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Payday loan alternatives in New York

You can't legally take out a payday loan in New York, but you have other options.

Good for no-fee, 0% interest cash advances

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  • Borrow up to $750 per pay period
  • No credit check
  • No monthly fees or interest

Good for fee free overdraft

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  • Get up to $200
  • Receive funds on the same day
  • Fee free overdraft
  • No credit check

For money management tools

Go to site
  • Borrow up to $250
  • No credit check required
  • No interest on cash advances

If you’ve found yourself short on cash and need to borrow a small amount of money, you may be considering a payday loan. However, New York is one of several states that consider payday loans illegal. Our guide gives you cheaper options that may be able to help you borrow money in a bind, and at a much lower cost.

Payday loans are illegal in New York

NY Banking Law 373 bans check cashers from making loans or advancing cash, and NY Penal Code 190.40 caps interest at 25%. This effectively makes it illegal for payday lenders to operate, both in-store and online. That’s because payday loans charge predatory insurance rates, which can run well over 700% APR.

Even though you can’t get a payday loan in New York, you should still familiarize yourself with the laws and read all the paperwork of a loan before signing. It’s important that you can repay what you borrow to avoid more debt in the future.

4 short-term loans you can get in New York

Maybe you have bad credit, or maybe you just need money quick, either way there are short-term loan options to consider in your situation.

Cash advance apps

The top cash advance apps offer a way for you to borrow money without a credit check. And, most cash advance apps offer a way to get funds in one to three business days for free, or instantly for a small fee.

Cash advance apps typically allow you to borrow up to $250 or more per pay period. However, you’ll likely need to show regular direct deposits in your bank account from an employer or other source to be approved. Advance amounts start out low, but with responsible borrowing you can increase that amount over time. Cash advance apps are a cheaper alternative compared to payday loans, and likely less risky.

Personal loans

If your credit is the issue, you may be able to find a bad credit personal loan online or from a local lender. In some cases, you can have your money as soon as one business day after approval. Even bad credit personal loan lenders cap their rates around 35.99%. However, you will need a credit check to apply, most lenders want to see a score of at least 620, but there are lenders that accept lower scores.

Payday alternative loans (PAL)

These loans are small, unsecured loans typically offered by some federal credit unions. PALs can come in loan amounts from $200 to $1,000, and you may qualify regardless of your credit score. APRs are capped at 28% and you generally have up to six months to repay the loan. However, they don’t offer a quick cash solution, as you typically have to be a member of a PAL credit union for at least a month before qualifying for this type of loan.

Employer paycheck advance

You may be able to avoid a loan altogether by asking your employer for an advance on your paycheck. Some employers offer advances or short-term loans to employees, and at a far less cost than any other bad credit personal loans.

Compare cash advance alternatives to payday loans

Name Product Filter Values Max. amount per pay period Turnaround time Costs
Finder Score: 4.7 / 5: ★★★★★
Up to $750 per pay period, but only $100 per day
1 to 3 business days or instant for a fee
Free to use or instant with a fee as low as $3.99.
No mandatory fees, no interest and no credit checks. Subject to EarnIn terms & conditions.
Chime SpotMe®
Finder Score: 4.2 / 5: ★★★★★
Chime SpotMe®
Up to $200
No fee
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.
Finder Score: 4.1 / 5: ★★★★★
Up to $250
3 to 4 days standard transfer. Same day with $3.99 to $9.99 express fee.
$5.99 monthly membership fee to access cash advances
Automatically monitor your spending plus access cash advances up to $100 at a time.
Not rated yet
Based on the amount of accrued PTO
2 to 5 days
No fee
Tap your unused PTO for a cash advance so you can access that money early. Available in: CO, FL, IL, MA, NY, NJ, TX, VA, OR, AR, NE, TN, ME, CT, WV
Go to site
Dave ExtraCash
Finder Score: 4.2 / 5: ★★★★★
Dave ExtraCash
Up to $500
Up to 3 business days or instant for a fee
$1 monthly membership fee and express delivery from $3 to $15 fee
Borrow up to $100 to avoid hefty overdraft fees.

How much can lenders charge in New York?

Many loans have compounding interest and financing fees which are represented as an annual percentage rate (APR). In New York, this is capped at 25%. If you make a late payment or miss one entirely, you will likely have to pay a fee, and your lender can charge you a non-sufficient funds (NSF) fee if you don’t have enough funds in your account to complete a payment. The amount you pay in fees depends on the lender and the type of loan you take out.

Assistance programs in New York

There are a wide variety of assistance plans available in New York that may be able to help in your specific situation.

Bottom line

Although you can’t take out a payday loan in New York, you still have other ways to get a little help with your finances such as short-term loan options or installment loans. If you find yourself constantly short on money, you can also consider speaking with a credit counselor.

Do you have any more questions about payday loans in New York?


Written by

Matt Corke

Matt Corke is Finder’s head of publishing ventures. Prior to this he was head of publishing for Australia, New Zealand and emerging markets. Matt built his first website in 1999 and has been building computers since he was in his early teens. In that time, he has survived the dot-com crash and countless Google algorithm updates. See full profile

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8 Responses

    Default Gravatar
    LoanOctober 3, 2018

    If I personally loan money to my business, what is the maximum interest rate I can charge the business for the loan? From this website it looks like 25%, but I would like to make sure. Also, what other fee’s am I able to charge? The business is in Buffalo New York if that helps.

    Thank you in advance for your help!

      JoshuaOctober 6, 2018Finder

      Hi Loan Guy,

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

      Yes, it is true that the NY Penal Code 190.40 caps interest at 25%. Other fees that may apply would depend on the lender. It would include late payment fees and other penalties.

      Since payday loans are not allowed in New York, you may want to check our page that lists small business loans.

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

      Have a wonderful day!


    Default Gravatar
    AdamMarch 20, 2018

    What if I live in New York State and I was issued a pay day loan unaware that it is illegal in the state?

      Default Gravatar
      joelmarceloMarch 22, 2018

      Hi Adam,

      Thanks for leaving a question on finder.

      The short answer is no. But the long answer is a soft maybe.

      If your permanent residence is in a state that allows payday loans but you’re temporarily living in another state, you may be able to get a loan. Getting a payday loan could require more interaction with the provider to confirm your permanent residence versus your temporary one.

      Whether you’re applying online or in store, there’s no guarantee that the lender will approve you — even if you’re only temporarily in another state.

      You can consider getting a credit card instead or tribal loans.


    Default Gravatar
    InnaAugust 30, 2017

    I sold my house in Florida and moved to NYC.
    I need to pay extended security deposit for the rental apartment. The closing day of the house when I get the money is a week after the starting day of the rental contract and I must pay the money before that day. I have all the documents proving the sales of the house and I need to borrow money just for one week period. Is there anyway to do that in NYC?

      HaroldAugust 30, 2017Finder

      Hi Inna,

      Thank you for your inquiry.

      Payday loans are not available in New York, though some cash advance or installment loans are. Use the table above to choose a provider based on your loan needs and click “go to site” to begin an application.

      I hope this information has helped.


    Default Gravatar
    JamesAugust 23, 2017

    Where can I borrow $750.00 in nyc?

      AnnaAugust 24, 2017Finder

      Hi James,

      Thanks for your question! While we can’t tell you exactly where to go for your loan, you might be interested in checking out our tribal loan options but beware as these can come with very high-interest rates. You might also want to consider getting a credit card.


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