Payday Loans St. Louis MO

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Last updated by Zaving Editorial Team, on April 8th, 2024

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What are payday loans and can I get them in St. Louis, Missouri?

Payday loans provide a short-term financial option for those dealing with unexpected expenses. These loans are designed to be repaid on the borrower's next payday, involving the borrowing of a modest amount along with fees and interest. Missouri, with St. Louis included, permits payday lending, allowing individuals to obtain these loans through licensed lenders operating both at physical storefronts and online.

To qualify for a payday loan in St. Louis, individuals must meet specific eligibility criteria, including being at least 18 years old, demonstrating proof of a regular income source, having U.S. citizenship or permanent residency, maintaining an existing checking account, and presenting a valid photo ID for identity verification. These criteria aim to ensure responsible borrowing practices and compliance with legal standards.

Before proceeding with a payday loan in St. Louis, careful consideration of the terms and conditions is essential. Reviewing fees, interest rates, and repayment structures helps borrowers make informed decisions and ensures timely repayment to avoid potential financial challenges associated with payday lending.

What are the rules for payday loans in Missouri?

Missouri's payday loan regulations are notably permissive. Before applying for a loan, it is important for borrowers to understand the terms associated with these short-term financial solutions.

Key features of payday loans in Missouri include:

  • Maximum loan amount: $500
  • Minimum loan term: 14 days
  • Maximum loan term: 31 days


Maximum APR: The state theoretically allows lenders to charge up to 75% of the initial principal balance, potentially resulting in a $75 charge for a $100 loan and a significant 1955% APR. However, the practical average APR for payday loans in Missouri tends to be lower, typically around 500%.
A distinctive aspect of payday loans in the state is the provision for renewals, allowing up to six renewals.

However, this comes with a condition:

Rollover condition: To qualify for each renewal, the borrower must actively reduce the principal amount by 5% before each renewal period.

For example, in the case of a $500 payday loan with a 14-day term:

  • Renewal 1: Pay $25 to renew the loan, diminishing the remaining principal to $475.
  • Renewal 2: Pay 5% of the reduced amount ($475), yielding $451.25, and so forth.


Before opting for a payday loan in Missouri, it is crucial for individuals to be aware of the terms and cost implications. This understanding ensures that the loan aligns with their financial circumstances, empowering borrowers to make informed decisions about this specific short-term borrowing option.

What are the pros and cons of payday loans in St. Louis?

When contemplating a payday loan in St. Louis, it's crucial for borrowers to assess the advantages and disadvantages of this financial option:

Pros:

  • Swift access to funds: Payday loans in St. Louis provide a quick solution for individuals facing immediate financial challenges.

  • Ease of application: The application process is typically straightforward, requiring minimal documentation compared to traditional loans, offering convenience for borrowers in St. Louis.

  • No stringent credit checks: Lenders often do not conduct rigorous credit checks, providing accessibility to individuals in St. Louis with poor credit.

  • Renewal options: Borrowers have the option for loan renewals, with up to six rollovers allowed in Missouri, providing some flexibility in repayment.

Cons:

  • High interest rates: The average APR of around 500% in Missouri can lead to substantial costs, potentially trapping borrowers in a cycle of debt due to high-interest charges.

  • Short repayment terms: The 14–31-day repayment period may pose challenges for many St. Louis borrowers, potentially resulting in late fees and rollovers that increase the overall cost of the loan.

  • Rollover challenges: While rollovers offer flexibility, they contribute to the total cost through additional interest charges, creating a potential debt trap for borrowers unable to repay the full amount within the initial term.

  • Loan amount limitations: The $500 maximum loan amount might not be sufficient for larger financial needs for residents in St. Louis.

More of your frequently asked questions about payday loans in Missouri

Can I take out multiple payday loans in Missouri?

In Missouri, securing multiple payday loans is allowed, but specific restrictions are in place. The total amount of payday loans outstanding, inclusive of loans from all lenders and their affiliates, is limited to $500 concurrently. This limitation remains in force even if borrowers have loans from different lenders, provided these lenders are affiliated, including branches or partnered businesses. For example, if a borrower currently holds a $300 loan from one lender and a $200 loan from an affiliated lender, obtaining additional payday loans is restricted until at least one of the existing loans is repaid. However, upon the full repayment of a payday loan, borrowers are permitted to take out a new loan. While there is no explicit prohibition against immediately acquiring a new loan after settling the previous one, borrowers are advised to be mindful of the associated costs and risks associated with frequent payday loans and to borrow responsibly.

What happens if I can't repay my payday loan in Missouri?

In the event of challenges repaying your payday loan in Missouri, it's crucial to understand the potential repercussions. Late fees are a common occurrence, contributing to the overall loan cost and making repayment more challenging. Missing payments may prompt the lender to escalate the situation by transferring your debt to collections, adversely affecting your credit score and subjecting you to persistent calls and letters. In more severe cases, the lender may resort to legal action, potentially leading to a lawsuit for the unpaid balance and the possibility of wage garnishment. Taking proactive steps by communicating with the lender is advisable, as they might be open to negotiating a repayment plan. Seeking guidance from a non-profit credit counseling agency is also a viable option, providing free or affordable advice to help you develop an effective debt management plan.

Can I get a payday loan in Missouri with bad credit?

Yes, even with bad credit, obtaining a payday loan in Missouri is possible. Payday lenders typically prioritize income and the borrower's ability to repay rather than heavily relying on credit scores. However, it's crucial to exercise caution and be mindful of the high-interest rates and fees associated with payday loans. Assessing the overall costs is essential before deciding to proceed with borrowing.

What are some alternatives to payday loans in Missouri?

Missouri offers numerous alternatives to payday loans. Consider building an emergency savings fund, exploring credit unions for small-dollar loans, negotiating payment plans with creditors, and checking government assistance programs or nonprofit organizations for financial support. Additionally, personal installment loans, employer advances, peer-to-peer lending, and using credit card cash advances cautiously can provide more affordable options. Seeking guidance from financial counseling services is also valuable in making informed decisions to effectively navigate financial challenges.