Redding Payday Loans: Subprime Report
A Guide to Getting The Help (and the Loan) You Need
Problems come in many different shapes and sizes. On one side of the spectrum, there are skinned knees and spilled sodas, and on the other side there are wrecked cars and extended hospital stays. While a skinned knee can be solved by a band-aide and a kiss from mom, a stay in the hospital is probably going to require some considerable financial resources, even with insurance. And then there are problems like drug addiction, PTSD, aging and domestic violence which require not just financial resources but specialty care. There is no one-size-fits-all solution. A personal loan might work for some problems, while an AA meeting might work for others. Luckily, for people in Redding and Shasta County, there are all these resources and more to help them out in their time of need.
Borrowing Money in Redding
Emergencies happen, and it’s always a good idea to have a rainy day fund for when they do. But sometimes, emergencies are bigger than anticipated. Or maybe they come one right after another. The rainy day fund can cover the first emergency and maybe the second, but what about the third? Or the fourth? When there aren’t enough funds to pay for emergency expenses, the best option is to get a loan, but even that decision is a tricky one. There are lots of lenders out there offering loans that will make things worse, not better. These are called predatory lenders,(1) and they offer financial products that take advantage of their customers. With high interest rates and short repayment terms, they can lead borrowers down a dangerous path.
Before taking out a loan, it’s a good idea to do some research on the many different kinds of loans being offered in Redding and Shasta County. The time spent looking into these lenders is really just a different kind of investment, one that will pay many dividends later on. It’s time to learn The Truth about Payday, Pawnshop, and Car Title Loans.(2)
Payday Loans in Redding
These loans, secured only by a check, offer no security to borrowers.
Payday loans are marketed as a small loan that the borrower will easily be able to pay the loan back when they get their next paycheck. In fact, the loans are often “secured” by the borrower writing out a check to the lender for the amount borrowed plus interest and fees which the lender then deposits on the loan’s due date — which is presumably set after the borrower’s paycheck has been deposited. But with these short-term, high-interest loans, the reality is rarely that simple.
State of California regulations states that payday loans cannot be issued for any amount beyond $300. They also cap the finance charges levied by the lender at 15%.(3) This means that the most a person could actually have in hand from a payday loan in California is $255. (A 15% finance charge for $300 would be $45 and the charge is deducted directly from the amount borrowed.) One of the reasons that these loans have a fairly low maximum is because they come with shockingly high interest rates.
15% interest on a loan doesn’t sound so bad, but it’s a different story when the short repayment terms for payday loans are figured in. These loans rarely have terms longer than a month, with 14-day terms being very common. A 15% interest on a 14-day loan adds up to an annual percentage rate (APR) of 390%. That’s a lot. If one of these loans were extended to a full year, the borrower would be paying almost four times the amount they originally borrowed in interest and fees alone.
And this does occur, mostly through a practice called “rollover.” When a lender offers to rollover a loan, it means that they are offering to extend the due date in return for charging additional fees and/or interest. So in the case of a $300 loan with 14-day repayment terms, the borrower would be given an additional 2 weeks to come up with the money to pay the loan off. However, in addition to paying back the original $255 they received plus the $45 finance charge, they would have to now pay an additional $45 for the rollover. For people with limited means, this can be difficult to do. They often find themselves trapped in a cycle of debt, eventually rolling the loan over so many times that they owe far more than they could ever hope to repay.
Luckily, loan rollover is prohibited in the state of California. Still, this doesn’t mean that potential borrowers in Redding and Shasta County are entirely free from predatory lending practices. If you would like to file a complaint against a payday lender in Redding and the surrounding area, or would just like more information, 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 Redding
A loan that can fix present needs without creating future problems.
A bad loan can do lots of damage to your finances, but a good loan can be just the thing to turn your fiscal situation around. For people in Redding and Shasta County, the best, most strategic decision they could make when looking for a loan is to apply for an OppLoan. These safe, affordable personal installment loans are perfect for people with a tight budget who need to pay for emergency expenses or take control of their money management. All you have to do is fill out an online application. If you’re approved, you can have the money deposited in your bank account as early as the next business day.
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.
A personal installment loan from OppLoans can range from $1000-$10,000 and comes with interest rates that are generally 75%-125% lower than our competitors. Our loans will never hit you with any hidden fees or prepayment penalties. We have longer repayment terms and fixed monthly payments, which means that the amount you pay each month will never change and won’t break your budget.
See more local California guides below:
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- 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
- 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
- “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
- 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
- “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
- 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.