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Are payday loans permitted in your state?

Learn what regulations apply to payday loans in your state and what your alternatives are.

Regulations for payday loans vary greatly from state to state. Some states, like Oregon, place practically no restrictions on payday loans, while other states ban them entirely. The regulations of your state have a huge effect on what lenders can charge. As a borrower, it’s important for you to be aware of these regulations and to make sure your loan has the right terms and fees dictated by law.

Are payday loans available in your state?

Payday lending regulations by state

StateLegalAPR RegulationsMax Loan AmtLoan TermsCost per $100Small Loan Rate Cap
AlabamaYes456.25%$50010 – 31 days$17.50N/A
AlaskaYes520%$500Min: 14 days$20N/A
ArizonaNoN/AN/AN/AN/A36% per year plus 5% fee
ArkansasNoN/AN/AN/AN/A17% per year
CaliforniaHeavily Regulated459%$300Max: 31 days$17.65N/A
ColoradoHeavily RegulatedN/A$500Min: 6 months$7.50N/A
ConnecticutNoN/AN/AN/AN/A30.03% APR or $17 per $100 up to $600; $11 per $100 up to $1,800; add-on interest
DelawareYesNo Limit$500 per loan, $1,000 max per borrower at a one timeMax: 60 daysNo LimitN/A
FloridaYes419%$5007 – 31 days$16.11N/A
GeorgiaNoN/AN/AN/AN/A10% interest on loans of $3,000 or less with terms of 36 months and 15 days or less
HawaiiHeavily Regulated459%$600Max: 32 days$17.65N/A
IdahoYesNo Limit$1,000Not SpecifiedN/AN/A
IllinoisHeavily Regulated403%lesser of $1000 or 25% gross monthly income13 – 45 days$15.50N/A
IndianaHeavily Regulated390%$550 or 20% of gross monthly incomeMin: 14 days$15N/A
IowaHeavily Regulated433%$500Max: 31 days$16.67N/A
KansasHeavily Regulated390%$5007 – 30 days$15N/A
KentuckyHeavily Regulated459%$50014 – 60 days$17.65N/A
LouisianaHeavily Regulated780%$35060 days or less$30N/A
MaineHeavily RegulatedN/AN/AN/AN/A30% per year on amounts up to $2,000 or a fee of $5 for amounts financed up to $75; $15 for amounts financed $75.01-$249.99; or $25 for amounts financed of $250 or more.
MarylandNoN/AN/AN/AN/A2.75% per month; 33% per year.
MassachusettsNoN/AN/AN/AN/A23% plus $20 administrative fee upon the granting of a loan
MichiganHeavily Regulated390%$600Max: 31 days$15N/A
MinnesotaHeavily Regulated390%$350Max: 30 days$15N/A
MississippiHeavily Regulated520%$500Under $250: maximum of 30 days; $250 – $500: 28 – 30 days$20N/A
MissouriYes1950%$50014 – 31 days$75N/A
MontanaHeavily Regulated36%$300Max: 31 days$1.39N/A
NebraskaHeavily Regulated459%$500Max: 34 days$17.65N/A
NevadaYesNo Limit25% of expected gross monthly incomeMax: 35 days; up to 90 days allowed if the initial agreement provides for installment payments and is not subject to extensionNo LimitN/A
New HampshireHeavily Regulated36%$5007 – 30 days$1.38N/A
New JerseyNoN/AN/AN/AN/A30% per year
New MexicoNo175%N/AMinimum maturity period of 120 daysN/AN/A
New YorkNoN/AN/AN/AN/A25% per year
North CarolinaNoN/AN/AN/AN/A36% per year
North DakotaYes520%$500Max: 60 days$20N/A
OhioHeavily Regulated28%$500Min: 31 days$1.08N/A
OklahomaHeavily Regulated390%$50012 – 45 days$15N/A
OregonYes156%Not specifiedMin: 31 days$13 for a 31-day loanN/A
PennsylvaniaNoN/AN/AN/AN/A$9.50 per $100 per year for interest, plus a service charge of $1.50 per $100 per year.
Rhode IslandYes260%$500Min: 13 days$10N/A
South CarolinaYes390%$550Max: 31 days$15N/A
South DakotaYesNo Limit$500Not SpecifiedNo LimitN/A
TennesseeYes459%$425 ($500 check)Max: 31 days$17.65N/A
TexasHeavily RegulatedCan exceed 400%Loans, including fees, cannot exceed 20% of your gross monthly income.Loans of $100 or less have a maximum repayment term of six months and loans over $100 have a maximum of one month per $20 borrowed repayment term.
$10 and a handling charge of $4 per $100 borrowed
UtahYesNo LimitNo LimitMay not exceed 10 weeksNo LimitN/A
VermontNoN/AN/AN/AN/A18% per year
VirginiaHeavily Regulated687.76%$500Min: 2 pay periods$26.38N/A
WashingtonHeavily Regulated390%$700 or 30% of gross monthly income, whichever is lessMax: 45 days$15N/A
West VirginiaNoN/AN/AN/AN/A31% per year on a loan of $2,000 or less
WisconsinYesNo LimitLesser of either $1,500 including fees or 35% gross monthly income90 days or less$30N/A
WyomingYes780%Not Specified1 calendar monthNo LimitN/A
Washington DCNoN/AN/AN/AN/A24% per year

