Payday Loans in The United States

Payday Loans
Need urgent financial help? Our curated list of payday loans online caters to all credit types, including bad credit, with no credit check. Access fast, hassle-free payday loans from trusted direct lenders, ensuring you get the support you need without delay.
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Updated:
18.04.2024
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The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
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300
650
1000
100.00 – 20000.00 $
Rate
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Effective interest rate on the product

from 0.05 %
Term
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Loan term for the financial product

5 days – 3 months
Rating by Finanso®
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3.09
(20 Ratings)
Recommended FinScore™
0
300
650
1000
Rate
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Effective interest rate on the product

from 4.00 %
Term
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Loan term for the financial product

to 1 months
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Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
100.00 – 1000.00 $
Term
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Loan term for the financial product

1 days – 1 months
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Rating by Finanso®
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The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

4.06
(20 Ratings)
Recommended FinScore™
0
300
650
1000
50.00 – 1500.00 $
Rate
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Effective interest rate on the product

208.04 – 782.14 %
Term
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Loan term for the financial product

14 days – 31 days
Moneytree
Payday loan
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3.138
(13 Ratings)
Recommended FinScore™
0
300
650
1000
$100-$500
Rate
i

Effective interest rate on the product

up to 482.32%
Term
i

Loan term for the financial product

up to 14 days
Rating by Finanso®
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The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

3.23
(41 Ratings)
Recommended FinScore™
0
300
650
1000
100.00 – 445.00 $
Rate
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Effective interest rate on the product

to 0.92 %
Term
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Loan term for the financial product

to 24 days
Reviews
CreditFresh
4.8
The application process was a breeze, and I received a response within minutes. This straightforward and prompt procedure proved to be a great help to me during a crucial time of need.
Review
JG Wentworth
4.6
The assistance I received was exceptional. My representative handled my case with care and provided all the necessary information...
Review
OneMain Financial
4.4
The loan application process was straightforward, and the representative I interacted with displayed patience, provided informative answers, and was quite pleasant throughout...
Review
My Funding Choices
4.6
The process was swift and straightforward, which was particularly helpful during a time when, despite my reluctance to seek assistance, I genuinely needed help.
Review
Plain Green Loans
2
The interest rate is shockingly high, and it feels like taking advantage of individuals facing financial challenges when unexpected expenses arise...
Review
Advance America
4.6
I have never encountered any issues with this company. They consistently deliver funds on time, and the repayment process is straightforward...
Review
Payday Loans

A payday loan is a short-term, high-cost loan that provides borrowers with quick access to cash, usually for a small amount. These loans are typically due on the borrower's next payday, hence the name. Payday loans are often used by individuals who need immediate financial assistance to cover unexpected expenses or emergencies.

Payday loans come with high interest rates and fees, making them an expensive form of credit. Borrowers are usually required to provide proof of income, such as a recent pay stub, and have an active bank account to receive the loan and make repayments. The loan repayment, along with any fees, is typically due in a lump sum on the borrower's next payday, although some lenders may offer installment plans or rollovers in certain situations.

While payday loans can offer a quick solution for short-term financial needs, they can also lead to a cycle of debt if borrowers are unable to repay the loan on time and are forced to take out additional loans or roll over the existing loan. As a result, it is essential to explore other financial options, such as personal loans, credit cards, or borrowing from friends and family, before considering a payday loan.

Payday in the US

Features

  1. Payday loans are typically for smaller sums, with many states implementing restrictions on the loan size. A frequent loan cap is $500, although the limits can vary both above and below this figure.
  2. Generally, a payday loan is paid back in a single installment on the borrower's upcoming payday or when another income source is received, such as a pension or Social Security payment. The loan's due date is usually set two to four weeks from the date it was issued, as specified in the payday loan agreement.
  3. To repay the loan, you typically issue a post-dated check covering the entire balance, including any fees, or grant the lender permission to electronically debit the amount from your bank, credit union, or prepaid card account. If the loan is not repaid on or before the due date, the lender can cash the check or electronically withdraw funds from your account.
  4. Payday lenders generally do not take into account your ability to repay the loan while also managing other financial commitments.
  5. The loan amount can be disbursed in various ways, such as through cash, check, electronic deposit into your account, or by loading it onto a prepaid debit card.
  6. Other aspects of payday loans can differ. For instance, these loans are often designed to be repaid in a single, lump-sum payment. Some states allow lenders to "rollover" or "renew" loans when they become due, enabling the borrower to pay only the fees and extend the loan's due date. In certain cases, payday loans may be structured to allow repayment in installments over an extended period.

