Payday Loans in Ohio

Payday Loans
Explore our list of payday loan providers in Ohio. Whether you're looking for $255 payday loans online, same-day options, or no credit check loans in OH, we provide detailed information to assist your decision. Learn about the regulations, limits, and most reliable online payday loans in Ohio.
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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4.06
(20 Ratings)
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50.00 – 1500.00 $
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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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to 0.92 %
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to 24 days

In Ohio, payday loans are also known as cash advance loans, and the Ohio Short-Term Loan Act governs them. These loans are designed to help people who need cash quickly to cover unexpected expenses or emergencies, such as car repairs or medical bills.

To qualify for a payday loan in Ohio, the borrower must be at least 18 years old, have a regular source of income, and have an active checking account. The loan amount can range up to $1,000, and the repayment term is typically between three months and one year.

However, payday loans in Ohio come with high-interest rates and fees, which can make them costly. For example, a borrower may have to pay $15 for every $100 borrowed, which means they would need to repay $115 on their next payday for a $100 loan.

Payday Loans in Ohio

What is the Payday Loan Limit in Ohio?

In Ohio, the payday loan limit is $1,000. The Ohio Short-Term Loan Act restricts payday lenders from issuing loans that exceed $1,000 or have a term longer than 12 months. The law also limits the total amount of outstanding loans a borrower can have at any one time to $2,500. Additionally, the interest rate on payday loans in Ohio is capped at 28% APR, and lenders are not allowed to charge any additional fees or charges beyond that rate. It's important to note that payday loans can be a costly form of credit, and borrowers should carefully consider their options before taking out a payday loan.

How To Borrow a Payday Loan in Ohio?

Apply for a loan

  1. Find a reputable payday lender. There are many payday lenders in Ohio, but not all of them are trustworthy. Look for lenders that are licensed and regulated by the Ohio Department of Commerce.
  2. Meet the eligibility requirements. Payday lenders in Ohio typically require borrowers to be at least 18 years old, have a valid government-issued ID, and provide proof of income.
  3. Apply for the loan. You can apply for a payday loan online or in person at a payday lender's physical location. You will need to provide personal and financial information, including your name, address, employment information, and bank account details.
  4. Receive a loan decision. Payday lenders in Ohio typically make loan decisions quickly, often within minutes. If you are approved for a loan, the lender will provide you with a loan agreement that outlines the terms and conditions of the loan.
  5. Receive the funds. If you agree to the loan terms, the lender will typically deposit the funds into your bank account within one business day.

Pros and Cons

Pros

Rapid cash. One of the most significant advantages of payday loans is their quick accessibility to funds. Borrowers can typically receive their loan proceeds on the same day or within one business day.

Simple application process. Payday loans often have a straightforward and convenient application process. Borrowers can apply for the loan online or in person; the approval process is usually quick.

No credit check required. Payday lenders usually don't conduct a credit check during the loan approval process. This can be useful for individuals with poor credit or no credit history.

Cons

High-interest rates and fees. Payday loans come with significant interest rates and fees. In Ohio, payday lenders can charge up to 28% APR, which can result in borrowers owing more than three times the loan amount when fees and interest are considered. The real APR is 390%.

Short repayment terms. Payday loans often have short repayment terms, typically ranging from two weeks to one month. This can be challenging for borrowers who are already struggling financially.

Risk of debt trap. Payday loans can trap borrowers in a cycle of debt if they are unable to repay the loan on time. Additional fees, interest, and penalties can add up quickly, making it even harder for borrowers to pay off the loan.

Requirements

  1. Age. Borrowers must be 18 years or older to be eligible for a payday loan in Ohio.
  2. Residency. Payday lenders in Ohio typically require borrowers to be residents of the state.
  3. Valid government-issued ID. Borrowers must have a valid ID, such as a driver's license or state ID.
  4. Proof of income. Borrowers must provide proof of income, such as a pay stub or bank statement, to demonstrate their ability to repay the loan.
  5. Active checking account. Most payday lenders require borrowers to have an active checking account to deposit loan funds and withdraw repayments.
  6. Not be in bankruptcy. Borrowers who are currently in bankruptcy are not eligible for payday loans in Ohio.
  7. Not have outstanding payday loans. Ohio law limits the total amount of outstanding payday loans a borrower can have at any one time to $2,500.

Rates

In Ohio, payday lenders are limited to charging a maximum annual percentage rate (APR) of 28% on payday loans. This means that a borrower who takes out a $100 payday loan for two weeks would pay a maximum of $1.08 in interest and fees for a 14-day loan.

However, it's essential to note that payday loans can be costly, even at the maximum rate of 28% APR. The short repayment term of payday loans can result in high fees and interest charges if the loan is not paid back on time. For example, a borrower who takes out a $500 payday loan with a 28% APR and repays it in full after two weeks would pay $14 in interest and fees.

