Millions of Americans experience financial troubles. Many have had to turn to alternative forms of income, such as payday loans, to stay afloat.
These are often a go-to method of compensating for sudden losses or unexpected halts in wages and can typically be paid back relatively quickly (albeit at a high interest rate). However, in Montana, this isn’t an option for you, making it much harder to secure financial relief.
The state does enforce regulations on short-term loans, so they’re not entirely prohibited. Montana law states that a deferred deposit loan may not exceed the range of $50-300 (or no more than 25% of the borrower’s income) and caps the APR at 36%. Yet, unfortunately, there are no licensed payday lenders in Montana presently.
So, below you’ll find a list of alternatives in the state that can help get you through those tough financial patches.
Table of Contents
- The 6 Best Online Payday Loan Alternatives in Montana
- Conclusion
The 6 Best Online Payday Loan Alternatives in Montana
Finding a trustworthy alternative to a payday lender is a time-consuming job. So, to make things easier for you, here are some of the most reliable (and fast-acting) financial organizations that serve Montana.
1. MoneyKey
MoneyKey is a widely known company that helps borrowers in tight financial spots. Although they’re most commonly associated with installment loans (payday loans being just one of them), they offer alternatives for people in places like Montana, where such borrowing activities are heavily restricted.
For these demographics, MoneyKey offers CC Flow Line of Credit (run by CC Flow, a division of Utah’s Chartered bank, Capital Community Bank). This program only requires you to pay charges on what you borrow.
Here’s what you’ll be paying when you use MoneyKey‘s CC Flow Line of Credit:
- Mandatory Principal Contribution: For those who earn their income on anything other than a monthly rate, you must pay at least 3% of the outstanding balance or $15 at the end of each billing cycle (whichever is greater). Those with monthly income pay either 6% or $30 per cycle.
- Billing Cycle Charge: This depends on your Average Daily Principal Balance and how often you’re paid (non-monthly vs. monthly). The charge varies quite extremely, as the possible balance can range from a minimum of $0.01-3,500. Those with a non-monthly pay schedule might pay $5-240, where monthly income requires a $10-480 payment.
That’s it! The sum of these two equates to your minimum monthly charge.
Everything about MoneyKey‘s lending process is straightforward and easy to follow, including the qualification process. To qualify, you must meet the following criteria:
- Be of legal age to borrow in the state of Montana (18 years old, according to Mont. Code Ann. 41-1-101, 31-1-115).
- Be a U.S. citizen or a permanent resident.
- Maintain an active bank account.
- Earn a regular, consistent income.
- Have two valid methods of contact: a phone number and an email address.
MoneyKey has proven itself to be a trustworthy online direct lender. The company has earned thousands of positive reviews, earning them an “Excellent” 4.5-star rating on Trustpilot. You can rest assured that this company will support you financially, no matter how uncertain times may be.
Why You Should Borrow:
- Transparent, straightforward fees
- Reasonable billing cycle charges based on borrowed amount and income
- Established, trustworthy reputation among thousands of borrowers
Why You Shouldn’t Borrow:
- Some bills aren’t payable with credit, so this may not work for you
2. RISECredit
Although RISECredit cannot legally offer its Montana customers payday loans, it can offer larger, slightly more long-term private loans. (This is the first type of alternative suggested by the Federal Trade Commission Consumer Information.)
Here are some basics you’ll need to know about RISECredit‘s lending options:
- Available loan amounts range from $500-5,000.
- Repayment terms can be anywhere from 7-26 months.
- Depending on your credit, interest rates may be 99-149%.
There’s no way to precisely predict what loan amount you will be eligible for and the specifics of the other two factors. It’s all based on your unique financial circumstances, which include your credit history, current employment, history of loan repayment, and many more details.
The biggest drawback of this lender is the interest rates, of course. Now, you might get confused here if you’re familiar with Montana’s laws pertaining to interest rates.
Mont. Code Ann. 31-1-106 and 31-1-107 set the state’s legal interest rate at 10% annually if the borrowing contract is not in writing. However, if there is a written contract, the lender can impose a 15% APR or one that is 6% above the current prime rate determined by major New York banks (presently 3.25), whichever is greater.
