Payday Lenders in South Carolina

Payday Loans are Legal in South Carolina

Beware of predatory lending

Payday Lenders in South Carolina

Payday loans are a popular form of short-term credit for those in South Carolina facing unexpected financial needs. Typically, these small loans are scheduled for repayment on the borrower’s next payday. Before taking out a payday loan, borrowers should fully understand the terms and fees associated with the loan, which can be substantial. Although payday loans can be a helpful resource, it is crucial for borrowers to make informed decisions to avoid falling further into debt.
Finding a legitimate payday loan provider can be a challenging task. South Carolina ranks in the top ten states nationwide for highest concentration of payday loan storefronts. There are 902 storefronts per 100,000 residents- that equates to approximately 19 lenders per 100,000 people. The state also has one of the highest rates of payday loan usage, with 16% of households in South Carolina using payday loans. With so many lenders offering different options, borrowers need to research the lender’s reputation and understand the loan’s terms and conditions thoroughly.
Additionally, comparing offers from different lenders can help borrowers make informed decisions. It is essential to stay cautious and avoid lenders with a bad reputation or those who do not provide transparent information on loan terms and fees. By being vigilant and informed, borrowers can ensure they secure safe and reliable payday loans in South Carolina.

Payday Loan Laws

South Carolina has laws in place that attempt to control both the lender and borrower when it comes to payday loans. Borrowers are limited to one outstanding loan at any time and a cooling off period is put in place once they have reached 8 payday loans in one year. Additionally, the lender has restrictions on the finance charges they are allowed to assess and must check borrower eligibility in a statewide database before issuing a payday loan.

The State of South Carolina regulates entities with payday lending licenses through several pieces of legislation:

Loan Terms and Conditions

Maximum loan amount: $550

Maximum Interest Rate: 391%

Minimum loan term: no minimum in regulation

Maximum loan term: 31 days

Number of rollovers allowed: none

Finance charges: 15%

Legal action: 3 Years

Certified Payday Lenders in South Carolina

Company NameCompany score License Status
Advance America, Cash Advance Centers, Inc.7.8Valid
Big Picture Loans, LLC6.5Valid

History of South Carolina Payday Loans

Short-term lending has a long history in Oklahoma, dating back to the late 1990s. By the early 2000s, payday loans had become a popular way for many Oklahomans to access quick cash. Before South Carolina implemented payday loan regulations in 2009, the number of loans taken out each year was over four million. However, with the introduction of the South Carolina Deferred Presentment Services Act, which set a limit of $550 for a loan, capped financial charges, and limited borrowers to one outstanding loan at a time, the number of payday loan transactions decreased significantly. Nevertheless, some lenders found a way to work around the new laws by abandoning their payday loan licenses and becoming supervised lenders, a type of loan that is very similar to a payday loan but with no limit on the interest rate or loan term.

How to file a complaint

To file a complaint against a payday loan provider, contact the South Carolina Department of Consumer Affairs. You will need to register for an account to log in and access the online complaint system:

South Carolina Payday Loans Debt Relief

How to Get out of Payday Loan Debt?

If you find yourself in payday loan debt in South Carolina, there are several options available to help you get out of it. One approach is to negotiate a repayment plan with your lender, which may involve reducing the amount you owe, extending payment periods, or lowering interest rates. Another option is to consolidate your debt with another loan or credit card, which can reduce your payments and make them more manageable. However, it is important to exercise caution when using this method, as it can often result in longer repayment terms and higher overall interest charges. Finally, as a last resort, you may consider filing for bankruptcy, but this should only be done after careful consideration and consultation with a legal professional. Ultimately, the best way to avoid payday loan debt is to carefully manage your finances and avoid taking out high-interest loans unless absolutely necessary.

Types of Quick Loans in South Carolina

Alternatives to Payday Loans in South Carolina

Personal Loans

Personal loans can be an excellent option for individuals looking to finance a variety of needs, from unexpected expenses to home improvements or consolidating high-interest debt. In South Carolina, residents can obtain personal loans from a variety of lenders, including banks, credit unions, and online lenders. These loans typically have fixed interest rates and repayment periods, allowing borrowers to budget and plan accordingly. While personal loans are a convenient and flexible option, it is important to understand the terms and conditions of each loan, including fees and potential penalties for late payments.

Land Loans

Land loans are a type of financing designed for individuals looking to purchase or develop land. In South Carolina, residents can obtain land loans from banks, credit unions, and other lenders. These loans typically have higher interest rates and shorter repayment periods than traditional mortgages. Borrowers should have a clear plan for the land, for example they need to identify if they are building a home or developing a commercial property, before applying for the land loan. It is important to research lenders and understand the terms and conditions of the loan before applying.

Construction Loans

Construction loans are a type of financing designed for individuals looking to build a new home or renovate an existing property. In South Carolina, residents can get construction loans from banks, credit unions. These loans are usually short-term and come with higher interest rates than traditional mortgages but they provide financing during the construction process and can be converted into a long-term mortgage once the project is complete.

Bad Credit Loans in South Carolina

Bad credit loans are designed for individuals with low credit scores or no credit history. In South Carolina, residents with bad credit may find it challenging to obtain traditional loans from banks or credit unions. Fortunately, there are alternative lenders that specialize in bad credit loans,. While these loans may come with higher interest rates and fees, they can provide valuable financial assistance to those in need. It is important to research lenders and understand the terms and conditions of the loan before applying.

