Payday loans are short-term loans you must repay in two to four weeks. While they offer fast cash with no credit check, they’re illegal in Pennsylvania. Plus, they're not cheap, costing anywhere from $10 to $30 per $100 borrowed — or up to a whopping 400% APR or more.
The good news is that there are other ways Pennsylvanians can access cheaper borrowing for emergencies, including no-interest cash advance apps and bad credit personal loans with lower rates. Here’s a rundown of the options available.
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Payday and auto title loans have been illegal in Pennsylvania since the Check Cashier Licensing Act passed in February 1998. This Act was passed for a few reasons, but perhaps most importantly, to prevent payday lenders from charging consumers excessively high rates.
In addition, Pennsylvania’s Loan Interest and Protection Law (LIPL) prevents lenders without a CDCA license (Consumer Discount Company Act) from charging more than 6% per year on loans for $50,000 or less. But broad exceptions and loopholes in the law make these rate caps meaningless. That’s why credit cards and loans from unlicensed lenders outside of Pennsylvania have rates far exceeding 6% APR — sometimes into the triple digits.
Read any loan contracts carefully to make sure you understand the APRs and fees you’re paying, including origination fees, late fees and prepayment penalties. If you believe a lender is violating the law by charging excessively high rates, you can file a complaint with the Pennsylvania Department of Banking and Securities.
If you have bad credit and need cash, you have plenty of other options. Consider these cheaper alternatives:
A cash advance app is a convenient way to borrow against your next paycheck — typically from $20 to $500 or more — and without interest charges on what you borrow. Cash advance apps also let you borrow money without a credit check. Instead, to qualify for advances, you typically need to establish regular direct deposits from an employer or other source.
While some cash advance apps charge a monthly fee between $1 and $10, some are free, and you can usually get your money in a few business days. But if you need same-day advances, you’ll normally have to pay an instant transfer fee. Compare instant transfer fees across apps to find the cheapest one for your situation.
A bad credit personal loan from an online lender or local lender like Mariner Finance can also provide fast cash in Pennsylvania — you could have your money as soon as the same day. And unlike payday loans, bad credit lenders like OneMain Financial, Oportun and Mariner Finance cap their rates at 35.99%. But unlike payday lenders, you usually need a hard credit check to qualify.
To qualify for a personal loan in Pennsylvania, you may need a credit score of around 620, although some lenders go as low as 300, and some have no credit score requirement at all. As long as you can prove you have sufficient income from an employer or other source, you could qualify.
PALS are small, unsecured loans offered by some federal credit unions. Regardless of your credit score, you might qualify for a PAL with an amount between $200 and $2,000. PAL APRs are capped at 28%. Under PAL I, repayment terms range from one to six months; under PAL II, terms can extend to 12 months.
But they’re not for people who need fast funding. For PAL I, you need to have been a credit union member for at least one month before you can qualify. PAL II has no membership waiting period.
Instead of turning to a loan, you can see if your employer offers a paycheck advance. Some companies offer paycheck advances or short-term loans to employees, typically at lower rates than what you would get on a bad credit personal loan.
Licensed lenders in Pennsylvania aren’t allowed to charge more than 6% on loans of $50,000 or less. But banks and unlicensed lenders that operate outside of Pennsylvania can charge rates that far exceed 6% — up to 35% or more — and some charge origination fees of 1% to 10% on top of that.
So, the actual cost depends on the lender and the loan product. The higher the rate and the longer the term — the more interest you’ll pay back over time. To minimize the cost, try to find the lowest rate and choose the shortest repayment term you can afford.
Several programs in Pennsylvania provide financial assistance to low-income individuals and their families.
You can find more resources by visiting the Pennsylvania Department of Human Services website.
While you can’t get a payday loan in Pennsylvania, you still have other options that can help you out. These include zero interest cash apps, bad credit personal loans, PALs and government resources. See our guide on other short-term loan options or installment loans that can help you get the money you need.
One of the best alternatives to a payday loan is a personal loan from an online lender that doesn’t charge more than 36% interest. You can often get your loan funds within 24 hours, it’s less expensive than a payday loan and you’ll have longer to repay it.
If you can’t qualify for a loan, your best option might be to sign up for a cash advance app. Most providers don’t check your credit, and all you need is a bank account and a regular source of income.
One of the easiest loans to get is a pawn shop loan. There is no credit check, and you don’t even need a job or bank account. As long as you have an item worth something, you can typically borrow between 25% to 60% of the item’s resale value.
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Good morning,
Looking for an installment loan in Pennsylvania., is that available?
Hi Dominique,
Thank you for contacting Finder, a general information service. Yes, installment loans are available in Pennsylvania. You can usually borrow between $500 and $5,000, and pay back the loan between as short as 3 months and as long as 3 years. You can learn more about installment loans in our guide.
Sincerely,
Ezra
Looking for a loan in pa but got no bank account just prepaid card. What are my choices?
Hi Justin,
Thank you for reaching out to Finder.
We are on the right page for you to check the available lenders that could assist you in your state. Please indicate the state you are in on the table provided on the table to see your options. Once the results are populated, you may want to check on the “Requirements” column to see which lender does not require a bank account to apply. Kindly review and compare your options on the table displaying the available providers. Once you have chosen a particular provider, you may then click on the “Go to site” button and you will be redirected to the provider’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.Hope this helps!
Cheers,
Reggie
I need a direct lender someone who gives the loans not a broker type person who finds the lenders . I live in Butler County Pennsylvania and I DESPERATELY need a loan now today can you help me with this?
Hi Drusillla,
Thank you for reaching out to us,
You are on the correct page as the Lenders listed on the table above a direct ones wherein you will submit your application directly to them then once approved they will be the one who will provide the loan to you. You may compare the Lenders available in your state as well as their eligibility requirements.
You may also read above the alternative loan that you may apply to in Pennsylvania.
Kindly read the Lender’s Terms and Conditions as well as their eligibility criteria before submitting your application. To apply, you may click on the green “Go to site” button to be redirected directly to the Lender’s site.
I hope this helps.
Please do not hesitate to reach out again to us if you have additional questions that you need assistance with.
Cheers,
Ash
Trying to get a pay day loan for 500 and pay back in installments
Hi Nina!
Thanks for leaving an inquiry on our page.
Though Payday loans are not legal in Pennsylvania, you can get an installment loan and other payday loan alternatives. Installment loans have longer repayment periods so typically, you can pay the loan back in as short as 3 months or as long as 3 years.
You can use the table above to compare installment loan options in Pennsylvania that you may be eligible to apply for. Once you’re ready, simply click on the ‘Go to site’ button and process the application from the main page of the lender or get in touch with their representatives for further inquiries you may have.
Make sure to check all the eligibility criteria and read through the loan terms and conditions before making a decision on whether it is right for you.
Hope this helps!
Cheers,
Nikki
Can i get an installment loan without a checking account?
Hi Carolyn.
Thanks for your question.
The quick answer is yes. Typically lenders will be able to determine whether you can service the loan or not with your checking account, however, it is not the only requirement to be eligible for an installment loan. This, of course, could differ from one lender to another.
While typically, lenders will usually deduct payments from your bank account on the day the payments are due, some lenders will also give you the option of repaying the loan online, via a check, or through an app.
To fully understand how their installment loans work, you may contact your preferred lender and so you would know whether they could approve your application without having a checking account or not and for any other inquiries you may have.
Regards,
Rich