When many people think of loans, they think of large amounts of money that are repaid back to banks over a long period of time. In fact, it is not uncommon for people to take out personal loans, if they qualify, for thousands of dollars that end up resulting in hundreds of dollars in interest over the years the loans are repaid.
Often, people do not need thousands of dollars. They just need a few hundred to address an emergency issue or unplanned expense between paychecks. To pay for a trip to the urgent care room, the dentist, a car breakdown or any other number of unplanned expenses, short term loans are the ideal answer.
There are some highly reputable lenders in Florida offering short term loans. These companies will lend people money based on proof of current employment, a valid checking account and government issued ID. To get the most out of these payday loans, there are some important issues that borrowers need to consider.
Understanding Payday Loan Amounts
Lenders in Florida offering payday loans cannot provide more than $500 per loan. Additionally, the state mandates and tracks to ensure that each individual only has one loan at a time. Additionally, lenders can charge a $5.00 verification fee as well as not more than 10% of the borrowed amount as the flat fee for the loan.
This is put in place to protect borrowers from borrowing more than they can repay, creating a cycle of borrowing to pay back loans. Lenders in the state must follow these policies to be able to continue to provide short term loans.
Amount To Borrow
Not all people will need to borrow the maximum amount with a payday loan. Remember, the amount of fees charged for the loan is based on the total amount, so keeping the loan to what is needed will help reduce the fees associated with the payday loan.