Payday Loans in Illinois

Payday Loans
Explore our list of payday loan providers in Illinois. Whether you're looking for $255 payday loans online, same-day options, or no credit check loans in IL, we provide detailed information to assist your decision. Learn about the regulations, limits, and most reliable online payday loans in Illinois.
Offers: 5
Updated:
11.06.2024
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100.00 – 20000.00 $
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Interest rate

from 0.05 %
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Loan term for the financial product

5 days – 3 months
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3.09
(20 Ratings)
Recommended FinScore™
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Interest rate

from 4.00 %
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Loan term for the financial product

to 1 months
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4.06
(20 Ratings)
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50.00 – 1500.00 $
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Interest rate

208.04 – 782.14 %
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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)
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$100-$500
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Interest rate

up to 482.32%
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Loan term for the financial product

up to 14 days
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3.23
(41 Ratings)
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100.00 – 445.00 $
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Interest rate

to 0.92 %
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Loan term for the financial product

to 24 days

A payday loan is a short-term, high-interest loan that is typically due on the borrower's next payday. In Illinois, payday loans are governed by the Payday Loan Reform Act, enacted in 2011 to provide greater consumer protection.

Under Illinois law, payday loans cannot exceed $1,000 or 25% of the borrower's gross monthly income, whichever is less. The loan term must be between 13 and 45 days, and lenders are allowed to charge interest rates of up to $15.50 per $100 borrowed.

In addition, Illinois law requires payday lenders to be licensed and regulated by the Department of Financial and Professional Regulation and to provide borrowers with certain disclosures and protections. For example, lenders must provide borrowers with a written agreement outlining the loan terms and conditions, including the interest rate, fees, and repayment schedule. Lenders are also prohibited from rolling over loans or making multiple loans to the same borrower at the same time.

Payday Loans in Illinois

What is the Payday Loan Limit in Illinois?

In Illinois, the maximum payday loan amount is $1,000 or 25% of the borrower's gross monthly income, whichever is less. For example, if a borrower earns a gross monthly income of $4,000, the maximum payday loan they could take out would be $1,000. If the borrower's gross monthly income is only $800, the maximum payday loan they could take out would be $200.

It's important to note that the payday loan limit in Illinois applies to the total amount of all outstanding payday loans a borrower has, not just one loan. This means that if a borrower already has an outstanding payday loan for $500, for example, they would only be able to take out another loan for up to $500 (or less, depending on their income).

The payday loan limit in Illinois is designed to protect consumers from excessive debt and ensure that they can afford to repay their loans. However, it's important to remember that payday loans are expensive and should only be used as a last resort. If you are struggling with debt, exploring alternative options such as credit counseling or a personal loan with a lower interest rate may be helpful.

How To Borrow a Payday Loan in Illinois?

Apply for a loan

  1. Find a licensed payday lender. First, research and find a licensed payday lender in Illinois. You can search for licensed lenders online or ask for recommendations from friends or family members who may have used payday lenders before.
  2. Check the lender's requirements. Each payday lender may have different requirements, such as proof of income, a checking account, or a valid ID. Make sure you meet the lender's requirements before applying for a loan.
  3. Fill out the application. Once you have found a lender and verified their requirements, fill out the loan application. This may be done in person at a storefront or online.
  4. Provide necessary documentation. You may need to provide documents such as proof of income or a bank statement to support your loan application.
  5. Review the loan agreement. Carefully review the loan agreement, which should include the loan amount, interest rate, fees, and repayment terms.
  6. Sign the agreement. If you agree to the terms of the loan, sign the loan agreement and provide any additional information requested by the lender.
  7. Receive the funds. If your loan application is approved, the lender will typically provide the funds to you by depositing the money into your checking account or by providing you with cash.

Pros and Cons

Pros

Easy to obtain. Payday loans are easy to obtain since they usually have minimal requirements and do not require a credit check.

