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Loans in Michigan (MI)

Payday Loans and Installment Loans Michigan (MI): An Overview

When browsing for financing, it’s essential to apply for the type of loan that addresses your specifications. This is the very first consideration, aside from your credit rating, employment situation, and so on. While many people use the terms payday loan and installment loan interchangeably, they have distinct characteristics. Hence, if you want to learn more about payday loans and installment loans in Michigan, read our article!

Payday Loans Michigan

Payday Loans and Installment Loans Michigan: Regulations You Should Know about

To start with, in Michigan, getting an online payday loan is legal. Nevertheless, there are specific limitations you should be mindful of, as follows:

  • The maximum sum of money you can borrow in the form of a payday loan is $600 – from a single lender.
  • As a borrower, you aren’t allowed to have more than two outstanding payday loans from different lenders.
  • The maximum repayment timeframe for a payday loan in MI is of 31 days – no extensions whatsoever.
  • As stated by the law, the APR for a $100 worth loan cannot exceed 390 percent.

In the situation in which you, as the borrower, are unable to repay the loan in time, you have to request an installment payback plan.

What Characterizes Payday Loans?

Evidently, a payday loan extends over a very short timeframe, featuring a small amount of money, of up to $600, according to Michigan Law. In addition, this form of financing is unsecured.

It is relatively easy to obtain, granted that you have a source of income and a bank account. A borrower’s reliability is actually assessed on previous paychecks.

Hence, it comes as no surprise that the application process is completed in no time, giving you access to the money right away. So, a payday loan offers a quick and pain-free solution to money problems. It is a quick way to get cash between paychecks if you find yourself in financial difficulty. Preferably, you should take out such a loan if you have the means to repay it as stated in the loan terms. Otherwise, the additional fees and penalties are likely to add up in time.

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What Characterizes Installment Loans?

Also on the topic of Michigan payday loans and installment loans, you should know thatinstallment loans comprise of much larger sums of money. Depending on the amount of money you plan on borrowing, the direct lender might check your credit rating beforehand or not. Also, usually, an installment loan is secured by personal property – but this isn’t the norm, your individual circumstances matter the most.

As for the interest rate fees, they can go as up as 400 APR percent, depending on the lender and your financial specifications.

Ultimately, the type of loan you should apply for is the one that would work best for you. quick loans and installment loans alike facilitate financial relief, but they are targeted for different purposes. As a golden rule, you should choose financing only when the situation asks for it; otherwise, you might end up in a never-ending debt cycle that will make it difficult for you to minimize your debt. This is why each financial decision requires in-depth thought and analysis.

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Disclaimer

Short-term loans represent a type of emergency borrowing meant to help you with immediate financial issues. They can only become pricey products once you use them for long-term purposes.

 

MicroPaydayLoans.com‘s operator and owner is not a lender, so he isn’t involved in making credit decisions that include lending and making loan offers. This website actually works as a matching service, helping you contact with lenders and third parties. You are not charged any fee for our service. Moreover, you are not forced to initiate contact with any lender or third party or accept any of their offers.

 

The data that is presented on our website regarding short-term loans and the industry is here for information purposes only. We do not uphold a particular lender, and we’re not responsible for a lender’s actions or inactions. Moreover, MicroPaydayLoans.com doesn’t collect or store your data concerning fees and charges associated with the lenders. Basically, we don’t have access to this data in the first place.

 

Not every state approves of short-term loans. Also, not every lender in our network is able to provide loans of up to $1,000. We don’t guarantee that a consumer will get approval for any loan product or lender or will be matched with a lender. If matched, it doesn’t mean he/she will receive the requested short-term loan.

 

In addition, a lender may want to do a credit verification. This takes place to ensure that you have a reliable credit, and to determine the scopes of credit products to offer. Additional verification may be needed, including your driving license number, social security number, national ID or other documents that help with identification. Keep in mind that scopes vary from one lender to another based on various factors. These factors include the terms determined by each lender and credit standing of the applicant.

 

APR Representative

Annual Percentage Rate, or APR, is the loan rate that’s calculated for the annual term. Considering MicroPaydayLoans.com isn’t a lender and doesn’t own information about any detail of short-term loans offered by individual lenders, they can’t estimate the APR. So, the APR provided won’t be the exact one charged by any of the loan products lenders offer.

 

APRs are very different from one lender to another, one state to another and they depend on various factors, including the credit standing of an applicant. There may be additional charges associated with the loan offer. Some of these charges include late payment, late payment reporting, non-payment penalties, and debt collection actions.

 

These actions have nothing to do with our website. Moreover, we do not have any information about actions taken by the lenders. The financial and non-financial charges and actions can be disclosed in a particular agreement in a clean manner.

 

The APR is calculated as the annual charge, and it’s not a financial charge for a short-term loan.

 

Late Payment Implications

If something happens and you won’t be able to repay a loan on time, it is recommended you contact the lender. Once this happens, late payment charges and fees may be applied. Federal and state regulations may vary from one case to another, and they are determined for late payment cases. Information regarding costs and procedures when it comes to late payment should be discussed before signing any related document. So, make sure you review these with your lender, and they will be disclosed in the loan agreement.

 

Non-payment Implications

If you don’t pay a loan or miss the payment, there may be some financial and non-financial penalties. Any financial charges or fees in case of late payments should be disclosed in the loan agreement. Other actions related to non-payment, renewals, for instance, may be implied upon given consent. Renewal terms are going to be disclosed in each loan agreement individually. Keep in mind that renewal may also come with additional fees and charges.

 

Debt collection practices and any similar procedure will possibly be performed. Any action related to these practices is adjusted to the Fair Debt Collection Practices Act regulations. It is also adjusted to other applicable state and federal laws to ensure the consumers’ protection against negative borrowing and unfair lending experiences. Most lenders don’t refer to outside collection agencies. They will rather collect the debt through in-house means.

 

Late payment and non-payment may significantly impact a borrowers’ credit score and decrease it. Lenders may report these bad experiences to credit bureaus, including Transunion, Equifax, and Experian. If this happens, the consequences of late payment or non-payment will stay in a borrower’s credit reports for a certain amount of time.