Wichita, KS Payday Loan Alternative

Wichita is the largest city in Kansas with 388,413 residents in 2014, and it boasts plenty of fun attractions for citizens and guests alike, including the Sedgwick County Zoo for animal lovers, Exploration Place for those who like science, and Old Cowtown, where visitors can get a glimpse of what the city was like in the late 1800s. Despite how tourism might help bring money into the city, in 2014, residents of Wichita were earning a median household income that is below the level of the rest of Kansas and the United States at $52,291, and debt is a common issue for Wichita citizens. Unfortunately, when people are in need of money, they often turn to the quickest solution in their desperation.

The Payday Loan Trap in Wichita

Payday loans can look very appealing. These loans feature very fast application processes that may not require any sort of credit check, making them a popular choice among borrowers in difficult financial situations who might not be approved for other lending options.

The problem with payday loans is their very short loan maturation periods. Kansas allows payday loans between seven and 30 days, and most lenders go with 14 days, the length of a typical pay period. 14 days is usually not long enough for borrowers to come up with the funds needed to repay their loan in full. What often happens instead is that borrowers pay just their fees and extend their loan, at an additional cost. If they can’t pay off their loan, they’ll end up paying fees over and over without making a dent in the principal amount borrowed.

An Alternative to Payday Loan Borrowing

Borrowers should learn that payday loans are not the only short-term lending option available to them. Employed borrowers who have a checking account may be able to qualify for a personal line of credit with Ladder Credit.

Applying for a personal line of credit can be completed over the phone, or online. Online applicants will receive a phone call from a Ladder Credit representative to verify their application information. Applicants must be US citizens at least 18 years of age. Applicants should have a job that meets the job duration and minimum income requirements, and a checking account that meets open duration requirements. Ladder Credit does not provide funding to members of the military or their spouses. Additional requirements and limitations may apply.

What Makes a Personal Line of Credit Different

Payday lenders in Wichita are limited to providing payday loans for no more than $500. Ladder Credit can provide lines of credit in amounts higher than that, and borrowers don’t receive their credit as a lump sum that begins accruing interest right away. After approval, borrowers may request to withdraw any amount up to their full credit limit, and Ladder Credit deposits that amount into their checking account as soon as the next business day. Interest only begins to accrue from the day that funds are withdrawn, so Ladder Credit borrowers do not have to pay interest on credit that they have not used.

Instead of being expected to pay off the full amount borrowed within 14 days, Ladder Credit borrowers can make their monthly payments in any amount equal to or greater than the minimum payment. The minimum payment is 10 percent of the loan principal along with a financing charge. And when borrowers pay down their balance, their available credit increases. Ladder Credit customers can withdraw any amount up to their full available credit, which means they can always have access to emergency funds if needed.

Borrowers in Wichita who are looking for a short-term lending solution may want to consider a personal line of credit over a payday loan. Flexible repayment and ease of access with a line of credit outweigh the risks of the short repayment window that comes with a payday loan. Interested borrowers can find out if they qualify for a $1,250 line of credit when they apply today.

The content on this site is for informational purposes only and is not professional financial advice. Ladder Credit does not assume responsibility for advice given. All advice should be weighed against your own abilities and circumstances and applied accordingly. It is up to the reader to determine if advice is safe and suitable for their own situation.

*Not everyone will be approved

The line of credit account is designed as a short-term cash flow solution and not designed as a solution for longer term financial problems. Additional Fees may accrue if the outstanding principal balance is not paid at the end of the cycle. Credit counseling services are available to consumers who are experiencing financial problems.