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Payday loans can be confusing enough, but laws, terms and rates vary from state to state. You need a cash advance in Illinois and you need it fast, but you want to make sure that you’re not financially worse than you were before. You should make sure you understand all the loan terms, limits and fees that apply to you no matter where you live, whether it’s a large city like Chicago, or a small rural town.

The following information is everything you need to know before you decide to get the cash advance.

1. How Much Can (Should) You Get?

The maximum amount anyone can borrow in Illinois is either $1000, or 25% of your gross monthly income, whichever is less. So, if the money you make before taxes is $2000.00 a month, the most you can borrow is $500.00. However, if you make $6000.00 a month before taxes, the most you can borrow is the $1000.00 capped maximum, even though 25% of your earnings a month is $2500.00.

This doesn’t mean that you should borrow the full $1000.00. If you’re in need of cash because your car has broken down and the cost to repair it is $350.00, only borrow the $350.00 you need so you can pay it back with out any chance that you’ll have to pay any additional fees or interest.

2. Payday Loan Terms & Limits

Illinois cash advance rates are 15.5%, or $15.50 dollars for every $100 you borrow. The term of the loan is between 13-45 days. In Illinois, the maximum number of outstanding loans any one person can have at a time is two. This is so people don’t become dependent on paycheck advances and borrow from other cash advance stores until the fees add up and the person is hopelessly in debt.

3. Delaying Repayment
Rollovers are not permitted for Illinois payday loans. Basically, a rollover is extending the loan for an additional period of time and charging a fee for the extension. This isn’t allowed in Illinois, instead, lenders have to allow the borrower to pay back the borrowed amount with a repayment plan.

4. Cash Advance Collections
If there is trouble repaying the borrowed amount there can be a single $25.00 NSF fee, (presentment limit=2). State law also prohibits the lender from taking criminal action against anyone who cannot repay the amount borrowed.

Hopefully this article will help anyone to better understand how a payday loan works and make a more informed decision before getting an Illinois cash advance.