Payday Loans are Legal in Ohio

Find a Lender

Table of Contents

Beware of predatory lending

Payday Lenders in Ohio

Payday loans are a type of short-term lending that are most often used for unexpected financial emergencies, such as medical bills or auto repairs. People with poor credit or little or no credit history often use payday loans because they don’t qualify for traditional credit from banks or credit unions.

The appeal of these loans is that they are more readily available than traditional forms of credit, despite the high interest rates and fees. This is the case in most states, however, Ohio has capped the interest rates for these types of loans at 28%, which is significantly lower than the national average of around 400%. In addition, Ohio law mandates a minimum repayment period of 90 days, which has effectively turned all payday loans into installment loans. Despite these strict regulations, payday loans are still popular in Ohio, and borrowers should be aware of the potential risks and benefits. 

It’s crucial to do research before choosing a lender for payday loans and evaluate the reputation of that lender and their terms. One of the biggest risks associated with payday loans is the high interest rates and fees. Ohio’s interest rate cap may seem low, but it still translates to a significant cost for borrowers, especially if they are unable to repay the loan on time. Additionally, Ohio’s interest rate and fee caps may not be followed by lenders who aren’t licensed. It is best to choose licensed lenders who are open and transparent with their terms. Avoid lenders who use aggressive marketing tactics such as no credit checks or guaranteed approval. Check online ratings and reviews to determine the reputation of the lender and its quality of service.

Payday Loan Laws

Since 2008 the Small Loan Act regulated the legal restrictions on payday loans including loan amounts, interest rates, minimum terms and the number of loans allowed each year. Unfortunately, many lenders were operating outside the regulation leading to increasing interest rates on payday loans. In 2018 the Short-term loan act was passed that put stricter enforcement on both storefront and online payday lenders.

The State of Ohio has several pieces of legislation that govern payday loans:

  • Ohio Rev. Code Ann. § 1321.35: Sets the maximum loan amount and states that loan terms must be between 91 days and 1 year. It does allow for loans less than 6% of gross monthly income to have terms of less than 91 days.
  • Ohio Rev. Code Ann. § 1321.41: Prohibits borrowers from having more than $2500 outstanding in payday loans
  • Ohio Rev. Code Ann. § 1321.39: Requires that all repayment plans have equal payments across all months

Loan Terms and Conditions

Maximum loan amount: $1000

Maximum Interest Rate: 28%

Minimum loan term: 91 days (unless less than 6% of income)

Maximum loan term: 1 year

Number of rollovers allowed: None

Finance Charge: 28%

Legal action: 8 Years

Certified Payday Lenders in Ohio

Company NameCompany scoreLicense Status
ENOVA INTERNATIONAL, INC.7.6Valid
COMMUNITY CHOICE FINANCIAL, INC.7.5Valid
CNG FINANCIAL CORPORATION6.5Valid
Populus Financial Group, Inc.6.1Valid
Advance America, Cash Advance Centers, Inc.5.8Valid
Risecredit, LLC5Valid

History of Ohio Payday Loans

Ohio’s payday lending laws have gone through various changes since the early 1990s. The state’s usury rate cap of 8% prevented payday loans from becoming prevalent in the state until the passage of the Payday Loan Act in 1995. The Act exempted short-term lenders from the usury limit and allowed them to charge triple-digit APRs. The industry began to grow and expand, with even national banks offering payday loans in all but name. The state then passed the Short-Term Loan Act in 2008, which imposed a 28% rate cap and a $500 limit on payday loans. However, lenders registered as mortgage lenders or credit service organizations managed to evade these rules. In 2018, the Fairness in Lending Act passed, forcing payday lenders to register as short-term lenders and abide by those rules. Payday loans are legal in Ohio in 2021, but the industry has faced significant regulatory restrictions.

