Payday Loans in Kentucky

Payday Loans
Explore our list of payday loan providers in Kentucky. Whether you're looking for $255 payday loans online, same-day options, or no credit check loans in KY, we provide detailed information to assist your decision. Learn about the regulations, limits, and most reliable online payday loans in Kentucky.
Offers: 5
Updated:
11.06.2024
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100.00 – 20000.00 $
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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)
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from 4.00 %
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Loan term for the financial product

to 1 months
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Recommended FinScore™
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100.00 – 1000.00 $
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Loan term for the financial product

1 days – 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

In Kentucky, a payday loan is a type of short-term loan that is typically taken out by borrowers who need quick access to cash to cover unexpected expenses or emergencies. Payday loans are generally for small amounts, ranging from $100 to $500, and are intended to be repaid within a short period of time, usually on the borrower's next payday.

To obtain a payday loan in Kentucky, a borrower typically needs to provide proof of income and a post-dated check or electronic access to their bank account. The lender will then provide the borrower with the loan amount minus any fees or interest charges. On the due date, the lender will either cash the borrower's check or withdraw the funds from their bank account to repay the loan.

Payday Loans in Kentucky

What is the Payday Loan Limit in Kentucky?

In Kentucky, the maximum amount that a borrower can take out a payday loan is $500. Payday loans in Kentucky are also subject to certain regulations to protect borrowers from excessive fees and interest rates.

Under Kentucky law, lenders are allowed to charge up to $15 per $100 borrowed as a finance charge. This means that for a $500 payday loan, the finance charge could be up to $75. Additionally, lenders are not allowed to charge more than $1 in verification fees per loan.

Kentucky law also requires that payday loans be limited to a maximum term of 60 days, and borrowers are not allowed to roll over or renew a payday loan more than three times.

How to Borrow a Payday Loan in Kentucky?

Apply for a loan

  1. Find a lender. There are many payday lenders in Kentucky, both online and in-person. It's important to choose a reputable lender that is licensed to operate in the state and offers reasonable fees and interest rates.
  2. Apply for the loan. To apply for a payday loan, you'll typically provide basic information, such as your name, address, and employment details. You'll also need to provide proof of income, such as a pay stub and a post-dated check or electronic access to your bank account.
  3. Wait for approval. Once you've submitted your application form, the lender will review it and decide whether to approve or deny your loan. If you're approved, the lender will provide you with the loan amount, minus any fees or interest charges.
  4. Repay the loan. On the due date, the lender will either cash your post-dated check or withdraw the funds from your bank account to repay the loan. If you cannot repay the loan on time, you may be subject to additional fees and interest charges.

Pros and Cons

Pros

Easy to access. Payday loans in Kentucky are relatively easy to access, and the application process is typically quick and straightforward.

No credit check is required. Payday lenders in Kentucky typically do not perform a credit check when reviewing loan applications, which can be helpful for borrowers who have poor credit or no credit history.

Quick funding. If you're approved for a payday loan in Kentucky, you can usually receive the funds within one business day.

Cons

High interest rates and fees. Payday loans in Kentucky are typically very expensive, with interest rates and fees that can add up quickly. This can lead to a debt cycle if borrowers are unable to repay the loan on time.

Short repayment terms. Payday loans in Kentucky are typically due within a few weeks or months, which can make them difficult to repay for some borrowers.

Risk of predatory lending. Some payday lenders in Kentucky may be predatory lenders. They offer loans with excessively high interest rates or fees.

Risk of overdraft or bank account closure. If you're unable to repay a payday loan in Kentucky, the lender may attempt to withdraw the funds from your bank account. If you don't have sufficient funds, you may be charged overdraft fees or even have your bank account closed.

Requirements

  1. Age. You should be at least 18 years old to apply for a payday loan in Kentucky.
  2. Residency. You must be a Kentucky resident to be eligible for a payday loan in the state.
  3. Income. You must have a stable source of income, such as a job, and be able to provide proof of income to the lender.
  4. Bank account. You must have a valid bank account in your name to be eligible for a payday loan in Kentucky.
  5. Identification. You must have a valid government-issued ID, such as a driver's license or passport, to apply for a payday loan in Kentucky.

    Interest Rates

    In Kentucky, the maximum interest rate that payday lenders can charge is $15 per $100 borrowed. This means that if you borrow $500, the maximum finance charge you can be charged is $75. 

    The annual percentage rate (APR) on a payday loan in Kentucky can vary depending on the loan amount and term but can range from 391% to 459%.

    The high interest rates and fees on payday loans in Kentucky can make them very expensive. Carefully consider the costs and risks associated with payday loans and make sure they can afford to repay the loan on time.

