Amine is an entrepreneur, investor and financial writer that covers the US economy, inflation, alternative investments, cryptocurrencies and more. He has been involved in the space for over a decade.
Are you thinking of investing in gold and silver to diversify your portfolio against market uncertainty and geopolitical instability? We’ve got you covered. On this page, we will review ten top-rated gold investment companies in America. Now, we recommend speaking to a few different companies before making an investment decision, as they all have different strengths, weaknesses, and fees! Also, we encourage you to speak to your financial advisor prior to making an investment decision.
Noble is one of the top-rated precious metal firms in America and has a wide selection of gold coins and bars. They also are the only firm to offer Texas-based secure storage for metals. Noble specializes in helping IRA and 401k owners diversify their portfolios with gold and silver. Colin Plume, the CEO, is a veteran in the precious metal industry and puts a special focus on client education.
Augusta Precious Metals is a selective gold investment company that has high-profile clients like NFL Hall of Famer Joe Montana. Augusta doesn’t believe that gold and silver are for everyone and can help you determine if the investment is suitable for you. They created a free report that goes over the most common gold dealer scams to watch out for. They also have a free gold and silver conference for new customers interested in learning more about whether gold and silver are right for them.
Birch Gold Group has secured the likes of Ben Shapiro and Ron Paul as their celebrity spokespeople. They offer a variety of storage options for those interested in investing in gold and silver through a retirement account.
American Hartford has an impressive 5-star rating on Google Reviews. Just like Augusta or GoldCo, American Hartford sells mainly premium coins, which command higher markups. They also offer standard bullion for IRA/401k account holders interested in the lowest premiums over the spot price.
You have probably heard their commercial on Fox News. Adam Barratta, CEO of Advantage Gold, says he focuses on client education without paying any celebrities or spokespeople to back the brand. Advantage Gold does have great ratings across the board.
A veteran in the gold industry, Rosland Capital has helped thousands of investors purchase precious metals. Marin Aleksov founded the company back in 2008. Marin has been featured on several TV and radio programs as well as in publications such as TheStreet, CBS News, and the Los Angeles Times.
Another veteran in the industry, American Bullion is a well-known name in the world of gold IRAs. Former US Mint Director Rhett Jeppson became the company’s spokesperson in 2018.
Gold Alliance is one of those rare gold investment companies that is NOT located in California. Joseph Sherman, CEO of the company, told us that their main focus was to offer the best possible customer support experience.
Monex is one of the oldest names in the gold industry. The company has been operating since the 1960s! Monex is mainly a gold coin dealer offering precious metal IRA investments.
Celebrity spokesman Sean Hannity has been selected to represent GoldCo, replacing Chuck Norris who was the previous celebrity ambassador. This company offers all types of gold and silver coins for IRA and 401k account owners. Keep in mind that this company focuses on premium coins that come at a higher cost than standard bullion coins.
We recommend that you contact 2-3 different companies before making an investment decision. Compare pricing, support, and other elements that you care about. Also, before you invest in gold, make sure you understand this asset class. Gold doesn’t pay dividends or interest. It’s also not as easy to liquidate as stocks or bonds. Inquire about the buyback program from the company you decide to invest with, as that’s likely the easiest way to liquidate/sell your gold. No matter what, we recommend speaking to a trusted financial advisor before you make any investment decision.
If you are looking for a gold IRA company that isn’t listed here, check out Gold IRA Guide’s Best Gold IRA Companies page to see a more extensive list of companies reviewed.
What to look for in a gold investment company?
Reviews and Ratings? You wouldn’t eat at a 2-star rated restaurant, so why would you work with a gold investment company that has a low rating? Reviews and ratings are a great indicator of the company’s professionalism and customer service.
Premiums and markups on coins/bars? Ask about the prices and fees associated with your gold investment. You’re obviously going to pay above the spot price, but how much above the spot rate? It’s worth knowing before making a purchase. Different coins come at different prices.
401k and IRA account support? If you are plan to invest using a retirement plan, such as a 401k, IRA, TSP, 403b or other, you need to ask the gold company you plan to purchase from if they help facilititate this process for you and help when it comes to paperwork and storage. Some companies do while others don’t.
What types of coins and bars are available? What gold and silver coins and bars are for sale? If you’re an investor, you likely want the highest purity (99.99%+ pure) gold and silver coins or bars. Collectors care about things like shine, luster, rarity, year and other factors. If you’re an investor, make sure you are getting the highest purity first and foremost. You will be paying higher premiums for “rare” coins.
