Payday Loans in Michigan

Payday Loans in Michigan

Payday loans are designed for life’s unforeseen inconveniences, sky-high medical bills or even just unknown fees. Take financial freedom back with payday loans, loans giving any borrower the freedom to pay their bills on their own time! Payday loans in Michigan make ends meet in between paychecks, allowing borrowers to take their time with bills and pay them at their own leisure.

 

Any hopeful loanee in Michigan can apply for up to $600! With some payday loans like same-day payday loans, requesters may even get funded the same day as they apply. With a maximum loan term of 31 days, borrowers have plenty of time between pay periods. Stop unexpected expenses in their tracks and apply for a Michigan payday loan today!

Most Common Loans Available in Michigan

Payday Loans

Payday loans are the quickest and smallest of the three loans here. They are designed for lower dollar amounts and repayment periods of a month or less, allowing borrowers to request these loans when they need them. Payday loans do not affect credit either and they don’t require collateral or a guarantor. With same day payday loans, lenders in Michigan can both receive and approve a loan on the same day. This freedom and flexibility is not seen with many other loans, lenders can take days or sometimes weeks to push a loan through the approval queue. That’s why payday loans are unique, they are both safe and secure!

 

Law status Legal
MIN Loan Amount N/A
MAX Loan Amount $600
MIN Loan Term 14 Days
MAX Loan Term 31 Days
MAX APR 369%
Additional fees 15%-11% depending on the amount borrowed
NSF fee One $25 fee
Collateral or guarantor Not Required
Number of simultaneous loans 2 Loans allowed at once if they are from different lenders
Cooling off period N/A
Rollover Not Allowed
Extension, repayment plan Not Allowed
Default penalties N/A
Credit score requirements  Not Required

 

Installment loans

These work differently than payday loans in that they are not intended to be repaid in one lump sum but over several different installment periods. Installment loans also give out much larger dollar amounts and are able to be repaid over a longer period of time. Because of these larger capabilities, installment loan vendors sometimes ask for a credit check or a guarantor during the application process. If a borrower wanted to work on a larger project, something over a longer period of time like a couple of months, installment loans are a great place to look for funding.

 

Law status Legal
MIN Loan Amount $1,000
MAX Loan Amount $5,000
MIN Loan Term 2 Months
MAX Loan Term 24 Months
MIN APR 36%
Collateral or guarantor Recommended, not always required
Credit score requirements 580 Minimum recommended

 

Personal Loans

Personal loans are more similar to installment loans than payday loans. They give the largest dollar amounts of the three loans being covered here and give loanees the longest periods of time to repay the loans. Decent to good credit is almost always required for personal loans, banks are giving out a decent sum of money and want to have faith they’ll see it repaid. Some bankers do give out better rates to borrowers with collateral or a guarantor as well. Michigan caps their small loan interest rate at 36%.

 

Law status Legal
MIN Loan Amount $1,000
MAX Loan Amount $50,000
MIN Loan Term 6 Months
MAX Loan Term 72 Months
MIN APR 36%
Collateral or guarantor Recommended, often times required
Credit score requirements 580 minimum recommended, higher often times required

5 Things Every Borrower Needs to Know Before Their Payday Loans in MI

  1. Legality

Payday loans in Michigan are considered to be legal. There is a limit of $600 in payday loans and borrowers are not allowed to have more than 2 outstanding loans at one time. These loans must also be from different lenders. Payday loans in Michigan also have terms of 14-31 days, common loan terms for most states.

  1. Alternatives

While payday loans are a great tool to dig anyone out of an unforeseen financial hole, there are other options. First, if an individual is behind on some of their more essential bills, some charities or nonprofit organizations will help pay for some or even all of the bills. If a medical debt is the issue, hospitals and clinics work with their patients to reconsolidate the debt and turn it into more tolerable monthly payments. This is a very specific type of alternative, however. Some people may be fortunate enough to have wealthy friends or family, those they can turn to in tough times. Not everyone is in this situation and most people don’t like asking for handouts, so this isn’t an option for everyone. Several credit unions have been known to give low-interest rate loans quickly, something comparable to a payday loan. While this may appear to be a desirable option these same credit unions may require a membership to consider an application. When it comes to a quick cash injection, a rapid influx of money that allows you to maintain your independence, payday loans are the answer.

  1. How it works

Getting a payday loan is simple. First, any prospective borrower must gather all of the required documents and information. Once their paperwork is collected, they are free to look for a lender. While there are still storefronts that sell payday loans, most lenders are online! The internet gives borrowers the ability to compare loans from the comfort of their homes. In Michigan, rates and fees are public information so anyone applying for a loan can see exactly what their repayment options will look like, how much they may owe and when they are expected to pay it back. After finding a payday lender to do business with, it is time to apply. Applications usually only take a few minutes to fill out and lenders work hard to process them swiftly! If the application is approved you’re all set! With the correct banking information, the funds can even be deposited directly into an active checking account, giving anyone the means of paying their debts at their luxury!

  1. Requirements

As stated above, while almost anyone can apply for a payday loan in Michigan there are some requirements. First, every applicant must be a resident of Michigan and at least 18 years of age with a social security number. Second, they must have an active checking account, a valid identification and a physical address. Finally, lenders will ask every potential borrower for proof of income. This is the most important piece of information in the application process as it tells lenders if and how a loanee will be able to repay them. The proof of income is also how banks decide how much they are willing to loan to an applicant. Some bankers also ask for contact information such as an email address or a phone number.

  1. An example of a loan fee

Loan fees in Michigan are somehow both straightforward and complicated. There is an almost descending ladder of fees, starting with 15% for the first $100 and ending with 11% for the last. There is also a 14% fee for the second $100, a 13% fee for the third $100, a 12% fee for the fourth $100 and an 11% fee for the fifth $100. To put it simply, if a borrower were to request a loan of $300 in Michigan they could be charged no more than $342 in loan fees.

 

FAQ

Does Michigan allow payday loans?

Yes, Michigan does allow payday loans, they are regulated under Mich. Comp. Laws 487.2121 et seq. Under these statutes, Michigan regulates that lenders may sell loans up to $600 and lenders may have no more than two loans at any given time, from separate lenders. Fees are held to a descending maximum of 15%-11% depending on the total amount of the loan. Michigan law also states that bankers must give all required information up front, paperwork concerning rates and fee schedule included. 

How many payday loans can you have in Michigan?

In Michigan, any prospective loanee can have up to two separate loans at any one time. Laws stipulate that these loans must be from different sellers as well. Each loan is limited to $600, allowing borrowers to have up to $1,200 in payday loans in Michigan at any given time. This is more than most states allow. Most other states don’t allow their borrowers to have multiple loans at once and if they do they are capped at the max for a single loan anyways, usually making having multiple loans pointless.

How many cash advances can you get in Michigan?

If you are referring to cash advances as in payday loans, borrowers can have up to two $600 payday loans in Michigan at one time, totalling $1,200. There are also credit card cash advances, cash advances that take cash against a credit card usually at a higher interest. Each credit card has its own interest rates and fee schedules as well, sometimes having some of the more aggressive rates in Michigan. When it comes to credit card cash advances, the dollar amount or number of loans is usually decided by the actual limit of the credit card.

 

Menu