Loan amounts
Loan amounts depend on the minimum and maximum loan amounts allowed by your state but vary between $100 to $1,000. A common maximum limit is $500. Your loan amount also depends on each lender’s policies and how much you are approved to borrow after you submit your loan application.
Interest and fees
Loans typically have very high interest rates. We commonly see a $15 charge per each $100 borrowed. This is is a 400 percent annual percentage rate (APR).
Generally, you are charged $10 to $30 for every $100 borrowed. In some states, lenders are allowed to charge additional fees, like loan origination fees.
Legal regulations
Laws regulating payday loans vary by state. Most states limit loan amounts, loan term lengths, interest charges, and other fees.
The following jurisdictions have prohibited payday loans:
- Arizona
- Arkansas
- District of Columbia
- Georgia
- New Mexico
- North Carolina
To see if your needs would be met by a payday loan lender, check out your state’s rules via the National Conference of State Legislatures website.
Applying for a payday loan
In general, payday loan applicants must be at least 18 years old and have a valid ID, an active checking account, verifiable proof of income, and a valid phone number.
Sometimes, payday loan companies will request to call your employer to verify your employment. Applicants with poor credit or bad credit can be accepted.