Payday Loans in your Area & State Regulations for payday Loans

Getting to know the Payday Loans and lenders in your area is necessary if you need to get some quick money while you are waiting for your payday. It’s typically a short-term, high-cost loan of $500 or less that’s repaid on your next payday. Payday loans may be provided in storefront payday lenders or online, depending on your state’s laws.

How do payday loans work?

A payday lender will confirm your income and checking account information and give cash in as short as 15 minutes in a store or as early as the same day if the transaction is done online. The lender will request a signed check or permission to electronically withdraw funds from your bank account in exchange. The loan is due the day after your next payday, which is usually two weeks but can be up to one month. If you get a loan in a store, the lender will schedule a time for you to return it when it’s due. If you fail to appear, the lender will write a check or make a withdrawal for the amount of the loan plus interest. An electronic withdrawal is used by online lenders.

Features of a payday loan:

  • The loans are for small amounts, and many states set a limit on payday loan size. $500 is a common loan limit although limits range above and below this amount.
  • A payday loan is usually repaid in a single payment on the borrower’s next payday, or when income is received from another source such as a pension or Social Security. The due date is typically two to four weeks from the date the loan was made. The specific due date is set in the payday loan agreement.
  • To repay the loan, you generally write a post-dated check for the full balance, including fees, or you provide the lender with authorization to electronically debit the funds from your bank, credit union, or prepaid card account. If you don’t repay the loan on or before the due date, the lender can cash the check or electronically withdraw money from your account.
  • Your ability to repay the loan while meeting your other financial obligations is generally not considered by a payday lender.
  • The loan proceeds may be provided to you by cash or check, electronically deposited into your account, or loaded on a prepaid debit card.
Other loan features can vary. For example, payday loans are often structured to be paid off in one lump-sum payment. Some state laws permit lenders to “rollover” or “renew” a loan when it becomes due so that the consumer pays only the fees due and the lender extends the due date of the loan. In some cases, payday loans may be structured so that they are repayable in installments over a longer period of time.

What state regulations are in place for payday loans?

