Fast cash with no credit check might sound appealing, but there are risks involved when taking out a payday loan.
Most payday loans must be repaid in full. According to Utah state law, a loan cannot be extended past 10 weeks. This length may seem generous at first, but it creates room for multiple rollovers — which cost borrowers more.
Payday loans are also known to be a very expensive form of credit. Because there isn’t a limit to how much interest loan companies can charge in Utah, borrowers may find themselves paying high interest rates and sinking deeper into debt.
Other borrowing options available in Utah, including lines of credit and installment loans, offer lower interest rates and lower risk. With these payday loan alternatives, borrowers can pay smaller amounts over a longer period of time.