RISECredit can impose such astronomical interest rates on Montana borrowers because they operate under Utah’s governing law, regardless of the borrower’s location. This state does not impose an interest rate ceiling and allows lenders to choose the amounts based on market dynamics and borrowers’ credit.
Still, even with over 2,700 reviews on Trustpilot, RISECredit maintains a solid 4.5-star rating, illustrating their trustworthiness for financially challenged individuals.
Why You Should Borrow:
- Reasonable flexible lending range for moderate borrowers ($500-5,000)
- Repayment terms vary widely
- Overwhelmingly positive reputation
Why You Shouldn’t Borrow:
- Interest rates are not governed by MT
3. DrCredit
Instead of a payday loan, you could opt for a secured or unsecured personal loan through DrCredit instead. This company provides funds to eligible borrowers for all kinds of reasons, or as they say, “for any purpose.”
“Unsecured” sounds bad; however, it’s often better for people, in many cases. A secured loan means that you must use your property as collateral. So, if you default on the loan, the lender will take that property to retrieve the money they lent.
On the other hand, an unsecured loan protects your possessions, in a sense. The lender doesn’t have the option to take your things if you fail to pay your balance. This is why these often have higher interest rates, as they’re riskier for the lender.
DrCredit approves borrowing based on the Five Cs. These are:
- Character: DrCredit wants to ensure their borrowers are “worthy of credit” by requesting references from applicants. They’ll call the contacts you provide and ask a few questions to gauge the risk level of lending money to you.
- Capacity: This relates to your ability to pay the loan back. DrCredit will review your credit and payment history to verify your current debt and gauge your qualification.
- Capital: This is related to “Capacity,” in that the lender will either view you as more trustworthy or riskier, depending on how much you put down on the loan. (The larger your deposit, the more attractive you appear to lenders.)
- Creditworthiness: Not all loan types will require consideration of this factor, as it mostly concerns collateral. So, if you’re looking for an unsecured loan, you won’t have to worry about this one too much.
- Conditions: This is the clearest factor in the loan approval process. It relates to all the loan’s fundamental details, including the length and interest rate.
Be aware that rates and fees will vary widely, as they are not the direct lender. Instead, they’ll match you to a lender in their online network.
Why You Should Borrow:
- Unsecured loans are more accessible for many borrowers
- Many loans don’t come with a prepayment penalty
- Works with bad credit, too
Why You Shouldn’t Borrow:
- Eligibility criteria are highly subjective
4. ZocaLoans
ZocaLoans is a last resort solution for people who need emergency funds on short notice (the funds can be deposited to you within 15 minutes of approval).
Plus, there’s a quick turnaround for every application. They offer instant decisions with the following information: Whether you’ve been approved to borrow and the specific credit balance available to you.
You can sign your loan documents immediately after the results are provided. Make sure to read through all the paperwork to ensure you understand the terms and conditions as thoroughly as possible. This can’t be emphasized enough, again, as these loans are quite pricey yet worth it for folks in a pinch.
First, ZocaLoans only offers loans between $200-1,500. This is a moderate loan amount that would work for lots of people in financial emergencies; however, you must plan ahead before accepting the funds, as their APR is higher than you’d expect.
The example of a sample interest loan payment provided on their site is calculated according to the following details: 795% is the APR with 12 bi-weekly payments. Understandably, this could be a make-or-break detail for many borrowers, as this is a higher interest rate than most states will allow.
(Of course, your specific interest rate will be determined by your credit, financial capacity, and the amount you’re requesting to borrow. Still, this sample is based on only a $300 loan, so it’s a pretty good representation of how much this could cost you.)
You must be even more careful after you’re approved, as any defaults will result in additional fees. Their insufficient funds fee is $25. Additionally, if you make any payments more than two days after the agreed-upon due date, you will be subject to yet another $25 charge. They don’t sound like much on their own, but these can add up fast.