State Resources

How to file a complaint

The Ohio Division of Financial Institutions accepts complaints concerning potential fraud or misconduct related to payday loans.Consumers must write a letter or complete the complaint form then email, mail or fax it to the Division. Their website has a list of supporting documents that will need to accompany the complaint. These complaints are addressed in the order they are received and consumers will receive an acknowledgement that they received the complaint.
  • ADDRESS

Ohio Payday Loans Debt Relief

How to Get out of Payday Loan Debt?

Getting out of payday loan debt is challenging but possible. The key is understanding the terms of your loan and creating a budget that includes the repayment amount. Contact your lender and ask if extended repayment plans or modifications might help ease debt payments, or seek the services of a credit counseling agency that will work to craft repayment plans that fit within your budget. Be wary of debt settlement companies offering quick fixes with high fees. They may not be legitimate – ultimately, the key is staying the course with repayment and refraining from taking out new payday loans.

Support Resources

Types of Quick Loans in Ohio

Alternatives to Payday Loans in Ohio

Personal Loans

Personal loans in Ohio offer an ideal solution to those in need of funds for home improvements, medical bills or debt consolidation. Compared with credit cards, they usually feature lower interest rates and can offer fixed repayment terms that allow borrowers to plan payments more easily. Loan applications can be submitted at banks, credit unions or online lenders across Ohio - eligibility requirements will depend upon which lender you apply with; generally speaking you need a good credit score, stable income and reasonable debt-to-income ratio to be eligible. Furthermore some lenders require collateral or co-signer to secure loans against defaulting payments.

Bridge Loans

Bridge loans are a short-term financing option that can help borrowers in Ohio bridge the gap between the purchase of a new property and the sale of an existing one. These loans are typically secured by the borrower's current home and can provide quick access to funds for a down payment on a new property. Bridge loans in Ohio often have higher interest rates and fees than traditional loans, but can provide a valuable option for borrowers who need to act quickly to secure a new property before selling their current one.

Home Equity Loans

Home equity loans allow Ohio homeowners to borrow against the equity they have built in their home. These loans can provide access to funds for various expenses, such as home renovations or debt consolidation. Home equity loans in Ohio typically have lower interest rates than other types of loans because they are secured by the borrower's property. Borrowers should always be cautious when considering a home equity loan and make sure they can afford the payments, as defaulting on the loan could result in the loss of their home.

Bad Credit Loans in Ohio

Bad credit loans in Ohio can be an option for those who have struggled to obtain traditional loans due to a poor credit score. These loans typically come with higher interest rates and shorter repayment terms, and may require collateral or a co-signer to secure the loan. Borrowers can find bad credit loans from online lenders or some credit unions and banks in Ohio. However, it's important to be cautious when considering these loans, as they can often come with hidden fees and predatory lending practices. Borrowers should thoroughly research lenders and read the loan terms and conditions carefully before applying for a bad credit loan in Ohio.

Ohio Small Business Loans

Small business loan options in Ohio:

  • SBA loans: Low-interest loans backed by the Small Business Administration that can be used for a variety of purposes, including working capital, equipment purchases, and real estate.
  • The Ohio 166 Direct Loan Program: This program offers loans up to $500,000 to Ohio small businesses that create new jobs or retain existing jobs.
  • The Economic & Community Development Institute (ECDI): ECDI is a non-profit organization that provides small business loans up to $350,000 in Ohio.
  • Invoice financing: A loan that uses outstanding invoices as collateral to provide funding for cash flow needs.
  • Equipment Financing: A loan specifically designed for businesses to purchase new equipment or upgrade existing equipment.

VA loans in Ohio

VA loans are a special type of loan available to eligible Ohio veterans and their spouses. These loans are backed by the U.S. Department of Veterans Affairs and offer benefits such as no down payment and lower interest rates than traditional loans. VA loans in Ohio can be used to purchase or refinance a home, and eligibility requirements vary depending on the length and type of service. Borrowers must also obtain a Certificate of Eligibility from the VA to apply for a VA loan in Ohio.