Alternatives if payday loans are illegal in your state

  • Installment loans. These are for similar amounts but are repaid over a longer term, usually 12 to 24 months.
  • Auto title loans. These loans involve borrowing money against your car’s title in return for financing. Some states consider auto title loans the same as payday loans and ban them, so check your local laws.

Short-term loans and alternatives in states where they’re permitted

Here are some short-term services you can consider. Availability and max amounts may vary based on your state of residence.

1 - 0 of 0
Name Product Filter Values Loan amount Turnaround time Requirements
Chime SpotMe®
Not rated yet
Chime SpotMe®
Up to $200
Same day
Single qualifying $200 direct deposit into Chime checking account in the last 34 days.
Access fee-free overdrafts up to $200 when eligible. Plus get your paycheck up to 2 days early with direct deposit. See Chime terms and conditions.
Smart Advances
Not rated yet
Smart Advances
$100 to $20,000
As soon as one business day after loan closing
Have a regular income, 18+ years old, be a U.S. citizen with a valid SSN, have an open bank account, meet any additional requirements your lender may have
Smart Advances was designed to help you request the loan you need, for any reason.
Not rated yet
$20 to $250
3 to 4 days standard transfer. Same day with $3.99 express fee.
Not stated
Automatically monitor your spending plus access cash advances up to $100 at a time.
OppLoans Installment Loans
Finder Rating: 4.7 / 5: ★★★★★
OppLoans Installment Loans
$500 to $4,000
As soon as the same business day.
+18 years old, Receive paychecks through direct deposit, Meet minimum income requirements, Live in eligible state
Comes with the option to change your due date so you won’t fall behind on repayments.
Not rated yet
1 to 3 business days, or instant with a fee or Premium subscription
Bank account must have at least 60 days of activity, Balance must be above $0 and have an average minimum balance on pay day
Have up to $250 automatically deposited into your account — for a $9.99 membership fee.
Possible Finance Mobile Installment Loans
Up to $500
As fast as 1 business day
Checking account with 3+ months of banking history, $750+ monthly income, live in eligible state, ages 18+
Borrow up to $500 with just a few swipes — but only for residents of 21 states.
LendYou Short-term Loans
Finder Rating: 2.5 / 5: ★★★★★
LendYou Short-term Loans
$100 to $1,000
Same business day to 1 business day
$1,000+ monthly income, direct deposit, US citizen or permanent resident, ages 18+
Get offers from potential lenders in minutes by filling out just one online form.
MoneyLion Instacash advances
$250, $1000 with RoarMoney account
Up to 5 days or instant for a fee
Bank account must have at least 60 days of activity, show recurring deposits and must have a positive balance
Fee-free, interest-free cash advances up to $250.
Fast5kLoans Short-term Loans Connection Service
Finder Rating: 3.5 / 5: ★★★★★
Fast5kLoans Short-term Loans Connection Service
$100 to $35,000
As soon as the next business day
Regular source of income, Verifiable bank account, US citizen, Ages 18+
Get connected with multiple lenders you might qualify with — even if you have bad credit.
CashNetUSA Loan
Finder Rating: 3.6 / 5: ★★★★★
CashNetUSA Loan
Varies by state
As fast as same business day
Regular source of income, bank account, US citizen or permanent resident, age of majority in your state
Sign up for its discount program to get access to coupons and deals on everything from dining out to tax services.