Sales experience and transparency. How are the salespeople? Are they pushy and aggressive? That’s a red flag. If they are suggesting you buy high-priced collectible coins without listening to your objectives, it’s also a red flag. It’s a good sign, though, if they are taking the time to answer your questions while explaining how the entire process works. Also, are they transparent about all fees and costs? You don’t want any surprises. You want to know upfront what all the fees will be.
A gold investment company is a dealer that works directly with investors to help them allocate a portion of their investment portfolio to precious metals like gold and silver. Investment companies are different from local gold dealers because dealers have physical stores that cater to the general public. On the other hand, gold investment companies generally have a minimum investment amount and won’t work with a client that only wants to buy a couple of coins.
The main costs and fees are the price of the gold and silver coins/bars you will be buying. What percent over spot are you paying for your gold bullion? That’s a question to ask the company you plan to work with. If you plan to store your gold in a secure vault, you also need to inquire about storage costs, which can be either a flat annual fee or a percent of the total value of gold.
As with any other investment, investing in gold is not without risk. The asset comes with its own set of unique risks that any potential investor should consider.
The risks of investing in gold include:
Price volatility: Gold prices can be highly unpredictable. These prices are influenced by various factors, including changes in global economic conditions, interest rates, currency fluctuations, and geopolitical events. This volatility means that while gold can offer significant gains, it can also result in substantial losses, especially in the short term.
Opportunity cost: Unlike stocks or bonds, gold does not generate dividends or interest. By investing in gold, investors may miss out on returns they could have earned from other assets – assets that provide regular income. Gold is often considered a safe-haven asset, but its performance may lag during periods of strong economic growth when other investments are outperforming.
Storage and security: Physical gold, such as bars or coins, requires safe storage, which may involve additional costs for secure vaults or insurance. Storing gold at home poses security risks and could lead to theft or loss. Really! And you don’t need us to tell you that is not ideal.
Liquidity risk: While gold is generally easy to sell, there can be times when finding a buyer at a fair price becomes challenging. This is particularly true during periods of market stress.
Gold can act as a hedge against economic uncertainty. And, perhaps more importantly, inflation. While this is true, weighing these risks and diversifying investments is crucial to balance potential returns and risk exposure.
This is up to each individual. Standard bullion coins like the American Gold Eagle or the Canadian Gold Maple Leaf are safe bets because they are recognized worldwide and have legal tender. However, generally speaking, gold bars command lower premiums since they are the closest thing to the raw material and require very minimal craftsmanship. Gold coins come with different designs and varying degrees of shine/luster/general quality. When you buy proof bullion coins, for instance, expect to pay much higher premiums than standard bullion coins. That’s because proof coins are stuck twice instead of once and have a higher degree of shine and luster.
This is a question only your financial advisor can help you answer. Some celebrity investors, like Kevin O’Leary, believe in a 5% gold allocation. Ray Dalio and Tony Robbins believe in an 8% gold allocation (as per their jointly designed All Seasons Portfolio). Each investor makes this decision based on their objectives and market outlook. Do your due diligence and your own research to determine what gold allocation is right for you. It’s important to remember that gold doesn’t pay any dividends or interest. Also, it comes with its own risks just like any other investment.
This question comes up often from our readers. Storing a large quantity of gold at home is generally risky. We always recommend storing your gold in a secure vault close to you. Offshore gold storage can also be an option if you want to store your gold in a different jurisdiction to minimize confiscation risk.
Using an existing retirement account such as an IRA or 401k might be a smarter way to invest in gold since you can avoid penalties. You can also invest in gold tax-free while working with a company that can handle the entire gold IRA rollover process for you. Those concerned about retirement account diversification should look into gold IRA companies to learn more.
Amine Rahal
Amine is an entrepreneur, investor and financial writer that covers the US economy, inflation, alternative investments, cryptocurrencies and more. He has been involved in the space for over a decade.
Lauren Brown
Lauren has over 13 years of experience in wealth management and financial planning. She is a CFA charterholder and holds a Bachelor’s degree in Finance. Lauren has worked with several asset management firms, offering wealth advisory and portfolio management services to high-net-worth clients.
Wondering if Take Charge America is a good option for debt settlement or debt relief? In this review of the company, we’ll look at their reviews and ratings from across the web, and we’ll break down their services when it comes to managing and decreasing debt.
