Compare Alaska Payday Loans and Alternative Options
For Alaskan residence who are dealing with financial issues or unexpected expense, you may be considering a payday loan. Payday loans are small flexible loans designed to act as a bridging loan to help with financial short falls, covering you until your next pay.
There are numerous lenders throughout Alaska State that specialize in these loans; as specialists their fees and cost structures tend to be different to general loans from banks or credit unions. Many payday lenders have looser application criteria than banks, offering loans to those with bad or no credit and in some case don’t require a credit check.
Things To Compare and Consider With Payday Loans
- What are the costs? If considering a loan, ask for total costs in dollar figures and not percentages
- Can you afford the loan? Just because you may be approved doesn’t mean you can actually afford the loan and you could be putting yourself in a worse financial position
- Short repayment terms which are strict – should you find yourself in a position where you can’t make the repayment, you will receive a high penalty fee and possibly a knock to your credit score…ouch
Alaska State has many local and statewide payday loan lenders. Picking the right company depends on your personal circumstances as everyone’s financial situations and backgrounds are different. Below is a checklist on how to get the best payday loan for you.
- Always check reviews and complaints on the company
- Verify their license with the Alaskan Division of Banking and Securities
- Compare at least 2 to 3 different lenders and make sure they quote total costs in dollar amounts and not percentages. Percentages are used to disguise the dollar amount for expensive loans.
- Consider loans in larger neighboring cities, larger population equals more competition and possibly lower prices.
Cities Across Alaska With Payday Loans Options
Anchorage – Wasila – Palmer – Soldotna – Fairbanks – Juno – Ketchikan
Most major cities in Alaska will have payday loan providers; however the above larger cities are confirmed to have payday loan providers. As there are many remote cities throughout Alaska, it may be easiest to look for an online lender that services borrowers nationally.
General Eligibility Requirements For Payday Loan Applications
Qualification for payday loans can vary from different providers in their application and approval criteria. In most cases it is a very quick process with loans provide in as little as 1 hour. General eligibility requirements include:
- 18 years of age
- Must have a checking or savings account (1 month minimum history)
- Valid SSI or taxpayer (ITIN) number
- Must be a resident of the state of the loan
- Employed for a certain amount of time
- Must have valid home and work phone numbers
- Must not be active military member (for most lenders)
Cheaper Alternative Loan Options
Depending on your need and urgency for money, there are many different alternative loan options available. In many cases, you may even find that a loan isn’t needed as you can establish new repayment terms with most creditors if you are borrowing to pay down debt. Whatever your reason for cash, below are different borrowing options.
- Most banks actually provide their own version of a payday loan; simply ask for a checking or savings account advance.
- Some employers will provide a salary advance, giving you access to some or all of your next paycheck
- Government benefits are another possibility to help with certain household bills such as utilities. If you are borrowing money to pay the electric, water or gas bill…benefits may be a better option.
- Speaking with a free financial counselor may be a great way to get financial assistance in the form of a non-profit loan as well as professional advice on how to control and manage money.
In addition, there are specialized loan services for Seniors, Disabled and Social Security recipients. Often times these groups are unsure of where they can get financial aid and help from. There are different community and non-profit organizations that can help.
Dealing With Problems With Payday Loans In Alaska
Over the years there have been some terrible stories about payday lending and different unethical practices some lenders took part in. Because of this there have been different national and state based laws created to protect consumers. Below are your rights as a borrower in the state of Alaska along with some key facts about payday loans.
- At no time may lenders harass, threaten or intimidate you when colleting loan. If you are, file a complaint with the Alaska Department of Commerce, Community and Economic Development
- Loans must have a minimum 14 day term but have no maximum term
- Rollovers are limited to two rollovers
- There is no cool down period required between payday loans
- Payment plans for are available but must be agreed to by the lender
- You can only borrow a total of $500, and only 1 loan at a time
- The Annual Percentage Rate (APR) for a 14 day loan of $100 must not exceed 520%
- Maximum finance rate and fees cannot exceed 15% of total loan/check, a $5 plus $15 per $100 loan or the 15%, whichever is lower
- Civil court action can be taken by lender for nonpayment allowing up to $700 court costs on top of the amount owing on the loan
- Collection fees besides court collection costs consist of a maximum $30 NSF fee for returned checks
For more information, or to file complaints, contact the Department of Commerce, Community & Economic Development, Division of Banking and Securities. You can also learn about additional financial assistance programs and options for Alaska State here.