The state of Michigan is divided into Upper and Lower peninsulas by the Straits of Mackinac, a narrow waterway which links lakes Michigan and Huron. It borders on four of the five Great Lakes. The state of Michigan has a population of around 9,922,576 which makes it the 10th most populous state in the US. Its economy is pretty diverse and includes production of military and aerospace equipment, automobiles and many other things. Lately, Michigan payday loans are gaining more popularity and becoming a first choice for borrowers in the state.
Michigan payday loans laws regulations
Payday loan lending in the state of Michigan is completely legal according to Mich. Comp. Laws 487.2121 et seq and so the lending companies can run their businesses freely. We can say that Michigan payday loan laws are a little more complicated compared to other states in the United States. Payday loan lenders in Michigan must operate within certain limitations. The maximum payday loan amount a borrower can take is $600. However, in Michigan, people taking out payday loans are able to take out more than two outstanding loans from different lending companies. In Michigan, the length of any given payday loan cannot be longer than 31 days with no extensions allowed. It is also legal for lending companies to charge a $25 insufficient funds fee in case a payment has defaulted.
Payday loan lenders in Michigan
Payday loan lending industry is growing fast in the last 10 years and one of the main reasons for that is the availability of online lending. In Michigan, it is likely to find a payday loan lender’s store near your home or your workplace. The fact that you can apply for a loan from your home is something that makes the service more attractive to customers. Therefore, more and more businesses open doors in Michigan.
Why taking out a payday loan in Michigan can be a good borrowing option?
Taking out a payday loan, like with any other type of loans has its advantages and disadvantages. Let’s have a look at some of the benefits you get with payday loans:
You get options
You live in the city with payday loan offices all around you – great. You live outside the city and want to apply for a payday loan with no offices near your home – still great. This is because payday loans give you the opportunity to apply by going to a physical store or by going online to a lender’s website.
You need it fast, you get it fast
We all know that when people go through financial difficulties, every hour seems like a drag. Michigan payday loan lending companies make sure that you get your money as quickly as possible. You usually get your cash within few hours or by the next business day if you apply for your loan online.
You may still apply with bad credit
Yes, that’s correct. With payday loans, having a bad credit is not an issue and you can apply for your loan just as easily as you would if your credit score was good. This fact alone is enough to convince most borrower to choose payday loans as their first choice when it comes to borrowing.
No spending limitations
That’s right, unlike with traditional lending institutions where you have to follow certain limitations when spending the loan you’ve taken out, with payday loans you are free to do whatever you want with your money. It just has to be legal spending, that’s all.
Michigan payday loans fees and charges
There are some important things you should know if you are considering a payday loan:
The annual percentage rate for a payday loan in Michigan can’t be more than 390%.
Interest charges for payday loans in the state of Michigan go like this:
- 15% charge is for the first $100,
- Second $100 loan is granted at 14%
- You can get the third $100 loan at 13%
- The fourth $100 loan is granted at 12%
All loans exceeding $400 are granted at 11%. The stated annual percentage rate for a $100 14-days loan cannot be more than 390%.
Charges and fees
The charges and fees vary depending on the amount you are borrowing:
- The fee for a $100 loan is $15
- The fee for a $250 loan is $35.50
- The fee for a $600 loan is $76
In case of a declined payment, it is most likely you’ll be charged with a maximum of $25 NSF fees.
According to Michigan payday loans laws, payday loan lending companies are are in no way allowed to rollover or renew a loan in case of failed payment.
Michigan payday loans eligibility and application process
You need to satisfy some requirements if you want to take out a payday loan in Michigan:
- You have to be 18 years old or older
- You have to be a permanent resident of the US or an American citizen
- You must have a steady source of income
Have the following information to successfully complete your payday loan application:
- Social security number, name and date of birth
- Phone number, home and email address
- Details regarding your employment and income
Cities in Michigan where you can find payday loan lenders:
- Ann Arbor
- Battle Creek
- Bay City
- Dearborn Heights
- Garden City
- Grand Rapids
- Lincoln Park
- Madison Heights
- Oak Park
- Port Huron
- Royal Oak
- Sterling Heights
- West Bloomfield