Life happens, and you need cash to get over the hump. Maybe your car broke down, you had a medical emergency, or a bill is due that you can’t afford to pay.
Payday won’t be here for another week, your credit cards are maxed out and your savings account is empty. You tried the bank, but they said no to a loan due to your credit score. What now?
In this situation, a payday loan may seem like the best option. But is it? Keep reading to learn more about how they work and other loan products that may be more suitable for your finances.
Options For Payday Loans in Ohio
There are 2 ways to get a payday loan in Ohio – online or at a physical location. Online lenders allow you to complete the entire process from your computer or smartphone, and loan proceeds are deposited into your bank account the next business day. If you visit a physical location, you can leave with cash in hand the same day.
On the due date, the lender will use the bank account information provided when you applied to withdraw the principal, interest and fees.
Requirements
Not all payday lenders in Ohio are the same. Some have more lax qualification criteria than others, but they all must adhere to the rules set forth by the Ohio Division of Financial Institutions’ Commerce Department.
You should be at least 18 years of age and a U.S. citizen or permanent resident to qualify.
Prepare to provide the following information to the lender:
A valid physical address, email address and phone number
Proof that you have a steady source of income
Banking information for an account that’s can receive direct deposits
Credit Affects
Payday loans in Ohio are designed for credit-challenged borrowers who can’t get approved elsewhere. Lenders are well aware of how desperate these consumers are to get fast cash and waive the credit check to eliminate this hurdle. The major downside is they charge an exorbitant amount of interest to protect themselves from the risk of loss on the loan if it becomes delinquent.
When you view your credit report, no record of the loan will appear as payment activity isn’t reported. The exception to the rule is if you default on the loan – it may be sold to a debt collector and reported as a collection item if you fail to make payment arrangements promptly.
Collection accounts sit on your credit report for 7 years and can tank your score by up to 100 points.
Max Loan Amount and Terms:
Payday loans in Ohio are capped at $1,000. The loan term must be at least 91 days but cannot exceed 1 year. Why so long? Borrowers should have enough time to get back on their feet, financially, before the lender comes to collect what they’re owed. Otherwise, it creates a perpetual cycle of indebtedness.
An exception applies to the 91-day rule if the monthly payment is lower than 6% of your gross monthly income or 7% of your net monthly income. If you fall into this category, the lender can shorten your loan term.
Also, know that payday lenders in the state are prohibited from charging more than 28% in interest per year, and the aggregate total of interest and fees is capped at 60% of the principal. To illustrate, if you borrow $750, the lender cannot charge more than $450 for interest and fees.
You can take out more than one payday loan at a time, but the total amount outstanding is limited to $2,500. You’re limited to 2 loans in 90 days.
Penalties
Unable to pay when the loan becomes due? You may be subject to a $20 collection charge from the lender and a returned payment fee from your financial institution.
However, you can be proactive and request a 60-day fee-free repayment plan to prevent the lender from initiating a transaction to collect what they’re owed.
If the loan remains outstanding once this period lapses, the payday lender may opt to sell it to a 3rd party debt collector who can sue you in the court of law to recoup the amount owed, court costs following the default and damages.
Payday Loan Alternatives in Ohio
Don’t like the idea of a high-interest payday loan? You can turn to MoneyLion as they have safe loan products to get you over the hump.
Instacash
Use the Instacash feature from MoneyLion to get an interest-free cash advance of up to $250. There are no hidden fees or credit checks to qualify. All you need is a checking account to apply.
Apply in minutes to view your loan offer. To get started, download the MoneyLion app to your smartphone, create a profile and link your checking account. If you qualify for a cash advance, the amount will appear on your screen. Request the amount you want to borrow and wait for the funds to arrive in seconds.
Sure beats the pesky interest charged by payday lenders and grants you access to other premium banking features.
Credit Builder Loans
Do you need more than $250 to get you to the next payday? Consider a Credit Builder Loan from MoneyLion.
It isn’t just any installment loan, though. You can get the cash you need and build your credit since payment activity is reported to the 3 credit bureaus – Equifax, Experian and TransUnion.
