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Here’s what you need to know before applying for a payday loan in Montana
If you find yourself low on cash and are looking to borrow a small amount of money, you may be considering a payday loan. This guide explains how payday loans work in Montana and what you’ll need to know when applying for one.
Check into Cash Loans
Check into Cash allows you to directly apply for a payday loan and have your cash when you need it.
- Min. Loan Amount: $50
- Loan Term: Varies by state
- Turnaround Time: 1–2 business days
- Total Costs: Varies depending on the amount and your state of residency.
- Must be 18+
- No security needed
- Confidential and secure!
What does a payday loan in Montana cost?
Payday lending is legal in Montana. They are governed by Montana Code Annotated 31-1-701 et seq., which is the Montana Deferred Deposit Loan Act. Lenders must be licensed by the state before they can offer loans, and Montana law highly regulates lenders to help protect consumers.
- Minimum loan amount: $50
- Maximum loan amount: $300 or 25% of your gross monthly income
- Loan Term: 31 days or less
- APR: Montana law caps payday loan APR at 36%
- Finance charge: A 14-day $100 loan costs $1.39
- Collection fees: Lenders may charge one $30 non-sufficient funds (NSF) fee
You are not allowed to roll over or refinance your loan so be sure you’ll be able to repay what you borrow before you agree to a contract. Defaulting on loans is expensive and can lead to a cycle of debt that can be hard to get out of.
Be careful of online lendersMontana has a 36% interest rate cap on payday loans, even for online lenders. If you’re shopping online and comparing offers, be sure to note how much the lender plans on charging you in the form of APR. In the past, some tribal lenders have been charging more than the legal interest to consumers. This can cause major debt, so you’ll want to avoid any loan that doesn’t abide by Montana law.
Consider these lenders for a payday loan
Check the websites of any providers you’re interested in to confirm they operate in Montana.
How can I apply for a payday loan?
All lenders require that you be 18 years old, an American citizen or permanent resident and have a regular source of income.
Whether you apply online or in-store, you’ll have to provide some personal details. This includes your Social Security number, your home address, how much you make and your current employment situation. If you choose to apply online, you’ll also have to supply access to your personal checking account so the lender can deposit your loan amount and debit your payment when it’s due.
Is there anything I should consider before taking out a payday loan?
Because payday loans can be expensive, you’ll want to consider some other options before applying. Montana offers programs to help people with low incomes. If you’re having trouble paying your bills and your debt, you may want to look into Low-Energy Assistance, the Supplemental Nutrition Assistance Program (SNAP) or Temporary Aisstance for Needy Families (TANF).
You may want to consider other types of credit, too. Installment loans and credit card cash advances offer longer repayment periods, though they have high intrest as well.
If you need a payday loan, Montana law has good regulations in place to protect consumers. It’s always a good idea to look at your budget and make sure you can afford to pay back your loan, but if you’re short on cash, a payday loan can be the solution you need.
Have any more questions about Montana payday loans?
Who should I get in touch with to file a complaint about a payday lender?
You should contact the Division of Banking and Financial Institutions.
How many loans can I have out at once?
Montana law doesn’t limit the amount of loans you can take out at once, but you shouldn’t take out more than one loan at once because these are high-cost, short-term solutions. If you’re having trouble with debt, consider credit counseling instead.
Can I refinance my loan?
No. Montana law forbids rolling over or refinancing your loan.
Do I have to wait between loans?
Not legally, but it’s always a good idea to take some time off between loans.