the usually unflappable New York post was shocked to discover in 2014 that the average APR for credit card had risen to 21%.

It’s these high APRs together with the abbreviated repayment terms that can trap borrowers into a cycle of debt. The high interest rates mean that borrowers have to pay substantially more than they borrowed and the short repayment terms mean that they don’t have a lot of time to do it. When they are unable to pay, the lender offers to “rollover” the loan. This means that they charge an extra fee and/or additional interest to extend the term of the loan. The borrower then owes even more but doesn’t have much more time to repay. An additional 14 days on a 14-day loan still isn’t a lot of time. Eventually, the loan rolls over so many times that the borrower owes far more in interest and fees than they could ever hope to repay.

Fortunately, this is not something borrowers in Modesto have to worry about, as rollover is illegal under California state law. Still, that doesn’t mean that they are entirely safe from predatory lending practices. If you would like more information or to lodge a complaint against a payday lender in Modesto, you should contact the California Department of Business Oversight at (916) 327-7585 or the Consumer Financial Protection Bureau at (855) 411-2372.

Personal Installment Loans in Modesto
Safe, affordable loans are not a myth. Here’s the real story…

For people who need cash in an emergency shouldn’t have to put their finances at risk by going to a payday, title or pawnshop lender. Especially because there are other options for personal loans available in Modesto — ones that won’t leave borrowers struggling to repay. Namely, there are personal installment loans from OppLoans. Our installment loans come with longer repayment periods and won’t hit you with any hidden fees or prepayment penalties. To apply, all you need to do is fill out a simple, online.

OppLoans always strives to deliver fast, flexible, fair and five-star service:

  • Fast: Apply online and find out if you’re approved in minutes. Once approved you can get your cash as early as the next business day.
  • Flexible: We offer longer terms, larger loans, and affordable, fixed payments. Your monthly payment will be the same throughout the life of the loan.
  • Five-Star: Customers rate us 4.9 out of 5 stars for our friendly service. We also provide discounts for credit education.

You can get a loan from OppLoans that ranges from $1,000-$10,000 with interest rates that are generally 70%-125% lower than other personal lenders. Our personal installment loans come with fixed rates and monthly payments, so the amount you pay each month will never change. They’re perfect for anyone living on a tight budget who needs funds for emergency expenses or is trying to take control of their financial future.

More Resources:

See more local California guides below:
Anaheim | Bakersfield | Chico | Fresno | Los Angeles | Modesto | Oakland | Redding | Riverside | Sacramento | San Diego | San Francisco | San Jose | Santa Barbara | Stockton

References:

  1. Nasso, Bridget. “Military Veterans Targeted in Lending Scam in San Diego.” NBC San Diego. Accessed January 28, 2016. https://www.nbcsandiego.com/news/local/MIlitary-Veterans-Targeted-in-Lending-Scams-San-Diego-291314631.html.
  2. Lee, Jenna. “The Truth About Payday, Pawnshop and Car Title Loans.” Us News & World Report. Accessed January 26, 2016. https://money.usnews.com/money/blogs/my-money/2014/05/22/the-truth-about-payday-pawnshop-and-car-title-loans.
  3. “What You Need to Know About Payday Loans.” State of California, Business, Consumer Services and Housing Agency, Department of Business Oversight. Accessed January 26, 2016. https://www.dbo.ca.gov/forms/CDDTL/CDDTL-001-Payday_Loan_Trifold_PDF-FINAL-(Rev.08-13).pdf.
  4. Buck, Claudia. “State urges California consumers to be wary of auto-title loans.” Sacramento Bee. Accessed January 26, 2016. https://www.sacbee.com/news/business/article4457825.html.
  5. “Financial Code Section 21200-21209.” Official California Legislative Information. Accessed January 26, 2015 https://www.leginfo.ca.gov/cgi-bin/displaycode?section=fin&group=21001-22000&file=21200-21209.
  6. “Tips for buying and selling at a pawnshop.” Blogging for Change. Money Management International. Accessed January 26, 2015. https://www.moneymanagement.org/Community/Blogs/Blogging-for-Change/2011/July/Tips-for-buying-and-selling-at-a-pawn-shop.aspx.
  7. Scinto, Madeleine. “An Inside Look At America’s Growing Dependence On Pawnshops.” Business Insider. Accessed January 26, 2015. https://www.businessinsider.com/get-an-insider-peak-into-how-pawn-shops-work-2011-12

*OppLoans is not affiliated with any of the programs, services or organizations referenced on this page.