How Much Can You Borrow From A Payday Advance Loan?
Posted on: 23 March 2017
Needing cash quickly and having no way to get it can be a major problem, but you could always consider getting a payday advance loan. With a payday advance loan, you could borrow money quickly to pay your unexpected expenses, and you may have several weeks, or longer, to repay the money. If you wondering how much you could borrow from a loan like this, here are several factors that will affect the answer to your question.
The state laws
Every state has laws relating to payday loans, and one of the laws each state has is a maximum amount a person can borrow through a payday loan. There are states that may only allow a person to borrow $300, but there are also states that allow much higher loans. New Mexico, for example, allows people to borrow up to $2,500. You can click on your state to see what the maximum limit is there if you want to find out the laws in your state. The maximum amount your state offers is the most you can borrow, but this does not mean you will be able to borrow the entire amount.
Your income
The amount of money you make can also affect the amount of money you can borrow through a payday advance loan; however, this may only affect certain states. Some states have rules that only allow people to borrow a certain percentage of their income. For example, if you live in Indiana, you may only be able to borrow up to 20% of your gross monthly income. This means that if you make $2,000 per month, you could borrow up to $400 through a payday advance loan.
The fees
It's also important to understand that when you take a payday advance loan, the fees will come out of the proceeds. Most payday lenders charge around $15 for every $100 they loan to a person, and these fees will be deducted from your loan amount. For example, if you borrow $400 and the fee is $15/$100, your fees will be $60. This will be deducted from the $400, so you will only receive $340 from your loan. Because of this, you may want to ask for a loan that is more than the amount you actually need to pay your expenses.
If you have questions about payday advances or would like to get one, contact a payday loan lender like http://www.paydayexpresscashadvance.com and fill out an application for a loan.
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