Thinking about getting a payday loan in Maine? Here’s how to make an informed decision.
When you’re facing a financial emergency, like an expensive car repair or an unexpected bill, it can be hard to make ends meet between paychecks. In Maine, plenty of people turn to payday loans. Fortunately, Maine’s laws heavily regulate how much interest a lender can charge to protect consumers from high-cost lending.
Read on to learn about how much a payday loan in Maine will cost.
How do payday loans in Maine work?
Unlike some other states, Maine regulates its lenders and supervises them to make sure they aren’t providing predatory loans. Referred to as small loans in the Maine Revised Statutes Ann. 9-A §1-201 and 9-A §1-301, there is a rate cap of 30% on anything you borrow up to $2,000.
The fees a lender can charge you depends on how much you borrow.
- Loans less than $75: $5 fee
- Loans between $75 and $250: $15 fee
- Loans greater than $250: $25 fee
Lenders you might want to apply with
Check the websites of any providers you’re interested in to confirm they operate in Maine.
What do you need to apply for a payday loan?
Maine doesn’t allow for lenders to cash post-dated checks. However, you can still apply in-store or online easily provided you have your required personal details with you. A lender will likely ask for the following during the application process:
- Your name, date of birth, Social Security number and a valid form of ID
- Your address, email and phone number
- Details about your current employment and monthly income
- Details about your bank checking account
Remember that you will have to be at least 18 years old, a US citizen or permanent resident and have a regular source of income in order to apply.
Before taking out a loan, consider alternatives
Payday loans are still high-cost forms of credit, even with Maine’s strict lending laws. If you need assistance with expensive bills, you can look into the Low Income Home Energy Assitance Program (LIHEAP), Alternative Aid Assistance or Parents as Scholars. These will help you take control of your budget.
Other options include asking friends and family for help or requesting a payday advance from your employer.
While a payday loan can be helpful when you’re facing a big expense, it’s best to exhaust all your other options before taking on more debt.