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Pay Day Loans in America

Pay day loans have become very popular during the past decade. Surely, a lot of changes took place in the industry since the appearance of these loans on the market scene. With the laws and regulations becoming stricter, store-front lenders have to terminate their operation; however, more and more online lenders now offer their services.

Pay day loans are short-term loans that are offered to borrowers in need of cash under certain interest. These loans are favored by borrowers because they are easy to obtain and also they do not presuppose long waits for approval and disappointment of refusal. Payday lenders do not check credit histories of their borrowers and no bankruptcy can affect the decision. All these factors make payday loans very attractive loan product in the eyes of many borrowers and especially bad credit ones.

The interest rates for payday loans are much higher than the ones for regular personal loans and they range from 10 to 25% of the principle loan amount. This results in pretty high APR rates. Payday lending is not allowed in all the states across the country. There are states that allow lending without restrictions and states where payday loans are forbidden.

There are states where payday lenders are not numerous simply because the regulations put small cap and usury caps on such loans; which makes the whole business unprofitable.

Among the states that ban payday loans are the following ones: Arkansas, Connecticut, Kentucky, Georgia, Maryland, Maine, Massachusetts, New Jersey, New Hampshire, New York, North Carolina, Pennsylvania, Vermont and West Virginia.

Taking into consideration payday loan regulations, it might seem that borrowers of the aforementioned states have no such option anymore; however, there are still online payday loans and they are offered completely to any borrower with no regards to state.

Many people benefit from this loan option notwithstanding the fact that they are expensive. Payday loans are very convenient for situations when money is needed instantly and there is no tine to wait and delays are unacceptable. These are the fastest and the most convenient loan products on the loan market at the moment.