The amount you can borrow varies according to your state’s laws and your finances. Most states that allow payday lending cap amounts somewhere from $300 to $1,000. Check your state’s payday lending statutes. If you’re wondering what state laws are in place regulating payday loans where you live, keep in mind that some states prohibit payday loans. Read Also: And since there’s no set definition of what constitutes a payday loan, your state may allow for other types of short-term personal loans. If you’re wondering what restrictions are in place for what’s considered a “payday loan” where you live, take a look at this chart. But keep in mind when reading this chart that the interest charged is not necessarily the same as an APR. For example, a 14-day loan at 10% interest translates to 260.71% APR.
State Finance charges Maximum loan amount Loan term
Alabama No more than 17.5% $500 10 to 31 days
Alaska An origination fee of $5. Finance charge that doesn’t exceed $15 or less for every $100 advanced, or 15% of the total advance, whichever is less. $500 Minimum 14 days
Arizona Payday loans are not legal in this state.
Arkansas Payday loans are not legal in this state.
California 15% of the face value of the check $300 Up to 30 days
Colorado Not to exceed 20% of the first $300 and an additional 7.5% for any amount in excess of that balance. $500 Minimum of 6 months
Connecticut Payday loans are not legal in this state.
Delaware No limit $1,000 Less than 60 days
Florida Fees can’t exceed 10%. $500 for the face value of the check 7 to 31 days
Georgia Payday loans are not legal in this state.
Hawaii Fees can’t exceed 15% of the face value of the check $600 No restrictions
Idaho No restrictions on fees 25% of the borrower’s gross monthly income or $1,000, whichever is less Maximum of 37 months for loans over $300 Maximum of 25 months for loans less than $300
Illinois No more than $15.50 for every $100 borrowed $1,000 or 25% of the borrower’s gross monthly income Minimum of 13 days
Indiana No more than 15% for less than $250; 13% for $250 to $400; 10% for $400 to $605 $605 Minimum of 14 days
Iowa No more than $15 on the first $100 borrowed and $10 for each subsequent $100 borrowed $500 Maximum of 31 days
Kansas No more than 15% $500 7 to 30 days
Kentucky No more than $15 per $100 borrowed $500 Maximum of 60 days
Louisiana No more than 16.75% $350 Maximum of 30 days
Maine $5 for loans less than $75; $15 for loans between $76 and $249; $25 for loans more than $250 or more $4,000 No restrictions
Maryland The state allows small loans subject to interest rate caps, which depend on the amount borrowed.
Massachusetts Small loans aren’t prohibited, but loans referred to as “payday loans” are. Small loans are capped at 23% and $6,000 or less.
Michigan No more than 15% for first $100 borrowed; 14% for second $100 borrowed; 13% for third $100 borrowed; 12% for fourth $100 borrowed; and 11% for fifth $100 borrowed $600 Maximum of 31 days
Minnesota No more than $5.50 for loans less than $50; $5 fee + 10% for loans between $50 and $100; 7% (minimum of $10) plus $5 fee for loans between $101 and $250; 6% (minimum of $17.50) plus $5 fee for loans more than $250 $350 Maximum of 30 days
Mississippi No more than $20 per $100 for loans less than $250; no more than $21.95 for loans between $250 and $500 $500 30 days
Missouri 75% $500 14 to 31 days
Montana No more than 36% $300 Maximum of 31 days
Nebraska Maximum of $15 per $100 borrowed $500 Maximum of 34 days
Nevada No restrictions 25% of expected gross monthly income 35 days
New Hampshire No more than 36% $500 7 to 30 days
New Jersey Payday loans are not legal in this state.
New Mexico While payday loans are not legal in this state, be careful when looking at your small loan options. New Mexico allows lenders to charge interest of up to 175% on small loans.
New York Payday loans are not legal in this state.
North Carolina Payday loans are not legal in this state.
North Dakota No more than 20% $500 Maximum of 60 days (including any renewal)
Ohio Interest is capped at 28%. But for loans less than 90 days, the monthly payment (including fees) can’t exceed 6% of the borrower’s gross monthly income or 7% of net monthly income. For loans greater than 90 days but less than one year, fees and interest can’t exceed 60% of the initial loan amount. $1,000 Up to one year
Oklahoma $15 for loans every $100 up to $300; $10 for every additional $100 $500 12 to 45 days
Oregon 36% (excluding origination fee of $10 per $100 borrowed or $30, whichever is less) $50,000 31 to 60 days
Pennsylvania Payday loans are not legal in this state.
Rhode Island No more than 10% $500 Minimum of 13 days
South Dakota No more than 36% (including all fees) $500 No restrictions
South Carolina No more than 15% of the amount advanced $550 Maximum of 31 days
Tennessee No more than 15% of the amount advanced $500 Maximum of 31 days
Texas No restrictions No restrictions No restrictions
Utah Lenders can’t charge interest for longer than 10 weeks after the initial date of the loan. No restrictions Maximum of 10 weeks
Vermont Payday loans are not legal in this state.
Virginia No more than 36% plus a monthly service fee $2,000 Four to 24 months
Washington 15% for payday loans under $500; 10% for payday loans above $500 up to $700 $700 or 30% of gross monthly income, whichever is less Maximum of 45 days
West Virginia Payday loans are not legal in West Virginia, but small personal loans are. Personal loan lenders offering unsecured loans for $3,500 can’t charge more than 31% interest.
Wisconsin The maximum rate is 2.75% if not paid in full; otherwise there are no restrictions $1,500 (including fees and interest) or 35% of the borrower’s gross monthly income, whichever is less Maximum of 90 days
Wyoming No more than $30 or 20% per month on the principal balance None One calendar month

Best Payday Loans Online

1. CashNetUSA: Best payday loans online overall

If you’re looking for a single installment loan, and are comfortable with relatively short terms, CashNetUSA is an excellent choice. The company has been in business since 2004 and is one of the more reputable payday loan lenders, operating in 30 states, and offering loans to customers with low credit scores. CashNetUSA is good for anyone looking to borrow a little more, with amounts ranging from $100-$3,000 in single installment amounts. It’s worth noting that some states impose a cap on how much you can actually borrow, so it won’t quite be $3,000 for some people – however, borrowing this much at high rates isn’t advised anyway. CashNetUSA’s rates fall into line with industry averages, and it has a very quick process for approvals and delivery of funds to customer accounts, sometimes within the same business day. It also has resources to help borrowers that find themselves trapped in a cycle of debt, with access to online savings programs via its commercial partners, and a wealth of financial education modules that aim to help all of its customers.

