How Virginia Personal Loans are Regulated
Are you a resident of Virginia? Are you short on a small amount of cash to get by? There are various avenues of obtaining cash, including payday loans, credit unions, installment loans, and Virginia personal loans. Payday lending is legal in Virginia as long as the lending company obtains a license from the Virginia State Corporation Commission. The same law applies to out-of-state lenders who wish to provide online Virginia payday loans. Here is what you need to know about payday lending in Virginia before you apply.
Virginia Cash Advance Limits
- You can’t borrow more than $500.
- A cooling period of 24 hours is enforced before you can get another loan.
- If you take five payday loans within 180 days, there is a cooling period of 45 days.
- If you repay a loan through a repayment plan, a cooling period of 90 days is enforced.
In addition to these laws, a loan fee can’t exceed 20% of the amount advanced. The maximum finance charge for a 14-day $100 loan is $26.38. If a Virginia borrower defaults payment, collection fees should not exceed $25.
Rollover and renewals are not allowed for online Virginia cash advances, hence the reason why such fees don’t apply.
How Much Interest Can Creditors Charge in Virginia?
Have you ever received mail with a credit card offer and thought “this sounds great?” We all like the idea of having a new credit card to pay for a few things. Yet, high-interest rates on credit cards can land you in financial trouble.
Luckily, the state of Virginia has set some consumer safeguards when it comes to interest rates of Virginia installment loans. The state’s limit is 8% unless a greater amount is specified in a contract.
In reality, though, these statutory interest rate limits seldom apply since the law exempts revolving credit accounts. That means credit cards, student loans, banks, credit unions, national banks, and mortgages can present a contract which specifies a greater interest rate than the limit.
Personal Loans from Credit Unions
Personal loans from credit unions can be used to make home repairs, consolidate bills from other lenders and pay for dental expenses. APR of Virginia personal loans starts from as low as 8.49%. You can use your credit union savings as collateral.