#1 Rated Debt Relief Company in 2025?
Are you looking for the #1 Rated Debt Relief & Settlement Company in 2025? See ourNew Era Debt review. New Era Debt has received the highest number of positive reviews amongst all the 20 companies we researched.
Take Charge America (TCA) is a nonprofit credit counseling agency that provides debt management, financial education, and housing counseling services. Founded in 1987, TCA has helped thousands of individuals regain financial stability through structured debt relief programs and personalized financial counseling.
Headquarters: Phoenix, Arizona
States Covered: Nationwide (Available in most U.S. states)
February 2025 Update: As per a recent press release, Take Charge America has expanded its free housing counseling and mortgage assistance services to California, thanks to a $250,500 grant from the California Housing Finance Agency (CalHFA). This initiative allows the nonprofit agency to provide confidential support to homeowners and renters struggling with delinquency, foreclosure risk, or navigating the homebuying process. The services include rental and mortgage delinquency assistance, reverse mortgage counseling, pre-purchase and post-purchase guidance, and rental counseling for first-time or low-income renters. As a nonprofit, Take Charge America remains committed to offering free, unbiased advice tailored to each client’s financial situation. Residents can schedule a virtual appointment by visiting TakeChargeAmerica.org or calling (866) 987-2008.
Minimum Requirements to Qualify:
Minimum Debt: No strict minimum, but best suited for those with $5,000+ in unsecured debt
Income Minimum: Must have verifiable income to support a repayment plan
Take Charge America Ratings & Reviews:
Take Charge America is known for its commitment to consumer financial education, transparent practices, and effective debt relief solutions. Here’s how they are rated across major platforms:
BBB Rating: A+ (Accredited Business)
BBB Reviews: 4.7/5 Stars
Trustpilot: 4.8/5 Stars
Google Reviews: 4.6/5 Stars
Consumer Affairs: 4.5/5 Stars
Investopedia Rating: 4.3/5 Stars
Accreditations: Member of the National Foundation for Credit Counseling (NFCC), HUD-approved housing counseling agency
Key Features & Benefits:
1. Free Credit Counseling
Take Charge America provides a free, confidential financial review to help clients explore available debt relief options and develop a customized financial plan.
2. Debt Management Plans (DMPs)
TCA works with creditors to reduce interest rates and eliminate late fees.
Clients make one consolidated monthly payment to TCA, which is then distributed to creditors.
Most DMPs last 36 to 60 months, depending on the debt amount.
3. Nonprofit & Transparent Fee Structure
As a nonprofit agency, TCA offers low-cost solutions with fees regulated by state laws.
Fees typically range from $0 to $50 for enrollment and $25 to $75 monthly.
4. Housing & Bankruptcy Counseling
Provides HUD-approved housing counseling for mortgage assistance and foreclosure prevention.
Offers pre-bankruptcy counseling and debtor education, as required by federal law.
5. Financial Education & Resources
Free online courses, budgeting guides, and financial tools.
Personalized coaching to help clients develop better financial habits and avoid future debt.
Limitations & Considerations:
While Take Charge America has many benefits, here are some potential downsides:
Debt management plans require consistent payments – If you miss a payment, you may lose program benefits.
Not all debts qualify – Secured debts like mortgages and auto loans are not eligible.
State restrictions apply – Some services may not be available in all states.
Customer Support Review:
Take Charge America receives high marks for customer service and program transparency. Many clients praise the easy enrollment process and supportive financial counselors.
Here’s what a customer named Jessica had to say:
“Take Charge America helped me lower my credit card interest rates and develop a realistic repayment plan. Their team was professional, patient, and always available to answer my questions. I highly recommend them!”
Frequently Asked Questions (FAQ)
1. What types of debt does Take Charge America handle? TCA specializes in unsecured debts, such as credit card debt, medical bills, personal loans, and collections. They do not handle secured debts like auto loans or mortgages.
2. How does Take Charge America’s debt management plan work? A DMP consolidates all your eligible debts into one monthly payment. TCA negotiates with creditors to lower interest rates and waive fees, helping you pay off debt faster.
3. Are there any upfront fees? TCA’s fees vary by state, but they do not charge high upfront fees like for-profit debt relief companies. Many clients qualify for low-cost or waived fees.
4. Will using a debt management plan affect my credit score? DMPs may initially impact your credit score, but as you make consistent payments and reduce your debt, your score is likely to improve over time.