Additionally, some payday lenders in Ohio may charge additional fees, such as loan origination fees or late payment fees. It's essential to read the loan agreement carefully and understand all the fees and charges associated with the loan before accepting it.

Borrowers should also consider alternative sources of credit, such as personal loans from banks or credit unions, which may have lower interest rates and fees. Payday loans should only be used as a last resort after considering all other options.

Lenders in Ohio

  • RISE Credit is an online lender offering Ohio payday loans. They claim to offer fast funding and have a simple application process. However, they do have relatively high-interest rates and fees.
  • Lendly is an online lender offering payday and short-term loans in Ohio. They offer a fast and easy application process, but borrowers should know their high-interest rates and fees.
  • Possible Finance is a financial technology company that offers payday loans and installment loans in Ohio. They offer a mobile app for loan applications and claim to provide quick funding. However, borrowers should review the loan terms and fees carefully.
  • Advance America is a national chain of physical storefront lenders that offers payday loans and other financial products in Ohio. They have multiple locations throughout the state and offer flexible repayment terms. However, borrowers should review the loan terms and fees carefully.

Alternatives

  1. Personal loans. Personal loans from banks, credit unions, or online lenders can be a good alternative to payday loans. Personal loans often have lower interest rates and longer repayment terms than payday loans, making them more manageable for borrowers.
  2. Credit cards. If you have a credit card with available credit, using it for emergency expenses can be a better option than a payday loan. Credit cards typically have lower interest rates than payday loans and longer repayment terms.
  3. Installment loans. These are another type of short-term loan that can be an alternative to payday loans. These loans have longer repayment terms and lower interest rates than payday loans, making them easier to repay.
  4. Emergency assistance programs. Many community organizations and charities offer emergency assistance programs that can help with rent, utility bills, and other expenses. These programs are often free or low-cost and can be better than a payday loan.
  1. Maximum loan amount. Payday loans in Ohio are limited to a maximum of $1,000 per loan.
  2. Maximum loan term. Payday loans must have a loan term of at least 91 days and cannot exceed one year.
  3. Maximum interest rate. Payday lenders are limited to charging a maximum annual percentage rate (APR) of 28% on payday loans.
  4. Loan limits. Ohio law limits the total amount of outstanding payday loans a borrower can have at any one time to $2,500.
  5. Payment plans. Ohio law requires payday lenders to offer a repayment plan to borrowers who have taken out three or more loans in a two-month period. The repayment plan must be at least four payments over a period of no less than 60 days.

It's important to note that the state must license payday lenders operating in Ohio. Borrowers should also be aware of their rights under Ohio law, including the right to rescind the loan within 72 hours without penalty. Before accepting a payday loan, borrowers should carefully review the loan agreement and all associated fees and charges.

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 Ohio?

Yes, online payday loans are legal in Ohio but are subject to the same regulations and restrictions as in-person payday loans. Online payday lenders operating in Ohio must comply with the Ohio Short-Term Loan Act and be licensed to operate in the state.

The Ohio Short-Term Loan Act applies to all payday loans offered in Ohio, whether offered online or in person. This means that online payday lenders must follow the same regulations as physical storefront lenders in Ohio.

Some online payday lenders may also be licensed to operate in multiple states, but borrowers should ensure that the lender is licensed to operate in Ohio specifically. It's also important to carefully review the loan terms and fees associated with online payday loans and ensure that they comply with Ohio law.

Borrowers should exercise caution when considering online payday loans, as there are many predatory lenders operating online. It's important to do your research and choose a reputable lender that follows all applicable state and federal regulations.

How many payday loans can you get in Ohio?

In Ohio, borrowers are limited to having only one payday loan at a time and a maximum of four payday loans per year. This limit is set by the Ohio Short-Term Loan Act, which regulates payday lending in the state.

Additionally, the total amount of outstanding payday loans that a borrower can have at any one time is limited to $2,500. This includes the loan's principal amount and any fees and interest charged by the lender.

It's important to note that borrowers should use caution when considering taking out a payday loan, as the high fees and interest rates associated with these loans can quickly lead to a cycle of debt. Borrowers should consider all of their options for borrowing money and only take out a payday loan as a last resort.

What do you need for a payday loan in Ohio?

To apply for a payday loan in Ohio, borrowers typically need to provide the following information:

  1. Personal information: Borrowers need to provide personal information, such as their name, address, phone number, and email address.
  2. Identification: Borrowers must have a valid government-issued ID, such as a driver's license or state ID.
  3. Proof of income: Borrowers must provide proof of income, such as a pay stub or bank statement, to demonstrate their ability to repay the loan.
  4. Bank account information: Most payday lenders in Ohio require borrowers to have an active checking account to deposit the loan funds and withdraw repayments.
  5. Social Security number: Borrowers must provide their Social Security number for identification and verification purposes.

It's important to note that individual payday lenders may have additional requirements, so borrowers should check with their lenders for specific eligibility criteria. Borrowers should also carefully consider the risks and costs of payday loans before taking out a loan.

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