Ohio Student Loans

Many options are available to Ohio students to help finance their college education. These options include:

  • Federal Student Loans: Low-interest loans backed by the federal government that can be used to pay for education expenses.
  • Ohio Safety Officers College Memorial Fund: This fund provides tuition assistance to the children and spouses of peace officers, firefighters, and certain other safety officers who were killed in the line of duty.
  • College Access Loans: These are low-interest loans provided by the Ohio Higher Education Assistance Authority to eligible Ohio residents who are enrolled in approved degree or certificate programs.
  • Federal Parent PLUS Loans: These are federal loans that parents can use to help pay for their child's education.
  • Private Student Loans: Loans offered by private lenders that can be used to pay for education expenses, with interest rates and terms that can vary widely.

Ohio Income Information

The recently released 2021 U.S. Census reports show Ohio having a median household income of $61,938, somewhat lower than the national median of $69,021. Ohio has a diverse economy that includes manufacturing, healthcare, education, and financial services. The state is home to several Fortune 500 companies and has a Gross Domestic Product (GDP) of over $700 billion. The state also has a lower cost of living than many other states, which attracts retirees and those seeking affordable housing. Ohio’s median household income varies widely by county, with Delaware County being the highest at $111,411, and Adams County being the lowest at $40,067, the state’s poverty rate was 13.4% in 2021.

United States Census Bureau. “Poverty in the United States: 2021.” Accessed on April 30, 2023.
United States Census Bureau. U.S. Census Bureau QuickFacts: Ohio. Accessed on April 30, 2023.

Ohio Payday Lender Complaints

Below are trends associated with some payday lenders in Ohio, as reported to the Consumer Financial Protection Bureau.
Company Name Count
ENOVA INTERNATIONAL, INC. 61
COMMUNITY CHOICE FINANCIAL, INC. 60
CNG FINANCIAL CORPORATION 55
Populus Financial Group, Inc. (F/K/A Ace Cash Express) 43
Advance America, Cash Advance Centers, Inc. 32
Risecredit, LLC 28
Total Complaints 675

Consumer Financial Protection Bureau. Consumer Complaint Database. Accessed on April 30, 2023.

Most Common Issues

Complaint type Count
Unexpected fees or interest 217
Struggling to pay loan 127
Can’t contact lender 66
Received a loan didn’t apply for 65
Can’t stop withdrawals/charges from bank 56

What are the main reasons residents of Ohio apply for payday cash advance online or offline

Payday loans are typically used for nonnegotiable everyday expenses like your rent, utilities, and groceries. Per data reported by Pewtrust, the percentage of reasons described below

Reason Share
Regular Expenses (Utilities, car payment) 53%
Unexpected emergency/expense 16%
Rent/Mortgage 10%
Something Special 8%
Other 5%
Did not answer 2%

Payday Lenders by City

  • Columbus
  • Cleveland
  • Cincinnati
  • Toledo
  • Akron
  • Dayton
  • Parma
  • Canton
  • Lorain
  • Hamilton
  • Youngstown
  • Springfield
  • Kettering
  • Elyria
  • Cuyahoga Falls
  • Lakewood
  • Middletown
  • Newark
  • Euclid
  • Dublin
  • Mansfield
  • Mentor
  • Beavercreek
  • Strongsville
  • Cleveland Heights
  • Fairfield
  • Huber Heights
  • Grove City
  • Delaware
  • Lancaster

Payday Loans are Legal in Ohio

Find a Lender

Table of Contents

Beware of predatory lending

Payday Lenders in Ohio

Payday loans are a type of short-term lending that are most often used for unexpected financial emergencies, such as medical bills or auto repairs. People with poor credit or little or no credit history often use payday loans because they don’t qualify for traditional credit from banks or credit unions.

The appeal of these loans is that they are more readily available than traditional forms of credit, despite the high interest rates and fees. This is the case in most states, however, Ohio has capped the interest rates for these types of loans at 28%, which is significantly lower than the national average of around 400%. In addition, Ohio law mandates a minimum repayment period of 90 days, which has effectively turned all payday loans into installment loans. Despite these strict regulations, payday loans are still popular in Ohio, and borrowers should be aware of the potential risks and benefits. 

