Payday Loans in Michigan

Payday Loans
Explore our list of payday loan providers in Michigan. Whether you're looking for $255 payday loans online, same-day options, or no credit check loans in MI, we provide detailed information to assist your decision. Learn about the regulations, limits, and most reliable online payday loans in Michigan.
Offers: 5
Updated:
11.06.2024
15:38
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100.00 – 20000.00 $
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Interest rate

from 0.05 %
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Loan term for the financial product

5 days – 3 months
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3.09
(20 Ratings)
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from 4.00 %
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Loan term for the financial product

to 1 months
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4.06
(20 Ratings)
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50.00 – 1500.00 $
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Interest rate

208.04 – 782.14 %
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Loan term for the financial product

14 days – 31 days
Moneytree
Payday loan
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3.138
(13 Ratings)
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$100-$500
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Interest rate

up to 482.32%
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Loan term for the financial product

up to 14 days
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3.23
(41 Ratings)
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100.00 – 445.00 $
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Interest rate

to 0.92 %
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Loan term for the financial product

to 24 days

A payday loan is a short-term loan, usually taken out by individuals who need quick access to cash before their next payday. In Michigan, payday loans are legal and are governed by the Deferred Presentment Service Transactions Act.

Under Michigan law, payday lenders can lend up to $600 to borrowers, and the loan term can be up to 31 days. Borrowers can only have one outstanding payday loan at a time and cannot take out more than two payday loans within a 90-day period.

The interest and fees a lender can charge on a payday loan in Michigan is also regulated by law. Lenders can charge a fee of up to 15% of the first $100 borrowed, 14% of the second $100 borrowed, 13% of the third $100 borrowed, 12% of the fourth $100 borrowed, and 11% of the fifth and sixth $100 borrowed. In addition, lenders can charge a database verification fee of up to $1.50 per loan.

Payday Loans in Michigan

What is the Payday Loan Limit in Michigan?

The maximum amount in Michigan that can be borrowed through a payday loan is $600. This limit is set by the Deferred Presentment Service Transactions Act, which regulates payday lending in the state.

It's important to note that borrowers should be cautious when considering taking out a payday loan, even if they qualify for the maximum amount. Payday loans often come with high fees and interest rates, which can make them costly and difficult to repay. Borrowers should only take out a payday loan if they can afford to repay it in full by the due date and if they have exhausted all other options for borrowing money, such as credit cards, personal loans, or borrowing from family or friends.

How To Borrow a Payday Loan in Michigan?

Apply for a loan

  1. Find a licensed lender: You can search for licensed payday lenders online or visit a physical location in your area. Make sure to choose a licensed lender to ensure that you are working with a reputable company.
  2. Provide identification and other information: To apply for a payday loan, you will need to provide identification, such as a driver's license or state ID, as well as proof of income, such as a pay stub or bank statement. You may also need to provide your Social Security number, contact information, and other personal information.
  3. Agree to the loan terms: If your loan application is approved, you will need to agree to the terms of the loan, including the loan amount, fees, and repayment date. Be sure to read the loan agreement carefully before signing to understand the terms and conditions.
  4. Receive your funds: Once you have signed the loan agreement, the lender will typically provide you with the loan funds in cash or deposit the funds directly into your bank account. The funds are usually available immediately or within one business day.

Pros and Cons

Pros

Quick access to cash. Payday loans are designed to give borrowers quick access to cash, often on the same day they apply for the loan.

No credit check. Payday lenders typically do not require a credit check, which can make these loans more accessible to borrowers who have poor or no credit.

Easy application process. The application process for payday loans is usually simple and straightforward, and borrowers can often complete the process online or in person within a few minutes.

Cons

High fees and interest rates. Payday loans can be costly, with fees and interest rates that can add up quickly. In Michigan, lenders can charge up to 15% of the first $100 borrowed, 14% of the second $100 borrowed, and so on, plus a verification fee of up to $1.50 per loan.

Short repayment terms. Payday loans typically have very short repayment terms, often just 14 to 31 days. This can make it difficult for borrowers to repay the loan in full and may lead to a cycle of debt where the borrower takes out new loans to pay off old ones.

Limited loan amounts. In Michigan, payday lenders can only lend up to $600, which may not be enough to cover all of a borrower's financial needs.

Risk of fraud and identity theft. Some payday lenders are not reputable and may engage in fraudulent practices or steal a borrower's personal information. Borrowers should be cautious when choosing a payday lender and should only work with licensed and reputable companies.

Requirements

  1. Be at least 18 years old. Borrowers must be at least 18 years old to apply for a payday loan in Michigan.
  2. Have a steady source of income. Borrowers must have a steady source of income, such as a job or regular government benefits, to show that they can repay the loan.
  3. Have a checking account. Borrowers must have an active checking account in their name to receive the loan funds and make repayments.
  4. Be a resident of Michigan. Borrowers must be residents of Michigan to qualify for a payday loan from a licensed lender in the state.
  5. Provide identification and contact information. Borrowers must provide identification, such as a driver's license or state ID, as well as contact information, such as a phone number and email address.
  6. Not have outstanding payday loans. Borrowers can only have one outstanding payday loan at a time in Michigan and cannot take out two payday loans at a time.

Interest Rates

  1. Loan fees. Lenders can charge up to 15% of the first $100 borrowed, 14% of the second $100 borrowed, 13% of the third $100 borrowed, 12% of the fourth $100 borrowed, and 11% of the fifth and sixth $100 borrowed.
  2. Database verification fee. Lenders can charge a database verification fee of up to $1.50 per loan to verify that the borrower does not have any outstanding payday loans.
  3. NSF fee. Lenders can charge a non-sufficient funds (NSF) fee if the borrower's payment is returned due to insufficient funds. The NSF fee cannot exceed $25.

