Whether you're in Chicago, Aurora, Naperville, or Rockford, we can help you find the best payday loans in Illinois for you. Payday loans are still legal in the state, and consumers are provided with some protections against the debt cycle. Before granting a second loan, lenders will check your employment status, income, and size and perform another partial check on your outstanding payments. Under Illinois law, a lender can charge an annual percentage rate (APR) of no more than 99% on a small consumer loan.
Payday loans have long been under scrutiny for their extremely high APRs, as well as for their short repayment periods. The combination of high and short-term rates increases the likelihood that you won't be able to repay your payday loan when it expires. The state has implemented the Predatory Lending Prevention Act, which limits interest on payday loans to an annual percentage rate (APR) of 36%. This law also protects consumers from unlimited renewals and requires that loans be based on the borrower's ability to pay.
Monthly payments on a payday installment loan cannot represent more than 22.5% of your gross monthly income. If you need money quickly for a short time and you can't borrow from a bank or borrow from friends, payday loans (or cash advance loans) can help. We work with the best lenders in Illinois to help you get cash as quickly as possible in an emergency. In addition to having lower interest rates, loans for small consumers have longer terms than payday loans, which usually last for about a year or more. If you're struggling to make ends meet, you're likely to fare even worse if you apply for a payday loan. Many payday lenders rely on borrowers to default, so they may charge additional fees and interest to add a new loan term to the agreement.
Consumer Protection Under Illinois law, consumers enjoy stronger protection against the worst practices in the payday lending industry.