5. How long does a debt management plan take? Most DMPs take 3 to 5 years to complete, depending on the amount of debt enrolled.
6. Is Take Charge America available in all U.S. states? TCA operates in most states, but some services may not be available in all locations. Check their website or call for details.
7. Does Take Charge America offer student loan assistance? Yes, TCA provides guidance on student loan repayment options but does not offer direct consolidation services.
8. What qualifications do I need to enroll in a debt management plan? You must have verifiable income to ensure you can make consistent monthly payments.
9. What should I expect during the free consultation? During the consultation, a financial counselor will review your debt situation, discuss repayment strategies, and outline your best options.
10. How do I get started with Take Charge America? Visit www.takechargeamerica.org or call 1-866-750-9634 for a free consultation.
Final Thoughts: Is Take Charge America Right for You?
Take Charge America is a trusted nonprofit credit counseling agency that provides debt management plans, financial education, and personalized counseling. Their low fees, nonprofit status, and strong industry reputation make them an excellent choice for individuals struggling with credit card debt and looking for a structured path to financial stability.
If you’re seeking a reputable debt management program, Take Charge America is a solid option.
If inflation is eating away at your portfolio, one investment you may have looked at is precious metals. Physical metals are known to be a good hedge against inflation and paper assets, but which precious metal should you invest in: gold or silver? In this article, we’ll cover the pros and cons of both to help you decide on your precious metal allocation. First, let’s look at this comparison table:
Factor
Gold
Silver
Market Value
Higher price per ounce
Much lower price per ounce
Volatility
Lower volatility, more stable
Higher volatility, more prone to price swings up or down
Liquidity
Highly liquid, easier to buy and sell in large quantities
Liquid but may have less demand in large quantities
Industrial Use
Minimal industrial use
Significant industrial demand (electronics, EV, solar energy)
Supply and Demand
More stable due to its primary use as a store of value
Fluctuates based on industrial demand and economic cycles
Hedge Against Inflation
Strong hedge, typically rises during inflation
Also a hedge, but more sensitive to its industrial demand and economic conditions
Investment Popularity
Preferred by institutional investors and central banks
More popular among smaller retail investors
Portfolio Diversification
Considered a safer and more stable option for diversification
More speculative, can add risk but also potential for higher gains
Historical Performance
Steady long-term appreciation, especially in times of crisis
More cyclical, with stronger price movements in both directions
Storage Costs & Space Required
Requires less space due to higher value per ounce. One $80,000 gold bar can fit in your pocket.
Silver requires more physical space for equivalent value. $80,000 worth of silver would occupy the equivalent of 2 shoeboxes.
For me, the highlight of this table is how easy it is to store gold. An $80k gold bar can fit in your pocket, which makes it very convenient, cheap and easy to store. This factor greatly contributes to the fact that gold is an amazing store of value. However, this also makes it very difficult to “spend”. In a scenario where the dollar is worth nothing and you want to use your precious metals as currency for everyday expenses, silver might be a better choice.
Gold: The Classic Choice
Gold investing goes back thousands of years. Virtually every holy book mentions it. Now, why should you consider gold? For the following reasons:
Stability: Almost every known civilization has valued gold for thousands of years, and even now, people often see it as a safe haven during economic uncertainty. Its price tends to be more stable over time.
Inflation Hedge: History has shown that when the cost of living rises, gold prices often increase too. This makes it a good option for preserving your purchasing power during high-inflation times.
Global Acceptance: Gold is recognized and valued worldwide. If you ever need to sell, it’s generally easy to find a buyer, especially if you have recognized bullion coins and bars like American gold eagles or Canadian maple leafs.
Less Volatility: Gold prices don’t fluctuate as wildly as some other investments, which can make it a calmer ride for investors.
Things to keep in mind:
Higher Cost: Gold is more expensive per ounce than silver. This means you’ll need more money upfront to invest. Also, each gold investment company has different fees, with some charging very high premiums. We encourage you to shop around. Look for a company with competitive prices for their gold coins and bars.
Slower Growth Potential: Because it’s more stable, you might see slower gains compared to more volatile investments.
Silver: The Dynamic Alternative
Silver is the most conductive metal on earth, which makes it needed in multiple industries, including Electric Vehicles, Electronics, Medicine and many more. Its various uses mean that its value goes beyond its investment potential. In a nutshell, you should consider investing in silver because:
Affordability: Silver is much cheaper than gold. Why is that helpful? It allows you to start investing with a smaller amount of money.
