Cash Advance and Payday Loans in Baltimore, MD
Getting an installment loan in Baltimore, MD can be a viable way to manage cash shortages and mitigate monthly expenses. Potential borrowers who are eligible and are able to properly manage a short-term loan can apply with an online lender to see if they qualify.
Advantages of Taking Out a Payday Loan in Baltimore
Consumers may choose to take out a personal loan to help with any number of monthly expenses or needs. These include:
- Medical expenses, including insurance co-pays and money for prescription drugs and over-the-counter medications
- Vacation expenses
- Home improvements
- Personal expenses
- Business opportunities
- Child-related expenses
- Educational costs
- Living expenses between paychecks
Further, self-employment is often a barrier to getting a conventional loan from a bank or credit union because traditional lenders require years of banking records, tax returns, business plans, and the like. While installment loan lenders may require similar information, applicants who do not have access to a bank or are self-employed may still be eligible to apply.
How to Get a Cash Advance and Payday Loan in Baltimore
Residents of Baltimore are sometimes able to apply for a cash advance to help manage cash shortages between paydays. While short-term loans have been prohibited in the state of Baltimore since 2002 due to a 33% APR cap on small loans, residents may opt for installment loans instead. Unlike payday loans, installment loans are personal loans that can be paid back in increments over a specified period of time.
Baltimore residents can apply for an installment loan online through a computer or a mobile phone with internet access.
Cash Advance and Payday Loan Requirement
The application process can take as little as 15 minutes. Applicants will often need to provide the following information:
- Proof of identity, age, and current address
- Social Security number
- Bank information or a loadable debit card
- Employer and income information or information about alternative income sources
Online lenders can usually obtain all records and verifications electronically. If applicants are approved, borrowers may receive the funds in as little as one business day.
Lenders may consider an applicant’s credit score, credit history, and debt-to-income ratio when determining a potential borrower’s ability to meet loan terms. However, consumers with poor credit scores and histories are still eligible to apply.
Eligibility requirements may differ for applicants who receive an alternative form of income. Alternative forms of income may include:
- Government benefits, such as Social Security, disability, VA benefits, welfare, and other entitlements
- Royalties from intellectual property, such as trademarks, patents, and copyrights
- Income from investments
- Alimony and/or child support payments
- Structured payments from trust funds
Applicants who fall under any of the above categories may still be required to provide documentation of their income, including payment dates and amounts.
Costs and Regulations of Cash Advances and Payday Loans in Baltimore, MD
Meeting loan terms can prove difficult to consumers with poor personal finance management. Due to the high-interest rates and steep rollover fees that often come with short-term loans, borrowers can be at risk of falling into a debt trap. Annual percentage rates can be as high for such loans, in some cases.
Payday lending is prohibited in the state of Maryland to protect residents from such predatory lending practices. Maryland’s consumer loan act (Md. Code Com. Law § 12-101 et seq.) asserts that any lender practicing in the state that does not abide by the APR cap is in violation of the law and may be subject to criminal penalties. Baltimore residents should remain up to date on their state’s rules and regulations regarding short-term lending.
Under the Federal Truth and Lending Act, lenders must disclose:
- The finance charge in a specified dollar amount
- Cost of the loan
Before you sign a loan agreement, be sure that the lender has provided all of this information in writing.
The maximum legal interest rate for the first $1,000 of a loan that is $2,000 or less is 2.75% per month or 33% annually.
The remaining $1,000 of a loan that is $2,000 or less cannot exceed 2% per month or 24% annually. The maximum legal interest rate for loans greater than $2,000 is 2% per month or 24% annually.
Installment Loans in Baltimore
Getting an installment loan in Baltimore, MD can be a viable way to manage cash shortages and mitigate monthly expenses. Potential borrowers who are eligible and are able to properly manage a short-term loan might be able to apply with an online lender to see if they qualify. These loans are often used by borrowers who need emergency funds.
Unlike payday loans, installment loans are designed to be repaid in fixed monthly amounts. Compared to payday loans, installment loans may have a lower APR but longer repayment periods.
Baltimore residents can apply for loans of $1,000 to $5,000. The loan term can be anywhere from 90 days to 36 months. APR ranges from 5.00% to 35.89%.
Requesting Title Loans in Baltimore
Another form of short-term loan is title loans. Title loans require collateral to secure the loan and are often a good option for those with bad credit. This is because attaching collateral to the loan lowers the risk lenders take by approving a borrower who may default. These types of loans are also called car title loans because borrowers commonly use their vehicles as collateral.
In order to qualify for a title loan, you may need to:
- Own a paid-off or nearly paid-off vehicle and have proof of ownership
- Be employed and/or have a verifiable source of income
- Proof of residency
- Valid government-issued identification
- Provide the hard copy of the vehicle title
Requirements vary by lender. Before offering a loan amount, the lender will appraise the vehicle offered as collateral. The amount offered will depend on the value of the vehicle.
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