Loan Regulations In US states
- Alabama – Loan up to $500 for a period of up to 31 days; APR up to 456%.
- Alaska – Loan up to $500 for a period of up to 14 days; APR up to 520%.
- California – Loan up to $300 for a period of up to 31 days; APR up to 460%.
- Colorado – Loan up to $500 for a period of up to 180 days; APR up to 36%.
- Delaware – Loan up to $1000 for a period of up to 59 days; APR up to 521%.
- Florida – Loan up to $500 for a period of up to 31 days; APR up to 304%.
- Idaho – Loan up to $1000 for an unlimited period; no APR limits.
- Illinois – Loan up to $1000 for a period of up to 45 days; APR up to 36%.
- Indiana – Loan up to $550 for a period of up to 14 days; APR up to 391%.
- Iowa – Loan up to $500 for a period of up to 31 days; APR up to 433%.
- Kansas – Loan up to $500 for a period of up to 30 days; APR up to 391%.
- Kentucky – Loan up to $500 for a period of up to 60 days; APR up to 469%.
- Louisiana – Loan up to $350 for a period of up to 30 days; APR up to 391%.
- Michigan – Loan up to $600 for a period of up to 31 days; APR up to 390%.
- Minnesota – Loan up to $350 for a period of up to 30 days; APR up to 390%.
- Mississippi – Loan up to $500 for a period of up to 30 days; APR up to 521%.
- Missouri – Loan up to $500 for a period of up to 31 days; APR up to 1950%.
- Nebraska – Loan up to $500 for a period of up to 34 days; APR up to 459%.
- Nevada – Loan up to 25% of your income for a period of up to 35 days; APR up to 456%.
- New Hampshire – Loan up to $500 for a period of up to 30 days; APR up to 36%.
- North Dakota – Loan up to $500 for a period of up to 60 days; APR up to 520%.
- Ohio – Loan up to $1000 for a period from 31 days; APR up to 28%.
- Oklahoma – Loan up to $500 for a period of up to 45 days; APR up to 390%.
- Oregon – Loan up to $50,000 for a period of 31 to 60 days; APR up to 154%.
- Rhode Island – Loan up to $500 for a minimum of 13 days; APR up to 260%.
- South Carolina – Loan up to $550 for a period of up to 31 days; APR up to 390%.
- Tennessee – Loan up to $500 for a period of up to 31 days; APR up to 460%.
- Texas – No maximum loan limit for a period of up to 180 days; no APR limits.
- Utah – No maximum loan limit for a period of up to 10 weeks; no APR limits.
- Virginia – Loan up to $2,500 for a period of up to 24 months; APR up to 36%.
- Washington – Loan up to $700 for a period of up to 45 days; APR up to 390%.
- Wisconsin – No maximum loan limit for a period of up to 90 days; APR up to 574%.
- Wyoming – No maximum loan limit for a period of up to 1 month; APR up to 780%.
Source: National Conference of State Legislatures (NCSL).*
*To get the most up to date and accurate data regarding payday loan regulations, please check with your local Department of Finance.
What Will Determine The Cost Of A Loan?
There are many different factors that can affect the cost, whether it is a payday loan, personal loan or installment loan. Examples include:
| Credit Score | Your credit score rating plays a large role in determining the rates that you are offered. Applicants with a good credit score are considered low risk and may be offered more favorable terms than those with a bad credit score. This is because the lender may be worried that the borrower will fail to meet repayments on time and therefore charges a higher rate to mitigate the potential risk of default. |
| Income | Your monthly income will play a role in determining how much money you can borrow. The lender will want to make sure that you will be able to repay back the loan and interest at the end of the month, as well as any essential living costs such as rent, utilities and food bills. |
| Debt Ratio | Your debt ratio, i.e. how much existing and outstanding debt you currently have, might be considered as lenders can use this to determine the level of risk of potentially not getting their money back. For instance, having lots of credit cards and loans outstanding may result in being charged a higher rate due to the larger level of risk involved for the lender. |
| Loan Type | The loan type plays a large role in determining fees. For example, payday loans may carry higher interest rates than personal loans. This is because borrowers are paying for the convenience of the loan since they are funded very quickly for short periods of time and are accessible to people with fair or poor credit. |
| Collateral | Your loan interest could be less if you add collateral to it, e.g. securing the loan against your car or by having a co-signer. The rates may be a little higher if the loan is unsecured. |
| US State | The US state that you live in can also affect the cost of the loan as some states are able to charge higher interest rates due to regulations. For instance, North Dakota can charge as much as 520% APR for a payday loan, whereas states such as Montana have a price cap of a 36% APR. |
Strategies to reduce your loan costs include having a good credit score or shopping around to find the best rates available. You could consider alternative options such as borrowing money from family or friends. Paying off your loan early could also help to save money on the overall interest; just make sure to check if there are any penalty fees for early repayments.
