Alternatives When Payday Loans are Illegal In Maryland

Other Solutions besides Payday Loans In Maryland

Payday lending is prohibited in Maryland in any form including online.  The max interest that a loan provider can attach to a small loan is 2.75% per month or equal to 33% per year.  It’s kind of funny that Maryland bans payday lending in one hand, but they totally allow installment loans which is basically a first cousin to payday loans.  Go figure.  Installment loans are completely legal in Maryland.

An installment loan is meant to cover a one-occurrence-type of expense.  They’re generally needed for a fast fix to a problem because you can typically get the funds quickly online.  The difference with these is you have a longer period of time to pay them back.  They come in a fixed amount that you will be responsible to repay in addition to the interest and the fees that will fall in regular monthly payments. 

The installment loan is generally a smaller loan than a typical personal loan and can have a higher interest rate as well.  Some of them are designed to attract those people who have bad credit which is because they’re not as heavily regulated as a standard payday loan would be.  These may come with less favorable terms, want to watch out for those.

If you borrow an installment loan, you need to be sure it is for a legit purpose.  It’s best to save this kind of borrowing for emergent situations.

Medical expenses

  A lot of medical facilities offer to finance that most people aren’t able to qualify for.  The installment loan offers a way to deal with these bills but it will be more costly than the medical bill in the end.

Home or car

  If something goes down in the house, e.g. furnace, roof, plumbing, it has to be fixed and there’s never enough room in the budget for those expenses.  Too, if your car breaks down and you need to be able to go to work in order to pay your basic bills for the month, you need a resource to help out with that.

Utility bills

If these bills are overdue, you can only get so many extensions and then they start shutting things down.  You can’t survive in conditions like that, and if you have a family, forget about it.  These bills have to be paid.

Credit

If you have to take these installment loans out, this is also a really good way to build up some credit for yourself.  Developing a positive payback routine will improve your credit score and start getting you back on track. 

PLACES TO GO FOR INSTALLMENT LOANS IN MARYLAND

Blue Trust (Tribe)

This installment loan caps at $2500 and can be paid back within a nine-month period.  You have to be eighteen-years-old or over and they base the amount of the loan and the approval on your income.  Once approved, you can have the funds deposited into your account the next business day.  Everything is done online and then via telephone.  Payments are made in regular, fixed, monthly installments.  They do not accept active military, their spouses or dependents.

Honest Loans

They offer a minimum of $400 to a max of $5000 and their payment term varies.  They are accepting applications from people who have gone through a bankruptcy, bounced checks and have otherwise poor credit.  Their site is encrypted so your personal and financial information is safe and secure.  The rates will vary based on your credit.  So, if you have less than perfect credit, you’ll get higher rates.  The better your credit, the lower your rates.  Turnaround time is approximately one business day.  You must be at least eighteen, have a regular income of at least $800 per month, be a US citizen, and have a verifiable checking account to be eligible.

Cash USA

  These folks allow $500 minimum and $10,000 max with their lenders.  All credit types are accepted.  Their terms vary from as little as ninety days to as much as seventy-two months.  APR varies from 5.99% to 35.99 % depending on qualifications.

The borrower will be advised of all terms, conditions and fees prior to borrowing the money.  Turnaround time is as quickly as one business day.  To be eligible must be eighteen, need to be a United States citizen or a permanent resident, proof of income that equals at least $1000 per month after taxes, verifiable checking account that is in your name, need to provide work as well as home phone numbers in addition to a valid email address.

Payday loans are illegal in Maryland…

Installment loans, completely legal.

BENEFITS TO OBTAINING AN INSTALLMENT LOAN

Convenient. 

The application process is very easy and you can do it online or they also have smartphone apps available that you can use to make it even more friendly. 

Turnaround

When you have an emergency, you can’t wait for days for a loan or credit card approval.  You need something quickly.  Generally, with an installment loan, turnaround time is within one business day that you can have the funds deposited into your bank account.  Finding out if you’re actually approved is only a matter of minutes.

Eligibility

These lenders are very flexible as far as credit score.  They accept applications from folks who have been through bankruptcy, any kind of credit situation you can think of.  The difference is, they do want you to show them how you’re going to go about repaying them.

Variable fees.

  The state you live in and the amount you borrow will determine the fees for the loan.  It’s good to shop around and do your research to see who can offer you better rates.  You do have this option.

Terms. 

Installment loans are more manageable with the repayment structure that they allow.  Too, you can take out larger amounts rather than have to take out multiple loans in order to take care of one big problem that you have on your hands.  This way you’re dealing with one bill, one set of fees and one monthly payment.

FINDING THE RIGHT INSTALLMENT LOAN

What things should you look for when shopping for the best installment loan?  You should always do research in making sure it is a legitimate company, licensed, regulated, all of the legality side of the loan process.  The rest is a matter of personal preference.

Prefer

  Do you care about speed?  If so, you’ll want to go with an online lender.  If you’re more concerned with the overall cost, you’ll want to go to a local bank or credit union for your installment loan. 

APR 

Pay attention to what the APR is.  The APR is not only about the interest on the loan.  The APR takes into account the interest on the loan as well as the fees.  It gives a better idea of what the loan is truly going to cost.

Personal loans

Search for personal loans as well.  They are sometimes willing to look at folks with varying degrees of credit.  They are legitimate and their rates tend to be on a much lower scale than the installment loans are. 

Compare

 Compare the lenders against each other and look for the one that’s going to give you the best deal.  1) The loan amounts they offer.  Don’t go with one just because they offer the highest loan amounts.  You want to take what you can afford.  2)  Find a lender who is giving you the interest rates upfront.  3) Fees:  To apply? To get the loan? Late charges?  What fees are attached?  4) Loan term, you want as short of a term as you can afford. 5) Speed, you want it available when you need it.

Long terms

Don’t be tricked by really long terms to be able to pay the loan back.  Some offer a higher interest rate alongside the long term.  While the payment may be significantly smaller, you could end up paying double what you borrowed if you use the entire term to pay it off.

Just a quick overview, Maryland made payday lending illegal, but allows it’s first cousin installment loans to thrive. Hmmm.

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