It is normal to have financial ups and downs. There are times you might need quick cash. You could be running behind in your bills, or you have an emergency situation. When you are in such a case, you might need a payday loan.
In this Hawaii payday loans guide, you will learn everything you need to know about payday loans before borrowing them. The guide will let you in on what Hawaii payday loans are and how you can access them online and physically. You will also learn about the regulations governing HI payday loans. As you continue to read, you will also find out other loan alternatives you can use. Read on to find out more.
HI Payday Loan Laws
Before looking at the laws regulating the Hawaii payday loans industry, it is essential to know what payday loans are. A payday loan is a short-term loan that is usually less than 500 USD. When you take a payday loan, you will repay it in your next paycheck.
Other names for payday loans include cash advance loans, check advance loans, post-dated check loans, and deferred deposit loans. On many occasions, the borrowers secure the payday loans with a post-dated personal check. It is an ideal loan if you need cash before your next payday. It is usually a quick solution to temporary financial problems.
Why Borrowers Prefer HI Payday Loans
You dont need a guarantor.
The lenders are not so keen on the borrowers bad credit.
Your information as you take payday loans remains confidential.
It is fast and effortless to apply for Hawaii payday loans.
Borrowers dont have to wait as the payday loans are approved within 24 hours.
The Department of Commerce and Consumer Affairs in the state regulates the Hawaii payday loans industry. Here are the regulations that borrowers and lenders should follow:
Payday loans are legal in the state.
Lenders cannot issue over 600 USD in Hawaii payday loans.
The payday loan term cannot exceed 32 days.
The state caps finance rates at not more than 15% of the amount advanced.
The state prohibits payday loan roll-overs.
The state also prohibits any criminal actions. The state prohibits Hawaii companies that offer payday loans from taking any criminal action against a borrower unable to repay their payday loan in time. However, there are exclusions. For instance, if a borrower closes their account before repaying the loan.
Only check-cashing payday loan companies are legal in the state.
The state permits borrowers to have one payday loan at a time. Therefore, you must complete the current loan before going for another.
Any Hawaii payday loan complaints are handled by the Department of Commerce and Consumer Affairs in the state.
Online Payday Loans in Hawaii
Borrowers can access online payday loans in Hawaii. With this option, you dont have to drive to a storefront to fill out the forms. However, when applying for Hawaii payday loans online, please make sure you borrow from a reliable lender. If you are new to online payday loans, use the factors mentioned below to choose a reliable online payday HI loans lending company:
The lender must have all the relevant licenses. Before engaging a payday loans company online, confirm with the appropriate state body that they are certified.
Read the payday loan terms and conditions. Go for a company that offers the best terms. Compare the payday loans terms with what is set by the state and if they differ, move to the next option.
Read real user reviews of the payday loans company you want to engage. If the company has negative reviews, avoid them.
The Hawaii payday loans company website should be easy to use. The application process should be straightforward.
Once you identify your most preferred payday loans company, the online application process is usually flawless. Borrowers get their money very quickly. The application process usually involves:
The first step is filling in the online application forms. Here, the loan companies dont ask for much; they will need your:
Social Security Number
Bank Account Details
The amount you are borrowing
Once they have all the details they require, the Hawaii payday loans company will assign you an agent to follow up on the loan. The company will use your bank account details to determine if you are creditworthy. If you are, they will wire the money into your account within 24 hours. In some cases, it is instantaneous. You can choose other methods to receive the loan.
Many payday loan borrowers prefer the online application process. Here are some of the advantages of using the online application process:
Borrowers can apply for the loan within seconds, and it takes a short while to get approved.
Borrowers get the money in their accounts within hours.
They can borrow payday loans on the go as the application platforms are mobile-friendly.
Online payday loans HI companies usually display the details of the loans on the site, enhancing transparency.