Industrial Demand: As we covered earlier, silver is used in many industries from electronics to EVs to solar panels. This can drive up demand and potentially its price.
Growth Potential: Silver prices can rise quickly, offering the chance for significant gains if the market moves in your favor. If being the key word.
Things to keep in mind:
Higher Volatility: Silver prices can swing more dramatically than gold. This means higher potential rewards but also higher risks.
Storage Space: Because silver is less valuable per ounce, you’ll need more physical space to store it compared to gold.
Market Liquidity: While silver is still easy to buy and sell, it might not be as readily accepted as gold in some markets. Especially in the east.
Making Your Decision
Before deciding on whether you should buy gold or silver as a hedge against inflation, consider your goals and comfort level:
Are you looking for stability and a long-term store of value? Gold might be the better choice for you.
Are you open to taking more risk for the chance of higher returns? Then silver could be more up your alley.
Do you have a smaller budget to start investing? Silver allows you to enter the market without needing a large sum of money.
Now, how about both?
Diversification: Investing in both gold and silver can help balance your portfolio. Really! Gold can provide stability. Silver offers growth potential.
Hedging Bets: Holding both metals means you’re not putting all your eggs in one basket.
Final Thoughts
Ultimately, the choice between investing in gold vs silver depends on your individual financial situation, investment goals, and how much risk you’re comfortable taking on. It also depends on your understanding of the pros and cons of both metals. Do you believe the pros of one outweigh the pros of the other? There is no single right answer. Our final thoughts are:
Do Your Research: Look into current market trends, historical price movements, and forecasts.
Consult a Professional: It might be helpful to talk to a financial advisor who can offer personalized advice.
Think Long-Term: Precious metals are generally considered long-term investments.
As always, we would like to remind you that investing always comes with risks, and there’s no guaranteed return. But with careful consideration and planning, you can make a choice that aligns with your financial goals. Always speak to your financial advisor before making any investment decision. Understand that past results don’t guarantee future returns. Invest wisely.
Also, given the inflation we had to endure in the last few years, make sure you analyze your financial situation fully to determine whether you should be investing in a new asset class like precious metals. You should NEVER use debt or credit to buy physical metals or invest in anything else. If you’re in high debt, we recommend looking at different debt relief options to see how you can alleviate your debt, before thinking about investing.
Logo of New Era Debt Solutions (credit: neweradebtsolutions.com)
New Era Debt Solutions (https://neweradebtsolutions.com/) is a well-established, legitimate debt settlement company that’s been helping people get out of debt since 1999, which makes it one of the oldest debt settlement providers in America. Based in Camarillo, California, they operate nationwide (EXCEPT Maine, Oregon, and Iowa), and specialize in negotiating with creditors to settle unsecured debts, like credit card debt, personal loans and others for less than what you owe.
New Era Debt Company’s Snapshot
New Era Debt Solutions takes the #1 spot in our debt relief company rankings this year due to their combined score of 4.84/5 stars, as you can see below. This objective score takes into account their ratings on multiple third-party review sites.
New Era Debt Solutions has a good profile on Google reviews
What Services Does New Era Debt Offer?
New Era primarily offers debt settlement services, meaning they work with your creditors to reduce the total amount you owe. This service is specifically for unsecured debt (like credit cards, medical bills, personal loans and certain other types of debt). Their service cannot help for things like mortgages or student loans.
New Era Debt aims to create a plan that helps you become debt-free in as little as 24 to 48 months. One of the standout aspects of New Era is that they don’t charge any upfront fees. You only pay them when they’ve successfully settled your debt and you have agreed with their plan.
Reputation & Legitimacy Factors
In terms of reputation, New Era Debt Solutions has solid reviews across multiple platforms, as we covered earlier in the “company’s snapshot” section. They hold an A+ rating with the Better Business Bureau (BBB).
On Trustpilot, they’ve received mostly positive reviews, with customers praising them for professionalism and their ability to reduce large amounts of debt. Like any company, there are a few negative reviews, but those are often about the downsides of debt settlement itself (such as its impact on credit scores), rather than the company’s service.
Management Team
New Era’s CEO, Dan Smith, has a strong background in finance and a focus on ethical, transparent practices. The company is committed to not only helping clients get out of debt but also educating them on how to stay out of it in the future. They pride themselves on being a debt settlement company that actually does the work in-house—they do not outsource anything, so you’re always dealing with New Era directly.
