Surveys have shown that nearly half of the Americans don’t even have $400 savings in case of an emergency. Bank loans are usually approved based on the FICO scores of the borrowers and the scores for nearly half of the Americans is around 680 which makes it very difficult for the Americans to get loan approval from the bank. This leaves nearly 150 million people deprived of the necessary credit that they need. The situation is no different in Jackson, Mississippi if not better. Mississippi is amongst the poorest states in the country with Jackson having >30% people below poverty line.
The solution to such credit deficit is payday loans which are instant and require no credit. They are very popular in Jackson as payday loans are legal in Mississippi but under strict state regulations to protect the rights of the borrowers Stat. 75-67-501 et seq.
How to get a payday loan in Jackson Ms ?
There are many payday loan services in the City which offer loan approval within 5 minutes both offline and online. The borrower’s eligibility criterion only needs the applicant to be above 18 years of age U.S. citizen with a valid proof of income/bank statement. The maximum amount of loan that can be approved is $500 which has to be repaid within 30 days (maximum time period). Once the loan is approved the amount will be reflected in the borrower’s account on the next business day (Fastest service). The borrower must repay their loan in full before applying for a new loan.
How to select a payday loan service in Jackson MS ?
Amidst the plethora of loan companies in Jackson the borrower must select the lender wisely to avoid undue troubles in loan approvals and high interest rates. Here are some of the points one should consider before selecting a payday loan lender: –
- The lender has to have a legitimate license.
- The lender should have a definite postal address (Zoning laws)
- The area of the store should not be less than 100 square feet.
- The lenders reviews and past records should be checked and the interest rates should be compared with other lenders.
- Lender should have fast loan approval and should insist on the procedure of ‘identification’.
- The time lender takes to transfer funds in the borrowers account
Borrower’s Rights in Mississippi : –
The lenders cannot charge more than $20 for every $100 (transactions <$250) and not more than $21.95 for every $100 (transactions >$250). The annual percentage rate is 520% for a $100 loan. Rollovers are not allowed in the state and the lender cannot take legal actions against the borrower. Maximum number of outstanding loans is also not specified. For the complains against borrowers lenders will report to the Department of banking and consumer finance, Mississippi
Why to choose payday loans ?
Payday loans carry risks but are instant and hassle free. They do not require any credit and the loan approval process is very smooth. They can be taken online and do not require any unnecessary formalities. They are the regulated by the state laws which are strict and non negotiable.
Why do people go for payday loans Jackson MS
- Fast and convenient loans with less paperwork required. People of Jackson don’t like wasting their time getting loan approvals.
- Multiple options to choose from: – Borrowers are not pushed to approach one agency as they have a number of both online and offline options to choose from such competition amongst lenders leads to a decline in interest rate so as to compete with each other in the market. Approximately 1100 cash advance agencies are present in Mississippi but the borrowers follow a trend to select the nearest one in terms of distance from their residence/office.
- Borrowers can take loans without explaining their reason to the loan company. This is not at all possible with other loans except payday loans in Jackson. The bank usually needs a legitimate reason from the buyer to get loan approvals.
- The borrower’s credit history is not evaluated. This way even the ones with poor track record are equally eligible for the loan approval.
How to avoid loans
Loans can be easily avoided if the people have savings for emergency situations. Investments should be done from the money that is required for daily chores. Medical insurance helps to cover urgent medical needs and car insurances also come in handy as most of the cash advances in Jackson are needed for urgent car repairs.
Things to be kept in mind before going for payday loans
These loans despite being very beneficial for the borrowers have several disadvantages: –
- High interest rates: – Although regulated these interest rates are still very higher than the conventional bank loans.
- Easy approvals: – This leads to borrowers reaching out for loans even when they do not need them. The loan companies keeps on getting richer and richer and this brings down the overall economic development of the state. Hence unnecessary payday loans should be avoided.
- Vicious circle: – Sometimes the borrowers are trapped in the vicious circle of repaying loans and repeatedly taking them again and keep on losing their hard earned money to the lending companies. Hence payday loans should be taken when only in an emergency.
- Unreasonable spending: – The loan companies do not ask for a legitimate reason to get loan approval this may lead to borrowers spending the loan money injudiciously. Borrowers must have a clear target for spending the money borrowed.
Problems faced by the lending companies
De’Keither Stamps who represents ward 4 on the Jackson city council is confident that the payday loans are depressing the economic potential of the city. The state not only has stringent regulations for the no credit loans in Jackson they are also planning to restrict the growth of their business by not issuing more licenses for a period of time. This will be a huge blow to the lending industry as the same trend is followed in 120 cities all around the country.