Everything There Is To Know About Payday Loan Laws In The USA
Payday loans are a relief to many Americans, allowing for just about anyone to overcome any unexpected financial hardship. With so many people living paycheck to paycheck, fender benders or surprise medical bills can seriously threaten to break the bank. Don’t feel the fear of an unforeseen financial burden, find a local lender and make payments on your own terms!
Payday loan laws in the USA are simple and straightforward. Many states have similar limits on both loan amount and terms, allowing borrowers to receive upwards of $500 and a repayment period of 31 days. Not every state is the same though, as some consider payday lending illegal in its entirety. Find out your state’s payday loan laws now!
How To Get A Payday Loan In Any State In 4 Short Steps
While many states vary in their laws and regulations regarding payday loans, the requirements are the same nationwide. The application process is very similar as well, so long as the necessary paperwork is gathered together everything is straightforward. Almost anyone can complete the application process in a few easy steps:
Collect all prerequisite documents and identification
While just about anyone can apply for a payday loan, there are certain documents applicants must have with them in order to apply. To begin with, future loanees need a proper identification and to be a resident of the state in which they wish to borrow. Second, borrowers need a social security number, a bank account and a physical address in order to proceed. After that someone pursuing funding will be obligated to provide proof of income. Proof of income is one of the most important and decisive documents someone could bring to the application, it is a huge factor in an approval process. Some lenders may also ask for an email address or phone number to maintain contact information.
Find a financial institution that sells payday loans
Using the internet, anyone can find a myriad of financial institutions interested in selling payday loans. With all these options consumers can take time and find the right loan that is tailored to their exact scenario. Many lenders have their rates online as well, allowing you to compare payment plans from the comfort of your own couch! Going in person to a brick and mortar payday lending store is always an option as well, as many prefer to work in person. Once the documents have been gathered, the identification has been found and the lender has been located, you are finally ready to apply for a payday loan!
Receive the deposit and pay off your debts
The banker will quickly work to process the application and approve it. If approved, most banks can go ahead and deposit the funds directly into an active checking account! If an application was filled out online, many can apply and get paid from their own couch! With same day payday loans many Americans can even obtain same day funding. With the money finally moved over its time to pay off whatever pressing debt you may have had.
Understand your fee scheduling and pay back the loan
Once the initial debt is paid off, it is time to focus on repaying the payday lender. Payday loans are intended to keep borrowers afloat until their next paycheck, so they were designed to be repaid quickly. Payments may be made towards the loan before the maturity or the loanee may wait until the final day to complete their payment. After remunerating the financial institution, the debt has been covered and repaid. You’ve finally gotten past payday loan laws in the USA!
Payday Loans Rates and Terms
While payday loans are similar in their concept nationwide, the regulations and laws surrounding them vary greatly. Loan amounts and terms, maximum APRs and even legal status are elements of payday loans that vary greatly from state to state. Here we can take a look at payday loan laws in the USA:
