Learn about the important regulations before you apply.
A payday loan may be a good option if you’re strapped for cash or facing a financial crisis. Before you apply, you’ll need to know how much it costs and the laws your lender will have to follow. Our page has all the details.
Our top pick: OppLoans Installment Loans
Our top pick: OppLoans Installment Loans
Are payday loans legal in Iowa?
Yes, payday loans are legal in Iowa. Iowa Code Ann. 533D.1 et seq. The Delayed Deposit Services Licensing Act governs the all payday lenders in Iowa. Lenders must be licensed and physically located in Iowa in order to finance loans.
Five main regulations for Iowa payday loans
- Maximum loan: $500
- Loan Term: 31 days
- APR: A 14-day $100 loan is 433%
- Finance fees: $15 for loans up to $100; $10 per every additional $100
- Collection fees: Lenders may charge one $15 non-sufficient funds (NSF) fee
Compare loan options in Iowa
Check the provider’s website before applying to be sure it services Iowa.
What do I need to apply?
If you want to apply for a payday loan, you’ll need to be at least 18, a US citizen or permanent resident and have a regular source of income.
You’ll also have to provide your Social Security number and some other personal details, like your where you’re employed and how often you get paid. If you’re applying online, a lender may request information about your checking account in order to deposit your loan and debit your payment when it’s due.
Can I apply online or in-store?
It depends on the lender. Most payday lenders operate online these days, while some also have store locations in select states. In Iowa, most payday lenders operate solely online.
One benefit of a loan that’s processed completely online is the convenience. You won’t have to go into a physical store to pick up your cash. The approved funds will be loaded into your bank account.
Consider these alternatives before taking out a payday loan
Because payday loans are often high-cost forms of credit, it could be better to look for other options before committing to a payday loan. Some ideas include applying for the Family Investment Program (FIP) or getting cash advance from a credit card you already have.
You could also consider the following:
- Make extra cash with a side hustle. You likely have a skill or access to something that others are willing to pay for. If you have a car, consider signing up to drive for Uber. You could do freelance work for things like writing, graphic design or website coding.
- Borrow from a loved one. It may take a hit to your pride, but asking a family or friend member for a small loan could help you get back on your feet. Be sure you pay it back in a reasonable time frame to avoid harming the relationship.
- A 401(k) loan. If you’ve saved money for retirement in an employer plan, you could withdraw funds from it as a loan. You’ll repay the loan back into your retirement account, so it’s technically interest-free. One thing to watch out for is that if you leave your job for any reason, the full amount will be due within a short time frame.