If you need to get some money quickly, then you might have considered getting a cash advance. However, you want to make sure that you have all the information before proceeding. The laws of your state can play a pretty big role in determining exactly how much money you can get, when you need to pay it back, and how much you can be charged in fees. Here are some of the laws that you will need to know when it comes to getting a cash advance in Alaska. 

How much money can you get?

Alaska flatly caps cash advances at $500. Regardless of how much money you make, you cannot ask for more than $500. For some people, this can be pretty helpful, but it can also be quite punishing to others.

If you don't make very much money, then a flat cap is very useful. Some states will cap your cash advance at a percentage of your monthly income, meaning that your loan could be limited to much lower than $500. For example, if you make $1000 a month in a state that caps payday loans at 30% of your monthly income, then you could not ask for more than $300. From this perspective, Alaska is quite lenient for many potential borrowers of cash advances.

How long will the loan last?

Alaska flatly caps payday loans at 14 days, which means that you need to pay your loan back within two weeks. This may seem very strict, but that can also work out in your favor. By having such a short loan period, you might be more motivated to pay the loan back on time. If the loan lasts too long, then you can run into budgeting problems, or you might even end up forgetting about your loan altogether.    

How much will you be charged?

Firstly, you can be charged an origination fee for taking out a loan, but you don't really need to worry since that value is capped at $5. This means that $5 will let you take out a $100 cash advance or a $500 cash advance.

Secondly, fees are capped at 15% of the loan amount, meaning that you will be paying $20 total on a $100 cash advance ($5 origination fee + 15% of the principal). For a loan at the cap, you will end up paying $80 on a $500 loan, which should give you a good idea of exactly how much you should expect to pay.

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