The Short Version
29 states currently allow payday-style lending under state-specific rate and term rules. 18 states plus the District of Columbia effectively prohibit high-cost payday loans, mainly through a rate cap around 36% APR — a threshold that makes traditional payday-loan pricing unprofitable to offer.
States That Allow Payday Lending
Alabama, Alaska, California, Delaware, Florida, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Missouri, Nevada, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, and Wyoming permit short-term payday lending, each with its own fee caps, loan-amount limits, and renewal restrictions.
States That Restrict or Prohibit It
| State | Status | Mechanism |
|---|---|---|
| New York | Prohibited | Low usury rate cap |
| New Jersey | Prohibited | Low usury rate cap |
| Pennsylvania | Prohibited | Low usury rate cap |
| Vermont | Prohibited | Low usury rate cap |
| Massachusetts | Prohibited | Low usury rate cap |
| Arkansas | Prohibited | Low usury rate cap |
| District of Columbia | Prohibited | Low usury rate cap |
| New Mexico | 36% APR cap | Enacted 2023 |
| Minnesota | 36% APR cap | Effective 2024 |
| Georgia | Restricted | Bars loans under $3,000 structured as payday products |
| Connecticut | Restricted | Bans wage assignment as loan security |
| West Virginia | Prohibited | No deferred-presentment loans permitted |
Roughly 18 states plus DC fall into the "effectively prohibited" category in total; the table above lists the ones with clearly documented mechanisms. For the complete 51-jurisdiction breakdown, see NCSL's payday lending state statutes page, the authoritative source for this data.
Why This Matters When You Apply
US Lending only routes applications to lenders licensed in the state you live in. If your state caps rates near 36% APR, you won't be matched with a traditional payday product — but personal installment loans, credit-builder loans, or debt-relief options may still be available through our network.
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