Loans

Can I Get a Payday Loan in Another State?

Going through a money crisis while out of state can be extremely stressful. If you are traveling, on vacation, or moving across state lines, you may be looking for easy payday loans in a different state. 

Here you will learn more about the state laws governing payday loans and how borrowing money when you are in a different state works. 

In What States Can I Get a Payday Loan?

Some states prohibit payday loans altogether. States and territories where payday loans are limited or prohibited are: 

  • Arizona.
  • Arkansas.
  • District of Columbia.
  • Georgia.
  • New Mexico.
  • North Carolina.
  • Puerto Rico.

How Do Payday Loans in Another State Work?

Since there are so many payday loans online, you may not even have to travel to a storefront payday lender to get the cash you need. Here is how the process will work. 

First, make sure payday loans are allowed in the state where you live. You will have to give your address on the loan application and may get denied if you attempt to apply for a payday loan in an area where they are not allowed. If payday loans are legal in your state but are prohibited in the state where you currently are, you may still be able to get funding as long as your permanent address is listed in the state that allows payday loans. Once you are assured payday loans are legal in your state, you may proceed. 

With online payday loans, all you have to do is head to the lender’s website and fill out a brief loan application. For payday loans, the application usually consists of just a few questions you can answer in a few minutes or less. 

The lender will then get back to you with your approval status and give you a loan agreement to sign. You can usually sign your contract virtually and then get your money instantly! 

What Loan Amounts and Terms Can I Get on a Payday Loan in My State?

Payday loan laws vary from state to state, which means funding details like loan amounts, interest rate caps, and loan terms are not the same everywhere. So, you may be wondering, what can payday lenders offer me in my state?

Below are all the states that offer payday loans, along with what the loan amounts and terms may look like in each of those states. 

Alabama

  • Alabama maximum payday loan amount: $500.
  • Alabama payday loan term restrictions: At least ten days but no more than 31 days. 

Alaska

  • Alaska maximum payday loan amount: $500. 
  • Alaska payday loan term restrictions: 14 days. 

California 

  • California maximum payday loan amount: $300.
  • California payday loan term restrictions: No more than 31 days. 

Colorado

  • Colorado maximum payday loan amount: $500. 
  • Colorado payday loan term restrictions: Minimum loan term is six months, with no maximum term limit.

Delaware

  • Delaware maximum payday loan amount: $1,000.
  • Delaware payday loan term restrictions: 60 days or less. 

Florida

  • Florida maximum payday loan amount: $500 – $1,000. 
  • Florida payday loan term restrictions: 31 – 90 days. 

Hawaii

  • Hawaii maximum payday loan amount: $600. 
  • Hawaii payday loan term restrictions: No more than 32 days. 

Idaho 

  • Idaho maximum payday loan amount: $1,000.
  • Idaho payday loan term restrictions: None.

Illinois

  • Illinois maximum payday loan amount: About $1,000. 
  • Illinois payday loan term restrictions:13 days – 120 days. 

Indiana

  • Indiana maximum payday loan amount: $50 – $550.
  • Indiana payday loan term restrictions: No less than 14 days. 

Iowa

  • Iowa maximum payday loan amount: $500.
  • Iowa payday loan term restrictions: No more than 31 days. 

Kansas

  • Kansas maximum payday loan amount: $500.
  • Kansas payday loan term restrictions: No more than 30 days. 

Kentucky 

  • Kentucky maximum payday loan amount: No more than $500.
  • Kentucky payday loan term restrictions: Loans should not exceed 60 days. 

Louisiana

  • Louisiana maximum payday loan amount: $350.
  • Louisiana payday loan term restrictions: Loans may not exceed 30 days. 

Maine

  • Maine maximum payday loan amount: No limit.
  • Maine payday loan term restrictions: None.

Michigan

  • Michigan maximum payday loan amount: Up to $600.
  • Michigan payday loan term restrictions: Loans mat last up to 31 days. 

Minnesota

  • Minnesota maximum payday loan amount: No more than $350.
  • Minnesota payday loan term restrictions: Loans should not exceed 30 calendar days. 

Mississippi 

  • Mississippi maximum payday loan amount: $500 (includes fees).
  • Mississippi payday loan term restrictions: At least 28 days but no more than 30 days. 

Missouri

  • Missouri maximum payday loan amount: $500 or less. 
  • Missouri payday loan term restrictions: At least 14 days but no more than 31 days. 

Montana

  • Montana maximum payday loan amount: At least $50 but no more than $300.
  • Montana payday loan term restrictions: None.

Nebraska 

  • Nebraska maximum payday loan amount: No more than $500. 
  • Nebraska payday loan term restrictions: No more than 34 days. 

Nevada 

  • Nevada maximum payday loan amount: No more than 25% of the borrower’s gross monthly income. 
  • Nevada payday loan term restrictions: No more than 35 days. 

New Hampshire

  • New Hampshire maximum payday loan amount: $500.
  • New Hampshire payday loan term restrictions: At least seven days, but no more than 30. 

North Dakota

  • North Dakota maximum payday loan amount: $600.
  • North Dakota payday loan term restrictions: No less than 15 days.

Ohio 

  • Ohio maximum payday loan amount: No more than $1,000.
  • Ohio payday loan term restrictions: 91 days – one year.

Oklahoma

  • Oklahoma maximum payday loan amount: $500.
  • Oklahoma payday loan term restrictions: 12 days – 45 days.

