When you have unplanned expenses and are on a tight budget, a payday loan could be helpful. Payday loans, a type of short-term loan, give you quick access to money when you need it. Read on to find out about the laws in Michigan and everything else you should know about how payday advances work.
Payday loans can be an option if you need cash to pay for an emergency expense, but you’ll want to make sure you’re getting the best deal. Read our guide on payday loans in Michigan before you take one out to save yourself time and money.
Yes, payday loans are allowed in Michigan. You can borrow up to $600 to be repaid in 31 days or less. Section 487.2121 et seq. of the Michigan Compiled Laws, referred to as the Deferred Presentment Service Transactions Act (Act 244 of 2005), governs the functioning of payday lenders.
This list simplifies how much you can borrow and what it will cost.
A breakdown of financing fees:
You may only have two payday loans at once, but they must be from different lenders. Rolling over/refinancing your loan isn’t permitted unless the lender doesn’t charge a fee.
If you find any irregularities in your loan or wish to file a complaint, contact the Department of Insurance and Financial Services.
Be on the lookout for more information regarding the bills SB 430, SB 431 and SB 432. These would increase the amount consumers can borrow, which further increases the high-cost of payday loans. There are many consumer groups and activists against the bills, but even if they pass, remember that you should only borrow as much as you can afford.
Check the websites of any providers you’re interested in to confirm they operate Michigan.
Lenders require you to be at least 18 years old, a citizen or permanent resident of the US and that you have a regular source of income. If you meet these basic requirements, you’ll need to supply your Social Security number, date of birth, information about your employment, contact details and a valid form of ID to fully complete your application.
If you’re applying online, you’ll also need to give the lender access to your checking account. This is so your loan can be deposited directly and your payments debited when your loan is due. Be careful, though–if you don’t have enough to pay back your loan, you can be charged overdraft fees by the bank and a NSF fee by the lender.
A payday loan can be a good option when you’re facing a financial crisis like an unexpected bill or a shortfall in your budget, but they aren’t best for long-term solutions to ongoing financial problems. Consider contacting local programs like Project FRESH or the Michican Medicare/Medicade Assitance Program (MMAP). These can help take care of other bills while you work on paying down your debt.
Check out our payday loan alternatives guide
When you’re looking into paday loans, be sure to consider all the costs, how much interest you’ll be charged and the other options available to you before making a decision. Payday loans can be expensive, but when you’re in a rough patch, they can be used to get by and help pay down other debts.
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I need a loan to move
Hi Tyangel,
Thank you for getting in touch with Finder.
If you’re from Michigan and thinking to apply for a short-term loan, please click the blue Show me my options button to start comparing your options. Once you have decided which to go with please click on the green go to site button to be redirected to the provider’s page where you may learn more about their offered products or even start your online application. Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision and consider whether the product is right for you.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
I do not have a checking account. I have used a rush card debit account for the past 7 years. I started receiving social security in 2012 and my social security check has always been deposited into this account. Are there any lenders that will consider using a debit account for a payday loan?
Hi Diane,
Thank you for your inquiry.
Yes, there are lenders who also consider debit account. Please compare your debit card loan options and see which one would best meet your needs.
I hope this information has helped.
Cheers,
Harold