North Carolina is a state in the southeastern United States. It was established in 1729 as one of America’s original Thirteen Colonies and became the 12th state in the Union in 1789. North Carolina is the 9th largest state by population, home to more than 10 million people.
With the Blue Ridge Mountains in the west and the Atlantic coast in the east, North Carolina can experience mild to extreme summer and winter conditions. The diverse geography of North Carolina creates lots of outdoor recreation opportunities in its state and national parks.
North Carolina’s economy is equally diverse. The state is a regional leader in both industry and agriculture. It leads the nation in growing tobacco and sweet potatoes. Charlotte, the largest city in North Carolina, is a major center for textile production.
North Carolina’s three most significant sectors by employment are Healthcare and Social Assistance, Retail Trade, and Manufacturing. The state has also seen tremendous growth in the technology sector, with STEM (Science, Technology, Engineering, and Math) related industries growing nearly 18 percent in the past two decades. According to the US Census, the median household income in North Carolina sits around $57,500. While North Carolina’s urban areas are thriving, its rural population has seen a decline in available jobs.
The Basics on Getting Loans in NC
No matter what economic level they’re on, people in North Carolina need manageable quick cash personal loans. In this article, we’ll look at the options for cash loans available to folks in the Tar Heel State to borrow money instantly.
What is a Personal Loan?
A personal loan is a loan received in a lump sum and repaid in monthly installments. People can get a personal loan for any dollar amount to use the money as they see fit.
North Carolinians often take out a personal loan to achieve short-term goals. These are the kind of goals that can’t be met by using savings or other available funds.
Personal loans can ease temporary financial hardships caused by unexpected expenses. Emergencies happen, and they can quickly wreck any budget. Access to quick cash for many North Carolina residents can help them get back on track.
How does a Personal Loan Work?
Personal loans in North Carolina come from financial institutions like banks, credit unions, or private lenders.
Since they are installment loans, you repay them through regular payments. Installments for personal loans are usually due in a fixed monthly payment. If any of your monthly payments are late, you will have to pay additional fees and other penalties.
Personal Loan Interest Rates
Personal loans come with interest—the percentage of the loan amount that the lender charges for the loan, in addition to the principal and the loan’s origination fees.
Personal loans can have fixed interest rates or variable interest rates.
Fixed interest loans carry the same interest rates over the life of the personal loan. When your monthly payment is fixed, your loan’s interest rate is also fixed.
Loans with variable interest rates, on the other hand, loans have interest rates that fluctuate based on the current economic market. Those fluctuations can go up or down—which means that while your monthly installments can increase over time, there is a chance that they could decrease as well.
With all that in mind, many financial experts believe that variable interest is ideal for a short-term loan, and fixed interest is better for a personal loan that you will need to pay off over a more extended period.
How to Take Out Personal Loans in NC
You need to fill out a loan application with the lender you choose to get a personal loan. Each lender has its requirements, but for any personal loan available, you must provide the following:
- A government-issued ID
- An email and/or telephone number for contact
- Proof of income (paystub, bank records, etc.)
Banks
Local and national banks have personal loans available with reasonable interest rates and terms. If you have an account with the bank, it will improve your approval odds since you are already in business with them.
Credit Unions
Credit Unions are financial institutions that provide services and financial products like a bank but only serve members of specific groups. For example, credit unions are just for members of certain labor unions or professional associations, and there are federal credit unions open only to government employees. Credit unions can usually provide personal loans at lower rates than banks because they are nonprofit organizations built to serve their customers instead of investors. If you are a member of a credit union in North Carolina, you should consider looking into the personal loan options.
Private Lenders
There are also a ton of private lenders working in North Carolina that specialize in personal loans. Over the past few years, many of them have moved to offer online loans, making them available to customers to apply online 24/7. On average, online loans take less time and require fewer documents to complete.
Loan Approval
Regardless of which one you choose, each lender will use their lending criteria—in addition to your credit score and credit history—to determine loan approval. The lender will give you a loan agreement that details the loan terms if approved. This loan term sheet will include the principal amount of the loan with fees and interest, along with the repayment schedule and the annual percentage rate (APR) of interest.
After you accept the terms and sign the loan agreement, the lender will transfer the loan amount to your bank account within a few business days. The money is now yours to use as needed for your expenses.
What is a Payday Loan?
Payday loans are short-term personal loans that provide extra cash fast.
Payday loans are one of the most straightforward personal loans you can get. There are over 23,000 payday loan lenders in the United States alone, operating out of payday lending stores across the country. Lenders also offer payday loans online, which allows them to reach more people and provide faster service through their websites and mobile apps.
A payday loan is ideal for a short-term financial problem. For example, let’s say you have a medical bill due before you have the funds to cover until your next paycheck comes. With a payday loan, you can get the quick cash you need without having to wait until payday.
How Do Payday Loans Work?
In addition to availability and convenience, payday lenders can provide quick cash with their simple application process that requires little more than an active checking account. Here’s how the process works:
Every payday loan starts with a borrower filling out basic personal information about themselves, their employment status, and banking information. If the customer meets their criteria, they will approve the loan.
The borrower will get a loan agreement amount and the lender’s origination fees and interest if approved for the payday loan. After the borrower accepts the agreement, the payday loan lender disperses the loan amount to the borrower’s checking account. Payment can come in cash, check, or a Direct deposit transfer to the borrower’s bank account.
Online Payday Loans
In the beginning, A payday loan was essentially a secured loan that would use your funds as collateral; the payday loan company would hold onto a personal check and cash it on your next payday. They have grown in use and availability today, thanks to online payday loans.
Online payday loans are among the fastest personal loans available. Many online payday loan lenders can get customers processed and approved for cash loans within a few minutes. And because you can access online payday loans at any time of the day, customers don’t have to go to an actual building to get cash loans.
The Problem with Payday Loans
The typical payday loan agreement has loan terms that range from two weeks to one month. The borrower can either manage the payday loan in installments or pay a lump sum before the loan term.
If you don’t repay the payday loan by the end of the term, the lender will roll over the balance so that the borrower can continue to make payments.
This is where a payday loan can get expensive.
The common misconception for the borrower is that when their account rolls over, they will continue to make payments on the original loan amount.
However, the rollover isn’t just an extension on your payday loan’s due date. Your balance is the principal amount of a new payday loan that has been “approved” for you. Since it is a new loan, that balance will be hit with another round of origination fees and have more interest applied. If you don’t repay that balance by the next due date, the whole process keeps repeating itself until the loan is paid.
With the rising popularity of online payday loans, many more people are getting caught in a debt loophole. They are getting more online payday loans to cover the ones they are already trying to pay off.
Can You Get North Carolina Payday Loans?
Under the North Carolina Consumer Finance Act of 2001, North Carolina payday loans have been declared illegal. Since the ban, all lenders must cap any small loan interest APR at 36% or less. Over the years, the state has continued to strengthen the ban with amendments that keep any small loan or payday lenders from operating in a predatory manner.
Should You Get Personal Loans in NC?
While CreditNinja may not offer personal loans in your state, you may still want to consider one over a payday loan. Personal loans are widely considered to be a more affordable and long-term option than most payday loans. You may be able to get a larger loan, with lower interest rates, and longer repayment terms. But no matter which loans for bad credit you’re considering, make sure to do plenty of research.