Overview of Payday Loan Companies in Mississippi
The Federal Reserve’s research indicates that upwards of 47% of the working American adults are living paycheck to paycheck. Because there is nothing remaining from their salaries, they are not able to collect the necessary money for any type of emergency that comes along equaling over the $400 point.
Mississippi is the most impoverished state in America. They have the most people living below the poverty level coming in at a rate of 22% where the national average comes in at 13.5%. The median household income in Mississippi is approximately $40,000 with that of the nation’s average being over $55,000.
A lot of these folks turn to traditional payday lenders to meet their need for immediate cash.
WHAT IS A PAYDAY LOAN?
In Mississippi, a payday loan is also referred to as a cash advance, delayed deposit, or deferred presentment loan. It’s where the borrower writes a check to the payday lender in exchange for a short-term cash loan The check is written for the amount of the loan plus the finance fees. The loan term is usually for fourteen days which is generally when the borrower’s next paycheck will fall. At that time, the borrower will come in and ‘cash’ their check or the lender will deposit the check for payment. These loans come with hundreds of percent APR. The ideal situation is to only borrow if you are sure that you will be able to pay it in one lump sum when the payment is due on pay day.
Despite all of the negative and positive back and forth that goes on between the judicial system, the states, and the communities, these quick loans are still a very convenient and popular solution for managing a budget for everyone. There seems to be a misconception that payday loans are only used by income-challenged folks, but they are being used by those with stable, regular incomes as well who find traditional banking to be increasingly more difficult to get approved. The residents of Mississippi, unfortunately, have less access to traditional banking than any other state. They are rated the eighth of the states with the most payday lenders with nine stores for every McDonald’s restaurant.
TOP PAYDAY LENDERS IN MISSISSIPPI
This lender has been in business for over twenty years. They offer cash advances and title loans. They pride themselves on being a ‘regional leader’ in affordable short-term money solutions. They offer their customers respect along with friendly and fair service. Their loan process is simple as well as fast and confidential. All rates, fees, and terms are transparent, up front. They strongly encourage and promote borrower responsibility. This is a very community-oriented lender involved with various charity organizations and community events. They loan between $50 to $410 with requirements including being eighteen plus, bank statement, checkbook, pay stub, proof of residence, social security, and government ID.
A1 Check Cashing
They have been in business since 1977. They are a state-licensed direct lender. They offer cash advances and installment loans. “Best loan rates in the area.” They service over 30,000 clients. Their requirements include being twenty-one plus, bank statements for the last three months, pay stubs for last three pays, and a utility bill.
This lender has been open since 2004. They state that ‘they are poised to be the nation’s leading cash advance company.’ There are over 186 locations within six states. Services include check cashing, title loans, installment loans. They are open six days a week for their borrowers’ convenience. They loan up to $410. Their requirements include a recent bank statement, recent pay stub, blank check, government ID.
All of these lenders were ranked 5 / 5 * for payday loan stores in Mississippi. They have all been in business for decades and are very customer-oriented. Being able to sustain their businesses for such long durations speaks volumes for how they treat their borrowers.
FIVE REASONS TO GET PAYDAY LOANS IN MISSISSIPPI
Bank. Traditional banks are making it very difficult to get loans for anyone. No one is shielded from the tough guidelines or having to go through a personal crisis. It can sometimes take months or upwards of a year to get approval for a regular loan. No one has time for that. These loans help when you need it right away.
Credit Card Debt. When you get behind on credit card bills, the creditors or collections agencies start calling nonstop or you get threatening mail. To avoid all of that as well as high late fees or overdraft charges, it is sometimes best to get a small loan to pay them up to date.
Friends/Family. It’s sometimes impossible for people to ask those close to them for money. Having to explain your personal and financial issues to those nearest to you is embarrassing for us. We would all rather find another option than have to do that. These small loans allow us to take care of our business without having to say anything to anyone.
Repossess. Borrowing a small amount of money for a short time to avoid having something repossessed or more significant penalties than what a bit of interest would cause is well worth it. If you can’t pay your car payment or to pay on the appliances you bought, you run the risk of losing the items. It’s better to take the loan and pay the bill.
MISSISSIPPI PAYDAY LOAN LAWS
It’s a good idea to be familiar with the state’s laws when you go searching for a lender. This way you can be confident in what you see as far as rates, terms, fees and know which lender will be the best choice for you.
- Mississippi Payday Loan Rates:
- Maximum Payday Loan Amount: $500 (includes fee)
- Minimum Loan Term: 14 days
- Maximum Finance Charge: e.g. a 14-day loan @ $100 = $20 APR 309%
- Maximum Fees: No other fees
- Maximum Loan Term: 30 days
- Mississippi Payday Loan Laws:
- Maximum Loans at one time: No limit but can’t = more than $500
- Number of rollovers allowed: 0 and no extensions
- Cool off period: Not required
- Repayment plan allowed: Each lender can do this as they would like
NSF: $30 fee. Criminal actions are prohibited but civil actions can be pursued.
When you go in, the lenders will require that you have your personal information with you including your name on your government ID which shows that you are a citizen or permanent resident of the United States, proof of your address, have a regular source of steady income and be able to give details as to where, how long and money earned, email, phone number, social security number, banking details including an accounting number and a routing number, and must be at least eighteen (some lenders will require twenty-one).
It’s a really good idea when you go into your Mississippi lender to have researched the lender and know about the business ahead of time. This way you can ask pointed questions and go over the contract confidently. Never take any chances that you may not understand something as important as the paperwork or the language in the paperwork. Bring someone with you who can help explain anything that may be somewhat confusing in the terminology. Never agree to anything without a full comprehension of what is being laid out.
These loans really help folks by being convenient and available when there may be no other resource or option within reach. It’s fast cash at a time when you have an emergent need.
David is a financial expert who graduated from the University of Fordham (Master in Finance) in 2001. He has 10+ years of experience in private equity and wealth management. With strong expertise in senior-level financial planning, personal financial analysis, and mortgages, David knows his way around personal finance. Before working at CCR he used to be a financial analyst at McKinsey.
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