Oregon

  • Oregon maximum payday loan amount: $50,000.
  • Oregon payday loan term restriction: 31 days – 60 days. 

Rhode Island

  • Rhode Island maximum payday loan amount: $500.
  • Rhode Island payday loan term restrictions: At least 13 days. 

South Carolina

  • South Carolina maximum payday loan amount: $550.
  • South Carolina payday loan term restrictions: No more than 31 days. 

South Dakota

  • South Dakota maximum payday loan amount: $500.
  • South Dakota payday loan term restrictions: None.

Tennessee

  • Tennessee maximum payday loan amount: $500.
  • Tennessee payday loan term restrictions: No more than 31 days. 

Texas

  • Texas maximum payday loan amount: $200.
  • Texas payday loan term restrictions: One month – six months. 

Utah 

  • Utah maximum payday loan amount: No limit.
  • Utah payday loan term restrictions:10 weeks. 

Virginia

  • Virginia maximum payday loan amount: $2,500.
  • Virginia payday loan term restrictions: Minimum four months, maximum 24 months. 

Washington

  • Washington maximum payday loan amount: No more than $700 or 30% of the borrower’s gross monthly income. 
  • Washington payday loan term restrictions: No more than 45 days. 

Wisconsin 

  • Wisconsin maximum payday loan amount: No limit.
  • Wisconsin payday loan term restrictions: None.

Wyoming

  • Wyoming maximum payday loan amount: No limit.
  • Wyoming payday loan term restrictions: At least one month. 

Pros and Cons of Payday Loans

Working with a payday lender comes with both pros and cons to consider. 

Possible Advantages of Payday Loans

Below are the potential perks of payday loans. 

Don’t Need a Bank Account

While many types of funding require borrowers to have a bank account, payday loans usually don’t. If you don’t have a bank account, you may receive your payday loan funding via cash, check, or even prepaid debit card. 

Instant Approval and Quick Funding

With payday loans, you don’t have to spend a lot of time filling out applications or having financial meetings. These tasks can take days or even weeks to complete. Payday loans offer a quick approval process and fast funding. You can often get approved for a payday loan within minutes. 

Minimum Loan Requirements 

Payday lenders don’t ask for many qualification requirements at all. Flexible qualification means that payday loans are a popular choice for people with extremely bad credit or who are going through bankruptcy. 

Disadvantages of Payday Loans

Unfortunately, payday loans can come with some detrimental disadvantages. Before you commit to a payday loan, ensure you are willing to deal with all the potential setbacks. 

Low Loan Amounts

When you get a payday loan, you are most likely going to be paid with a fairly low loan amount. If you need more than a few hundred dollars, you are probably much better off going with another loan product. 

High-Interest Rates

The interest rate on a payday loan is almost always extremely high. It is common for borrowers to get a rate with triple digits. These interest rates can cause a relatively low balance to shoot up quickly unless the borrower pays back their loan right away. 

Short Payback Terms

Payday loans are short-term loans lasting typically around fourteen days. This means that payday lenders typically expect borrowers to pay off their loans in full at the time of their next payday. With a short loan term like that, successfully paying off payday loans can be extremely stressful. 

Alternatives to Payday Lending

Since payday loans come with disadvantages that can severely affect your finances, it may be your best option to go with another form of funding. Thankfully, there are many convenient options to choose from, even if you have no credit, poor credit, or a past bankruptcy. 

Payday Loans vs. Installment Loans

Instead of a payday loan, consider a personal loan like a personal installment loan. When comparing payday loans to personal installment loans, installment loans can come in high or low loan amounts. So whether you are looking for large or small personal loans, there are options available to you. Personal installment loans also come with the best benefits of payday loans like quick approval and easy qualification requirements; they also come with a few extra perks like: 

  • Personalized loan terms. 
  • Industry-wide competitive interest rates. 
  • Storefront or online lenders. 
  • Ability to help boost your credit.

A personal installment loan may also be a great choice if you are looking to refinance your payday loan. With refinancing, you can roll your initial loan amount over time into a brand new loan agreement, often with better rates and terms!

Some other forms of funding you may consider are: 

  • Cash Advance Loans: You may get a cash advance via your employer or credit card. Interest rates on cash advances can tend to be on the higher side, so make sure you have a payment plan mapped out. 
  • Car Title Loans: Similar to payday loans, car title loans also usually come with an extremely high annual percentage rate. Furthermore, if you fail to pay back a car title loan, you run the risk of losing your vehicle. 
  • Credit Union Loans: If you meet specific criteria, you may be able to get a bad credit loan through a credit union. 
  • Bank loans: Those who want to get a loan from a bank should have a very strong credit history and higher credit scores. Banks are traditional lenders, meaning they usually won’t take the financial risk of lending to a borrower with less than ideal credit. 
  • Car Pawns: If you don’t use your vehicle often, you may consider pawning it for some extra cash. Keep in mind that you may lose your vehicle if someone else purchases your car before you are able to buy it back. 

What Happens if You Don’t Pay Back a Payday Loan?

Some potential setbacks you may have to deal with by not paying back your loan are: 

  • Late fees, additional fees, or possible default. 
  • Wage garnishment. 
  • Debt settlement.
  • Bankruptcy. 
  • A decline in credit score. 

While you can get a payday loan in just about any state, they come with some major disadvantages most people wouldn’t want to deal with. To avoid falling into deeper debt, try to pay off your payday loan or refinance with a better option as quickly as possible. 

References:
Payday Lending State Statutes