New Jersey Payday Loan Laws and Regulations

Find out if short-term Payday Loans are legal in New Jersey and what amounts, interest rates and repayment terms are set by the state's Legislation.

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rhode island payday loans Rates and Terms

Legal Status

Legal Status

The status of a loan type according to the Federal laws and regulations. What concerns Payday Loans some states consider them legal, some – illegal and some restrict them in terms of amounts and interest rates.

Legal
Maximum Loan Amount

Maximum Loan Amount

It’s the maximum sum of cash advance allowed to apply for in the state. It usually ranges from $500 to $1000. But it may vary depending on the lender and his requirements.

$500
Minimum Loan Term

Minimum Loan Term

It’s the minimum period of time within which you are allowed to pay off your loan.

13 day(s)
Maximum APR

Maximum APR

The maximum percentage allowed that actually represents annual cost of your loan. The APR is based on several things, including the amount you borrow, the interest rate and costs you’re being charged, and the length of your loan.

260.00%
Finance Charges

Finance Charges

All the payments you’re going to be charged for the loan including APR and other fees.

10% of the amount advanced
Legal Payday Loans Online for New Jersey residents 

Though you must have heard that traditional Payday Loans are restricted in New Jersey, you may find other options to get instant cash advance permitted by New Jersey laws. Study the state's rules and regulations concerning short-term loans in New Jersey. Find available alternatives.

Compare top legit Payday Lenders in New Jersey:

LendYou will help you get the cash you need when you need it. You can apply for Payday Loans, Installment Loans or Personal Loans, etc. Compare the lenders and get matched with the best one.

  • MIN Loan Amount: $100
  • MAX Loan Amount: $35000
  • Terms: Varied
  • Rates and fees: Starting at 4.99% APR
  • Turnaround Time: 1 business day
  • $100 - $1000 Payday Loans
  • $1000 - $5000 Installment Loans
  • $5000 - $35000 Personal Loans
  • 18 years of age or older
  • U.S. citizenship
  • Valid checking or savings account with direct deposit
  • Minimum regular income of $1,000 per month
  • Not be a regular or reserve member of the Air Force, Army, Coast Guard, Marine Corps or Navy (or be a dependent of someone who is,) serving on active duty under a call or order that does not specify a period of 30 days or fewer.
Pros
  • High up to $15,000 loan amounts. 
  • Minimal restrictions on how you can use your loan.
  • No collateral or guarantor.
  • Bad credit is OK. 
Cons
  • It's not a direct lender, so you'll need to clarify rates and terms with the company you are matched with. 

 

Greenlight Cash created an online platform to connect consumers like you with reliable lenders across the country. They partner with a large network of professionals so you get a chance to work with one of them and meet the challenge of improving your financial situation in the most effective way. Once you tap submit, you get one step closer to receiving the funds.

  • Payday Loans
  • Installment Loans
  • Personal Loans
  • be a legal U.S. resident
  • be at least 18 years old
  • have a stable source of income
  • be currently employed
  • have an active bank account
Pros
  • Unrivaled flexibility and accessibility.
  • Predictable monthly payments

  • Quick and simplified borrowing process

  • Any credit is welcome
Cons
  • Not a direct lender.

 

GoGoPaydayLoans offers Payday Loans at affordable rates with convenient repayment terms. 

  • MIN Loan Amount: $100
  • MAX Loan Amount: $1000
  • Terms: Vary by state.
  • Rates and fees: 261% to 782% APR
  • Turnaround Time: 1 business day

$100 - $1000 Payday Loans

  • Active checking account open for 90+ days
  • US citizen or permanent resident
  • Personal and work phone number
  • Valid email address
  • 21+ years old (19+ in Alabama)
  • Social Security number (for Indiana residents only)
Pros
  • You can get even as low as $100.
  • Quick funding on the next business day.
  • Money can be used for any personal needs.
Cons
  • Not available in every state.
  • APR can be more than 153.73% depending on your state.
  • High late payment fees.

 

Indyloan.com offers Personal Loans online at affordable rates with convenient repayment. 

  • MIN Loan Amount: $100
  • MAX Loan Amount: $5000
  • Terms: Vary by state
  • Rates and fees: Varied
  • Turnaround Time: 1 - 2 business day

Personal Loans

  • Active checking account open for 90+ days
  • US citizen or permanent resident
  • Personal and work phone number
  • Valid email address
Pros
  • Quick - no driving, waiting, faxing, paperwork.
  • High approval rate even for bad credit borrowers.
  • Online Payday cash advance with no collateral or co-signer.
  • 24 / 7 online service.
Cons
  • High interest rates.
  • Available not in all the states.
  • Only loans up to $5000 are available.

 

Extralend.com offers Personal Installment Loans online at affordable rates with convenient repayment. 

  • MIN Loan Amount: $100
  • MAX Loan Amount: $3000
  • Terms: 6 months - 2 years
  • Rates and fees: Varied
  • Turnaround Time: 1 - 2 business day

Personal Installment Loans

  • At least 18 years of age
  • US residence
  • A valid telephone number and email address
  • An active bank account in your name
  • Be employed for at least 90 consecutive days with the same employer
  • Meet minimum income guidelines
Pros
  • Quick - no driving, waiting, faxing, paperwork.
  • High approval rate even for bad credit borrowers.
  • Online Payday cash advance with no collateral or co-signer.
  • 24 / 7 online service.
Cons
  • High interest rates.
  • Available not in all the states.
  • Only loans up to $3000 are available.

