Payday loans may be prohibited, but don’t let that limit you.
Maryland has capped interest rates on small loans to keep payday loan providers out of the state. But when you need a loan, there are still multiple ways to borrow — even if you don’t have great credit.
Our top pick: CashUSA
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- Min. Loan Amount: $500
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- Requirements: Must have a monthly income of $1,000+ after taxes and valid checking account.
What are some alternatives to payday loans?
Although payday loans may not be available in Annapolis, you may still be able to find another option that works for your budget.
- Installment loans. Installment loans are paid back over a period of months, not weeks, which makes payments much easier to handle. Just be sure your lender abides by Maryland’s cap on interest when you borrow.
- Personal loans. Although they usually require fair credit at a minimum, there are some personal loans that accept borrowers with bad credit. Interest rates tend to be lower, and you may have multiple years to pay off what you borrow.
- Apply at a local bank or credit union. Many small banks and credit unions accept borrowers of all credit backgrounds. In fact, some federal credit unions even offer payday alternative loans.
- Find an assistance program. One way to conquer a constant fight with your finances is to seek help from state services. Maryland has a number of programs that can help you, including the Temporary Cash Assistance program, the Food Supplement Program (FSP) and Emergency Assistance to Families with Children (EAFC).
- Pay advance apps. If you’re just a little short on cash, a pay advance app can lend you the money you need — without the high fees. Just check to make sure Maryland is on the provider’s list of serviced states.
Compare installment loans available in Annapolis
So I can’t get a payday loan in Annapolis?
No. Under Maryland Commercial Law 12-101 et. seq., payday loans are prohibited in all forms, including in-store and online.
If you’re looking for a short-term loan in Annapolis, Maryland’s current laws limit the maximum interest lenders are permitted to charge. You won’t have to pay a rate higher than 2.75% per month or an APR of more than 33%.
Why has Maryland banned payday loans?
Payday loans are prohibited because of their high cost to borrowers, with interest rates often reaching 300% or more. In order to combat what many feel is a predatory system, Maryland keeps payday lenders out by capping the interest rate lenders can charge.Cash advance locations in Annapolis, Maryland
Cash advance store locations in Annapolis
- Chextop. 2324 Davidsonville Rd, Gambrills, MD 21054
- ACE Cash Express. 2012 West St Unit C, Annapolis, MD 21401, USA
Bottom line
If you’re a resident of Annapolis, take the time to compare other options available to you. Maryland law is there to protect you from high interest rates, so carefully consider the ways you can borrow without being overcharged.