Why You Should Borrow:
- Speedy approval and deposit
- You don’t need good credit to qualify
- No prepayment penalties
Why You Shouldn’t Borrow:
- They impose one of the highest APRs of the listed payday loan alternatives
5. SoFi
SoFi‘s collection of services is perhaps the most versatile of all the options listed here. They offer a vast array of financial services to get you out of a bind, no matter what the problem might be. The most relevant options they have for borrowers with an urgent need for funds include:
- Credit cards
- Refinancing
- Personal loans
You’ll need to pay special attention to the eligibility criteria when signing up for a SoFi loan. There are numerous borrowing options, so you don’t want to accidentally study the incorrect qualifications and later find that you’re ineligible to borrow based on misinformation.
First, you can qualify for a personal loan if you meet the following criteria:
- You are at least 18 years old or the age of the majority of people in Montana.
- You are a U.S. citizen, a permanent resident, or have a visa.
- Non-permanent residents need a valid J-1, H-1B, E-2, E-3, L-1, or O-1. If you don’t have these, you’ll need a U.S. citizen to co-borrow.
- You must have reliable employment and income, or employment will start within 90 days.
Keep in mind that loan amounts range from $5,000-100,000, so those who need small amounts should look elsewhere. (SoFi is also authorized to refinance loans in Montana, too, in case you prefer that option instead.)
To qualify for a SoFi credit card, the company will evaluate these factors:
- Your annual income (work and otherwise)
- Your current debt
- Credit history
- Other factors that SoFi deems necessary
Their APRs depend on the type of spending you’re doing. For instance, the APR for Cash Advance is 26.99%, whereas that for Balance Transfers are 12.99-24.99%. In all cases, interest charges will never fall below $1.
Although they are the most flexible lender, SoFi does have the lowest rating of all the companies so far on Trustpilot at 3.3 stars. Keep that in mind when you’re shopping around.
Why You Should Borrow:
- They offer numerous options for financial support
- Generous eligibility criteria for personal loans
- You’ll get access to membership benefits with your account
Why You Shouldn’t Borrow:
- Their occasional poor customer service may sour your experience
6. Payday Mark
This is another company that connects you to a network of lenders as opposed to supplying the money itself. They work with people who have all kinds of credit, including those with blemishes in their payment and borrowing history.
Although you can trust that Payday Mark aims to help you out of a tough financial situation, be mindful when you apply for a loan through their network. Depending on the type of loan you’re requesting, you may be subject to staggering interest rates.
Payday Mark‘s associated lenders offer APRs ranging from 5.99-35.99% (again, this is determined by your financial and employment details) for personal loans. Borrowing this loan type requires at least a 90-day repayment period; however, you can extend it to a maximum 72-month term, depending on your eligibility.
However, here’s the tricky part: Payday Mark states that installment loans’ APRs can range from 6.63-225%. (Their cash advance loan rates reach up to 1386%, but this is quite similar to a payday loan and may not be allowed in Montana.)
Like other lenders, the loans secured through this network are governed by the state they originate from. If there are no interest limiting laws in that location, you may be subject to exceptionally high payments. This is why you must practice discretion when shopping through the available lenders.
Luckily, you can do so for free, as Payday Mark‘s services are available at no cost.
Why You Should Borrow:
- Lots of choices in lenders in their network
- There are no fees or obligations with their service
- Funds can be available as soon as the next business day
Why You Shouldn’t Borrow:
- Interest rates can be quite high because lenders are not governed by MT
Conclusion
Montana places some heavy restrictions on borrowing short-term loans within state boundaries. Although payday loans aren’t entirely illegal (just heavily regulated under Mont. Code Ann. 31-1-701), there are not currently any licensed payday lenders operating there.
Fortunately, you’re not out of options. There are many alternatives available to get you out of a financial crisis, such as lines of credit and personal loans. Many of the companies that supply payday loans provide these alternatives as well, so you don’t have to look far for quality providers.
In the list above, you’ll find various lending networks and direct lenders that are ready to offer you the necessary funds to boost your spending power until the next payday. Each is tried and true and has served thousands of borrowers across the nation. So, you can borrow worry-free and work toward financial stability once again.