Let’s be honest -in order to protect the most vulnerable, Pennsylvania prohibits payday lenders from operating in this state. Payday lenders are known for charging exorbitantly high-interest rates and expect payment in full the next paycheck you receive. If you cannot repay the loan, all fees, interest rate, and loan roll-over and interest charged on it all. Each missed payment the outstanding amount rolls over and interest is charged. It becomes a vicious cycle that those with poor credit and low wages cannot escape.
So, what do you do if you live in Pennsylvania, have less than perfect credit and need short term cash. There are some lenders that offer installment loans but your credit needs to be higher than 670 and your monthly income high enough to prove you can repay the loan in a timely manner. The difference between an installment loan and a payday loan is the length of time allowed for repayment. Terms for repayment with an installment loan can be anywhere from 6 to 36 months. Interest rates will be higher, but as long as the borrower and the lender agree to the terms of the loan, the 6% cap instated by the state can be waived. Most instalment loans range from $500 – $35,000, with the majority of lenders not lending more than $5,000.
WHAT ALTERNATIVES ARE THERE IF I HAVE BAD CREDIT AND NEED A LOAN ?
DEBT CONSOLIDATION: If you have several credit cards and multiple loans you may want to look at debt consolidation. Combining all of your debt into one loan with one payment will help you budget as you work your way out of your debt and rebuild your credit. By having one payment and possibly lower interest rates, will allow you to have the extra cash to pay your monthly bills.
CO-SIGNER: If you have a family member or friend who has very good to excellent credit you could approach them to see if they would co-sign your loan. They must be aware that if you default on repaying the loan they are on the hook to make the payments. Should they not make the payments their credit will be affected negatively.
DEBT RELIEF: If your bills are insurmountable and you are close to bankruptcy, consider debt relief. You can approach your creditors to see if they would be willing to waive or lower the interest while you repay the loan. Alternatively, there are several Debt Relief Companies that will help you through this process. They are very professional and will deal with your creditors so you don’t have to.
CREDIT REBUILDING: If you have found yourself with insurmountable debt and bad credit, you understand how hard it is to break out of the cycle. It can be overwhelming to the point of causing illness. If you are serious about rebuilding your credit, Novita Financial offers a free on-line service to help you through the process.
BORROW WISELY: If you must borrow, borrow wisely. Look at all of your options, then look at the terms and conditions of the lender you are borrowing from. Look at why you need to borrow money. Can you be patient and work your way through the hardship of rebuilding. We, as people are conditioned to credit – credit cards, loans, lines of credit. While often necessary, if not managed responsibly, can cause us financial and emotional stress.
Loan Providers in Pennsylvania by Credit Score
This list of online lenders offer unsecured personal loans in New York with credit scores starting at 620.
Pennsylvania entered the United States union on December 12, 1787. The state motto is virtue, liberty, and independence. Pennsylvania is a state rich in history and culture. The federal government was based in Philadelphia from 1776 – 1800. The Declaration of Independence was signed in 1776 and the U.S. Constitution finalized in 1787 in Philadelphia and is home to the Liberty Bell.
12.8 million people call Pennsylvania home including the Amish communities of the German-Dutch. It’s terrain boasts of mountainous regions, vast farmlands and national forests.
The median annual salary per household is $59,195 which is $1,141 lower than the national median salary. Middle-class families earn approximately $72,000 per household while the average wage for 12.5% living in poverty is below $24,980. U.S. Census Bureau show 1,548,720 people live in poverty within the state. The average credit score is 687. Currently, the minimum wage is the national standard – set at $7.25 per hour, whereas the living wage is set at $11.45.
If you find yourself struggling with debt we would suggest rather than trying to borrow more money, that you seek out a debt counselor to advise you on the best steps to take. When you are in the middle of a financial crisis, it is hard to be objective. Seek out professionals who have relationships with lenders and credit card companies. They will know the best way to approach them and what to ask for that will help you in your unique situation. Rather than using a trial and error method, they have the tools and know exactly what approach to take. It is a wise person that asks for help – it takes a lot of inner strength to say ‘I give, I have been doing it the same way over and over and nothing changes – I need help’. It is then that through consistency, discipline and hard work that you will begin to see results.
It does not matter where we live, we can expect a crisis of some kind. Just as you would seek out a doctor for your health, a mechanic for your vehicle, find someone who understands debt, debt relief, finances and knows a clear path to help.
References (2)
- United States Census
- USA Government Statistics – USA Government Statistics
