If you need money quickly then there are a few options available for getting it in Chicago or the entire state of Illinois. One of the most popular of these though is always going to be taking out payday loans in Chicago. These are loans that are specifically designed in order to release money quickly and with minimal risk and thereby they are perfect for situations where you need the cash quickly. But of course that flexibility comes at a cost. What is that cost? Um… the cost. Payday loans in Illinois typically have a very high APR, which is how they’re able to release money so quickly and indiscriminately. This isn’t necessarily a problem, however it does make it particularly important that you proceed with a lot of caution.
As with any type of online payday loan from Chicago and any type of product for that matter, the cost associated with a Chicago payday loan will vary from Chicago lender to lender. It is ultimately their prerogative to charge whatever they want and this will likely be influenced by various factors – the competition and the state of the market, your desirability as a borrower (possibly dictated by your credit score largely), the number of their customers and the size of the loan you choose to borrow.
This means that shopping around for the best payday loan rates in Illinois is crucial in order to make sure that you get the best deal. As well as reading reviews and generally doing your research. Luckily, it is easy to find Chicago payday loans online these days, which makes it easy to compare rates. As a general guideline though, you can expect a typical Chicago payday loan to have an APR in the realms of 400%. That sounds massive and indeed it is: if you took out a $100 loan for one year, you’d have to pay back $500. If you took out a $1,000 loan in Illinois… well then you do the math!
How to Manage Chicago Payday Loans
While the APR attached to payday loans in Chicago might sound completely unmanageable, what you have to remember is that these loans are not designed to be taken out over a several days. Rather, Chicago payday loans should be used in the short term – lasting no more than a couple of weeks. Suddenly, these fees become much more manageable and if you’re taking out a loan of $100 for two weeks, you’ll only need to pay $15 on it (or around that amount). In a situation where you are just short of making rent for instance, this is a small price to pay to avoid eviction! This brings to mind a situation we recently came across. A visitor to our site reach out to us to explain her situation. She had applied for a Chicago payday loan and been approved within just a few minutes. Everything seemed fine but the problem was that she borrowed more than she needed and more than she could afford. This became a major concern when she was no longer able to make the monthly payment. Avoid situations like this. Work with a reputable lender that’s not only licensed in Chicago, but also in the state of Illinois. Residents of the State of Illinois can read up on the latest issues and regulatory matters that concern the state by going to the Illinois Attorney General website. This site list details and updates about all things related to online payday loans in Illinois
Of course you should still check to see if there are cheaper alternatives to a payday loans Chicago available. What you might find is that you can get a credit card loan for example, which will more typically have an APR of around 10-12%. Some credit cards will offer 0% APR for the first year as an incentive for using their service.
Other options for Illinois residents include taking loans out from PayPal, or buying things on finance (if you need a bit of extra capital for a product you want to purchase for example). You can also try taking out a regular bank loan, installment loans, guarantor loans and many other options. But as mentioned, the advantage of a Chicago payday loan is its convenience. If other lenders in Illinois won’t offer you the money you need quickly enough – or if your credit score is too low – taking out a small payday loan and being sure to pay it off quickly is still a good option that can help to get you out of trouble. Be sensible and this can be another useful resource for Illinois consumers, should you need it.