What are lenders allowed to charge you?

The Annual Percentage Rate, or APR, is one of the main costs you need to consider with a payday loan. In most states that regulate payday loans, you’ll find the APR is restricted. Otherwise, a lender may be able to charge as much as it wants. Make sure you know the total cost of a loan before you borrow.
Some states also impose restrictions on the percentage lenders may charge based on how much you borrow or in the total amount you can be charged in a year. These regulations usually only apply to interest rates, meaning a lender can charge fees on top of the interest rate or for refinancing your loan.
These fees have been regulated in some states, but in others they remain at the discretion of the lender.
You can learn more about all the ins and outs of payday lending

How much you can borrow and how long you have to repay

States impose limits on loan amounts and terms. The typical state-imposed maximum being around $500 or 25% of your gross monthly income.
Payday loans are meant to last until your next payday. This means that a typical loan term will be two to four weeks, and many states have minimum and maximum terms. The length of your loan has a huge impact on the amount of interest you’ll end up paying. Make sure the amount you’re borrowing and the payment plan aligns with your budget as well as the prevailing state regulations.

Frequently asked questions

How many payday loans can you have at once?
Different lenders will have different policies on simultaneous and consecutive payday loans. Some may have a cooling off period where you can’t take out an additional loan, while others will allow concurrent loans. In addition, many states regulate the amount of money you can borrow at one time.
How fast can I get a payday loan?
Online payday loans can be funded in as little as one business day but may take longer depending on your bank. You may be able to get a payday loan within a few hours if you apply at a storefront.
Can I get a payday loan with bad credit?
Most likely, yes. Payday lenders tend to look at your ability to repay the loan rather than your credit score.
What do I need to qualify for a payday loan?
You’ll need to be a citizen or permanent resident of the US, have a regular income, be at least 18 years old (varies by state) and have a valid checking account if you’re applying online. Lenders may have other requirements, but these are usually the minimum in order to qualify.
Will taking out a payday loan affect my credit?
This depends on if your lender reports you to one of the big three credit agencies. Many don’t, but you should keep in mind that every loan application counts as a query on your credit report, which can negatively impact your credit in the long run. Consider a loan broker or lender-matching service if you only want to fill out one application.

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6 Responses

    Default Gravatar
    KelleySeptember 11, 2018

    I live in Iowa and I have 2 payday loans. One is for $1500 and I pay $117.52 for 9 months and the other one is for $500 and I pay $75.11 for 7 months. This is killing me. I have already paid $1500 back. What can I do?

      JoshuaSeptember 12, 2018Finder

      Hi Kelley,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      Payday loans come with a great interest rate. It is easy to get approved, but it is riskier compared to traditional lenders. Payday loans are heavily regulated in Iowa. What I can suggest is you ask the proper authority if you are getting a legal interest rate.

      Another suggestion is for you to renegotiate your loan terms. Most lenders would rather get something than nothing. So, it’s worth a try.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!


    Default Gravatar
    MarybethJune 16, 2018

    hello, I live in Tennessee. I have 4 payday loans (I know, dumb) I know the interest rate is 459 but a few of my loans are over 500% apr. I am close to defaulting on these loans bc I’m drowning. is there any way out of them?

      Default Gravatar
      joelmarceloJune 16, 2018

      Hi Marybeth,

      Thanks for leaving a question on Finder.

      Consolidating your debt could make your life a lot easier by putting it all in one place. Learn more about debt consolidation and see when to free up your budget, what types of debt you can consolidate, and what your other options for getting out of debt are.


    Default Gravatar
    EricaMarch 11, 2017

    Im in Florida and I currently have 3 out of state online loans and I want to know IG that is legal I have one where I borrowed 150 and I have to pay 52.17 for 16 months and I have another where I borrowed 300 and I have to pay 92.35 for 14 months is this legal and are they legit

      HaroldJuly 18, 2017Finder

      Hi Erica,

      Thank you for your inquiry.

      Payday loans in Florida are legal. Florida Statutes Chapters 560.402 to 560.408 govern the functioning of payday lenders. The law refers to these loans as deferred payment transactions, where lenders provide funds in exchange for checks from borrowers, which they agree to hold for predetermined deferment periods. The laws state that the maximum you can borrow is $500, while the loan term can vary between 7 and 31 days.

      I hope this information has helped.


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