Payday Loans in Moorhead, Minnesota
When life throws unexpected surprises your way, you may find yourself in need of a financial solution fast. Payday loans are one option available to help people in Moorhead, Minnesota and surrounding areas with short-term financial issues. Before taking out a payday loan, however, it is important that you understand the laws and regulations in the state, so you know what to expect.
Payday Loans Are Legal in Minnesota
The state of Minnesota allows payday lenders to operate in the state, with certain regulations governing the amount and repayment of these loans. Payday loans must be repaid in a single payment, and the amount cannot exceed $350. The loan cannot extend more than 30 days and the maximum interest rate is 30% per year, or a $5 fee for each $100 borrowed. Payday lenders must be licensed by the Minnesota Department of Commerce, and customers must receive a written contract for the loan.
Requirements for Payday Loans in Moorhead, Minnesota
In order to be eligible for a payday loan in Moorhead, Minnesota, you must meet certain requirements. You must be at least 18 years old and have a valid driver’s license or other form of photo identification. You must also have an open and active checking account with a bank or credit union. Finally, you must have a regular source of income, such as employment, benefits, or disability income.
Risks of Payday Loans
Although payday loans can be a convenient solution to financial problems in the short-term, they can also come with some risks. Because payday loans must be repaid in full in one lump sum payment, there is a risk of not being able to afford the repayment. If this happens, you may incur penalties such as late fees, non-sufficient funds fees, or returned check fees. Additionally, if you take out multiple payday loans, you could end up owing more than you can afford.
It is important to remember that payday loans should only be used for short-term financial issues and not to solve long-term financial problems. If you find yourself needing a payday loan frequently, you should speak with a financial advisor to explore some other options.
Alternatives to Payday Loans
If you find yourself needing a small loan to cover an unexpected expense or bridge a gap between paychecks, there are other options available besides payday loans. You may be able to borrow money from a friend or family member, apply for a loan at your bank or credit union, or explore other options such as a line of credit or credit card.
Apply Now
If you’ve done your research and are ready to apply for a payday loan in Moorhead, Minnesota, TheGuaranteedLoans can help. We are not a lender, but we can match you with lenders in our network who offer payday loans in your area. Fill out an online application and we will connect you with lenders for further action.
FAQ
- Are payday loans legal in Minnesota? – Yes, payday loans are legal in Minnesota.
- What are the requirements to get a payday loan in Moorhead, Minnesota? – To be eligible for a payday loan in Moorhead, Minnesota, you must be at least 18 years old and have a valid driver’s license or other form of photo identification. You must also have an open and active checking account with a bank or credit union and a regular source of income.
- What are the risks of payday loans? – Payday loans must be repaid in full in one lump sum payment, so if you are unable to afford the repayment, you may end up incurring penalties such as late fees, non-sufficient funds fees, or returned check fees. Additionally, if you take out multiple payday loans, you could end up owing more than you can afford.
- Are there alternatives to payday loans? – Yes, you may be able to borrow money from a friend or family member, apply for a loan at your bank or credit union, or explore other options such as a line of credit or credit card.