Learn more about payday loans in Massachusetts
If you’re in need of quick cash in Massachusetts, 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 Massachusetts?
No, payday loans are not legal in Massachusetts. While they are not directly prohibited, the limits on how much a lender can charge in interest means that there are no operating payday loan providers in the state.
General Laws of Massachusetts chapter 140 section 96 et seq. and the 209 Code of Massachusetts Regulations 26.01 and 45:14(8) govern the functioning of all small dollar loan providers in this state.
A rate cap applies on all small loans in Massachusetts, meaning a lender may charge no more than 23% interest plus $20 in administrative fees.
Despite payday loans no longer being legal, there are still ways to get quick cash in Massachusetts should you find yourself in need.
Installment loans you can apply for
Installment loans are legal in Massachusetts. These are consumer loans you repay over a set schedule, normally in equal installments. You might qualify for one even if you have poor credit. Keep in mind that the interest rates will be high so you face similar risks to those of getting a payday loan.
What other options do I have if I need extra cash in Massachusetts?
While getting a payday loan in Massachusetts is not possible, you can think about getting credit or cash in other ways. Some of your options include:
- Tribal loans. You have the option of getting a payday loan if you go through a tribal lender like SWIFT or Blue Trust Loans. Since these lenders are based on tribal land, they are considered a sovereign entity and are able to give loans despite the laws of your state.
- Apply for a credit card. Whether you have good or bad credit, there is a huge selection of credit cards worth considering if you need extra money. Credit cards also have more reasonable payments and lower interest rates.
- Payday loans from other states. If you’re in Massachusetts temporarily but are normally a resident of a state where payday loans are legal, you can apply for an online payday loan. To do this you’ll have to provide documented evidence of your residence in another state. Also make sure the lender is backed by the Online Lenders Alliance or similar.
- Pick up side work. Looking for side jobs, selling things online with a provider like eBay or LetGo, or signing up to drive with a company like Uber are some of the many ways people get extra cash when they’re in a bind. It’s a great alternative to getting a loan or credit card because there is nothing to repay.
What are the typical costs of a Massachusetts 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.
Where else are payday loans available?
Compare payday loans in your state
Have any more questions about Massachusetts payday loans?
Can I get an online payday loan from another state?
No. Payday lenders from other states can’t offer legal online payday loans to residents of Massachusetts.
What details do I have to provide to get a short-term loan in Massachusetts?
You’ll have to provide your name and contact information, a valid form of ID and employment and income information.
I’m in Massachusetts temporarily but a resident of a state where payday loans are legal. Can I still apply?
Yes, but remember that your approval depends on your eligibility.
Why are payday loans illegal in Massachusetts?
The high APR these loans come with and the high fees borrowers have to pay are some of the reasons payday loans are illegal.
I’ve come across an online lender who is willing to give me an payday loan in Massachusetts. Is this legal?
No, it is not. Out-of-state lenders cannot legally provide payday loans to residents of Massachusetts unless they are a tribal lender.
Who can get in touch with to file a complaint about a lender providing payday loans in Massachusetts?
Payday loan companies in Massachusetts cannot operate legally. If you find any such business, report it to the Massachusetts Division of Banks.
Are auto title loans legal in Massachusetts?
No, they are not. Due to the astronomically high interest rates and the frequency of borrowers defaulting on their loans, title loans are illegal in Massachusetts.