Emergency Loans in Denver After a Hail Storm: What to Do First

A sudden hailstorm can leave you with a dented car, a damaged roof and a bill you did not plan for. If you are searching for emergency loans in Denver after a hail storm, the best first move is usually not a loan at all. Insurance, disaster aid and local relief often cost far less, and a loan works best as a small bridge for whatever gap is left.

Why hail is a real money problem in Denver

The Denver, Colorado metro area is one of the most hail-prone urban areas in the country. Spring and summer storms regularly damage cars and roofs. Winter brings heavy snow and cold snaps that can raise heating bills or keep you from getting to work. A repair bill can arrive in one afternoon, and many households have no savings set aside for it.

Call your insurer first

Before you borrow anything, call your insurance company. Hail damage to a car is usually handled under the comprehensive part of an auto policy, and storm damage to a home may fall under homeowners or renters coverage. Ask what your deductible is, how to file, and how long a claim usually takes.

Your deductible is the part you pay yourself. If it is $500, that may be the amount you need to cover while the insurer pays the rest. That number is often much smaller than the full repair estimate. Our guide to car repair loans in Denver covers this gap in more detail.

Document the damage before any cleanup

Take photos from several angles before you clean up or repair anything. Keep dated receipts for costs such as a rental car, a hotel stay or a temporary tarp on the roof.

• Photograph each damaged item, close up and from a distance.
• Save repair estimates from more than one shop or roofer.
• Keep every receipt in one folder, paper or digital.

Claims with clear records tend to move faster, and the same records help if you later apply for federal aid.

Check FEMA and SBA help for declared disasters

If a storm is declared a federal disaster, help may come as a grant, not a loan. FEMA can assist with certain uninsured losses, and you can apply at disasterassistance.gov. Register even if you doubt you will qualify. It costs nothing, and FEMA can then point you to grants, SBA loans or other agencies. The U.S. Small Business Administration also offers disaster loans to homeowners, renters and businesses, described on its disaster assistance page.

Not every hailstorm is declared a disaster, so these programs will not always apply. When they do, they are usually much cheaper than a commercial loan.

Cheaper options to try before a loan

A few choices usually cost less than any short-term loan:

• Credit unions. Many offer small personal loans and payday alternative loans. Federal credit union payday alternative loans charge at most 28% interest plus an application fee of at most $20. Check each credit union’s membership rules.
• Payment plans. Roofers, body shops and medical providers will often split a bill over several months.
• Family or employer help. A paycheck advance from an employer may cost nothing.

For a side-by-side look, see credit unions versus high-cost lenders in Denver.

Winter storms and heating bills

A blizzard or long cold snap can push up energy costs. Xcel Energy provides electricity and natural gas in Denver, and it offers payment arrangements for past-due balances and income-qualified affordability programs. Colorado’s LEAP, the Low-income Energy Assistance Program run by the Colorado Department of Human Services, helps with winter heating bills, and you apply through Colorado PEAK. Energy Outreach Colorado is a nonprofit that helps income-qualified households with past-due energy bills.

What a small loan costs in Colorado today

If you still need a loan, know what Colorado law allows. Voters approved Proposition 111 in 2018, and it capped what used to be called payday loans at a 36% annual percentage rate. Today’s legal product is better described as a small installment loan. A licensed lender may not lend more than $500 to one consumer at a time, and the minimum term is six months.

At 36% APR, repaid in six equal monthly payments:

• $300 costs about $32.28 in interest. The payment is about $55.38 a month, and you repay about $332.28.
• $500 costs about $53.79 in interest. The payment is about $92.30 a month, and you repay about $553.79.
• $500 over 12 months costs about $102.77 in interest, with payments of about $50.23 a month.

As an illustration, a credit union or bank loan of $1,000 at 18% over 12 months is about $91.68 a month and about $100.16 in interest. Real offers vary, so ask for the APR in writing. See Colorado’s 36% APR cap explained for how the cap works.

Rules that protect you as a borrower

Colorado’s Deferred Deposit Loan Act gives borrowers several protections:

• You may cancel the loan on or before 5 p.m. the next business day after you take it.
• If you repay early, the lender must refund a prorated share of the finance charge.
• The loan may be renewed only once, at no more than 36% APR.
• A returned payment can bring one charge of no more than $25 per loan, plus court costs and reasonable attorney fees only if a court awards them.
• You cannot face a criminal penalty for taking the loan or because a check bounces, unless the account was closed before the agreed date.

More detail is in your rights as a Colorado loan borrower.

Online lenders and car-secured loans

Online and out-of-state lenders must follow Colorado law when they lend to people in Colorado, and they should hold a Colorado license. Some claim tribal ownership or an out-of-state bank partnership, and the legal rules in this area are still being tested. Search the license at coag.gov before you share personal information.

Be extra careful with any loan secured by your car. Colorado has no separate title-loan law, so such a loan must follow the Uniform Consumer Credit Code and come from a licensed lender. If you cannot repay, you can lose your car, which may be your only way to work after a storm.

Where to get help

Dial 2-1-1, run by Mile High United Way for the Denver area, to find shelter, food and local relief funds. Colorado Legal Services helps low-income residents with civil problems such as debt collection. Airmen, Guardians and their families near Buckley Space Force Base in Aurora can ask about emergency help from the Air Force Aid Society. If you think a lender broke the rules, see how to file a complaint against a Colorado lender.

Keep a storm folder ready

Hail season comes back every year. Keep your insurance policy numbers, a photo inventory of your home and car, and key identification in one folder. Add a small emergency fund in a credit union account, even $10 a paycheck. The less you scramble after a storm, the less you may need to borrow.

This article is educational and is not financial or legal advice. Before you borrow, confirm the lender is licensed with the Colorado Attorney General — Consumer Credit Unit (UCCC Administrator), and read the fee disclosure in full.