It’s crucial to do research before choosing a lender for payday loans and evaluate the reputation of that lender and their terms. One of the biggest risks associated with payday loans is the high interest rates and fees. Ohio’s interest rate cap may seem low, but it still translates to a significant cost for borrowers, especially if they are unable to repay the loan on time. Additionally, Ohio’s interest rate and fee caps may not be followed by lenders who aren’t licensed. It is best to choose licensed lenders who are open and transparent with their terms. Avoid lenders who use aggressive marketing tactics such as no credit checks or guaranteed approval. Check online ratings and reviews to determine the reputation of the lender and its quality of service.

Payday Loan Laws

Since 2008 the Small Loan Act regulated the legal restrictions on payday loans including loan amounts, interest rates, minimum terms and the number of loans allowed each year. Unfortunately, many lenders were operating outside the regulation leading to increasing interest rates on payday loans. In 2018 the Short-term loan act was passed that put stricter enforcement on both storefront and online payday lenders.

The State of Ohio has several pieces of legislation that govern payday loans:

  • Ohio Rev. Code Ann. § 1321.35: Sets the maximum loan amount and states that loan terms must be between 91 days and 1 year. It does allow for loans less than 6% of gross monthly income to have terms of less than 91 days.
  • Ohio Rev. Code Ann. § 1321.41: Prohibits borrowers from having more than $2500 outstanding in payday loans
  • Ohio Rev. Code Ann. § 1321.39: Requires that all repayment plans have equal payments across all months

Loan Terms and Conditions

Maximum loan amount: $1000

Maximum Interest Rate: 28%

Minimum loan term: 91 days (unless less than 6% of income)

Maximum loan term: 1 year

Number of rollovers allowed: None

Finance Charge: 28%

Legal action: 8 Years

Certified Payday Lenders in Ohio

Company NameCompany scoreLicense Status
ENOVA INTERNATIONAL, INC.7.6Valid
COMMUNITY CHOICE FINANCIAL, INC.7.5Valid
CNG FINANCIAL CORPORATION6.5Valid
Populus Financial Group, Inc.6.1Valid
Advance America, Cash Advance Centers, Inc.5.8Valid
Risecredit, LLC5Valid

History of Ohio Payday Loans

Ohio’s payday lending laws have gone through various changes since the early 1990s. The state’s usury rate cap of 8% prevented payday loans from becoming prevalent in the state until the passage of the Payday Loan Act in 1995. The Act exempted short-term lenders from the usury limit and allowed them to charge triple-digit APRs. The industry began to grow and expand, with even national banks offering payday loans in all but name. The state then passed the Short-Term Loan Act in 2008, which imposed a 28% rate cap and a $500 limit on payday loans. However, lenders registered as mortgage lenders or credit service organizations managed to evade these rules. In 2018, the Fairness in Lending Act passed, forcing payday lenders to register as short-term lenders and abide by those rules. Payday loans are legal in Ohio in 2021, but the industry has faced significant regulatory restrictions.

State Resources

How to file a complaint

The Ohio Division of Financial Institutions accepts complaints concerning potential fraud or misconduct related to payday loans.Consumers must write a letter or complete the complaint form then email, mail or fax it to the Division. Their website has a list of supporting documents that will need to accompany the complaint. These complaints are addressed in the order they are received and consumers will receive an acknowledgement that they received the complaint.
  • ADDRESS

Ohio Payday Loans Debt Relief

How to Get out of Payday Loan Debt?

Getting out of payday loan debt is challenging but possible. The key is understanding the terms of your loan and creating a budget that includes the repayment amount. Contact your lender and ask if extended repayment plans or modifications might help ease debt payments, or seek the services of a credit counseling agency that will work to craft repayment plans that fit within your budget. Be wary of debt settlement companies offering quick fixes with high fees. They may not be legitimate – ultimately, the key is staying the course with repayment and refraining from taking out new payday loans.

