Learn about the laws that control payday lending in Maryland
If you’re in need of quick cash in Maryland, you may be considering a payday loan, but there are other options available.
This guide will help you determine what type of loan is best for you.
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.
If you choose to apply for another kind of loan or line of credit, it’s very important to read all the paperwork (including all the fine print) before signing. Always have a solid plan to pay back your loan so you don’t find yourself needing to borrow more money to repay debt.
Installment loans you can apply for
Installment loans are legal in Maryland. These are consumer loans you repay over a set schedule, normally in equal installments.
What other options do I have if I need extra money in Maryland?
Maryland has a number of assistance progams you can utilize when you’re struggling with your finances. Temporary Cash Assistance, Emergency Assistance to Families with Children (EAFC) and the Food Supplment Porgram (FSP) are all options for you to look into when you’re stuck in a crisis or facing an emergency bill.
In addition, here are some recommendations for non-payday loan credit sources.
- 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.
What are the typical costs of a Maryland loan?
Several factors impact the interest you have to pay on loans, such as your credit, the amount you borrow, the lender and the loan term.
You may have to pay additional fees in different circumstances. If you don’t make a payment on time you may have to pay a late charge. If a check does not go through because of insufficient funds in your account, your lender may charge a non-sufficient funds (NSF) fee. Some lenders can also charge application fees and loan disbursement fees, and they might even charge you if you choose to repay your loan amount early.
While you may not be able to take out a payday loan in Maryland, there are other options that can get you money when you need it. Whether it’s help with your bills or another type of loan, as long as you pay back what you owe, you should be in a good position.