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Payday loans are designed to be short term loans to tide borrowers over until their next payday. Many states impose limits on how much you can borrow, with most states offering up to around $1000. 

The average payday loan amount in the US is $375 and is paid back within two weeks. 

Key Points:

  • Many states limit how much you can borrow. For example, in California you can only borrow up to $300, and in Alabama the cap is $500. 
  • The average repayment term in 2021 was two weeks, but depending on your financial circumstances and history, your repayment period could be for up to 60 months.
  • With APR of around 400%, payday loans are expensive, and should be paid off as quickly as possible. 
  • Those with stronger credit records will likely be offered a longer repayment term if they want it. 


How Much Can I Borrow With A Payday Loan?


This will rest on what your state’s regulations are. If you live in one of the thirteen US states which prohibit payday loans, then you won’t be able to attain one at all. 

These thirteen states are Arizona, Arkansas, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Vermont, West Virginia, and the District of Columbia.

If you don’t live in one of those states, then you are tied to legal limits. For example, if you live in California you are only able to secure a loan of up to $300. If you’re in Alabama, you can borrow up to $500, and in Delaware you can borrow up to $1000. Each state has its own limits. It is worth researching your state’s current laws before pursuing a loan. 

These limits are in place to prevent borrowers like you encountering excessive debts that are too difficult to manage. 


credit score scale

How much you can borrow will depend upon your financial situation, such as your credit score.

How Long Can I Borrow For?


Different states and lenders offer different repayment schedules, and when you apply you can usually state how long you’ll need the money for.

You would typically need to repay a payday loan within two to four weeks of the initial loan. 

For instance, in Alabama, Iowa, Michigan, South Carolina and California, the maximum loan term is 31 days. 

Look up what the current limit in your state is before applying for a loan. 


Can I Repay My Loan Early?


Yes, normally you can pay off your payday loan earlier than you originally agreed with the lender, however, there may be conditions involved with paying off your loan early, such as being charged an additional fee.

In order to pay off a payday loan early, you need to contact your lender to arrange an early collection. This will not always reduce the interest rates or fees you agreed to pay to the lender upon taking out the loan.



Payday loans are quick and simple

Make sure you pay your debt back on time.


Can I Take Out More Than One Loan At Once?


Laws on this are different in each state. Some states, such as Louisiana and Texas, allow you to have  multiple active loans at once, there are some states which don’t allow you to take out more than one. This is to prevent you from accumulating excessive debts that you may struggle to repay. 

States including South Carolina, California, Virginia, Hawaii and Florida only allow borrowers to have one active loan at any given time. 

Ohio limits the value of loans a borrower can have at once. There, the state won’t allow citizens to borrow more than $2,500 at one time. Meanwhile, Delaware limits citizens at five loans at a time, offering some flexibility, but still protecting them. 


What If My State Bans Payday Loans?


Then you can consider various alternatives, such as credit union loans, asking for a cash advance at work, or asking a loved one for support. You may feel awkward doing so, but Bankrate’s survey results found that 60% of Americans have helped a loved one in their financial past. It is more common than you think, and may be the best option.


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