Support Resources

Types of Quick Loans in Ohio

Alternatives to Payday Loans in Ohio

Personal Loans

Personal loans in Ohio offer an ideal solution to those in need of funds for home improvements, medical bills or debt consolidation. Compared with credit cards, they usually feature lower interest rates and can offer fixed repayment terms that allow borrowers to plan payments more easily. Loan applications can be submitted at banks, credit unions or online lenders across Ohio - eligibility requirements will depend upon which lender you apply with; generally speaking you need a good credit score, stable income and reasonable debt-to-income ratio to be eligible. Furthermore some lenders require collateral or co-signer to secure loans against defaulting payments.

Bridge Loans

Bridge loans are a short-term financing option that can help borrowers in Ohio bridge the gap between the purchase of a new property and the sale of an existing one. These loans are typically secured by the borrower's current home and can provide quick access to funds for a down payment on a new property. Bridge loans in Ohio often have higher interest rates and fees than traditional loans, but can provide a valuable option for borrowers who need to act quickly to secure a new property before selling their current one.

Home Equity Loans

Home equity loans allow Ohio homeowners to borrow against the equity they have built in their home. These loans can provide access to funds for various expenses, such as home renovations or debt consolidation. Home equity loans in Ohio typically have lower interest rates than other types of loans because they are secured by the borrower's property. Borrowers should always be cautious when considering a home equity loan and make sure they can afford the payments, as defaulting on the loan could result in the loss of their home.

Bad Credit Loans in Ohio

Bad credit loans in Ohio can be an option for those who have struggled to obtain traditional loans due to a poor credit score. These loans typically come with higher interest rates and shorter repayment terms, and may require collateral or a co-signer to secure the loan. Borrowers can find bad credit loans from online lenders or some credit unions and banks in Ohio. However, it's important to be cautious when considering these loans, as they can often come with hidden fees and predatory lending practices. Borrowers should thoroughly research lenders and read the loan terms and conditions carefully before applying for a bad credit loan in Ohio.

Ohio Small Business Loans

Small business loan options in Ohio:

  • SBA loans: Low-interest loans backed by the Small Business Administration that can be used for a variety of purposes, including working capital, equipment purchases, and real estate.
  • The Ohio 166 Direct Loan Program: This program offers loans up to $500,000 to Ohio small businesses that create new jobs or retain existing jobs.
  • The Economic & Community Development Institute (ECDI): ECDI is a non-profit organization that provides small business loans up to $350,000 in Ohio.
  • Invoice financing: A loan that uses outstanding invoices as collateral to provide funding for cash flow needs.
  • Equipment Financing: A loan specifically designed for businesses to purchase new equipment or upgrade existing equipment.

VA loans in Ohio

VA loans are a special type of loan available to eligible Ohio veterans and their spouses. These loans are backed by the U.S. Department of Veterans Affairs and offer benefits such as no down payment and lower interest rates than traditional loans. VA loans in Ohio can be used to purchase or refinance a home, and eligibility requirements vary depending on the length and type of service. Borrowers must also obtain a Certificate of Eligibility from the VA to apply for a VA loan in Ohio.

Ohio Student Loans

Many options are available to Ohio students to help finance their college education. These options include:

  • Federal Student Loans: Low-interest loans backed by the federal government that can be used to pay for education expenses.
  • Ohio Safety Officers College Memorial Fund: This fund provides tuition assistance to the children and spouses of peace officers, firefighters, and certain other safety officers who were killed in the line of duty.
  • College Access Loans: These are low-interest loans provided by the Ohio Higher Education Assistance Authority to eligible Ohio residents who are enrolled in approved degree or certificate programs.
  • Federal Parent PLUS Loans: These are federal loans that parents can use to help pay for their child's education.
  • Private Student Loans: Loans offered by private lenders that can be used to pay for education expenses, with interest rates and terms that can vary widely.