Pros and Cons

Pros

Few requirements. Payday loans have very simple requirements that are easily fulfilled. Anyone over the age 18 with a valid ID and a source of income can be eligible.

Easy access. It usually takes time and patience to apply for a traditional loan. Payday loans, however, can be quickly obtained within 1 working day. Most Online platforms and even some stores offer their services 24/7.

No credit check. Payday lenders do not review your credit history. Because of that, hard credit inquiry doesn't occur, meaning that the borrowers do not risk losing several points from their credit score.

No collateral. Payday loan is an unsecured loan, meaning that there is no asset that serves as collateral. Therefore, none of your personal property is at risk of repossession by the payday lender. Though it is common for the lending company to have access to you bank account, which can be a cause of unexpected money withdrawal.

Cons

High interest rate. The average APR of payday loans is exceptionally high. In certain states it can be as much as 700%. Consumer Financial Protection Bureau found that payday lenders typically charge a 10$ to 30$ fee for every 100$ of the loan amount.

Debt trap. Payday lenders offer to roll the loan over into a new loan in case the customer lacks the ability to repay. Starting with two to four weeks of extended repayment period, the borrower can be sent into years of debt cycle, because additional fees are charged.

Legal issues. If you cannot repay the loan for a long time, your payday lender may take measures in order to get the money back. They can send your debt to collections, which will damage your credit history and likely reduce future borrowing options. Or, in a worse scenario, they can take your case to the court and demand punishment for failing to repay the loan. You may end up with your wage garnished or even imprisoned.

No credit score. Payday loans are not typically reported to credit bureaus, therefore, they will not help you build credit (but can damage it instead, as we mentioned before). There is an exception to this rule in some states: a very rare payday loan can be made an installment loan, which may contribute to your credit score. The conditions of such transition are not defined and it is for now unclear how to make such an operation.

How to Apply For a Payday Loan?

Online

Apply for a loan

  1. Research. Conduct a search for reputable online payday loan providers using keywords like "online payday loans," "fast payday loans," or "payday loans online same day." Be cautious, as not all lenders are trustworthy.

  2. Compare. Examine the terms and conditions, interest rates, and fees of various lenders. Watch out for hidden fees or unfavorable terms.

  3. Check reputation. Look for customer reviews and ratings on websites like Trustpilot or the Better Business Bureau (BBB) to ensure the lender has a good reputation.

  4. Verify licensure. Confirm that the lender is licensed and regulated in your state. This information should be available on their website or by contacting your state's financial regulatory agency.

  5. Gather necessary information. Prepare the required documents and information, which may include your personal details (e.g., name, address, Social Security number), proof of income (e.g., pay stubs, bank statements), and bank account information.

  6. Apply. Visit the lender's website and fill out the online application form with the required information. Some lenders may have a mobile app or require you to create an account before applying.

  7. Review and sign. If your application is approved, carefully review the loan agreement before signing. Make sure you understand the repayment terms, interest rates, and any associated fees.

  8. Receive funds. After signing the agreement, the lender should deposit the funds into your bank account, often on the same day or the next business day.

Offline

Apply for a loan

  1. Research local payday loan providers, comparing terms, interest rates, and fees.
  2. Ensure the lender has a good reputation and is licensed in your state.
  3. Prepare necessary documents, including personal details, proof of income, and bank account information.
  4. Visit the payday loan store with the required documents.
  5. Fill out the paper application form provided by the lender.
  6. Review and sign the loan agreement if your application is approved.
  7. Receive the loan amount in cash or by check from the lender.
  8. Repay the loan according to the agreed-upon terms to avoid additional fees or penalties.

Requirements

  1. Age. You must be at least 18 years old (or the age of majority in your state) to apply for a payday loan.

  2. Proof of income. Lenders typically require borrowers to provide proof of a steady source of income, such as a pay stub, bank statement, or another form of documentation that shows regular earnings.

  3. Valid identification. You'll need to present a valid government-issued ID (e.g., driver's license, state ID, or passport) to verify your identity.

  4. Active checking account. Payday lenders often require borrowers to have an active checking account in good standing. This is because the loan funds are typically deposited directly into your account, and the lender may require access to your account for automatic repayments.

  5. Contact information. Lenders will request your phone number, email address, and sometimes a physical address to stay in touch throughout the loan process.

  6. Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Lenders may ask for your SSN or ITIN to verify your identity and credit history.

