The law prohibits payday lending, but you may still be able to borrow a small loan.
Massachusetts has placed a strict cap on APR, which means you won’t be able to find a payday lender in the state. But if you’re facing a tough financial situation, there are other short- and long-term options for you to consider.
Our top pick: CashUSA Installment Loans
- Bad credit is OK
- No application fee
- Debt education resources
Our top pick: CashUSA Installment Loans
- Min. Credit Score Required: Bad credit OK
- Min. Loan Amount: $500
- Max. Loan Amount: $10,000
- APR: 5.99% to 35.99%
- Requirements: $1,000+ monthly income after taxes, valid checking account
Are payday loans legal in Massachusetts?
No. While payday lending itself isn’t illegal, the high APR lenders charge is — which means payday lenders don’t operate in the state. This is because of Massachusetts’ Small Loan Act, 209 Mass. Code Regs. 45:14(8). It caps interest at 23% and administrative fees at $20 for loans under $6,000. This applies to out-of-state lenders as well, so online loans are also effectively banned.
Compare installment loan options in Massachusetts
What other options do I have if I need extra money in Massachusetts
If you’re facing long-term financial issues, these public assistance programs may help you while you work to tackle your debt:
- MassHealth
- Prescription Drug Assistance
- Supplemental Nutrition Assistance Program (SNAP)
- Women, Infants, & Children (WIC)
- Economic Assistance
- Employment Services Program (ESP)
- Rental assistance programs
- Fuel Assistance
- Transitional Aid to Families with Dependent Children (TAFDC)
- Emergency Housing Assistance Program
Are there any other short-term options in Massachusetts?
While getting a payday loan in Massachusetts isn’t possible, there are other short-term loan options, including these payday loan alternatives:
- Negotiate with you creditors. If you’re struggling to meet a due date or can’t make a full payment, consider negotiating with your creditor for better terms. This is one of the best ways to pay down your debt.
- Take out a credit card cash advance. If you already have a credit card that hasn’t been maxed, you can borrow an advance on the remaining line of credit. This comes with a high APR, but it’s a longer term than payday loans and can be a quick way to make it through a rough patch.
- Ask for help from friends or family. A friend or family member may be willing to help you pay for an unexpected bill or car repair, usually without charging interest Just be sure to pay back what you owe when you can, or it could strain your relationship.
Bottom line
Payday loans aren’t available in Massachusetts, but there are other short-term options like installment loans that could help when you’re facing a crisis. Just be sure to consider your alternative options and confirm the lender is licensed before you agree to a loan.
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