Ohio Income Information

The recently released 2021 U.S. Census reports show Ohio having a median household income of $61,938, somewhat lower than the national median of $69,021. Ohio has a diverse economy that includes manufacturing, healthcare, education, and financial services. The state is home to several Fortune 500 companies and has a Gross Domestic Product (GDP) of over $700 billion. The state also has a lower cost of living than many other states, which attracts retirees and those seeking affordable housing. Ohio’s median household income varies widely by county, with Delaware County being the highest at $111,411, and Adams County being the lowest at $40,067, the state’s poverty rate was 13.4% in 2021.

United States Census Bureau. “Poverty in the United States: 2021.” Accessed on April 30, 2023.
United States Census Bureau. U.S. Census Bureau QuickFacts: Ohio. Accessed on April 30, 2023.

Ohio Payday Lender Complaints

Below are trends associated with some payday lenders in Ohio, as reported to the Consumer Financial Protection Bureau.
Company Name Count
ENOVA INTERNATIONAL, INC. 61
COMMUNITY CHOICE FINANCIAL, INC. 60
CNG FINANCIAL CORPORATION 55
Populus Financial Group, Inc. (F/K/A Ace Cash Express) 43
Advance America, Cash Advance Centers, Inc. 32
Risecredit, LLC 28
Total Complaints 675

Consumer Financial Protection Bureau. Consumer Complaint Database. Accessed on April 30, 2023.

Most Common Issues

Complaint type Count
Unexpected fees or interest 217
Struggling to pay loan 127
Can’t contact lender 66
Received a loan didn’t apply for 65
Can’t stop withdrawals/charges from bank 56

What are the main reasons residents of Ohio apply for payday cash advance online or offline

Payday loans are typically used for nonnegotiable everyday expenses like your rent, utilities, and groceries. Per data reported by Pewtrust, the percentage of reasons described below

Reason Share
Regular Expenses (Utilities, car payment) 53%
Unexpected emergency/expense 16%
Rent/Mortgage 10%
Something Special 8%
Other 5%
Did not answer 2%

Payday Lenders by City

  • Columbus
  • Cleveland
  • Cincinnati
  • Toledo
  • Akron
  • Dayton
  • Parma
  • Canton
  • Lorain
  • Hamilton
  • Youngstown
  • Springfield
  • Kettering
  • Elyria
  • Cuyahoga Falls
  • Lakewood
  • Middletown
  • Newark
  • Euclid
  • Dublin
  • Mansfield
  • Mentor
  • Beavercreek
  • Strongsville
  • Cleveland Heights
  • Fairfield
  • Huber Heights
  • Grove City
  • Delaware
  • Lancaster

Frequently Asked Questions

Will applying for a payday loan impact my credit?

Payday loans are typically not reported to the three major credit reporting agencies, and most lenders do not conduct credit checks as part of their application process.

What do I need to apply for a payday loan?

To apply for a payday loan in Ohio, you will need to provide identification, proof of income, a bank account, Social Security number, and contact information

Can I cancel my payday loan?

You can cancel a payday loan in Ohio by the end of the next business day without incurring any additional charges or fees by contacting the lender and providing written notice of cancellation if required.

Can a payday loan lender garnish my wages?

Yes, a payday loan lender can potentially garnish your wages in Ohio with a court order.

Can spouses have separate loans?

Yes, spouses can have separate loans in Ohio but they must meet the requirements on their own.

When will I receive my funds if I am approved for a payday loan?

If approved for a payday loan in Ohio, you can typically expect to receive your funds on the same day or the next business day, depending on the lender and your bank’s processing times.

What happens if I can’t repay my payday loan on time?

Failing to repay your payday loan on time in Ohio may result in extra charges, legal action, and potential harm to your credit score, so it is crucial to promptly communicate with the lender to discuss alternative repayment options or potentially negotiate a repayment plan or extension on the loan.

When could I apply for another payday loan?

In Ohio, you can apply for a new payday loan immediately after you pay the current one off.
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