Michigan Payday Loans
If you are living in Michigan, the chances are that you might need a loan at one point in life – particularly if you live on a low income. You could go for a bank loan – but you’re only planning to buy dinner for the next few days, not a house. In this case, payday loans can be the right tools. Michigan payday loans can be an option if you need cash to pay for a late expense or financial emergency.
Are Michigan Payday Loans legal?
Yes according to the law, Michigan payday loans are legal and as such Michigan payday loan companies have rules they must follow. It means that companies must obtain a license for every location they operate and there are rules regarding interest rates, max loan amounts and so son. In the case of Michigan payday loan companies, the max loan amount is $600. A company also cannot loan more than 1 payday loan to a person at any time.
How do Michigan Payday Loans work?
You can borrow up to $600 to be repaid in 31 days or less. Section 487.2121 et seq. of the Michigan Compiled Laws, referred to as the Deferred Presentment Service Transactions Act (Act 244 of 2005), governs the functioning of payday lenders.
This list simplifies how much you can borrow and what it will cost.
- Maximum loan: $600
- Loan term: 31 days or less
- Financing fee: Varies by loan amount
- APR: A 14-day $100 loan has an APR of 390%
- Collection fees: Lenders are allowed one $25 non-sufficient funds (NSF) fee
You may only have two payday loans at once, but only one with the same lender. Rolling over your loan isn’t permitted unless the lender doesn’t charge a fee.
Consider all your alternatives
A payday loan can be a good option when you’re facing a financial crisis like an unexpected bill or a shortfall in your budget, but they aren’t best for long-term solutions to ongoing financial problems. Be sure to know all your other options before taking out a loan. Some examples are as follows:
- Borrowing from family and friends
- Saving up money in small amounts
- Asking for a pay advance
Applying for a payday loan in Michigan
Most lenders require you to be at least 18 years old, a citizen or permanent resident of the US and that you have a regular source of income. If you’re applying online, you’ll also need to give the lender access to your checking account. This is so your loan can be deposited directly and your payments debited when your loan is due. Be careful, though–ensure you’re in a good position to repay the loan.