What Is a Payday Loan?
| Typical amount | $100 to your state's cap (often about $500) |
|---|---|
| Term | Usually 2–4 weeks, to your next payday |
| Repayment | One payment of the loan plus fee |
| Typical fee | $10–$30 per $100 borrowed |
| Credit | All credit types considered |
| Funding | Often next business day |
The short definition
A payday loan is a cash advance against your next paycheck or benefit deposit. You borrow a small amount, the lender adds a flat fee, and the balance is due on a single date, usually your next payday. It's built for exactly the kind of short gap that happens to almost everyone: a bill that's due a week before your money arrives.
Other names for the same product include cash advance, payday advance, deferred deposit loan and check advance. The name varies by state, but the core features are the same.
Need one now? See if you qualify; the form takes about 3 minutes.
The four features of a payday loan
- Small dollar amount. Most are a few hundred dollars. Many states cap the amount, often around $500, though some allow more or less.
- Short term. The due date is usually two to four weeks after you borrow, timed to your pay cycle.
- One payment. You repay the full amount plus the fee at once.
- Repayment from your bank account. You authorize the lender to debit your account (or provide a post-dated check) on the due date.
A loan repaid over several months in equal payments is an installment loan. Lenders in our network offer both.
What a payday loan costs
Payday lenders usually charge a flat fee per $100 borrowed, often between $10 and $30, depending on your state and lender. Here's what that means in dollars:
| Fee per $100 | Fee on a $300 loan | Total to repay |
|---|---|---|
| $10 | $30 | $330 |
| $15 | $45 | $345 |
| $20 | $60 | $360 |
Your lender shows the exact APR and terms before you sign. See a full breakdown in how much a $500 payday loan costs, or run your own numbers:
How much will I repay?
Estimate only. Your lender shows your exact cost before you sign.
A payday loan from start to finish: an example
Here's how a typical loan plays out, using an example fee of $15 per $100:
- Monday: your car needs a $400 repair, and you're paid again in two weeks.
- Monday morning: you fill out the form in about 3 minutes and a lender reviews it.
- Monday afternoon: you get an offer showing a $400 loan, a $60 fee and $460 due on your next payday. You review it and sign.
- Tuesday: the $400 lands in your checking account, often by the next business day.
- Payday, two weeks later: your paycheck is deposited and the lender debits $460, as you authorized. The loan is closed.
The actual fee and due date depend on your state and lender, and they're in writing before you sign.
Who uses payday loans, and why
People use payday loans to cover a short gap: rent due before payday, a car repair, a utility notice, or an overdraft. The appeal is speed and access. Lenders mainly look at whether you have regular income and an active bank account, and many don't use a traditional hard pull from the three major bureaus, although they may check alternative credit data. That's why people with bad or limited credit often still get offers.
What payday lenders look at
- Regular income from a job, benefits or other steady deposits, plus your pay schedule so the due date lines up.
- An open checking account in your name for the deposit and repayment.
- Age and residency: 18 or older (19 in some states) and living in a state where the lender operates.
- Matching identity details across your ID, Social Security number and bank account.
- Other open short-term loans, which some lenders check through specialty databases.
A credit score isn't usually the deciding factor, which is why all credit types are considered. Approval is still up to each lender.
How to get a payday loan
- Check your state. Rules vary; see payday loan laws by state.
- Gather the basics: photo ID, proof of income and a checking account. See payday loan requirements.
- Fill out the form. Ours takes about 3 minutes and reaches lenders in our network that serve your state.
- Review your offer. Check the total to repay and the due date, then sign if it fits.
- Get your money, often by the next business day.
Full walkthrough: how to get a payday loan.
Payday loan or installment loan?
| Payday loan | Installment loan | |
|---|---|---|
| Amount | Usually a few hundred dollars, up to your state's cap | Up to $5,000 through our network |
| Repayment | One payment on your next payday | Equal payments over several months |
| Cost shown as | Flat fee per $100 | APR and monthly payment |
| Best for | A short gap you can repay from one paycheck | A larger expense or more time to repay |
For example, a $1,000 installment loan at an assumed 36% APR over 12 months is about $100.46 a month. Not sure which fits? One form lets lenders in our network offer either.
Using a payday loan well
- Request what you need. Each $100 adds a fee, so the right-sized loan keeps your total lower.
- Plan the payoff on day one. Set the repayment amount aside when your paycheck lands.
- Know your options if you'll be short. Contact your lender before the due date; many offer extended payment plans, and some states require them. Renewing (paying the fee to extend) is allowed in some states and adds a new fee each time.
- Need longer to repay? A personal installment loan spreads payments over months. Compare in payday vs. installment loan.
Common mistakes first-time borrowers make
- Not checking the due date against their actual pay date, especially around holidays.
- Borrowing the maximum when a smaller amount would cover the bill.
- Typing bank details wrong, which delays funding.
- Not reading the total to repay before signing.
- Waiting until after the due date to ask about a payment plan.
Ready when you are. See if you qualify in about 3 minutes.
Is a payday loan available where you live?
Payday lending is regulated mainly by the states. Some states allow payday loans with limits on fees, loan size or the number of loans; others don't allow them. Online lenders generally follow the law of the state where you live. Check your state on the payday loan laws by state map or open your state from the payday loans hub.
Where payday loans aren't offered, lenders in our network may offer a personal installment loan instead. Active-duty servicemembers and dependents: covered loans follow the Military Lending Act.
How Zebra Finance fits in
Zebra Finance is a free loan-matching service, not a lender. You fill out one short form and we pass your request to lenders in our network that serve your state. Any offer, rate and approval decision comes from the lender, and you're never obligated to accept. We never charge you and never ask for upfront fees. Learn more on how it works, or get started now.
Frequently asked questions
Is a payday loan a good idea?
It can be a good fit for a one-time, short-term expense when you know your next paycheck will cover the loan plus the fee. If you need more time to repay, a personal installment loan with scheduled payments may fit better. Our free form lets you see what lenders can offer for either.
Is a payday loan secured or unsecured?
A payday loan is generally unsecured: you don't pledge property such as a car. You do authorize the lender to collect repayment from your bank account on the due date. A title loan is different, because your vehicle's title backs the loan.
Do payday loans require a credit check?
Many payday lenders don't use a traditional hard pull from Equifax, Experian or TransUnion. Many do check alternative credit data and verify your income and bank account. All credit types are considered through our form, though approval depends on each lender.
What are payday advance loans?
A payday advance is another name for a payday loan: a small, short-term loan you repay in one payment on your next payday, with a flat fee per $100 borrowed. Some employers and apps offer earned-wage advances, which work differently and usually have lower limits.
Are payday loans legal?
Yes, under federal law, and states decide whether and how payday loans can be made. Many states allow them with limits on fees, loan size or renewals, while others don't allow them. Lenders, including online lenders, generally follow the law of the state where you live. See our state-by-state map.
How fast can I get a payday loan?
Our form takes about 3 minutes and lenders often decide within minutes. After you sign, funds are often deposited by the next business day. Applying early on a weekday usually gets money to you fastest.
How much can you borrow with a payday loan?
It depends on your state and income. Many states cap payday loans, often around $500, though some allow more or less, and lenders also consider what your paycheck can repay. Through our network, loan requests range from $100 to $5,000, with larger amounts usually offered as installment loans.
What happens if you can't pay a payday loan back on time?
Contact your lender before the due date. Many lenders offer extended payment plans, and some states require them. Renewing, where allowed, means paying a new fee to push the due date back. If a loan goes unpaid, the lender may try to collect, and the debt could go to a collection agency.