Can I Get a Payday Loan If I Reside in Another State in 2023?

With the rise in popularity of payday loans, discover how to get the most out of one (or two). Find out if you can get one in another state besides your own. Learn the basic payday loan laws on borrowing from a lender not in your state. Also, get a chance to discover multiple payday loans. Know if you can borrow more by asking a lender from your state and another.

Can I Get a Personal Loan in a Different State?

Most of the time, lenders can only lend money in states they have licenses from. A lender licensed only in Texas cannot offer loans in Iowa. In the same way, an Iowa borrower can’t get traditional installment loans from Texas lenders. But, there are exceptions for borrowers,

• Who live for long periods in more than one state for work, or
• Who have properties in states other than the ones they live in.

As for payday loans, the same regulations and exceptions apply. You can get a short-term loan from a payday lender, given the right arrangement. The idea should be that you need to be somehow connected to the other state you’re borrowing money from. You can use employment, property ownership, or the like.

Can You Take Out a Payday Loan From 2 Different Places?

If you work in another state or have at least one property there, you can. If not, the process can be pretty challenging. Most lenders prohibit payday loans borrowed after an initial loan you have yet to repay. The hesitation comes from the idea that you may be taking on more than you can afford. If you’re overborrowing, your creditworthiness lowers. Such hurt your chances for more cash advance loans. Read more about applying for a payday loan that fits your budget.

Your best bet to borrow money from two different states is with online lenders. You can get online payday loans over the internet regardless of state. But, you may have to risk your safety by borrowing from a stranger you will never meet in person. With payday loans online, you risk your personal and bank account info. Interest rates are also high for such short-term loans. 

What States Ban Payday Loans?

According to NCSL, 13 states ban payday loans as of November 2020. The list is as follows: Arizona, Arkansas, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New York, North Carolina, New Mexico, Pennsylvania, Vermont, and West Virginia.

Are Payday Lenders Nationwide?

No. While you can find “payday lenders” nationwide, many of them are scammers. If payday lending is disallowed in a state, no licensed lenders are there. If such is the case, finding a legit loan nearby should be challenging.

You may be being baited into faulty personal loans. A scammer steals the information you share with them in such a case. It can be to use your identity for fraudulent activities or worse. Always review your loan agreement and check with your local agencies if in doubt.