Payday Loans in Kansas City

Payday Loans
Looking for fast financial assistance in Kansas City, MO? Our selection of payday loans includes options for all credit types, even bad credit, with no credit checks. Connect with local direct lenders for a hassle-free payday loan experience.
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Updated:
21.07.2024
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What is a Payday Loan in Kansas City?

A Kansas City payday loan is a short-term, small-dollar loan typically used by individuals facing unexpected financial challenges. This type of loan allows borrowers to access a small amount of money quickly, often to cover emergencies or urgent expenses such as car repairs. Payday loans in Kansas City are usually repaid by the borrower's next paycheck, providing a temporary solution to immediate financial needs.

The process of obtaining a payday loan in Kansas City is relatively straightforward. Borrowers can apply online or visit a physical location in the Kansas City area. The application typically requires basic information, including proof of income and a checking account. Once approved, the funds are usually deposited into the borrower's bank account. It's crucial to be aware of the due dates and the associated fees, as payday loans often come with higher interest rates than traditional bank loans.

What is the Maximum Payday Loan Amount in Kansas City?

In Kansas City, the maximum payday loan amount is regulated by state law. According to amendments made in 2006, the maximum amount for a payday loan should not exceed $500. This legal limitation is in place to protect borrowers and ensure responsible lending practices within the payday loan industry.

The law in Kansas City allows for one loan at a time, and there are no restrictions prohibiting lenders from charging fees and interest on payday loans. Borrowers should be aware of the terms and conditions associated with the loan, including any applicable fees and the agreed-upon interest rate.

Pros and Cons

Pros

Quick Access to Cash. Payday loans in Kansas City provide a speedy solution for individuals facing urgent financial needs, offering quick access to cash when traditional banks may not be as responsive.

Minimal Eligibility Requirements. Payday loan providers in Kansas City often have fewer eligibility criteria compared to traditional banks, making it easier for individuals with a steady income to qualify.

No Credit Check. Payday loans typically don't rely heavily on the borrower's credit history, allowing those with less-than-perfect credit to access funds in times of need.

Convenience of Online Application. Many payday loan providers, including those in Kansas City, offer online application processes, making it convenient for borrowers to apply from the comfort of their homes.

Flexibility in Use. Borrowers have flexibility in using payday loan funds for various purposes, such as covering unexpected expenses, emergency medical bills, or car repairs.

Cons

High Interest Rates. One of the most significant drawbacks of payday loans is the high-interest rates associated with them. The annual percentage rates (APRs) can be considerably higher than traditional loans, potentially leading to financial strain for borrowers.

Short Repayment Period. Payday loans typically require repayment by the borrower's next paycheck. The short repayment period can make it challenging for some individuals to meet their financial obligations without taking out additional loans.

Risk of Debt Cycle. Due to the high costs and short repayment terms, there is a risk of borrowers falling into a cycle of debt, where they may need to take out successive loans to cover previous ones, leading to a cycle of borrowing and repayment.

Impact on Credit Score. While payday loans generally do not require a credit check for approval, non-payment or late payments can negatively impact a borrower's credit score.

Limited Loan Amounts. The maximum loan amount for payday loans is often capped, which may not be sufficient for individuals facing substantial financial challenges.

Requirements

  1. Proof of Income. Borrowers usually need to provide proof of a steady income, such as recent pay stubs or bank statements.

  2. Identification. A valid form of identification, such as a driver's license or state-issued ID, is typically required to verify the borrower's identity.

  3. Age Verification. Borrowers must be at least 18 years old to qualify for a payday loan in Kansas City.

  4. Bank Account. A checking account is often a requirement for payday loans. Lenders may ask for proof of an active checking account to facilitate the deposit and withdrawal of funds.

  5. Residency. Some lenders may require proof of residency in the Kansas City area. This could be in the form of a utility bill or lease agreement.

  6. Contact Information. Borrowers need to provide valid contact information, including a phone number and email address, so that lenders can communicate with them during the loan process.

  7. Social Security Number. Lenders may request the borrower's Social Security number for identity verification and to comply with regulatory requirements.

Rates

In Kansas City, payday loan rates are subject to state regulations, and the law imposes specific limits on the total amount of interest and fees that can be charged. According to Missouri Revised Statutes (408.505.3), the law restricts the total amount of all interest and fees to 75% of the initial loan amount for the entire life of the loan, including any renewals.

Additionally, licensed lenders, whether corporations, organizations, or individuals, are allowed to apply and receive interest payments on any unpaid balances at the agreed-upon rate. However, a borrower is not obligated to pay an amount of accumulated interest and fees greater than 75% of any single loan or the initial loan.

It's important to note that, according to the information provided by the Center for Responsible Lending in 2019, the Annual Percentage Rate (APR) for payday loans in Missouri can be as high as 443%. This figure indicates the potential cost of borrowing and emphasizes the importance of borrowers carefully reviewing the terms and conditions of payday loans in Kansas City to make informed financial decisions.

