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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I have a nexs debit card and need a loan.can u please help?thx.
Hi Nick,
Thanks for leaving a question on finder.
Unfortunately, it is illegal to get a prepaid debit payday loan in Pennsylvania. You can consider applying for an installment loan or an auto title loan. You can also look into other loan options by state to find one that’s right for your situation.
Cheers,
Joel
Is there a cash advance office in Pennsylvania with a John Williams working there?
Hi Daniel,
Thanks for your inquiry.
Please note that we are not affiliated with any company we feature on our site and so we cannot confirm if there is a cash advance office in Pennsylvania with an employee named John Williams. You may want to contact the lending company and inquire with them directly.
In case you are in need of a short-term loan, there are other lenders that offer cash advance loans you compare and consider applying for. Please click the name of your preferred lender to find out the details and the minimum eligibility. You may then click the green “Go to Site” button to submit your loan application online.
Kind regards,
Rench
I need Parsnal loan.i am on duty
Hi Amarapreet,
Thanks for your inquiry.
You may check all personal loan providers in our panel.
Please do not forget to check the eligibility requirements before you apply for the loan.
Hope this information helps.
Cheers,
Arnold
I need emergency cash,no job and already have debit card, in process moving out of state and need cash for medical emergency
Hi Angela,
In your case, you may consider loans for the unemployed. Generally, lenders will require you to have a bank account to apply for a loan, but some of the lenders on the page may consider you even if you don’t have a bank account but is able to get a debit card.
Kindly review the eligibility criteria and the terms and conditions of the loan before submitting your application to know which is more suitable for you.
Cheers,
Anndy