  7. Credit check. Some payday lenders may perform a soft credit check to assess your credit history, but this is not always required, as payday loans are often designed for those with poor or no credit.

Ways to Get a Payday Loan

  1. Direct deposit. Many payday lenders offer direct deposit into your bank account. After your loan application is approved, the lender will transfer the funds directly to your account, typically within one business day. This method is especially common for online payday loans.

  2. Cash. If you apply for a payday loan at a storefront location, you may have the option to receive the loan amount in cash. Once your application is approved and you sign the loan agreement, the lender will provide you with the cash on the spot.

  3. Prepaid debit card. Some payday lenders offer the option to load the loan amount onto a prepaid debit card. You can use this card to make purchases, pay bills, or withdraw cash from an ATM. Some lenders may also allow you to reload the card for future loans.

  4. Check. In some cases, payday lenders may issue a paper check for the loan amount. You can then cash or deposit the check at your bank or a check-cashing service.

Payday Loan Rates

PDL Rates in U.S

It's important to note that payday loan rates and regulations vary greatly by state, and some states have banned payday loans altogether. The rates listed below are the maximum allowed, and actual rates may be lower in some cases.

  1. Alabama - 456.25% APR (1.25% per day)
  2. Alaska - 435.50% APR (1.19% per day)
  3. Arizona - Payday loans are prohibited
  4. Arkansas - Payday loans are prohibited
  5. California - 460% APR (1.26% per day)
  6. Colorado - 214% APR (0.59% per day)
  7. Connecticut - Payday loans are prohibited
  8. Delaware - No limit on APR
  9. Florida - 304% APR (0.83% per day)
  10. Georgia - Payday loans are prohibited
  11. Hawaii - 459% APR (1.26% per day)
  12. Idaho - No limit on APR
  13. Illinois - 404% APR (1.11% per day)
  14. Indiana - 391% APR (1.07% per day)
  15. Iowa - 337% APR (0.92% per day)
  16. Kansas - 391% APR (1.07% per day)
  17. Kentucky - 460% APR (1.26% per day)
  18. Louisiana - 391% APR (1.07% per day)
  19. Maine - 261% APR (0.72% per day)
  20. Maryland - Payday loans are prohibited
  21. Massachusetts - Payday loans are prohibited
  22. Michigan - 369% APR (1.01% per day)
  23. Minnesota - 391% APR (1.07% per day)
  24. Mississippi - 521% APR (1.43% per day)
  25. Missouri - 445% APR (1.22% per day)
  26. Montana - 36% APR (per day)
  27. Nebraska - 404% APR (1.11% per day)
  28. Nevada - No limit on APR
  29. New Hampshire - 36% APR (0.1% per day)
  30. New Jersey - Payday loans are prohibited
  31. New Mexico - 175% APR (0.48% per day)
  32. New York - Payday loans are prohibited
  33. North Carolina - Payday loans are prohibited
  34. North Dakota - 487.56% APR (1.34% per day)
  35. Ohio - 28% APR (0.08% per day)
  36. Oklahoma - 391% APR (1.07% per day)
  37. Oregon - 153.73% APR (0.42% per day)
  38. Pennsylvania - Payday loans are prohibited
  39. Rhode Island - 260% APR (0.71% per day)
  40. South Carolina - 391% APR (1.07% per day)
  41. South Dakota - 36% APR (0.1% per day)
  42. Tennessee - 459% APR (1.26% per day)
  43. Texas - No limit on APR
  44. Utah - No limit on APR
  45. Vermont - Payday loans are prohibited
  46. Virginia - 36% APR + fees (0.1% per day)
  47. Washington - 391% APR (1.07% per day)
  48. West Virginia - Payday loans are prohibited
  49. Wisconsin - No limit on APR
  50. Wyoming - 261% APR (0.72% per day)

Example payday loan 300$ - 10 days APR 300%

To calculate the interest and total cost of a payday loan, you can use the following formula or PDL calculator:

Interest = Principal x (APR / 365) x Loan Duration (in days)

Let's calculate the interest for a $300 payday loan with a 10-day term and a 300% APR:

Interest = $300 x (300% / 365) x 10

First, convert the APR to a decimal by dividing it by 100:

300% ÷ 100 = 3

Now, divide the APR by 365:

3 ÷ 365 ≈ 0.008219

Next, multiply the principal by the daily interest rate and the loan duration:

$300 x 0.008219 x 10 ≈ $24.66

So, the interest for this 10-day payday loan is approximately $24.66. To calculate the total cost of the loan, add the interest to the principal:

Total Cost = Principal + Interest

Total Cost = $300 + $24.66 ≈ $324.66

In this example, you would need to repay approximately $324.66 for a $300 payday loan with a 10-day term and a 300% APR. Keep in mind that other fees, such as loan origination fees, may also apply, which would increase the total cost of the loan.