|Law Status||Maximum Loan Amount||MaximumLoan Term||Maximum APR||Finance Charges||Regulation|
|Alabama||Legal||$500||31 Days||456%||17.5% of the total amount of the loan||Law: 5-18A-1 et seq.|
|Alaska||Legal||$500||14 Days||435%||15% of the total amount of the loan||Law: 06.50.010 et seq.|
|Arizona||Prohibited||Ariz. Rev. Stat. 6-632|
|California||Legal||$300||31 Days||460%||15% of the total amount of the loan||Cal. Fin. Code 23000 Civil code 1789.30 et.seq|
|Colorado||Legal||$500||6 Months||36%||36% of the total amount of the loan||Colo. Rev. Stat. 5-3.1-101 et seq.|
|Connecticut||Prohibited||CGS 36a-563, -565,|
|Delaware||Legal||$1,000||60 Days||521%||No limit||Del. Code Ann. Tit. 5 2227 et seq.|
|Florida||Legal||$500||31 Days||304%||10% of the total amount of the loan||Fl. Stat. Ann. 560.402 et seq.|
|Georgia||Prohibited||Law 16-17-1 et seq.|
|Hawaii||Legal||$600||42 Days||460%||15% of the total amount of the loan||Hawaii Rev. Stat. Ann. 480F-1 et seq.|
|Idaho||Legal||$1,000||Not specified||652%||No limit||Idaho Code 28-46-401 et seq.|
|Illinois||Legal||$1,000 or 25% of your gross income, whichever is less||13 Days minimum, 120 days maximum||404%||$1 verification fee, then 15.5% of the total amount of the loan||Law: 815 ILCS 122 et seq.|
|Indiana||Legal||Minimum of $50, maximum of $550||14 Days minimum, no maximum specified||391%||<$250, 15%. $250-$400, 13%. $400-$550, 11% of the total amount of the loan||Ind. Code 24-4-4.5-7-101 et seq.|
|Iowa||Legal||$500||31 Days||337%||$15 on the first $100, $10 on every ensuing $100||Iowa Code Ann. 533D.1 et seq|
|Kansas||Legal||$500||30 Days||391%||15% of the total amount of the loan||Kan. Stat. Ann. 16a-2-404, 405|
|Kentucky||Legal||$500||60 Days||460%||15% of the total amount of the loan||Kentucky Rev. Stat. Ann. §§ 286.9.010 et seq.|
|Louisiana||Legal||$350||30 Days||391%||16.75% of the total amount of the loan||La. Rev. Stat. Ann. Law: 9:3578.1 et seq.|
|Maine||Legal||$2000||Not specified||30%||< $75 fee of $5, $75-$250 fee of $15, >$250, fee of $25||Me. Rev. Stat. tit. 9-A § 1-201, 2-401|
|Maryland||Prohibited||Md. Code Com. Law § 12-101 et seq|
|Massachusetts||Prohibited||Small Loan Act, 209 Mass. Code Regs. 45:14(8),|
|Michigan||Legal||$600||31 Days||369%||15% for the first $100, 14% for the second, 13% for the third, 12% for the fourth, 11% for the fifth and sixth instances of $100||Mich. Comp. Laws 487.2121 et seq.|
|Minnesota||Legal||$350||30 Days||200%||< $50 fee of $5.5,
$50-$100 fee of 10% + $5,
$100-$250 fee of 7% $10 minimum + $5;
$250-$350 fee of6% $17.5 dollar minimum + $5
|Minn. Stat. 47.60 et seq.|
|Mississippi||Legal||$500||30 Days||521%||<$250 Fee $20 per $100,
$250-$500 fee $21.95 per $100
|Miss. Code Ann. 75-67-501 et seq.|
|Missouri||Legal||$500||31 Days||443%||Fee may not exceed 75% of the initial loan amount||Mo. Rev. Stat. §§ 408.500.1 et seq.|
|Montana||Legal||$300||31 Days||36%||1.39% of the total amount of the loan||Mont. Code Ann. 31-1-701|
|Nebraska||Legal||$500||34 Days||460%||15% of the total amount of the loan||Neb. Stat. Ann. 45-901|
|Nevada||Legal||25% Of monthly gross income||35 Days||625%||No Limit||Nev. Rev. Stat. 604A.010 et seq.|
|New Hampshire||Legal||$500||30 Days||36%||1.38% of the total amount of the loan||N.H. Rev. Stat. Ann. 399-A:1 et seq|
|New Jersey||Prohibited||Consumer loan act, N.J. Stat. Ann. tit. 17, 1 et seq., N.J. Stat. Ann. 2C: 21-19|
|New Mexico||Prohibited||N.M. Stat. Ann. 58-15-32 to 38|
|New York||Prohibited||N.Y. Banking Law 340 et seq|
|North Carolina||Prohibited||N.C. Gen. Stat. 53-173|
|North Dakota||Legal||$500||60 Days||487%||20% of the total amount of the loan||N.D. Cent. Code 13-08-01 et seq.|