South Carolina Small Business Loans

Businesses in South Carolina can take advantage of various loan options to help them grow and succeed, from traditional bank loans to specialized programs offered by the State.

  • SBA loans: The U.S. Small Business Administration SBA offers loan programs to support small business owners, reducing lenders' risk and allowing borrowers to access more beneficial terms.
  • Business Expansion Loans: The South Carolina Business Development Corporation offers business expansion loans to small businesses in South Carolina.
  • South Carolina Community Loan Fund: The South Carolina Community Loan Fund offers loans and business coaching to small businesses in underserved communities.
  • Invoice financing: The South Carolina Community Loan Fund offers loans and business coaching to small businesses in underserved communities.

VA loans in South Carolina

VA loans are a type of mortgage available to eligible veterans and their families. In South Carolina, residents can obtain VA loans from approved lenders, including banks and credit unions. These loans are guaranteed by the Department of Veterans Affairs and offer competitive interest rates and flexible terms. VA loans can be used to purchase or refinance a home, making them a valuable option for eligible veterans and their families. Borrowers should meet with an approved lender to determine eligibility and learn about the benefits and requirements of VA loans.

South Carolina Home Equity Loans

Home equity loans are secured by the equity you have in your home and can be used for a variety of purposes, such as home improvements, debt consolidation, or other large purchases. In South Carolina, home equity loans are usually provided at a fixed rate and can be used to borrow up to 80% of your home's value. They usually feature low closing costs and no prepayment penalties.

South Carolina Student Loans

South Carolina students can take advantage of numerous student loan options to finance their college education. These may include:

  • Federal Student Loans: South Carolina students have access to federal student loans, an invaluable financial resource that can be used for college tuition and other associated costs.
  • South Carolina Teachers Loan Program: This program is designed to provide forgivable loans to students who are planning to become teachers in critical subject areas in South Carolina.
  • Palmetto Assistance Loan (PAL): This loan program is offered by the South Carolina Student Loan Corporation and provides low-interest loans to South Carolina residents who are enrolled in eligible postsecondary institutions.
  • Private Student Loans: Offered by banks, credit unions and other private lenders and often have higher interest rates than federal or state funding. May offer fewer repayment options.

South Carolina Income Information

According to the 2021 U.S. Census, the median household income for South Carolina was $58,234. This is significantly lower than the national median of $69,021. South Carolina’s economy is diverse, with sectors such as manufacturing, healthcare, and tourism driving growth. Its ports and transportation infrastructure make it a hub for commerce and trade, while its vibrant arts and culture scene draws visitors from around the world. The poverty percentage in South Carolina in 2021 was 14.6%. Income and poverty levels vary drastically depending on the county. Beaufort County has the highest median household income of $71,430, 30.2% higher than the state average, while Allendale County has the lowest, at $26,074, 52.5% below the state average.

United States Census Bureau. “Poverty in the United States: 2021.” Accessed on May 1, 2023.
United States Census Bureau. U.S. Census Bureau QuickFacts: South Carolina. Accessed on May 1, 2023.

South Carolina Payday Lender Complaints

Below are trends associated with the top payday lenders in South Carolina as reported to the Consumer Financial Protection Bureau.

Company Name Count
Advance America, Cash Advance Centers, Inc. 16
Big Picture Loans, LLC 13
Total Complaints 283

Consumer Financial Protection Bureau. Consumer Complaint Database. Accessed on May 1, 2023.

Most Common Issues

Complaint type Count
Charged unexpected interest or fees 106
Struggling to pay loan 36
Received a loan you never applied for 31
Can’t contact lender 29
Problems with payoff process 13

What are the main reasons residents of South Carolina apply for payday cash advance online or offline

Payday loans are typically used for nonnegotiable everyday expenses like your rent, utilities, and groceries. Per our Survey, the percentage of reasons described below

Reason Share
Regular Expenses (Utilities, car payment) 53%
Unexpected emergency/expense 16%
Rent/Mortgage 10%
Something Special 8%
Other 5%
Did not answer 2%

Payday Lenders by City

Frequently Asked Questions

Will applying for a payday loan impact my credit?

Most payday loans are not reported to the three major credit reporting agencies and typically lenders do not check your credit report.

What do I need to apply for a payday loan?

You will need personal information such as name, address, valid social security number and proof of a steady, recurring income source.

Can I cancel my payday loan?

Yes, you can cancel your payday loan in South Carolina by rescinding the loan agreement by the end of the next business day following the day you received the funds. If you cancel the loan within this timeframe, you will not be charged any fees or interest.

Can a payday loan lender garnish my wages?

Payday lenders in South Carolina are prohibited from garnishing wages.

Can spouses have separate loans?

Yes, payday lenders can garnish your wages in South Carolina if they obtain a court judgment against you.

When will I receive my funds if I am approved for a payday loan?

In South Carolina, payday lenders are required to provide borrowers with the loan proceeds on the same day the loan is approved, either in cash or deposited electronically into the borrower’s account. If the loan is approved after 5:00 PM, the funds must be provided by the next business day.

What happens if I can’t repay my payday loan on time?

In South Carolina, lenders may charge late fees, send your account to collections, or even take legal action against you.

When could I apply for another payday loan?

In South Carolina, you can apply for another payday loan as soon as your previous loan is paid off.
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