Payday Loans in Colorado

A payday loan is a timely answer when you have a monetary crisis.

Imagine you are in this situation. You are on your way back from work, and the car you squeezed out money to fix the week before, breaks down again. You struggle to get home, only to walk into your apartment and find it flooded. Unfortunately, the pipes in the kitchen suddenly decide to give up on you. Your next payday is 25 days away. You can’t stay in a flooded house, and you need your car to get to work. What do you do? Run to the bank? That’s a lengthy process. You might not even get feedback in weeks. Run to friends? How much can they give you for free? Plus, no one wants to risk a friendship.

There’s a perfect solution: payday loans. If you fill out your application form right now and get approved, you can get your money today to fix your car and your leaking pipes. And guess what? In Colorado, you can borrow up to $500 and repay it over six months. 

 

Loan Packages Available in Colorado

Payday loans

Payday loans are quick loans that are intended to assist with covering emergency expenses until your next payday. You can use this loan to pay for emergencies like a surprising vehicle issue. A payday loan application process is quicker than the usual personal loan. And it also has the edge over personal loans because you don’t need collateral or a good credit score to obtain them. In Colorado, you can get up to $500 in payday loans with at least six months to pay it back. Colorado loan terms are one of the most lenient in the USA. 

 

Law Status Permitted 
Minimum Loan Amount $100
Maximum Loan Amount $500
Minimum Loan Term Six (6) months
Maximum Loan Term Not set
Maximum Annual Percentage Rates (APR)% 36%
Additional Fees Origination fees:

  • 20% of the first $300.
  • An additional 7.5% for loans above $300. 

Maintenance fees:

  • $7.50 per $100 loan (must not surpass $30 per month). 
Collateral or guarantor  None
Non-Sufficient Fund (NSF) Fees 25%
Number of Simultaneous Loans One
Cooling-off Period Thirty(30) days 
Rollover  One
Extension, repayment plan Not set

Installment loans

An installment loan is a momentary cash advancement scheme that grants you additional time to pay back than a typical payday loan. When you take out an installment loan in CO, you will pay back in planned installments, usually similar in amount. But if you have all the money to repay at once, you can. It doesn’t attract any punishments. Instead, it reduces the finance charges you would have to pay if you stuck with the initial repayment plan.

 

In Colorado, you can obtain up to $5,000 in installment loans

 

Law status Authorized
Minimum Loan Amount $1, 000
Maximum Loan Amount $5, 000
Minimum Loan Term 90 days 
Maximum Loan Term 36 months (three years)
Annual Percentage Rates (APR%)(Minimum) 6.63%
Collateral or Guarantor None
Credit Score Requirements Unrestricted for low credit score.

 

Personal loans

Planning a massive wedding with your fiance, and you are short of cash? Or are you planning a honeymoon in Miami, but your current funds can’t even cover your plane ticket? If so, personal loans are your best buddy. Personal loans usually have low-interest rates making them the best choice for big purchases. You can also obtain without collateral, and you get a scheduled installment plan.

 

In CO, you can obtain personal loans for as high as $35,000. Nonetheless, your credit score plays a significant role in if you can get that high an amount. 

 

Law status Approved
Loan Amount (Minimum) $1,000
Loan Amount (Maximum) $35,000
Minimum Loan term  90 days
Maximum Loan term  60 months/5 years
Minimum Annual Percentage Rates (APR%) 4.99%
Collateral or Guarantor None
Credit Score Requirements Your credit score doesn’t matter

 

Legality of Payday Loans in Colorado

In February 2019, payday loans were allowed in Colorado with very strict rules. The State put some limitations to curtail sneaky lenders with outrageous interest rates.

 

In Colorado, the maximum amount you can obtain as a payday loan is $500, and you have a cooling-off period of 30 days. Also, you have a six-month period to repay your loan, and the Annual Percentage Rate (APR%) can not exceed 36%. If you decide to repay earlier than the due date, there is no punishment attached. In CO, you are allowed to obtain multiple loans. However, they must not surpass $500 in sum, and you must give a 30-day cooling-off period between each loan. 

 

Further, payday lenders can not charge more than $30 monthly in maintenance fees, and they must abide by Colorado’s Uniform Consumer Credit Code.

Any lender who fails to abide by the rules governing payday loans can be fined or prevented from operating in the state. 

