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 Minnesota and everything else you should know about how payday advances work.
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Payday loans can be a quick way to get cash during a financial setback, but the laws surrounding them can be tricky. Here’swhat you need to know before applying.
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Yes. Minnesota Statutes 47.60 et seq. governs payday loans in Minnesota, which requires all payday lenders to be registered and abide by the maximum fee guideline detailed below.
Here are the quick facts about payday loans:
The amount you’ll be charged in interest varies depending on the amount of your loan.
All payday lenders will require you to be at least 18 years old, be an American citizen or resident and have a regular monthly income of at least $1,000. When you begin your application, be prepared to supply your Social Security number.
No matter if you apply online or in-store, as long as you have the required information, the process shouldn’t be more than 5 to 10 minutes.
There is no limit on the number of payday loans you can have at any given time in Minnesota. But keep in mind that having multiple payday loans at the same time can lead to extra debt and difficult repayment schedules.
Although payday loans can be a great way to get ahead when you’re having financial troubles, there are other ways you can get help with your bills or get financing without taking on this high-cost form of debt.
Minnesota has an Energy Assistance Program, a Food Support Program and a Medical Assistance program that can help with large bills and everyday expenses. In addition, you can consider other forms of non-credit funding, such as requesting a pay advance from your employer or ask a friend or family member for help.
If you have a credit card, you can take out an advance on your remaining line of credit. You may also want to consider another type of short-term loan, like an installment loan, so that you have longer to pay back what you owe.
Even more alternative options to avoid high-cost debt
When you’re in a rough spot financially, you might be considering a payday loan. These can be suitable for making it between paychecks, but they are costly. Be sure to consider how much the total will cost and the other options you have before applying.
Who do I contact if I have a problem with a payday lender?
You should contact the Minnesota Department of Commerce.
Is there a prepayment fee?
No. If you want to repay your loan early, you won’t be charged a fee for prepayment.
Can I roll over or refinance my loan?
No. You can’t use one loan to pay off another by the same lender.
Is there a cooling-off period between loans?
No. Minnesota law doesn’t specify any cooling-off period.
Can I get a repayment plan?
While Minnesota doesn’t require a repayment plan, you may still be able to request one from your lender if you’re having trouble paying back your loan.
Before taking out a payday loan, consider looking into these alternatives first.
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I do not have a bank account, at the moment, and I need a loan of 1500 in order to get a car so I can get to and from work and sort my debts out. This is a new job and haven’t been paid yet. I start next week but need the loan by tomorrow. What do I do?
Hi WomanOfGod,
Thanks for reaching out.
You may need to check on this page which of the lenders are available in your area and see their eligibility requirements to check if you qualify.
Alternatively, you may check the no bank account loans and check which of the lenders would meet your needs.
Cheers,
Joanne