2. LendUp: Best payday loans online for small loans

If you’re looking for a smaller loan, either for a single payment or with installments, then LendUp is the best option here. It specializes in these smaller loans to cover things like household bills, food, or other everyday expenses the average American will come up against. Founded in 2011, it’s a modern company with some attractive rates and excellent additional benefits, and it will help you improve your credit rating and manage any debt you have, which is a neat little extra. If you borrow payday loans regularly, LendUp does incentivize repeat business by offering regular customers lower rates. Not only does this bring in repeat business, but it also helps out those who need to borrow the most and are struggling to make ends meet on a regular basis. If you are a regular customer and make repayments on time, you’ll be rewarded by free admission to LendUp’s financial management and education courses, that will help you get better with money. What’s more, LendUp will not trap customers with ‘rollover loans’, meaning that you’re less likely to get into the debt cycle that less ethical lenders may encourage. Customer services are good here too, and you should be able to have all questions about your loan answered promptly.

3. Rise Credit: Best payday loans online for building credit scores

Rise Credit states that it looks to work with customers to make repayments affordable and avoid some of the more predatory and exploitative practices of the payday loans industry in general. Having been in business since 2014, Rise Credit provides loans ranging in size from $500 to $5,000, and operates in 28 states across the U.S. Rise Credit is a relatively ethical loan company that backs up its products with plenty of resources to help customers manage their finances. Its rates, while still more expensive than other options outside of payday loans, are competitive and its lack of prepayment penalties and pathways to better credit scores are definitely a plus. Key to getting the most from Rise Credit is to follow its rate reduction program and using the educational resources on offer.

4. Check into Cash: Best payday loans application process

One of the more established payday loan lenders, Check Into Cash operates smaller loan amounts and deals directly with customers for their cash needs. You’ll probably also know that in addition to its online business, Check Into Cash has more than 650 physical stores across the U.S., so you can visit them personally if you prefer to do that. The stores also offer check cashing too, which is a neat bonus. Typically, you’ll borrow from Check Into Cash for smaller loan amounts that cover unexpected expenses – larger than normal bills, extra food shopping, and any seasonal costs (maybe you underestimated your taxes this year?). Typically, you can borrow up to $1,000, although new customers are capped at a $750 limit until they’ve proven their ability to make repayments on time. Check Into Cash is a relatively well-known brand and the large number of physical storefronts is reassuring to many customers. Its rates fall well in line with industry averages, and funds can be made available immediately for customers applying for payday loans in person. It is as reputable as any of the major names in the industry, backed up with a clear commitment to best practices and ethical behavior.

5. Oportun: Best payday loans online for resources

Oportun has issued over 3.8 million loans since it began trading in 2005. The company states that it only lends responsibly, meaning that the customers’ ability to make repayments is strongly considered before a loan is made. It claims to offer affordable repayment plans and accept payments in multiple forms, as well as promoting civilized customer service and not hiding any fees. It also offers pathways to improved credit scores via on-time payments and the like. In terms of interest rates and customer service, Oportun is relatively straightforward and easy to deal with. As a company it espouses only giving loans to those that can afford the repayments and it looks to have policies in place (such as proof of income) to help make this a reality. Its financial education and management resources are free and available to all potential customers and it works with nationwide credit bureaus to help customers with no or very low credit ratings to establish a more advantageous position for the future.

6. Check ’n Go: Best payday loans online for competitive rates

Check ’n Go began as physical stores before branching out into online loans as the internet became more widespread. Check ’n Go is operational in 27 states across the US, with well over 1,000 physical storefronts, making it a good option for people who want to deal with the lenders in person. Online applications are available in 16 states. First-time customers at Check ’n Go can apply to borrow from between $300 to $3,000 for one month, though some states have a lower maximum loan amount and customers should check this information before they apply. On the face of things, Check ’n Go is a fairly average loan company with industry average rates and practices. It is represented in a good number of states, but by far their biggest advantage is its sheer number of physical storefronts. Many customers with low credit prefer to deal with their loan managers in person, and this also means that funds can be delivered into a potential customer’s checking account faster than over the phone or via an online application. Check ’n Go has a good rating with the BBB and Trustpilot, and its membership of the CFSA is a positive sign.

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