Other Available Options Aside From Payday Loans in Colorado

  • Installment loans

Installment loans are credits you repay over a set period. In Colorado, when you procure an installment loan, you will promptly get the cash or the thing you’re buying (if you are procuring an auto loan or mortgage). After that, you will start repaying the loan in planned installments as agreed upon with the lender. Your monthly installment is normally the same sum all through the repayment period. When the credit is repaid in full, the account is shut forever.

 

There are many types of installment loans available in Colorado, and they usually fall into two categories: secure or unsecure. When an installment loan is not secured, you don’t need collateral to get it. But when it is secure, collateral is required. Some examples of secured installment loans are mortgage and auto loans. Some examples of unsecured installment loans are personal loans and student loans.

 

Keep in mind that your credit score can impact the terms of your installment loan and the interest fee. 

  • Debt consolidation loans.

Also called bill consolidation, debt consolidation involves incorporating numerous loans into one personal loan.

Say you have three outstanding debts worth $3,000, $5,000, and $6,000, respectively. With a debt consolidation loan, your loan becomes $14,000, and you get to pay back in installments, usually, once a month, until you repay everything, instead of paying each debt on different due dates. 

 

A debt consolidation loan helps you manage your finances better, allowing you to budget, reduce stress, and avoid late payment charges—all just by having one routinely scheduled installment to reimburse. 

  • Cash Advance from Credit Union

If you don’t want to deal with the longevity of bank loan approval and don’t want to get a payday loan, loans from Credit Unions are the best option.

Credit unions are financial organizations that give their members dividends. At a credit union, you are not only a client or a customer; you are a part of the association. This makes you a part-proprietor of the union and a beneficiary of dividends and ballot rights. The best part is anyone can be a member of a credit union as long as they reside in the area around the union.

Credit unions give lower rates to their members than traditional banks, meaning it costs less to have an account and take a loan with a credit union than a conventional bank. There are some uninsured credit unions in Colorado. So, if you must obtain a loan or be part of a credit union, ensure it is insured. 

  • Ask family and pals

If you have considered every other option and decided none suits you, you can try your last alternative: help from your family or close friends.

Exorbitant loan costs are a genuine concern; that’s why asking a relative or friend for monetary assistance can be a good option. Nonetheless, this choice can be risky to explore. Yes, it is a decent decision when you think about the high-interest fee attached to payday loans. But it can turn your genuine friendship into a business relationship in a blink. If you neglect to keep to your end of the agreement, it can ruin your friendship. It is advisable to only ask for an amount your friend can bear to lose. 

How Do Payday Loans Work in Colorado?

The process of obtaining payday loans in CO is straightforward.

After filling out your loan application form, we link you to an authorized lender that commences a thorough verification of the information you have provided. You don’t have to panic. Your identity, income source, and the precision of your personal information must be checked.

This assessment doesn’t take a lot of time as you would typically be sent your money on the same day, or at most, the next. If you meet all the prerequisites, we guarantee you will access your loan in the briefest time. You don’t have to worry about your privacy; it is unquestionably necessary, and we prioritize it. 

Everything You Need to Take Out a Payday Loan in Colorado

If you want to take out a payday loan, you have to provide the following personal and income information.

  • A copy of a government-approved ID like your passport or driver’s license.
  • Your recent address. You must be an inhabitant of the state of Colorado. 
  • A checking account that has been in use for at least one month.
  • Income proof such as a tax return to verify that you have a dependable source of income to pay back the loan.
  • Your email and telephone number in case we need to reach you.
  • Your Social Security Number (SSN)

A Sample Calculation for a Payday Loan in Colorado

When you obtain a $100 payday loan with a minimum of 14 days in CO, you will have an interest rate of:

Annual Percentage Rate (APR%): 36%

Loan procured: $100

Finance charge (for 14 days);

Origination fee: 20% of $100= $20

Maintenance fee: $7.50

So, finance charge $20 $7.50= $27.50

To return: $127.50

 

FAQS

Are payday loans available in Colorado?

Yes, payday loans are obtainable in Colorado for as high as $500. 

What can I use instead of a payday loan?

You can obtain an installment or personal loan if you don’t want to get a payday loan. 

What is the statute of limitations on a payday loan in Colorado?

A statute of limitation is the duration that a lender has to indict you for not repaying your payday loan. As soon as the statute of limitation is over, no court in Colorado can mandate you to repay the loan. In CO, this period lasts for six (6) years. 

What is the easiest payday loan app?

Earnin is one of the easiest payday loan apps to use.

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