What Is An Example Of Rates For Borrowers With Fair Credit Scores?
| Loan Amount | Total Interest Repayable | Total Amount Repayable |
| Borrow $300 | $50.00 | $350.00 |
| Borrow $400 | $66.67 | $466.67 |
| Borrow $500 | $83.33 | $583.33 |
| Borrow $600 | $100.00 | $700.00 |
| Borrow $700 | $116.67 | $816.67 |
| Borrow $800 | $133.33 | $933.33 |
| Borrow $900 | $150.00 | $1,050.00 |
| Borrow $1000 | $166.67 | $1,166.67 |
| Borrow $1200 | $200.00 | $1,400.00 |
| Borrow $1300 | $216.67 | $1,516.67 |
| Borrow $1400 | $233.33 | $1,633.33 |
| Borrow $1500 | $250.00 | $1,750.00 |
| Loan Amount | Total Interest Repayable | Total Amount Repayable |
| Borrow $300 | $105.12 | $405.12 |
| Borrow $400 | $140.15 | $540.15 |
| Borrow $500 | $175.21 | $675.21 |
| Borrow $600 | $210.24 | $810.24 |
| Borrow $700 | $245.27 | $945.27 |
| Borrow $800 | $280.30 | $1,080.30 |
| Borrow $900 | $315.36 | $1,215.36 |
| Borrow $1000 | $350.39 | $1,350.39 |
| Borrow $1200 | $420.48 | $1,620.48 |
| Borrow $1300 | $455.51 | $1,755.51 |
| Borrow $1400 | $490.54 | $1,890.54 |
| Borrow $1500 | $525.60 | $2,025.60 |
What Is An Example Of Rates For Borrowers With Poor Credit Scores?
| Loan Amount | Total Interest Repayable | Total Amount Repayable |
| Borrow $300 | $100 | $400.00 |
| Borrow $400 | $133.33 | $533.33 |
| Borrow $500 | $166.67 | $666.67 |
| Borrow $600 | $200.00 | $800.00 |
| Borrow $700 | $233.33 | $933.33 |
| Borrow $800 | $266.67 | $1,066.67 |
| Borrow $900 | $300.00 | $1,200.00 |
| Borrow $1000 | $333.33 | $1,333.33 |
| Borrow $1200 | $400.00 | $1,600.00 |
| Borrow $1300 | $433.33 | $1,733.33 |
| Borrow $1400 | $466.67 | $1,866.67 |
| Borrow $1500 | $500.00 | $2,000.00 |
| Loan Amount | Total Interest Repayable | Total Amount Repayable |
| Borrow $300 | $218.91 | $518.91 |
| Borrow $400 | $230.63 | $691.89 |
| Borrow $500 | $288.29 | $864.87 |
| Borrow $600 | $345.95 | $1,037.85 |
| Borrow $700 | $403.60 | $1,210.80 |
| Borrow $800 | $461.26 | $1,383.78 |
| Borrow $900 | $518.92 | $1,556.76 |
| Borrow $1000 | $576.58 | $1,729.74 |
| Borrow $1200 | $691.89 | $2,075.67 |
| Borrow $1300 | $749.55 | $2,248.65 |
| Borrow $1400 | $807.21 | $2,421.63 |
| Borrow $1500 | $864.86 | $2,594.58 |
Frequently Asked Questions
Will I Save Money If I Repay My Loan Early?
It is possible to save money if you repay your loan early as there would be less interest on the loan. Cutting down your loan from e.g. 14 days to 10 days, will mean that you only pay 10 days worth of interest and save money.
Just bear in mind that it is not always cheaper to repay your loan early as there could be exit fees. Get in touch with the lender or check the terms and conditions of the loan agreement to find out if there are any penalties for early repayment.
Will My Loan Cost More If I Borrow It For Longer?
Yes, the longer the loan term, the more interest you will pay. Whilst a longer loan term creates more flexibility with more time to meet repayments, it will increase your loan costs. For instance, a loan of 30 days is going to accumulate more interest and cost you more than a 14 day loan.
Will Loan Rates Be Affected By Bad Credit?
Yes, applicants with poor credit may be offered slightly higher rates to manage the risk for the lender. They may also be offered a lower amount of money than requested. There could be the option to secure the loan with collateral or a co-signer to improve the rates.
In some cases, there will be minimal difference in the rates if the lender can see that your credit score is improving and if you meet the eligibility criteria, such as having a stable income over $800 each month. Assuming you do not have any other big debts outstanding, then the lender may give you favorable rates.
Will I Get The Rate Advertized On Your Website?
Whilst you might see rates advertized on Dollar Hand at 200% or 300% APR, it is possible that you could be offered a slightly higher or lower rate than this. Our advertized rates tend to be the average rate given, but there are many factors which could result in a different rate.
Lenders will take into account your credit score and affordability levels. The risk profile of the lender and their appetite at that specific time of the month can also make a difference as lenders have sales targets to meet which can influence the rates offered.