Getting payday Hawaii loans is usually straightforward. However, the smoothness of the application process depends on your ability to meet the loan requirements. Some requirements are set by the state, while the others depend on the payday loans company you are using.To be eligible for payday loans in HI, you must meet the following requirements:
You must be 18 years or over. The United States Government prohibits companies offering payday loans from giving loans to persons under the age of 18.
You must be a resident of the state. The payday loans company usually demands proof of residence from the borrower. You can provide your address or utility bills to ascertain that you reside in the state. At this point, the success of your loan application is almost assured.
Most payday loan companies dont focus much on your bad credit. However, you must provide proof that you have the capacity to repay the loan. So, you must provide evidence that you have a stable source of income, not less than 1000 USD per month.
You must also have an active checking account from which you will write the post-dated check.
Borrowers must also have a valid email address and phone number.
You must also not be a debtor in bankruptcy.
What Are the Other Cash Advance HI Options
Hawaii payday loans are an excellent way to get cash quickly to sort out a pressing financial need. However, as already established, payday loans can be expensive. If you can get an alternative way of getting the cash or sorting the issue, you should consider that alternative. Here are some ideas you can use to get cash loans in Hawaii:
If you are having problems with your creditors, talk to them, and ask for an extension of the repayment period. You should also find out if you can renegotiate the terms before going for Hawaii payday loans.
Talk to your employer and ask them to give you a salary advance to be deducted during your next paycheck. This is more economical compared to payday loans as the terms are far much better.
You can consider applying for a personal loan from a credit union in your locality. Credit unions usually offer borrowers much lower interest rates than Hawaii payday loan companies.
You can also get cash advance Hawaii loans from your credit card; typically, the interest rate will be much lower than what you would pay to a payday loans company.
Borrowers can use their credit unions overdraft protection feature.
If you have friends or relatives that can help you, try talking to them to bail you out.
If the situation is dire, try pawnshop loans. Their loans are usually cheaper than the Hawaii payday loans, and the borrower usually has an exit strategy.
Regulations of Payday Loan Companies in HI
As mentioned earlier, you must work with Hawaii payday loans that follow regulations. Here are the rules that guide these payday loans companies:
The payday loans companies are prohibited from offering payday loans of more than 600 USD. However, individual loan amounts will be determined on personal repayment capability.
The companies can only issue the Hawaii payday loans for a period not exceeding 32 days.
The state also directs the payday loan companies to put a finance charge of 17.64 USD for every 100 USD borrowed.
Your APR (Annual Percentage Rate) is dependent on your payday loans term.
The state permits payday loans borrowers to use remotely created checks. Therefore, the Hawaii payday loan companies require a three-day cooling-off period for the check to clear.
All Hawaii payday loan companies are regulated by the Department of Commerce and Consumer Affairs.
Payday loan companies must be duly registered.
Poor Credit Payday Loans in HI
One significant advantage of payday loans in HI is that even individuals with bad credit can get them. According to the credit experts, the payday loans’ terms render your credit score of little or no effect. Therefore, the Hawaii payday loans companies look at other parameters making the loans friendly to individuals with a low credit score.
In this regard, payday loans in Hawaii can be a great tool that borrowers can use to improve their credit scores. As they submit their reports to the credit bureau, they help to improve your credit score. Therefore, make sure you repay your payday loans in time, and your score will improve.
Final Thoughts on Payday Loans in HI
Hawaii payday loans are a great way to get money for emergencies. As discussed in this guide, make sure you do a background check on all Hawaii payday loan companies to determine their authenticity. Also, check with the regulatory body whether the lender is certified to offer payday loans in HI.
Payday loan companies dont necessarily look at your credit score, but they have other factors they consider. If you can meet the most critical requirements for payday loans, you will have the money. This guide has also established that you can use the opportunity accorded by the Hawaii payday loans to improve your credit score by ensuring you repay the loans in time. With an improved credit score, you will have many options to get more affordable loans.
However, since payday loans are costly, borrowers can consider other options like borrowing from friends and family. Having financial challenges is normal, but if they persist, please seek a money management coach’s help.