Quick funding. Payday loans can provide fast funding, with some lenders offering same-day or next-day funding.

Convenient. Payday loans are available online or in storefront locations, making them convenient to obtain.

Can be used for emergencies. Payday loans can be helpful for unexpected expenses or emergencies, such as medical bills or car repairs.

Cons

High-interest rates. Payday loans are known for their high rates, ranging from up to 433% APR, making them an expensive form of credit.

Short repayment terms. Payday loans must typically be repaid within two weeks to a month, which can be challenging for some borrowers who may not have the funds available to repay the loan on time.

Can lead to a debt cycle. Due to the high-interest rates and short repayment terms, some borrowers may get trapped in a cycle of debt, where they continually take out new loans to pay off the old ones.

Predatory lending practices. Some payday lenders engage in predatory practices, such as offering loans to borrowers who cannot afford to repay them or rolling over loans, which can increase the total cost of the loan.

Requirements

  1. Age. You must be at least 18 years old to qualify for a payday loan in Illinois.
  2. Income. You must have a verifiable source of income, such as a job or government benefits. Some lenders may require that you have been employed for a certain period of time.
  3. Bank account. You must have an active checking account in your name. Some lenders may require a minimum balance or a certain length of time that the account has been open.
  4. Identification. You must provide a valid government-issued ID, such as a driver's license or passport.
  5. Contact information. You must provide a valid phone number and email address so the lender can contact you.
  6. Social Security Number. You will need to provide a Social Security number or Individual Taxpayer Identification Number (ITIN) for identity verification purposes.

Rates

In Illinois, payday lenders are allowed to charge up to $15.50 per $100 borrowed on a payday loan. This means that if you borrow $100, you will be required to pay back $115.50 on your next payday. The total amount repaid for a $500 loan would be $577.50, assuming a 14-day loan term.

However, it's important to remember that payday loans are a high-cost form of credit due to their short repayment terms and high-interest rates. The Annual Percentage Rate (APR) on payday loans in Illinois can be up to 433%, depending on the lender and loan terms.

In addition to the interest rate, payday lenders in Illinois may also charge fees for loan origination, loan processing, and late payment. These fees can add up quickly and increase the total cost of the loan.

Lenders in 

  • Tower Loan is an online lender that offers payday loans in Illinois. They offer an online application process and claim to provide fast funding.
  • FaaastCash is an online lender that specializes in short-term loans, including payday loans. They offer an online application process and may be able to provide funding within 24 hours.
  • Illinois Lending is a lender with storefront locations throughout Illinois. They offer payday loans, installment loans, and other financial products. Borrowers can apply for a loan in person at one of their locations.
  • Advance Paycheck is a lender with several storefront locations in Illinois. They specialize in payday loans and offer loan amounts up to $2,000. Borrowers can apply for a loan in person at one of their locations.
  • Payday Loan Store is a lender with several storefront locations in Illinois. They offer payday loans, installment loans, and other financial products. Borrowers can apply for a loan in person at one of their locations.
  • Check Into Cash is a reliable and trustworthy financial service provider, offering a broad range of lending options to meet your immediate cash needs. They specialize in quick payday loans, title loans, installment loans, and lines of credit. With an easy-to-use online platform and dedicated customer service, we ensure a fast and hassle-free borrowing experience. Their commitment to transparency guarantees clear terms and no hidden fees
  • Mariner Finance is a well-established financial institution offering personal loans that range from $1,000 to $25,000. The application process is convenient and efficient, as borrowers can apply online and typically receive a response on the same business day. With a rich history dating back to 1927, Mariner Finance has built a strong reputation in the lending industry. They have an extensive presence with over 480 branches spread across 28 states, ensuring accessibility and personalized service for customers nationwide.