The application only takes a few minutes, and you may be approved for up to $1,000. A large portion (depending on your finances) is yours right away, and any remaining amount is placed in an interest-earning Credit Reserve Account until the loan is paid off. Even better, the affordable loan payments are deducted from your bank accounts, so you don’t have to keep up with due dates.
Unlock this feature along with Instacash cash advances and more for only $19.99 per month when you sign up for a Credit Builder Plus membership.
Apply for a Credit Builder Loan
Find A Online Loan In Ohio
Instacash | Credit Builder Loan | Local Payday Lender | |
|---|---|---|---|
How Much Can You Borrow? | $250 | $1000 | $750 |
Fees & Interest | 0% APR | Competitive APR, 0 fees | $450 Max combined interest and fees. |
Credit Check | No | No | No |
Availability | Online & Mobile | Online & Mobile | Online, In-Store, In-Person |
Wait Time | Instantly | Instantly | Same-Day or within 24 hours depending on the lender. |
Next Steps | Sign Up | Sign Up |
Get Approved for a Loan in Ohio!
Long gone are the days where you have to settle for an expensive payday loan. MoneyLion offers safe, affordable loan solutions to Ohio residents to find the relief they need. Consider an Instacash cash advance or Credit Builder Loan today.
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Disclosures
Credit Builder Plus membership ($19.99/mo) unlocks eligibility for Credit Builder Plus loans and other exclusive services. This optional offer is not a Pathward product or service. A soft credit pull will be conducted which has no impact to your credit score. Credit Builder Plus loans have an annual percentage rate (APR) ranging from 5.99% APR to 29.99% APR, are made by either exempt or state-licensed subsidiaries of MoneyLion Inc., and require a loan payment in addition to the membership payment. The Credit Builder Plus loan may, at lender’s discretion, require a portion of the loan proceeds to be deposited into a reserve account maintained by ML Wealth LLC and held by Drivewealth LLC, member SIPC and FINRA. The funds in this account will be placed into money market and/or cash sweep vehicles, and may generate interest at prevailing market rates. You will not be able to access the portion of your loan proceeds held in the credit reserve account until you have paid off your loan. If you default on your loan, your credit reserve account may be liquidated by the lender to partially or fully satisfy your outstanding indebtedness. May not be available in all states. Credit Reserve Accounts Are Not FDIC Insured • No Bank Guarantee • Investments May Lose Value. For important information and disclaimers relating to the MoneyLion Credit Reserve Account, see Investment Account FAQs and FORM ADV.
Instacash® is an optional service offered by MoneyLion. Your available Instacash Advance limit will be displayed to you in the MoneyLion mobile app and may change from time to time. Your limit will be based on your direct deposits, account transaction history, and other factors, as determined by MoneyLion. Expedited delivery requires Turbo Fee. See Instacash Terms and Conditions for more information and eligibility requirements.
MoneyLion does not provide, nor does it guarantee, any third-party product, service, information, or recommendation. The third parties providing these products or services are solely responsible for them, as well as all other content on their websites. MoneyLion is not liable for any third party's failure with regard to those advertised products, services, and benefits. These advertised products and services may not be FDIC insured or bank-guaranteed, and may be subject to a different privacy policy than MoneyLion’s. You should check individual offers, products, and services to become familiar with any applicable restrictions or conditions that may apply. MoneyLion may receive compensation from third parties for referring you to the third party, their products or to their website.
Instacash is a 0% APR cash advance service provided by MoneyLion. Your available Instacash advance limit will be displayed to you in the MoneyLion mobile app and may change from time to time. Your limit will be based on your direct deposits, account transaction history, and other factors as determined by MoneyLion. This service has no mandatory fees. You may leave an optional tip and pay an optional Turbo Fee for expedited funds delivery. For a $40 Instacash advance with a Turbo Fee of $4.99, your repayment amount will be $44.99. Generally, your scheduled repayment date will be your next direct deposit date. An Instacash advance is a non-recourse product; you will not be eligible to request a new advance until your outstanding balance is paid. See Membership Agreement and help.moneylion.com for additional terms, conditions and eligibility requirements.