The maximum payday loans amount is usually up to $1,000 depending on the state regulation that you are borrowing in (such as Delaware, Idaho or Ohio) – although some states may allow up to $35,000 or $50,000 based on a percentage of your monthly gross income. In around 13 states, payday lending is banned so you would look to borrow an amount through a personal loan.
- The majority of payday lenders in the USA have a maximum amount of $500
- Some lenders may allow you to borrow up to $1,000
- The loan amount is based on your income, credit score, affordability and that particular lender
What is The Maximum Amount That I Can Borrow From Payday Loans?
Use our table below to see the most that you can borrow through payday loans:
| State | Max Amount | Max Loan Term |
Max Interest Rate*
|
| Alabama | $500 | 10-31 days | 456% |
| Alaska | $500 | 14 days | 435% |
| California | $300 | 31 days | 460% |
| Colorado | $500 | 6 months | 36% |
| Delaware | $1,000 | 60 days | 391% |
| Florida | $500 | 31 days | 304% |
| Hawaii | $600 | 32 days | 460% |
| Idaho | $1,000 | 32 days | 652% |
| Illinois | $1,000 | 120 days | 36% |
| Indiana | $550 | 14 days | 382% |
| Iowa | $500 | 31 days | 433% |
| Kansas | $500 | 30 days | 391% |
| Kentucky | $500 | 60 days | 469% |
| Louisiana | $350 | 30 days | 478% |
| Michigan | $600 | 31 days | 370% |
| Minnesota | $350 | 30 days | 390% |
| Mississippi | $500 | 30 days | 521% |
| Missouri | $500 | 31 days | 527% |
| Montana | $300 | 31 days | 36% |
| Nebraska | $500 | 34 days | 36% |
| Nevada | 25% of gross monthly income | 35 days | 652% |
| New Hampshire | $500 | 30 days | 36% |
| North Dakota | $600 | 60 days | 520% |
| Ohio | $1,000 | 91 days | 138% |
| Oklahoma | $500 | 45 days | 207% |
| Oregon | $50,000 | 60 days | 156% |
| Rhode Island | $500 | 13 days | 261% |
| South Carolina | $550 | 31 days | 391% |
| South Dakota | $500 | 31 days | 36% |
| Tennessee | $500 | 31 days | 460% |
| Texas | $200 | 6 months | 664% |
| Washington | $700 | 45 days | 390% |
Source: NCSL
How Do I Know The Maximum Amount I Can Borrow From Payday Loans?
The amount you can borrow is typically based on:
- The lender’s individual criteria
- Your income
- Your credit score and current debt outstanding
- Your affordability
- Your expenses (rent, mortgage, bills etc)
How much you can borrow with a payday loan is generally based on your income, credit rating and any current debt outstanding.
With a payday loan being unsecured, the lender needs to use signals such as your credit score (or credit history) and income to determine how much you can borrow and whether you can pay this back on time without falling into financial difficulty.
The challenge is that if you borrow too much, you will struggle to pay this back. So the lender has to find the perfect amount based on your current expenditure, your income and any other debts such as credit cards and loans that you have open.
How Can I Get The Maximum Amount From a Payday Loan?
To get the maximum payday loan amount that a lender can offer, you will typically need to have a good, stable income and a good credit score. Whilst the maximum might be to borrow $500, this may not be available to the majority of customers. Most lenders will probably settle somewhere closer to $300 or $400 once they have taken your credit score, income and affordability into consideration.
However, you may be able to get closer to this maximum amount if you have a very good credit score or if you have paid off previous loans with that specific company and have thus increased your trust score with them.
After all, the higher the loan amount, the more interest the lender charges – so it suits them if they can lend you the maximum amount, but the highest amounts are often given to the best customers and not the wider range of customers.
Why Would I Want to Borrow The Maximum Amount From a Payday Loan?
It is only natural that when you apply for a payday loan online or any other financial product that you try to borrow the maximum amount you can. You might want to have a financial buffer or you feel that you have more financial freedom if you can borrow more.
But in reality, the more you borrow, the more interest you are paying and you may not actually need the full amount to cover your particular expense or purchase. So before you apply, even if you know that you need to borrow money, try consider the exact amount and maybe a little on top. It doesn’t have to be the full or highest amount for a payday loan, but certainly enough to get you back on your feet. And above all, make sure that you know how and when you are going to pay it back and avoid non-repayment at all costs.
Are There Any Restrictions on What I Can Use My Payday Loan For?
Once you receive your loan, you are free to spend it how you wish once the money is in your account. However, your loan should ideally be used for a short-term emergency purpose such as car or household repairs, paying rent or helping out a friend or family member. They should be used for luxury products, shopping, gambling or anything illegal.
The high cost of payday loans is designed for them to be used for short term use and using them on anything that is expensive or could require additional borrowing is not recommended.
Payday Loan Do’s
Use a payday loan to cover one-off expenses. These may include car repairs, boiler replacements and hospital or veterinary bills.
Payday Loan Don’t’s
You shouldn’t use payday loans for frivolous spending, shopping or a night of partying. Also, a payday loan would not be suitable for you if you are looking to pay off an already outstanding loan.
Make sure to consider carefully whether a payday loan is right for you. You should also consider alternatives to managing your debts or finances, such as speaking to a debt professional or counsellor or borrowing from family and friends.
Last Updated on May 30, 2024 by Dana Leigh, Product Manager and Researcher