Will a Bad Credit Score Stop Borrowers From Getting a Payday Loan?
Not necessarily. Most payday lenders in Orlando may not run hard credit checks.
Instead, they’ll focus on the borrower’s income and repayment ability rather than their credit history. So even with a low credit score, you may still qualify.
However, keep in mind that bad credit might impact how much you’re offered and the fees involved. Steady income improves your approval odds.
Applicable Florida Lending Laws and Limits
Payday loans in Florida, also referred to as deferred presentment transactions, are governed by Florida Statute 560.404. Here’s what borrowers in Orlando need to know under this statute:
- Maximum Loan Amount: A payday lender cannot provide more than $500 in a single deferred presentment transaction.
- Loan Term Requirements: The duration of a deferred presentment agreement must be no fewer than 7 days and no more than 31 days.
- Fee Limitations: Lenders may charge a verification fee up to $5, plus a service fee not exceeding 10% of the loan amount.
- Prohibition on Rollovers: Lenders are not allowed to roll over or extend the term of an existing payday loan agreement.
- Single Loan Rule: A person may not have more than one active deferred presentment agreement at a time across all licensed lenders in Florida.
Always ensure the lender is properly licensed and review the terms carefully before entering into a payday loan agreement.
Conclusion
Payday loans in Orlando can provide fast access to cash during an emergency, but they’re not meant for long-term financial solutions. It’s important to borrow only what you can repay and to work with lenders that are licensed and transparent.
If you’re considering this option, we can help you get started. Just fill out an inquiry form today.
FAQs
How Do Payday Loans Differ From Other Types of Loans?
Payday loans are short-term and due in full by your next payday. Other loans, like personal or installment loans, typically offer longer terms, larger amounts, and lower APRs.
Why Are Payday Loans So Popular?
They’re fast, easy to qualify for, and don’t rely heavily on credit scores. That makes them attractive during emergencies when quick funding is essential.
Who Does Payday Loans Near Me?
Orlando has plenty of payday lenders, but you can make an inquiry from the comfort of your home. Fill out our quick inquiry form to get connected with third-party lenders.