Maryland Payday Loans
Maryland payday loans may not be allowed, but there are other options available when you need money for an emergency or help out of a tough financial situation. It is one of the few states in America that have very strict regulations when it comes to payday lending.
Are payday loans legal in Maryland?
No, payday loans aren’t legal in Maryland. Maryland Law § 12-101 et seq. prohibits payday lending in all forms, including online loans. The maximum interest a small loan provider can charge is 2.75% per month or 33% per year for the first $1,000 of a $2,000 loan. On the next $1,000, a lender can charge no more than 2% per month or 24% per year.
Are there any other short-term options in Maryland?
While you’re getting your finances in order, you may want to consider some of these options or browse a list of payday loan alternatives to see other ways to get emergency funds without taking out a payday loan.
- Consolidate your debt. You may want to look into consolidating your debt by taking out one large loan to cover your smaller ones. You may even get a better interest rate to keep the costs of the loan down.
- Ask for an advance on your paycheck. When you’re in a bad financial situation, your boss may be able to give you an advance on your next paycheck. You might be able to get the money you’ve already worked now instead of waiting for bills and having interest charges pile up.
- Consider a credit card cash advance. If you already have a credit card and it isn’t maxed out, you can take out an advance against your line of credit. This is generally cheaper than a payday loan and you can pay back what you borrow over a longer-term.
Maryland payday loan costs
Regardless of the type of credit you are given by a Maryland lending institution, you always have to pay the money back plus all fees and interest you signed up for. The interest you pay comes down to your credit history, the type of credit line you want, your employment history and your relationship with the institution itself.
There are usually many types of fees such as application, disbursement, late payment and settlement fees. We recommend you read the fine print before you consider a Maryland payday loan or similar. Remember that depending on the loan type there will be a non-sufficient funds fee, that is if your check bounces you will pay a fine.