Compare short-term loans in Iowa

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.

Can I get a payday loan in Iowa?

Yes, payday loans are legal in Iowa. Iowa Code Ann. 533D.1 et seq. The Delayed Deposit Services Licensing Act governs 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

What you 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 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.

Payday loan alternatives in Iowa

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.

Frequently asked questions

How many payday loans can I have at the same time?

You can have two loans at once, provided they total $500 or less.

Who should I contact to file a complaint about a payday lender in Iowa?

You should get in touch with the Iowa Division of Banking.

Is there a mandatory cooling-off period?

Iowa law doesn’t require a cooling-off period. However, it’s a good idea not to take out multiple loans one after the other.

Can I roll over or refinance my loan?

No. Iowa law doesn’t permit rollovers.