Online Lenders

Apply For a Loan

  1. Ace Cash Express is a well-known lender that provides online payday loans in Kansas City. Borrowers can conveniently apply for loans on their website and receive quick decisions on their loan applications.

  2. Check City is another reputable lender offering online payday loans in Kansas City. Borrowers can access their website to apply for a payday loan, and the online platform provides a convenient way to manage the application process.

  3. Check Into Cash is a recognized lender that offers online payday loans in Kansas City. Borrowers can explore their website to complete the application process online, making it easy to secure the funds they need for unexpected expenses.

Non-online Lenders

Apply For a Loan

  1. Waldo Financial is a well-known provider of payday loans in Kansas City. Borrowers can visit their physical location to apply for a payday loan in person, providing a face-to-face alternative for those who prefer offline transactions.

  2. Advance America is another reputable lender offering payday loans in Kansas City. Individuals can visit their brick-and-mortar locations to apply for a payday loan and discuss the terms with a representative.

Alternatives to Payday Loans in Kansas City

  1. Bad credit loans are designed for individuals with poor credit histories. They may come with higher interest rates, but they provide an opportunity for borrowers with low credit scores to access funds. Upstart is a lender that specializes in personal loans, including options for individuals with less-than-perfect credit.

  2. Title loans allow borrowers to use their vehicle title as collateral to secure a loan. While they offer quick access to cash, borrowers risk losing their vehicle if they fail to repay the loan. TitleMax is a company that provides title loans, allowing individuals to use their vehicle equity to obtain a loan.

  3. Personal installment loans allow borrowers to access a lump sum of money and repay it in fixed monthly installments over a set period. These loans often have lower interest rates compared to payday loans. LendingClub is an online lending platform that connects borrowers with personal installment loans providers.

  4. Credit card cash advances allow users to withdraw cash from their credit card. While this option can be costly, the interest rates are generally lower than payday loans. Various major banks and credit card issuers offer credit cards with cash advance features.

  1. Maximum Loan Amount. According to amendments in the law in 2006, the maximum amount for a payday loan in Kansas City should not exceed $500.

  2. One Loan at a Time. Borrowers are allowed to have only one payday loan at a time.

  3. Fees and Interest. Lenders are not prohibited from charging fees and interest on payday loans.

  4. Roll-Overs. Lenders are allowed to offer up to six roll-overs to a borrower, provided that the borrower can reduce the principal amount of the loan by 5% before each renewal.

  5. Total Amount Limit. The law limits the total amount of all interest and fees to 75% of the initial loan amount for the life of the loan, including all renewals.

  6. Interest Payments. Licensed lenders, whether corporations, organizations, or individuals, are permitted to apply and receive interest payments on any unpaid balances at the agreed-upon rate.

  7. APR Cap. The Annual Percentage Rate (APR) in the state of Missouri is capped. In some cases, it can amount to 1950%, and the APRs for payday loans in Missouri, according to the Center for Responsible Lending in 2019, can reach 443%.

  8. Loan Term. Payday loans in Kansas City are typically given for the term of 14-31 days.

  9. Criminal Actions. Criminal actions against borrowers are prohibited in the state unless the borrower stopped payment on the check or closed the account before repayment was done.

  10. Collection Fees. Collection fees are allowed in case of insufficient funds, but not via a series of Automated Clearing House (ACH) transactions.

Important

Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

How to Choose a Lender

  1. Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.

  2. Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.

  3. Carefully review all the terms and conditions of your payday loan contract.

  4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

  5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

  6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

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FAQ

Can you get a payday loan in Missouri?

Yes, you can get a payday loan in Missouri. Payday lending is legal in the state, and there are lenders who provide payday loans to eligible borrowers.

In Missouri, the law allows borrowers to have only one payday loan at the same time. However, it's important to exercise caution and carefully consider the implications of having multiple payday loans, as it can lead to financial challenges due to the high costs associated with these loans.

How many payday loans can you get in Missouri?

In Missouri, borrowers are allowed to have only one payday loan at a time. Despite this limitation, it is not prohibited for lenders to charge fees and interest on payday loans. It's crucial for borrowers to be aware of this restriction and to carefully consider the terms and conditions of the payday loan agreement, including any associated fees and interest rates, before taking out a loan. Responsible borrowing and understanding the implications of payday loans can help individuals manage their finances more effectively and avoid potential pitfalls associated with multiple loans.

What is the maximum amount I can borrow with a payday loan in Kansas City?

In Kansas City, the maximum amount for a payday loan is regulated by state law and should not exceed $500.

Can I renew my payday loan in Kansas City?

Yes, lenders in Kansas City are allowed to offer up to six roll-overs to borrowers, provided that the borrower can reduce the principal amount of the loan by 5% before each renewal.

What fees and interest can lenders charge on payday loans in Kansas City?

Lenders in Kansas City are not prohibited from charging fees and interest on payday loans. However, there are legal limits, and the total amount of all interest and fees should not exceed 75% of the initial loan amount.

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