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Payday Loans in Michigan

Perhaps everyone knows what being short on cash looks like. Even those with stable monthly income may come across stress and uncertainty when a financial jam comes your way. Whether your stress stems from unexpected costs, job loss, irregular maintenance, or a combination of all, economic anxiety still remains a usual stressor in modern society. Psychological research found that more than 70 percent of Americans feel anxious about facing financial concerns. 

If you are not sure you can handle your financial stress alone, we are here to lend a helping hand. As soon as you prefer a modern practice over a face-to-face experience, you are welcome to opt for online lending instead of brick-and-mortar banks. Applying for an emergency loan directly from online lenders may give you quick access to extra advances and skip much of a hassle associated with traditional banking. Check out Michigan payday loans with right away approvals to ease financial stress and cope with emergencies between paychecks. 


What is a Payday Loan? How can I Get One in Michigan? 


A payday loan, also known as a cash loan or quick emergency loan, is a small dollar loan targeted at borrowers that need extra money between paychecks. Usually, you have a period until your next payday to settle your loan. Although some lenders offer longer repayment terms that may last up to a month. 

Payday loans are designed to help you cope with small expenses but by no means to feed long-term financial needs. Aside from being a quick fix for unexpected financial troubles, these loans also don't involve mandatory credit checks. This commonly boosts the chances of bad credit holders picking up extra money. Plus, cash loans are considered an unsecured form of credit, which means you no longer need to put up collateral against quick funding. 


The Pitfalls of Payday Loans


A payday loan may seem like a quick way to obtain extra money without facing a credit check hassle. At first glance, these tools look like a perfect option to meet short-term financial goals. However, these loans are usually loaded with high interest rates that raise the true cost of credit. 

Many borrowers claim payday loans as money-draining traps only because they cannot pay off the debt. Falling behind on your payment may have harder consequences than you imagine. First of all, you may be forced to renew your credit to extend payment terms. This by no means lowers the amount you own. It merely prolongs the payment schedule by forcing you to pay more in interest and fees. To escape the debt cycle and ease financial troubles, you need to consider one thing – just make sure you can pay off your credit on its maturity. 


The Takeaway    


Before applying for a payday loan, clearly consider your ability to pay it back. Getting a cheap loan is not a hard deal, but finding a reliable lender and settling your loan in a short period may be quite challenging. As soon as you decide to get an advance loan, check your local regulations to understand whether payday lending is legal in your region or not. 


As a result of changes CFPB has made, from July 2020 the lenders don't have to check if the borrower is able to repay the loan. Thus, we encourage you to be careful and make sure you can afford the loan before applying.

Regulations of Payday Loans in Michigan
Status     Legal
Annual Percentage Rate (APR)     369%
Minimum Loan Amount     N/A
Maximum Loan Amount     600
Minimum Loan Term     N/A
Maximum Loan Term     31 days
Number of Rollovers Allowed     0
Finance Charges     15%-11% (depending on the number of $100 transactions)
Cooling-off Period     N/A

Useful Sources

Real interest rate map /PDF/ of payday loans in the United States calculated on a typical loan.

Payday loans regulation /PDF/ by state 2020.

More information about payday loans in Michigan can be found on the official page of the Michigan Department of Insurance and Financial Services.
The Consumer Financial Protection Bureau (CFPB) makes the financial marketplace work more effectively and educates consumers to help them take more control over their financial lives. Click here to learn more.
Borrowers who happened to have a bad experience with payday lenders or want to report illegal practices can use an Online Complaint Form.

[ Updated on 14-Oct-2021, 23:07 ]

We've been in the industry for more than six years.