Can I Still Get An Ohio Payday Loan In 2021
A lot has changed over the past couple of years in Ohio when it comes to payday loan restrictions. in 2018 we saw the State’s Fairness in Lending Act overhauls most aspects of the payday loan industry. Even though there are new limits on loan durations and fees that doesn’t mean the law has completely eliminated payday loan companies in Ohio. In fact, we’ve seen many of the strongest lenders in state lenders are still offering payday loans and they’re able to abide by these new restrictions. So yes, it’s still possible to get a payday loan in Ohio, but there are new restrictions and changes you need to understand before you take out a loan.
What are the new payday loan restrictions in Ohio
The Fairness in Lending Act was signed into law in 2018 with the ultimate goal of regulating the payday loan industry. These regulations have led to longer loan durations(borrowers have at least 3 months to pay back a payday loan) and lower interest rates (lender interest rates are capped at 28% plus an appropriate maintenance fee). The new restrictions for Ohio payday loans are good on paper. We’ve seen many out-of-state and offshore payday loan companies exit the industry as the new rates and fees simply don’t work for them. Another new provision of this law changes how your payments are distributed to the lender. It used to be that much of your early payments were front-loaded with interest rates and other fees which made it difficult to pay off the principal debt amount. Now a lender has to set up the payments so they’re equally distributed with interest and principal. That way you don’t find yourself in a hole from the onset and are able to actually pay back the payday loan at your own pace.
How hard is it to get approved for a payday loan in 2021
The new laws and restrictions have made it more difficult to get a payday loan in Ohio. There’s no dancing around that fact as we can name dozens of payday loan companies that no longer offer online loans in the State. That’s not even counting the companies that have closed their retail payday lending locations near you as they simply weren’t profitable. It’s of course great that most personal loan lenders are on a level playing field within Ohio. But with these new loan limits and caps on fees have led to a situation where it can be hard to find a lender that wants to work with you. It may be that online payday loan companies will spend more time underwriting your application. Whereas it used to be they could make up for a bad credit score with higher interest rates, they now have to focus on only approving the applicants who they know will pay back the loan. There’s also now a lack of neighborhood or retail payday lenders near you. So many of these companies have closed up shop that you’re likely stuck with an online company that offers Ohio payday loans. We can think of scenarios where you may get approved with a bank or small finance company for a low-interest loan, but those options will assuredly be limited.
To put it simply, Yes you can still be approved for an Ohio payday loan or installment loan in 2021. We list a handful of companies in our directory that are still offering loans. But it’s absolutely more difficult to be approved for a loan because lenders will put more emphasis on your credit and employment history. Also, your loan options are limited because many lenders have stopped offering loans in Ohio. If you have decent to good credit it may be better to consider an installment loan instead of a payday loan as you will have more funding options.