Which States Do They Cover?
New Era Debt Solutions serves clients across the United States, except in the states of Maine, Oregon, and Iowa as we covered in the beginning of this article. This may change in the future, so it’s always a good idea to fill out their pre-qualification form to see if your address allows debt settlement and if New Era operates there.
What’s the Process Like?
When you sign up, you’ll first have a consultation to review your financial situation. After that, they’ll create a plan tailored to your debt and begin negotiating with your creditors. You’ll make monthly payments into an escrow account while New Era works to settle your debts for less than what you owe. It’s a fairly straightforward process, but as with any debt settlement plan, it’s important to know that your credit score will take a hit. While under negotiation, there are also risks like collection calls or lawsuits.
Is New Era Debt Solutions Right for You?
New Era Debt Solutions has been around for over 20 years, and their track record, coupled with strong reviews and no upfront fees, makes them a legitimate option if you’re considering debt settlement. They are especially appealing if you’re struggling with large amounts of unsecured debt and need an alternative to bankruptcy. That said, debt settlement isn’t for everyone—make sure to understand the pros and cons before diving in.
If you’re dealing with overwhelming debt due to this high-inflation economic landscape, and are looking for a company that can help you decrease and/or pay off your debt, and has a great reputation, New Era could be the right fit for you. Make sure you take advantage of their free consultation to ask which of their various debt relief options is best for you.
FAQ
Here’s a frequently asked questions (FAQ) section covering the most common questions new users have about New Era Debt Solutions:
1. How much does New Era Debt Solutions charge?
New Era charges between 14% and 23% of the initial enrolled debt amount. There are no upfront fees; they only get paid when they successfully negotiate a debt reduction. This is a contingency-based fee structure.
2. What types of debt does New Era handle?
They handle unsecured debts like credit card debt, personal loans, private student loans, medical bills, and some types of business debts. They do not handle secured debts like mortgages or car loans.
3. Will using New Era affect my credit score?
Yes, debt settlement, regardless of which company you choose to work with, will negatively impact your credit score. Settling a debt means paying less than the full amount owed, which creditors deem a negative event. However, the impact is less damaging than bankruptcy.
4. Is New Era Debt Solutions accredited and reputable?
Yes, New Era has BBB accreditation and has an A+ rating. They have generally positive reviews from clients on platforms like TrustPilot and the BBB website.
5. Where is New Era available?
New Era is accessible in 46 states as well as Washington D.C. and the Virgin Islands. They do NOT operate in Maine, Oregon, and Iowa.They collaborate with the Consumer First Legal Network to offer services in certain states where they may not directly operate.
6. What happens if a creditor refuses to settle?
If a creditor refuses to negotiate, they could potentially take legal action, which might result in lawsuits or wage garnishments. However, most creditors prefer to negotiate rather than pursue costly legal action.
7. How long does the debt settlement process take?
The typical debt settlement program with New Era takes around 28 months. The exact duration depends on the amount of debt, your monthly contributions, and how quickly creditors agree to settlements.
8. Can I cancel my program with New Era Debt Solutions?
Yes, clients can cancel their program with New Era at any time. However, any funds put towards fees or those that are in the dedicated account may be subject to the terms of the cancellation agreement.
Amine Rahal
Amine is an entrepreneur, investor and financial writer that covers the US economy, inflation, alternative investments, cryptocurrencies and more. He has been involved in the space for over a decade.
Lauren Brown
Lauren has over 13 years of experience in wealth management and financial planning. She is a CFA charterholder and holds a Bachelor’s degree in Finance. Lauren has worked with several asset management firms, offering wealth advisory and portfolio management services to high-net-worth clients.
In the U.S., interest rate caps—especially when it comes to protecting consumers from predatory lending—are largely regulated at the state level. This means that the maximum interest rates lenders can charge vary depending on which state you live in and the type of loan we’re taking out. Let’s break down how this works across different states.
What Qualifies as a “Predatory Loan”?
First, let’s compare a traditional loan you would get from a bank versus a “predatory loan” you would get from an alternative lender:
Feature
Traditional Bank Loan
Predatory Loan
Interest Rate
Low to moderate (typically 3% to 12% APR)
Very high (can exceed 50% APR, sometimes 300%+)
Loan Terms
Fixed terms (usually 1 to 30 years)
Short terms (often 2 weeks to a few months)
Repayment Structure
Monthly payments, often with amortization
Lump-sum payment or frequent, high payments
Fees and Charges
Transparent, disclosed upfront
Hidden fees, high fees, or penalties
Borrower Qualification
Strict requirements (credit score, income, etc.)
