Companies that make quick loans — for example, payday and car title lenders — sometimes charge extremely high interest rates. They can be very expensive ways to borrow money. But the Military Lending Act says payday and most other types of lenders can only charge up to 36% Military Annual Percentage Rate (MAPR) for servicemembers and their dependents. The MAPR includes interest, finance charges, and add-ons that are sold with the credit.
Look for a lower cost way to borrow money. Consider a loan from your bank or credit union. Even using a credit card may be better than a payday or title loan. Shop around for the best deal you can get on the rate, fees, how soon you have to repay the money, and what happens if you don’t pay on time.
Facing financial trouble? There’s help for you. Talk to your PFM about your choices. Do you need more time to pay your bills or a possible advance on your paycheck? Do you want to talk with a reputable credit counselor about managing your money? Do you want some help from a military relief society? Call DoD’s Military OneSource help line 24/7 at 1-800-342-9647 to discuss alternatives.
Learn More
1-866-878-6378
Navy—Marine Corps Relief Society
1-800-654-8364
Air Force Aid Society
1-703-972-2650
Coast Guard Mutual Assistance
1-800-881-2462
1-800-342-9647
National Foundation for Credit Counseling
1-877-404-6322
