What states prohibit payday loans

Quick And Easy Personal
Loans Up To $2500

By Sarah R
Modified on February 23, 2024

States that currently have prohibited payday loans outright or have laws that essentially ban payday loans as of 2022 are: Arizona, Arkansas, Colorado, The District of Columbia, Georgia, Massachusetts, Maryland, New Jersey, New York, North Carolina, Pennsylvania, West Virginia, Vermont. 

Payday loans are technically legal in Maine, Montana, South Dakota, and New Hampshire, but these states have laws that limit payday loans extensively, making them an unprofitable loan product for most lenders. Because it’s difficult for lenders to make a profit from payday loans in these states, payday lending is less common in those areas. 

Payday loans are a type of unsecured funding that typically come with high-interest rates, low loan amounts, and brief repayment terms. Unsecured financing simply means that lenders don’t require any collateral in order for borrowers to receive approval.

Payday loans were designed to connect borrowers to funding while in between paychecks, hence the name “payday loan.” Since payday loans are meant to be used as financial assistance for borrowers who are in between paychecks, lenders usually expect borrowers to pay back their loans in full when they receive that next paycheck. This puts the expected turnaround time for a payday loan at approximately two weeks or less. 

Since the expected payback period for a payday loan is about 14 days, loan amounts typically remain pretty low. If you need more than a few hundred dollars, you probably won’t be able to cover your expenses with just a payday loan. 

Many of the states that allow payday loans do not have interest rate caps or fee limits, which means that many payday lenders can charge exorbitant interest rates or tack on useless charges and fees. A loan’s interest rate heavily dictates how much a borrower will end up paying over the course of their funding terms, and high rates can cause borrowers to pay twice their original loan amount or more! 

If you live in a state that allows payday loans, know that you are most likely better off with another loan option. Funding like personal installment loans, bad credit personal loans, or debt consolidation loans from a direct lender can allow you to take care of your expenses without getting hooked with inconvenient rates or terms.

General Questions
How do you calculate interest rate on a personal loan
Which bank will provide personal loan easily
Which type of loan can be used for debt consolidation
Can I borrow money for a down payment?
What is a good apr rate for a personal loan
What is the easiest type of loan to get with bad credit?
How do you calculate apr on a loan
How can I get loans for 500 credit score
What is the easiest bank to get a personal loan from
What is a personal loan used for
Which bank has the lowest interest rate for personal loan
What is a benefit of obtaining a personal loan
Who offers payday loans in ohio
What states prohibit payday loans
Does colorado do payday loans
Can uber drivers get payday loans
Does money tree do payday loans
In what states are payday loans illegal
Does sc do payday loans
Does ohio still have payday loans
Does oklahoma do payday loans
Does tennessee do payday loans
Does walmart offer payday loans
Does georgia have payday loans
How do you guarantee a personal loan
Is there a way to get a loan without a bank account
What happens if you don’t pay back a personal loan
How does an amortizing loan work
How does co-signing a loan work
How to structure a loan for six months fixed interest rate
What is the difference between a fixed-rate loan and a credit line loan
How can a loan have a fixed apr but variable interest rate
How do I know if my loan is fixed-rate
What happens if you don’t pay debt consolidation loans?
What is an unsecured debt consolidation loan
How do co-signed loans work
How long does it take to get a payday loan

Quick And Easy Personal Loans Up To $2500*