How much can I borrow with a payday loan?

The amount you can borrow varies by your state’s laws and the state of your finances. Most states that allow payday lending cap the amounts somewhere between $300 and $1,000.

This doesn’t mean you’ll be approved for the highest amount allowed by law. A payday lender will consider your income, expenses and payday lending history to determine how much you can reasonably be expected to pay back.

What do I need to get a payday loan?

To qualify for a payday loan you typically need an active bank account, an ID and proof of income such as a pay stub. You must be at least 18.

You can be rejected for a payday loan, despite having income and a bank account, for several reasons, including:

  • You don’t make enough money. Lenders typically require at least $500 monthly net income
  • You don’t meet repayment requirements. States may have specific laws limiting how much of your income you can spend, and each lender may have its own algorithm to gauge the risk you won’t repay.
  • You already have an outstanding loan. Lenders subscribe to a company that can track loans in real time.
  • You are active-duty military. Federal law prevents payday lenders from making short-term loans at more than 36% APR to military members. Some lenders find ways around the law, but others exclude them as customers.
  • You have a recent bankruptcy.
  • You have recent bounced checks.
  • You have not been employed long enough.
  • Your bank account has been opened too recently.