|Ohio||Legal||$1,000||1 Year||28%||28% of the total amount of the loan||Ohio Rev. Code Ann. 1321.35 et seq.|
|Oklahoma||Legal||$500||45 Days||207%||17% or 20% of the borrower’s monthly income, whichever is less||Okla. Stat. Tit. 59 3101 et seq.|
|Oregon||Legal||$50,000||60 Days||36%||36% of the total amount of the loan||54 Or. Rev. Stat. 725A.010 et seq.|
|Pennsylvania||Prohibited||Check Cashing Licensing Act of 1998, 505(a)|
|Rhode Island||Legal||$500||Minimum of 13 days, no maximum specified||261%||10% of the total amount of the loan||R.I. Stat. Ann. 19-14.4-1 et seq.|
|South Carolina||Legal||$550||31 Days||391%||15% of the total amount of the loan||S.C. Code 34-39-110 et seq.|
|South Dakota||Legal||$500||Not specified||36%||1.39% of the total amount of the loan||S.D. Codified Laws 54-4-36 et seq.|
|Tennessee||Legal||$500||31 Days||460%||15% of the total amount of the loan||Tenn. Code Ann. 45-17-101 et seq.|
|Texas||Legal||$800||7 Days minimum, 180 days maximum||400%||>$30 fee of $1 for each $5,
$30–$100 fee of 10% + $3 /mo, <$35
$35–$70 fee of $3.50/mo + $4/mo,
>$100 fee of $10 + $4/mo for each $100
|5 Tex. Fin. Code 393 et seq., 4 Tex. Fin. Code 342.004|
|Utah||Legal||No Limit||70 Days||658%||Not specified||Utah Code Ann. 7-23-101 et seq.|
|Vermont||Prohibited||8 V.S.A. § 2519(a)(13)|
|Virgina||Legal||$2,500||4 Months minimum, 24 months maximum||36%||8% of the amount of the loan per month with the total not exceeding 50%||Va. Code Ann. §§ 6.2-1800 et seq.|
|Washington||Legal||$700 or 30% of the gross monthly income, whatever is less||45 Days||391%||<$500 fee of 15%,
>$500 fee of 10%
|Wash. Rev. Code Ann. 31.45.010 et seq.|
|West Virginia||Prohibited||W. Va. Code 46A-4-107 and 32A-3-1 et seq|
|Wisconsin||Legal||$1,500 or 35% of the gross monthly income, whatever is less||90 Days||574%||3.75% of the total amount of the loan||Wis. Stat. 138.14|
|Wyoming||Legal||Not specified||1 Month||261%||20% of the total amount of the loan per month||Wy. Stat. 40-14-362 et seq.|
States vary wildly in their approach to payday loans. States like New Jersey, New Mexico and New York ban most or all forms of payday lending altogether. Some states choose to allow payday lending to occur in their territories, albeit under incredibly strict conditions. Some let just about anything fly, locations like Oregon and Texas really let borrowers delve deep into payday pockets. Overall, the most common payday loan laws allow loanees to acquire payday loans with dollar amounts floating around the $500 range and terms somewhere close to 31 days. While it may not be the $50,000 of Oregon, a $500 Iowa payday loan can cover the most urgent of expenses until your next paycheck. Payday loan laws in the USA are readily available online as well, as you can very clearly see above!
Frequently Asked Questions about Payday Loan Laws in the USA
If I live in North Carolina where payday loans are illegal, can I travel to South Carolina where they are legal and apply for one there?
No you may not. One of the requisites of payday lending in any state is that the applicant must be a resident of that state. You can not obtain a payday loan while being considered a resident of North Carolina.
What does the average payday loan look like in the USA?
Most states give out payday loans with maximums around $500, loan terms near 31 days and APRs above 300%. No matter where you are, payday loans are engineered to cover your unexpected costs in between paychecks.
What are some alternatives to getting a payday loan?
When looking for quick cash, some turn to their friends or family for loans. If you don’t have that option, some charities will pay off your most essential bills with proof of need. If you’re looking for a fast financial boost and the ability to maintain your independence, a payday loan in the USA is the way to go.