    Online Lenders

    • Tower Loan is an online lender offering personal, installment, and payday loans. They offer an online application process and claim to provide fast funding.
    • MoneyLion is a financial technology company offering various financial products, including personal and payday loans. They offer an online application process and claim to provide quick funding.

    Non-online Lenders

    • Advance America is a payday lender with physical locations throughout Michigan where borrowers can apply for loans in person. They offer payday loans up to $600 and claim to provide fast funding.
    • Rocket Loans is a personal loan lender that offers online and in-person loans to borrowers in Michigan. While they do not offer traditional payday loans, they do offer personal loans with fast funding and flexible repayment terms.
    • OneMain Financial is a personal loan lender that operates physical branches throughout Michigan, where borrowers can apply for loans in person. They offer personal loans up to $20,000 with flexible repayment terms and claim to provide fast funding.

    Alternatives

    1. Personal loans. These are installment loans that can be used for a variety of purposes, including emergency expenses. Unlike payday loans, personal loans typically have longer repayment terms and lower interest rates, which can make them a more affordable option for borrowers.
    2. Credit union loans. Credit unions are not-for-profit financial institutions that offer a variety of loan products to their members, including personal loans, credit builder loans, and emergency loans. Credit union loans typically have lower interest rates and fees than payday loans, making them a more affordable option for borrowers.
    3. Credit counseling services. They can help borrowers manage their debt and improve their credit scores. They can provide advice on budgeting, debt repayment strategies, and credit repair, which can help borrowers avoid the need for payday loans in the future.
    4. Payment plans. Some lenders and service providers, such as utility companies and medical providers, offer payment plans that allow borrowers to pay off their bills over time. These payment plans can help borrowers avoid the need for payday loans by providing a more manageable way to pay off their expenses.
    5. Side hustles and gigs. Borrowers may be able to earn extra money by taking on a side job or gig, such as driving for a ride-sharing service or selling items online. This can help them earn the money they need without having to rely on payday loans.

    Payday loans are legal in Michigan but are subject to regulations under the Deferred Presentment Service Transactions Act (DPSTA). The DPSTA requires payday lenders to obtain a license from the Michigan Department of Insurance and Financial Services and regulates the terms and conditions of payday loans.

    Under the DPSTA, payday lenders in Michigan can lend up to $600 to borrowers, and the loan term can be up to 31 days. Borrowers can only have one outstanding payday loan at a time and cannot take out more than two payday loans within a 90-day period. Lenders are also required to verify a borrower's income and limit the fees they can charge.

    The fees that payday lenders can charge in Michigan are regulated by law. Lenders can charge a fee of up to 15% of the first $100 borrowed, 14% of the second $100 borrowed, 13% of the third $100 borrowed, 12% of the fourth $100 borrowed, and 11% of the fifth and sixth $100 borrowed. In addition, lenders can charge a database verification fee of up to $1.50 per loan.

    Important

    Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

    How to Choose a Lender

    1. Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.

    2. Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.

    3. Carefully review all the terms and conditions of your payday loan contract.

    4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

    5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

    6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

    Other Loans

    FAQ

    Are online payday loans legal in Michigan?

    Yes, online payday loans are legal in Michigan. However, online payday lenders must be licensed by the Michigan Department of Insurance and Financial Services and comply with the Deferred Presentment Service Transactions Act (DPSTA) regulations.

    Under the DPSTA, online payday lenders in Michigan can lend up to $600 to borrowers, and the loan term can be up to 31 days. Borrowers can only have one outstanding payday loan at a time and cannot take out more than two payday loans within a 90-day period.

    Online payday lenders in Michigan are required to comply with the same regulations as brick-and-mortar lenders. They must verify a borrower's income and limit the fees they can charge, including a fee of up to 15% of the first $100 borrowed, 14% of the second $100 borrowed, 13% of the third $100 borrowed, 12% of the fourth $100 borrowed, and 11% of the fifth and sixth $100 borrowed. In addition, they can charge a database verification fee of up to $1.50 per loan.

    Borrowers should be cautious when considering taking out an online payday loan, as they can be costly and lead to a debt cycle if not repaid on time. They should only borrow what they can afford to repay and carefully review the loan terms and conditions before accepting it. They should also ensure that they are working with a licensed and reputable lender.

    How many payday loans can you get in Michigan?

    In Michigan, borrowers can only have one outstanding payday loan at a time and cannot take out more than two payday loans within a 90-day period. This means that a borrower can take out a new payday loan once their current loan is repaid in full, but they cannot have more than one payday loan outstanding at the same time.

    It's important to note that while payday loans can be a source of quick cash, they can be costly and lead to a debt cycle if not repaid on time. Borrowers should carefully consider their options before taking out a payday loan and should only borrow what they can afford to repay. They should also ensure that they are working with a licensed and reputable lender and review the loan terms and conditions carefully before accepting it.

    What do you need for a payday loan in Michigan?

    To apply for a payday loan in Michigan, borrowers typically need to provide the following information:

    1. Identification: Borrowers must provide a valid government-issued ID, such as a driver's license or state ID.
    2. Proof of income: Borrowers must show that they have a steady source of income, such as a job or government benefits. This can be done by providing recent pay stubs, bank statements, or other documentation.
    3. Bank account information: Borrowers must provide their bank account information, including the account number and routing number. This is where the loan funds will be deposited if the borrower is approved.
    4. Contact information: Borrowers must provide their contact information, including their phone number and email address.
    5. Social Security number: Borrowers may be required to provide their Social Security number for verification purposes.
    6. Proof of residency: Borrowers may be required to provide proof of residency in Michigan, such as a utility bill or lease agreement.
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