Loan Options in Michigan

You can get both payday loans and installment loans in Michigan. Each type falls under a different set of rules managed by the Department of Insurance and Financial Services (DIFS).

Payday lenders must hold a license under the Deferred Presentment Service Transactions Act. Installment lenders need a separate license under the Consumer Financial Services Act or the Regulatory Loan Act, depending on how the loan is structured. Any lender operating in Michigan-including online companies-needs a DIFS license. If a company tells you it doesn't need one because it's tribally affiliated or chartered out of state, confirm that directly with DIFS before you apply.

For details on how each product works, see the Michigan payday loans and Michigan installment loans pages. To compare what each costs, visit Rates & Fees. If you'd rather avoid high-cost borrowing, start with alternatives available in Michigan.

• Loan amount cap on payday loans. Michigan caps each payday advance at $600, which prevents a single loan from growing into a balance you can't manage.
• One-loan-at-a-time rule. Every payday lender has to check a state database before approving you. That means they'll see if you already have a payday loan open, which limits how many loans you can stack at once.
• Repayment plan option. Can't repay your payday loan on time? The lender must offer you a repayment plan once every twelve months at no extra charge.
• Licensing and complaint process. DIFS licenses every payday and installment lender in Michigan. You can file a complaint with DIFS if a lender breaks the rules or if you suspect fraud. Before you share personal information, verify the lender's license using the DIFS license search tool.

For tips on spotting predatory lenders and protecting your personal data, review the LendUp scams and safety guide.