    Online Lenders

    There are many online payday lenders that operate in Kentucky. However, not all online lenders are licensed to operate in the state. Before applying for a payday loan with an online lender, make sure they are licensed to operate in Kentucky by checking with the Kentucky Department of Financial Institutions.

    • Check Into Cash is a national payday lender that offers online loans to borrowers in Kentucky. They offer loan amounts ranging from $50 to $500, with repayment terms ranging from 14 days to 31 days.
    • Advance America. Advance America is an online lender, but it also has 24 locations in Kentucky where you can apply for a payday loan. They offer loan amounts ranging from $50 to $500, with repayment terms ranging from 14 days to 31 days.

    Non-online Lenders

    • Bluegrass Check Advance and Payday Loans has 8 locations in Kentucky where you can apply for a payday loan in person. They offer loan amounts ranging from $50 to $500, with repayment terms ranging from 14 days to 31 days.
    • Ace Cash Express has over 20 locations in Kentucky where you can apply for a payday loan in person. They offer loan amounts ranging from $100 to $500, with repayment terms ranging from 14 days to 30 days.
    • CheckSmart has 15 locations in Kentucky where you can apply for a payday loan in person. They offer loan amounts ranging from $100 to $500, with repayment terms ranging from 14 days to 30 days.
    • Quick Cash has over 20 locations in Kentucky where you can apply for a payday loan in person. They offer loan amounts ranging from $100 to $500, with repayment terms ranging from 14 days to 30 days.

    Alternatives

    1. Personal installment loans. They are typically offered by banks, credit unions, and online lenders. These loans allow you to borrow a fixed amount of money and repay it in installments over a period of months or years. Interest rates on personal installment loans are generally lower than those on payday loans, making them a more affordable option.
    2. Credit cards. If you have a credit card, you may be able to use it to cover unexpected expenses. While credit cards often come with high interest rates, they may be a more affordable option than payday loans if you can pay off the balance quickly.
    3. Local community resources. Many communities in Kentucky have resources available to help people in need. These resources may include food banks, emergency financial assistance programs, and other services that can help you cover unexpected expenses.

      In Kentucky, payday loans are subject to ‌Statute Ann. 286.9-010 et seq. The loan providers should be officially licensed as check cashers. 

      1. Loan limits. Payday loans in Kentucky cannot exceed $500, and borrowers may not have more than two payday loans at a time.
      2. Repayment terms: Payday loans in Kentucky must have a minimum repayment term of 14 days and a maximum repayment term of 60 days.
      3. Fees and charges. Kentucky law allows payday lenders to charge fees of up to $15 per $100 borrowed. This means that if you borrow $500, you may be charged up to $75 in fees. Lenders may also charge interest on the loan, but this is capped at a maximum APR of 459%.
      4. Cooling-off period. After taking out two consecutive payday loans, borrowers in Kentucky don't need to wait before taking out another loan.
      5. Collection practices. Kentucky law prohibits payday lenders from using abusive or harassing collection practices, including making threats or using deceptive practices to try to collect on a loan.

        If you have a problem with a payday lender in Kentucky, you can file a complaint with the Kentucky Department of Financial Institutions, which regulates payday lending in the state. It's also a good idea to consult with a consumer protection attorney if you believe that a payday lender has violated your rights under Kentucky law.

        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 Kentucky?

        Online payday loans are legal in Kentucky, but the same laws and regulations that apply to brick-and-mortar payday lenders also apply to online lenders. This means that online payday lenders must be licensed by the Kentucky Department of Financial Institutions and must comply with all state laws regarding loan limits, repayment terms, fees and charges, and collection practices.

        How many payday loans can I get in Kentucky?

        In Kentucky, you may not have more than two outstanding payday loans at any given time. This means that if you already have two payday loans, you cannot take out another loan until at least one of your existing loans has been repaid.

        What do I need for a payday loan in Kentucky?

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

        • Identification. You will need to provide a government-issued ID, like a driver's license or passport, to verify your identity.
        • Proof of income. You will need to provide proof of income, such as pay stubs or bank statements, to show that you have a source of income that can be used to pay off the loan.
        • Bank account information. You will need to provide information about your bank account, including the routing and account numbers so that the lender can deposit the loan funds directly into your account and withdraw payments on the due date.
        • Contact information. You will need to provide your contact information, including your phone number and email address so that the lender can communicate with you about the loan.

        The specific requirements for a payday loan may vary depending on the lender, and some lenders may require additional documentation or information. Before applying for a payday loan, it's important to carefully review the lender's requirements and make sure that you understand the terms and fees associated with the loan.