 

Table of Contents:

Are Payday Loans legal in New Jersey?

Why are Payday Loans restricted in New Jersey?

New Jersey Payday Loans Laws

New Jersey Payday Loans online laws

Does New Jersey law allow Payday Loans for bad credit borrowers?

New Jersey Payday Loans news  - latest changes

New Jersey Payday Loans historical background

New Jersey Payday Loan alternatives

Are Payday Loans Legal in New Jersey?

Short-term Payday Loans in New Jersey are available but with certain restrictions imposed by Consumer loan act, N.J. Stat. Ann. tit. 17, 1 et seq., N.J. Stat. Ann. 2C: 21-19., and N.J. Stat. Ann. 17:15A-47.. The Payday Lending legislation covers all the parts of the process concerning:

  • Payday Loan amounts
  • Payday Loan repayment terms
  • Payday Loan online direct lenders
  • Payday Loan stores near you
  • Payday Loan interest rates and other fees
  • Payday Loan collecting practices
  • Payday Loan default penalties
  • The number of outstanding Payday Loans as well as a cooling-off period in-between etc.

Read more: Payday Loans in New Jersey

Why are Payday Loans restricted in New Jersey? 

The Government considers Payday Loans too expensive and often associated with lenders' predatory practices. That's why in New Jersey Payday Loans have been strongly regulated since 1993 when The Check Cashers Regulatory Act prohibited check cashers to cash or advance money on a postdated check. And the APR was capped at 30.00%. It caused most lenders to stop issuing short-term small-dollar loans as it became not profitable. Still, there still exist some banks and online companies offering similar types of cash advance suitable to cover any unexpected emergencies.

New Jersey Payday Loan laws 

The legal documents regulating Payday Loans in New Jersey are Consumer loan act, N.J. Stat. Ann. tit. 17, 1 et seq., N.J. Stat. Ann. 2C: 21-19., and N.J. Stat. Ann. 17:15A-47.

Besides, it's necessary to keep in mind that even if you qualify for a loan it doesn't mean you get one. Don't forget about the interest rate restrictions in New Jersey state. 

However, there are no limits on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repair, home repair, etc. may seem a sound reason to apply for an online Payday Loan in New Jersey.

If you haven't succeeded in finding the necessary cash advance, there are always other options to receive the necessary funds in New Jersey:

  • unsecured Installment Loans,
  • bad credit Personal Loans,
  • Title Loans,
  • Pawn Shops, etc.

New Jersey Payday Loans online laws 

Cash advances (payday loans) from both storefront and online lenders are restricted by 30.00% APR usuary cap by Consumer loan act, N.J. Stat. Ann. tit. 17, 1 et seq., N.J. Stat. Ann. 2C: 21-19., and N.J. Stat. Ann. 17:15A-47.. It also concerns online lenders which must operate in accordance with all relevant state and federal laws. Otherwise, they may be liable to New Jersey Department of Banking and Insurance, 20 West State St. Trenton NJ 08625 for law violations. 

The law obligates New Jersey Payday Loan lenders to provide you with a written disclosure of all the rates and fees in the understandable language. You should read them carefully and if you agree to acknowledge the notification by signing the contract.

Does New Jersey law allow Payday Loans for bad credit borrowers? 

The average credit score in New Jersey is 686, placing it in the fair range. But it doesn't mean that those who have a worse credit can't apply for the necessary cash advance in New Jersey. 

  • First of all, there're some companies in New Jersey providing similar to Payday loan services to borrowers with both good and bad credit score.
  • Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
  • Find out how to improve your credit score and do your best to do it fast. 
  • Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.

New Jersey Payday Loans news  - latest changes

The New Jersey ability-to-repay principle of regulating Payday Loans is now under attack, as the CFPB under the Trump administration, acting in payday lenders’ interest, moves to undo protections built on 5 years of research, data collection, field hearings, and public comments, even though no new evidence supporting repealing the rule has come to light.

Payday lenders have been trying to find loopholes in the state's laws for centuries. State usury caps prevent this exploitation. The rate cap also ensures that borrowers are protected against the harms of these high-cost loans regardless of whether they are structured as short-term or long-term loans.

New Jersey Payday Loans historical background 

The history of Payday Loans in New Jersey
1993 It was prohibited to cash post-dated checks.
2006 Military Payday Loans were capped at 36% interest rate.
2013 Payday lending was prohibited by llimiting interest rates at 30%.
June 2, 2016 A Payday Loan Rule was proposed but still under consideration.

New Jersey Payday Loan alternatives 

If you're looking for instant cash advance in New Jersey but not a Payday Loan, consider other alternative ways to get the necessary funds:

  • Apply for a New Jersey Installment Loan - $1000 - $5000 cash advance repaid over several months or years in equal installments.
  • Take out a Car Title Loan if you own a vehicle to use as collateral.
  • Sell some of your valuable stuff online or at a pawn-shop.
  • Apply for New Jersey Tribal loans. Tribal lenders can avoid the state's caps and limits as they operate outside the state regulations. 
  • Consider borrowing from a bank or credit union. U.S. Bank, the fifth-largest bank nationally, is lending up to $1,000 to cash-strapped consumers through its Simple Loan program.
  • Qualify for one of Federal or New Jersey government assistance programs: Medicaid, NJ Family Care - Affordable Health Coverage & Quality Care, Hospital Charity Care, Pharmaceutical Assistance to the Aged and Disabled (PAAD), Senior Gold Prescription Discount Program.
  • .

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