The Real Cost of a Payday Loan in the US

Payday loan alternatives usually have monthly interest charges, which come in the percentage of the initial loan amount. The case of payday advances is different, because most payday lenders charge fixed fees 0f 10$ to 30$ per each 100$. Such fees can add up to 400% APR on average.

In Texas, for example, lenders tend to charge 20$ per 100$. If you take out a 600$ loan for 14 days, it will cost you 120$ to borrow this amount of money. The annual percentage rate would be more than 500%.

You will pay 120$ if you mange to find the money in the given time period. The chances are high, however, that you would need to extend it. A report by Pew Charitable Trusts states that it usually takes 5 months to pay back a 300$ dollars loan, let alone 600$.

Practically, it is important to consider safer loan alternatives and/or money making methods. For instance, personal loans with an average 30% APR will cost you roughly 4 times less and will typically have at least 3 month long loan term.

Alternatives to Payday Loans

  1. Payday Alternative Loans (PALs). These are loans offered by many credit unions as more affordable alternatives to payday loans. PALs generally offer lower interest rates and longer repayment terms, making them a more budget-friendly option.

  2. Personal Loans. A personal loan can be a viable alternative to a payday loan, especially if you have a good credit score. Personal loans often offer lower interest rates and can be repaid over several months or years, depending on the terms.

  3. 0 Percent APR Credit Card. Some credit cards offer an introductory period with 0% APR. If you can pay off the balance before this period ends, this can be a cost-effective way to handle unexpected expenses.

  4. Home Equity Loan or Home Equity Line of Credit (HELOC). If you own your home and have some equity in it, you could consider a home equity loan or a HELOC. These options generally offer lower interest rates compared to payday loans, but remember your home is used as collateral.

How to Repay a Payday Loan Debt?

  1. Personal check. Writing a post dated check to take out a payday loan is a common practice. It often serves to "secure" a loan and is redeemed only in case of no payment from the borrower. Sometimes, though, the agreement with the lender can include checks as a main payment method.
  2. Automated Clearing House authorization. ACH authorization allows the lender to withdraw the money of the loan and additional fees electronically from your bank account. Alternative options for withdrawal are prepaid card account or credit union account.
  3. With cash. If your payday lender operates a traditional retail store and you filled out the application at the office, you might need to come to the location and pay off your loan with cash.

According to Consumer Federation of America, there are three types of states based on how they regulate payday lending: legal, partially legal and illegal.

Legal

There are 32 states that allow high interest payday lending: Alabama, Alaska, California, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oklahoma, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, and Wyoming.

The legal grounds are, however, quite dubious. Some states cannot handle state law loopholes that make payday lending possible and other fail to regulate interest rates. For instance, in 2008 in Ohio a vote resulted in capping rates. But the payday business found state laws that authorize lending and simply switched to them.

Editoral Opinion

Payday loans offer a tempting quick fix for those in financial straits, providing immediate access to funds with few requirements. Typically, these loans cater to small amounts due on the borrower's next payday, with the convenience of easy access online or in stores. However, the dark side of payday loans cannot be overlooked. They come with exorbitant interest rates, often reaching as high as 700% in some states, leading to a perilous debt trap for borrowers. The cycle begins when repayment becomes unmanageable within the original term, forcing borrowers to roll over the loan or take out new loans to cover the old ones, plunging them further into debt.

Important

Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

How to Choose a Lender

  1. Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.

  2. Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.

  3. Carefully review all the terms and conditions of your payday loan contract.

  4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

  5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

  6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Methodology

At Finanso, we've carried out a comprehensive analysis of over 100 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

Sources

FAQ

Can I get a cash advance online?

If you are a credit card holder, you can get a cash advance almost immediately. Other options are payday loan companies and other unsecured personal loans.

How can I make money right now?

You can take out a personal loan (they have lower APR) from a credit union, a bank, a peer-to-peer lender or another financial institution. Or self-handle it by borrowing money from your family/ friends and getting a part-time job.

How do you get approved for a cash advance?

To get a cash advance (payday loan), you need to be an adult with a steady source of income and an active bank account.

Why are payday loans APR so high?

The APR for payday loans is high because it is calculated for a year, and a loan duration typically lasts several weeks.