In Pennsylvania, payday loans are illegal and there are no lenders operating within the borders of this state. Residents are left with the option of seeking loan services from other avenues that may suit their needs.
Most Popular Installment personal loans in PA
Because most personal loans are also classified as cash advance loans in PA, the law is prohibitive to these loans too. Out of state lenders can’t offer the services either because they need to be licensed to provide services to residents of Pennsylvania.
How it works
Residents in this state have to rely on alternative loans and sources of funds to deal with emergency expenses. Without the services of short-term loans lenders, residents have the option of approaching their banks for a personal loan for bad credit. Also, credit cards can offer a good source of emergency financing to people who haven’t maxed out their options. At the moment, there are many credit cards that are suitable for individuals with different credit scores.
It is possible to apply for lines of credit loans to fix your financial situation. As a rule of thumb in responsible borrowing, always make it a priority to understand the loan terms and conditions. This will help you in knowing your obligations as well as your options should things go south.
But the best thing is to constantly improve your financial preparedness by creating a sufficient emergency fund.
Lending laws in PA
Pennsylvania is among the states with strict lending laws that prohibit short-term loans. Technically, there are no payday lenders online operating in this state whether in physical stores or online platforms.
While small loans are allowed, the interests are capped at $9.50 for every $100 borrowed. The maximum annual service charge for the loan is limited to $1.50 for every $50 up to $150. In addition, all loans below $50,000 are supposed to be charged a maximum interest of 6% APR.
The average credit score in Pennsylvania
When determining a region’s credit score, several indicators are taken into consideration. Therefore, the average credit score can offer insight into the overall health of the economy.
In Pennsylvania, the Experian average credit score is 700 which ranks it the 13th best state in the US. However, Mortgage Marvel conducted a study on average credit scores for home buyers and reported the state’s average to be 720.
Population and demographics The population of Pennsylvania is estimated to be 12.8 million people. Although it is the 33rd in size, it has been ranked as the 6th most populous state in the whole country.
The state is inhabited by several racial groups but Whites make a huge proportion of the population and tops the list with 81.9%. In fact, the Wyoming Valley has the highest number of White-Americans in all metropolitan areas in the US. African-Americans are also well represented and comprise at least 10.9% of the population. Both Natives and Asians contribute the remaining proportion.
The economic indicators in Pennsylvania
The gross state product for Pennsylvania is reported to be $644 billion and it is ranked 6th in the US. If this state was to be considered as a sovereign nation, the economy would be 18th among world economies.
The economy is driven by several industries including, agriculture, manufacturing, and finance. This state is home to 50 fortune 500 companies that deal in locomotives, finance, insurance, and manufacturing. The agricultural sector is thriving and Pennsylvania is ranked 19th in agricultural production.
The state is a leading producer of mushrooms, second in apple production, and makes a significant production of layers and wine. The annual foodstuffs exports earn the state at least $1.7 billion.
Although the University of Pennsylvania is the second largest employer in the US, the state’s unemployment rate is 5.6%.