Payday loans, priced honestly.

A payday loan is a small cash advance, usually between $100 and $1,000, that you pay back from your next paycheck. Most loans come due in 14 days. The catch? The fees are steep—typically $15 to $30 per $100 borrowed—and about 4 out of 5 borrowers end up taking another loan within two weeks.

What does a payday loan actually cost me?

Lenders charge a flat fee, not an interest rate you see on a credit card statement. That fee is usually $15–$30 per $100 borrowed. On a standard 14-day term, that works out to an APR of 391% to 782%.

Here is how the arithmetic breaks down on a $300 loan:

• At $15 per $100: $45 fee. You owe $345. That is a 391% APR.
• At $30 per $100: $90 fee. You owe $390. That is a 782% APR.

For comparison, a credit card might charge 15–30% APR. A personal loan from a bank or online lender typically runs 5–36% APR. The gap is massive.

But geography changes everything. State laws determine whether your lender operates under a cap, a ban, or no specific limit at all.

California keeps fees lower through its CDDTL. Texas has no statutory cap, so the CAB/CSO model pushes costs higher. Illinois and other 36%-cap states keep the fee to roughly $4 on that same $300. The difference between Texas and Illinois on a single $300 loan: more than $62.

Why do so many borrowers take out another loan right away?

About 80% of payday loans are taken out within two weeks of paying off the previous one, according to CFPB research. That is four in five borrowers. The math explains why.

Suppose you borrow $300 in Texas and owe $366.30 on payday. If your paycheck is already committed to rent, groceries, and gas, you may not have $366.30 sitting free. So you roll the loan—pay the fee again, extend the principal—or you take a new loan from the same or different lender. Either way, the fee is new money out of your pocket.

Do that twice and you have paid over $132 in fees to borrow $300. The principal never shrinks. This is the cycle the CFPB regulates against, and it is why we built alternatives into our comparison flow.

What do I need to qualify?

The bar is lower than for most credit products, but you do need to meet basic requirements. Our five-step form takes about three minutes and checks everything in real time.

1. Be 18+ (19+ in Alabama and Nebraska).
2. Have an active U.S. checking account in your name.
3. Have verifiable income—W-2, 1099, government benefits, or self-employment accepted.
4. Provide a valid phone number and email.
5. Live in a state where the product is permitted.

We check your state's rules at step two. If you are covered by the Military Lending Act, we limit your options to 36% MAPR-compliant products only. We then ping our network of 23+ state-licensed lenders in waterfall priority order.

Same-business-day funding is common if you are approved before roughly 2 p.m. local time. Otherwise, expect next business day.

What is the difference between payday and installment loans?

A payday loan is repaid in one lump sum, usually in 14 days. An installment loan is repaid in scheduled payments over 2 to 12 or more months.

Installment APRs are usually lower—often 35–100% versus the 391%+ on payday products. But because the term stretches out, the total interest paid can be higher. You trade a quick, painful fee for a longer, steadier drain.

Your situation determines which structure hurts less. If you know you can cover the lump sum in two weeks, a payday loan ends faster. If your cash flow is tight for months, spreading payments may prevent re-borrowing. Our comparison tool lets you see both side by side.

What are my cheaper options?

Before you borrow, run through this list. Most borrowers have at least one option they have not tried.

1. Credit union PAL

NCUA-regulated Payday Alternative Loans cap at 28% APR. Learn more from the NCUA. A $300 PAL over 6 months costs about $25 in interest—roughly $325 total. That beats a single $52.94 California fee if you would otherwise roll the loan even once.

2. Earned wage access

Apps like DailyPay, EarnIn, Brigit, and Payactiv let you tap wages you have already earned. Fees are typically voluntary or flat, far below payday rates.

3. Hardship programs

Mortgage lenders, utilities, and credit card issuers often have hardship deferral programs. They do not advertise them. You have to call and ask.

4. Local nonprofits and 2-1-1

NFCC-certified credit counseling, Catholic Charities, and Salvation Army emergency assistance can bridge small gaps. Dial 2-1-1 in most areas to connect with local resources.

We rank 15 alternatives on our alternatives page.

What if I cannot repay on time?

Contact the lender first. Do not wait. Most states give you a rescission period of 24 to 72 hours to return the principal at no cost if you change your mind quickly. After that, your options narrow but do not disappear.

Some lenders offer extended payment plans. State law may require it. Ask specifically: "Do I qualify for an extended payment plan with no additional fees?" Get the answer in writing.

If the debt goes to collection, know your rights under federal law. The CFPB's debt collection guide explains what collectors can and cannot do. See our full guide on what happens if you cannot repay.

Quick questions, straight answers

Last reviewed: costs and state rules current as of Nimbus Loans Cost Index. Figures cited from Pew Charitable Trusts, CFPB, and NCUA.