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
|State||Legal||APR Regulations||Max Loan Amt||Loan Terms||Cost per $100||Small Loan Rate Cap|
|Alabama||Yes||456.25%||$500||10 – 31 days||$17.50||N/A|
|Alaska||Yes||520%||$500||Min: 14 days||$20||N/A|
|Arizona||No||N/A||N/A||N/A||N/A||36% per year plus 5% fee|
|Arkansas||No||N/A||N/A||N/A||N/A||17% per year|
|California||Heavily Regulated||459%||$300||Max: 31 days||$17.65||N/A|
|Colorado||Heavily Regulated||N/A||$500||Min: 6 months||$7.50||N/A|
|Connecticut||No||N/A||N/A||N/A||N/A||30.03% APR or $17 per $100 up to $600; $11 per $100 up to $1,800; add-on interest|
|Delaware||Yes||No Limit||$500 per loan, $1,000 max per borrower at a one time||Max: 60 days||No Limit||N/A|
|Florida||Yes||419%||$500||7 – 31 days||$16.11||N/A|
|Georgia||No||N/A||N/A||N/A||N/A||10% interest on loans of $3,000 or less with terms of 36 months and 15 days or less|
|Hawaii||Heavily Regulated||459%||$600||Max: 32 days||$17.65||N/A|
|Idaho||Yes||No Limit||$1,000||Not Specified||N/A||N/A|
|Illinois||Heavily Regulated||403%||lesser of $1000 or 25% gross monthly income||13 – 45 days||$15.50||N/A|
|Indiana||Heavily Regulated||390%||$550 or 20% of gross monthly income||Min: 14 days||$15||N/A|
|Iowa||Heavily Regulated||433%||$500||Max: 31 days||$16.67||N/A|
|Kansas||Heavily Regulated||390%||$500||7 – 30 days||$15||N/A|
|Kentucky||Heavily Regulated||459%||$500||14 – 60 days||$17.65||N/A|
|Louisiana||Heavily Regulated||780%||$350||60 days or less||$30||N/A|
|Maine||Heavily Regulated||N/A||N/A||N/A||N/A||30% 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.|
|Maryland||No||N/A||N/A||N/A||N/A||2.75% per month; 33% per year.|
|Massachusetts||No||N/A||N/A||N/A||N/A||23% plus $20 administrative fee upon the granting of a loan|
|Michigan||Heavily Regulated||390%||$600||Max: 31 days||$15||N/A|
|Minnesota||Heavily Regulated||390%||$350||Max: 30 days||$15||N/A|
|Mississippi||Heavily Regulated||520%||$500||Under $250: maximum of 30 days; $250 – $500: 28 – 30 days||$20||N/A|
|Missouri||Yes||1950%||$500||14 – 31 days||$75||N/A|
|Montana||Heavily Regulated||36%||$300||Max: 31 days||$1.39||N/A|
|Nebraska||Heavily Regulated||459%||$500||Max: 34 days||$17.65||N/A|
|Nevada||Yes||No Limit||25% of expected gross monthly income||Max: 35 days; up to 90 days allowed if the initial agreement provides for installment payments and is not subject to extension||No Limit||N/A|
|New Hampshire||Heavily Regulated||36%||$500||7 – 30 days||$1.38||N/A|
|New Jersey||No||N/A||N/A||N/A||N/A||30% per year|
|New Mexico||No||175%||N/A||Minimum maturity period of 120 days||N/A||N/A|
|New York||No||N/A||N/A||N/A||N/A||25% per year|
|North Carolina||No||N/A||N/A||N/A||N/A||36% per year|
|North Dakota||Yes||520%||$500||Max: 60 days||$20||N/A|
|Ohio||Heavily Regulated||28%||$500||Min: 31 days||$1.08||N/A|
|Oklahoma||Heavily Regulated||390%||$500||12 – 45 days||$15||N/A|
|Oregon||Yes||156%||Not specified||Min: 31 days||$13 for a 31-day loan||N/A|
|Pennsylvania||No||N/A||N/A||N/A||N/A||$9.50 per $100 per year for interest, plus a service charge of $1.50 per $100 per year.|
|Rhode Island||Yes||260%||$500||Min: 13 days||$10||N/A|
|South Carolina||Yes||390%||$550||Max: 31 days||$15||N/A|
|South Dakota||Yes||No Limit||$500||Not Specified||No Limit||N/A|
|Tennessee||Yes||459%||$425 ($500 check)||Max: 31 days||$17.65||N/A|
|Texas||Heavily Regulated||Can 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.|
|Utah||Yes||No Limit||No Limit||May not exceed 10 weeks||No Limit||N/A|
|Vermont||No||N/A||N/A||N/A||N/A||18% per year|
|Virginia||Heavily Regulated||687.76%||$500||Min: 2 pay periods||$26.38||N/A|
|Washington||Heavily Regulated||390%||$700 or 30% of gross monthly income, whichever is less||Max: 45 days||$15||N/A|
|West Virginia||No||N/A||N/A||N/A||N/A||31% per year on a loan of $2,000 or less|
|Wisconsin||Yes||No Limit||Lesser of either $1,500 including fees or 35% gross monthly income||90 days or less||$30||N/A|
|Wyoming||Yes||780%||Not Specified||1 calendar month||No Limit||N/A|
|Washington DC||No||N/A||N/A||N/A||N/A||24% 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.
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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