Learn how payday loans work in the windy city.
Chicago has several options when it comes to quick financing for all credit types. But even with state regulations, they can be expensive — even the affordable options.
Can I get a payday loan in Chicago?
Yes, you can get a payday loan in Chicago. However, Illinois has some laws that restrict how much you can borrow, loan terms and more:
- Maximum amount: $1,000 or 25% of your monthly income, whichever is less.
- Maximum finance charge: $15.50 per $100
- Loan term: 2 to 4 weeks
According to Illinois law, you can have two payday loans out at the same time, as long as the total balance doesn’t exceed the maximum amount. You can learn more about Illinois payday loan regulations by visiting our state guide.
Other short-term loans in Chicago
- Installment payday loans. Borrow up to 22.5% of your monthly pre-tax income and pay it back over 112 to 180 days with a maximum finance charge of $15.50 per $100 borrowed.
- Small consumer loans. Illinois law also allows for something called a “small consumer loan.” These have longer terms than installment loans — usually up to a year — and come with APRs capped at 99%. Monthly repayments can’t be more 22.5% of your monthly pre-tax income.
A selection of payday loans you can apply for
What do I need to apply?
Whether you apply online or by visiting a storefront, you typically have to meet the following eligibility criteria:
- You are at least 18 years old
- You have a regular source of income
- You are an American citizen or a permanent resident of the U.S.
- You have documentary evidence to prove you are a resident of Illinois
In order to complete the application successfully, you will need to supply the following information:
- Your name, date of birth and Social Security number
- Details from an acceptable form of ID such as your passport or driver’s license
- Your employment details
- Details about your income and expenses
Be cautious of longer loan terms
Even though small consumer loans might have lower APRs than a payday or installment loan. That’s because these come with interest rather than a fixed fee, which has a chance to add up over time.
Let’s take a look at the difference between the cost of a $400 payday loan with the maximum fee charge of $62 versus a $400 small consumer loan with the maximum term of one year and APR of 99%.
|Payday loan||Small consumer loan|
While your monthly cost might be more affordable, the small consumer loan actually costs nearly $200 more.
What fees can I be charged with a cash advance in Chicago?
Getting a cash advance in Chicago is more expensive than getting a traditional loan. These are the general rates and fees that apply to cash advances:
- Finance rate and fees. Payday lenders can’t charge more than $15.50 per $100 borrowed.
- Nonsufficient funds(NSF) fees. If your payment bounces, your lender can charge up to $25 in NSF. The lender cannot process a check or debit more than twice, and cannot charge this fee more than once.
- Rollover fee. Illinois state laws don’t allow payday loans to be rolled over.