Minimal qualification (often no credit check at all)
Regulatory Oversight
Highly regulated by federal and state laws
Often operates in regulatory gray areas
Purpose of Loan
Typically for major purchases (homes, cars, education)
Often for emergency or short-term needs
Impact on Credit Score
Positive impact if paid on time, reported to credit bureaus
Negative impact, often not reported positively to credit bureaus
Borrower Rights
Strong consumer protections, recourse available
Limited recourse, predatory practices common
Rollover/Renewal
Generally not allowed or unnecessary
Frequent rollovers, trapping borrowers in cycles
Lender’s Intent
Long-term relationship, repayment is expected
Profit from borrower’s inability to repay on time
Essentially, a predatory loan is a type of loan that takes advantage of borrowers in vulnerable and dire financial situations. These loans often come with excessively high interest rates, hidden fees, or deceptive terms that make it difficult for borrowers to repay the loan.
Federal Protections
Before diving into state specifics, it’s worth noting that there is a federal cap in place for certain groups. The Military Lending Act (MLA) caps interest rates at 36% APR for active-duty service members and their dependents on most consumer loans. This law provides a strong layer of protection, but it only applies to military members. You can learn more about the MLA on the Consumer Financial Protection Bureau (CFPB) website.
State-Level Interest Rate Caps
Interest rate caps for everyone else are set by state laws, and these can vary widely:
California
Payday Loans: In California, payday lenders can charge up to $15 per $100 borrowed, which can equate to an APR of over 400% depending on the term of the loan.
Installment Loans: For loans over $2,500, there’s no cap on interest rates.
Payday Loans: Colorado has one of the stricter caps, limiting payday loan interest rates to 36% APR. This was implemented after voters approved a 2018 ballot measure to curb high-interest payday loans.
All Loans: New York has a strict usury law that caps interest rates at 16% for most types of consumer loans. Charging above 25% is considered criminal usury.
More Info: For more on New York’s laws, the New York State Department of Financial Services is a good resource.
South Dakota
Payday Loans: Like Colorado, South Dakota caps payday loan rates at 36% APR. This cap was set after a successful 2016 ballot initiative aimed at protecting consumers from predatory lending practices.
More Info: Learn more on the South Dakota Division of Banking website.
Texas
Payday Loans: Texas doesn’t cap interest rates directly for payday loans, but it does regulate fees. This can still lead to APRs that exceed 400%, depending on the loan’s terms, which is extremely high.
More Info: The Texas Office of Consumer Credit Commissioner provides more information on lending laws in the state.
Illinois
All Loans: As of 2021, Illinois capped interest rates at 36% APR for all consumer loans, including payday loans, through the Predatory Loan Prevention Act.
All Loans: Utah has no cap on interest rates, making it one of the most lender-friendly states in the U.S. This means payday lenders and other high-interest lenders can charge extremely high rates. Beware of Utah-based lenders.
More Info: For more, see the Utah Department of Financial Institutions.
Know Your Rights & Do Your Due Diligence
These state-specific laws are crucial because they determine how much protection you have against predatory lending practices. In states with strict caps like New York or Colorado, consumers are generally safer from exorbitant interest rates. But in states like Utah or Texas, the lack of caps means consumers need to be extra cautious when taking out loans.
Predatory loans have put many American consumers in dire financial situations, exacerbating their debt and pushing them into bankruptcies. If you are dealing with high debt and are struggling to pay your bills, consider debt settlement instead of requesting another loan which will most likely put you deeper into debt.
Finding Out More
If you’re considering taking out a loan, it’s a good idea to first check what the interest rate caps are in your state. You can usually find this information through your state’s Department of Financial Services or a similar regulatory body. Additionally, theConsumer Financial Protection Bureau (CFPB) offers a wealth of resources on consumer rights and protections.
By understanding these caps, you can better protect yourself from predatory lending practices and make more informed financial decisions.
![Take Charge America – We Review This Debt Settlement Firm [2025 Update]](https://cpiinflationcalculator.com/wp-content/uploads/2025/02/TakeChargeAmericaHomepage-1080x675.jpg)