Alternatives

  1. Personal loans. They are typically available through banks, credit unions, and online lenders. These loans may offer more favorable interest rates and terms than payday loans, making them a more affordable option for borrowing money.
  2. Credit cards. While credit cards can come with high-interest rates, they may be a better option than payday loans if you can pay off the balance in full each month.
  3. Emergency assistance programs. Many organizations offer emergency assistance programs that can help with expenses such as rent, utilities, and medical bills.
  4. Side hustles. Consider earning extra income through part-time work, freelance gigs, or selling items online to help cover unexpected expenses.

Payday loans are legal in Illinois, but they are regulated by the llinois Department of Financial and Professional Regulation. Here are some of the regulations that apply to payday lenders in Illinois:

  1. Maximum loan amount. The maximum amount that a borrower can take out in a payday loan in Illinois is $1,000 or 25% of the borrower's gross monthly income, whichever is less.
  2. Loan term. Payday loans in Illinois must be repaid within 13 to 45 days of the loan being issued.
  3. Interest rates and fees. Illinois lenders can charge up to $15.50 per $100 borrowed on a payday loan. They may also charge fees for loan origination, loan processing, and late payment.
  4. Cooling-off period. If a borrower has taken out a payday loan in Illinois for 45 consecutive days, the lender must allow the borrower to enter into a repayment plan for the loan.
  5. Rollovers. Payday lenders in Illinois are not allowed to roll over or extend a payday loan beyond 45 days. Lenders are also prohibited from issuing a new payday loan to a borrower with an outstanding balance.
  6. License requirements. Payday lenders in Illinois must be licensed by the State of Illinois Department of Financial and Professional Regulation to operate in the state.

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.

Other Loans

FAQ

Are online payday loans legal in Illinois?

Yes, online payday loans are legal in Illinois, but they are subject to the same regulations as traditional payday loans. This means that online payday lenders in Illinois must comply with the maximum loan amount, loan term, interest rates and fees, cooling-off period, rollover, and license requirements that apply to all payday lenders in the state.

Additionally, online payday lenders must be licensed by the State of Illinois Department of Financial and Professional Regulation to operate in the state. The department regulates both online and traditional payday lenders to ensure that they are operating in compliance with state and federal regulations.

It's important to note that while online payday loans may be convenient and easy to obtain, they can also be expensive due to their high-interest rates and short repayment terms. If you are considering taking out an online payday loan, make sure you understand the total cost of the loan and plan to repay it on time.

How many payday loans can you get in Illinois?

In Illinois, borrowers are limited to one outstanding payday loan at a time. This means that you cannot have more than one payday loan from the same or different lenders at the same time.

Additionally, there are limits to the total amount that a borrower can take out in payday loans in Illinois. The maximum amount that a borrower can take out through a payday loan in Illinois is $1,000 or 25% of the borrower's gross monthly income, whichever is less.

It's important to carefully consider the total cost of the loan and your ability to repay it before taking out a payday loan. Taking out multiple payday loans or borrowing more than you can afford to repay can lead to a cycle of debt and financial hardship. If you are struggling with debt, consider reaching out to a nonprofit credit counseling agency for assistance.

What do you need for a payday loan in Illinois?

To apply for a payday loan in Illinois, you will typically need to provide the following information:

  1. Identification: You will need to provide a valid government-issued ID, such as a driver's license or passport.
  2. Social Security Number: You will have to provide a Social Security number or Individual Taxpayer Identification Number (ITIN) for identity verification purposes.
  3. Proof of income: You will have to provide proof of a verifiable source of income, such as a pay stub or bank statement.
  4. Bank account information: You will have to provide your bank account number and routing number. Some lenders may require a minimum balance or a certain length of time that the account has been open.
  5. Contact information: You must provide a valid phone number and email address, so the lender can contact you.

It's important to note that payday lenders may have additional requirements beyond these basic requirements. Additionally, each lender may have their own underwriting criteria, including credit checks or income verification.

Before applying for a payday loan, make sure you understand the lender's requirements and the terms of the loan. Remember that payday loans are a high-cost form of credit and should only be used as a last resort.

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