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Payday Loans in Somerville, Massachusetts
Payday loans are prohibited in Massachusetts, which means that Somerville, MA residents are not able to obtain a payday loan in the city or anywhere in Massachusetts. However, payday-like loans, or cash advances, are available through some online lenders. Before applying for a loan, Somerville residents should understand the restrictions and regulations around payday loans in Massachusetts.
Payday Loans Prohibition in Massachusetts
Massachusetts has outlawed payday loans, as defined by the state’s General Laws. Chapter 140, Section 96, defines payday loan as a loan that provides a customer with a sum of money in exchange for a postdated check or electronic transfer of funds from the customer’s bank account. Loans of this type are prohibited because they are designed to help customers get short-term funding at high interest rates and fees, creating a debt cycle.
The lack of payday loans in Somerville, MA does not mean that residents lack access to other loan types. Many banks and credit unions offer personal loans to Somerville customers, and some online lenders provide cash advances. Bank loans are based on the borrower’s credit score or other metrics, and can be obtained from most banks if customers have the funds and credit history to secure the loan. Cash advances come with a fee and a certain rate, and should be used for temporary financial needs only.
Online Cash Advance Lenders
The most common alternative to payday loans in Somerville is an online cash advance. Online cash advances usually work in a similar manner to payday loans, but they may have better fees and rates. Customers do not need to worry about repercussions from the state of Massachusetts when they take out a cash advance, as Massachusetts law only applies to payday lenders, not online cash advance lenders. Before taking out a cash advance, however, customers should understand the repayment terms and fees, and make sure they are comfortable with the terms before taking out the loan.
Alternatives to Online Cash Advance Lenders
Somerville residents should exhaust all of their other options before taking out a cash advance. If a customer finds that they need cash quickly, they can consider asking a friend or family member if they can lend them money. They can also consider selling items on Craigslist or eBay, or taking out a pawn loan. Customers can also look into emergency assistance programs, as well as credit counseling, to help them manage their finances.
Tips to Consider Before Taking Out an Online Cash Advance in Somerville
When considering an online cash advance in Somerville, residents should carefully research the lender and make sure the lender is reputable and has a good track record of customer service. Customers should also compare the various lenders and their terms, so they can find the best loan for their needs. Customers should also make sure that they can afford to pay off the loan on time and in full, to avoid any penalties or fees.
Frequently Asked Questions
Are payday loans legal in Massachusetts?
No, payday loans are not legal in Massachusetts. The state has outlawed payday loans, which are defined by the state’s General Laws. Chapter 140, Section 96, defines payday loan as a loan that provides a customer with a sum of money in exchange for a postdated check or electronic transfer of funds from the customer’s bank account.
What are the alternatives to payday loans in Somerville, MA?
The most common alternatives to payday loans in Somerville, MA are personal loans from banks and credit unions, and online cash advances. Bank loans are based on the borrower’s credit score or other metrics, and can be obtained from most banks if customers have the funds and credit history to secure the loan. Cash advances come with a fee and a certain rate, and should be used for temporary financial needs only. Consumers should also consider asking a friend or family member for a loan, pawn loans, selling items on Craigslist or eBay, or looking into emergency assistance programs or credit counseling.
What should I consider before taking out an online cash advance in Somerville, MA?
Before taking out an online cash advance in Somerville, MA, customers should research the lender and make sure the lender is reputable and has a good track record of customer service. Customers should also compare the various lenders and their terms, so they can find the best loan for their needs. Customers should also make sure that they can afford to pay off the loan on time and in full, to avoid any penalties or fees.
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