How Payday Loans Work in California

In California, payday loans are a popular way to get quick cash when you’re short before payday.

But they work a little differently here compared to some other states — and it’s important to understand the rules before you borrow.

Here’s a simple breakdown of how payday loans work in California:

1. Loan Amounts Are Limited

In California, you can borrow up to $300 maximum through a payday loan.

That’s the law — lenders can’t offer more than that.

💡 Example:

If you need $500 or $1,000, a payday loan won’t be enough — you might need to explore installment loans or other options.

2. Repayment Happens Fast

You usually have to repay the full loan — plus fees — within 2 to 4 weeks.

The due date is usually set around your next payday.

✅ No monthly payments.

✅ No installment plans.

It’s one lump sum you owe all at once.

3. Fees Are Capped

California law limits how much lenders can charge:

• Maximum fee = 15% of the loan amount.

So if you borrow $300, the maximum fee you pay is $45.

You’ll owe a total of $345 by your due date.

4. You Can Only Have One Payday Loan at a Time

In California, you’re not allowed to take out multiple payday loans at once.

You must fully repay your current loan before applying for another.

This rule helps prevent borrowers from falling into a debt trap.

5. Rollovers Are Not Allowed

You can’t “roll over” or extend your payday loan into a new loan in California.

When your loan is due, you have to either:

• Pay it back

or

• Negotiate a different repayment arrangement (if the lender allows)

6. Only Licensed Lenders Can Offer Payday Loans

California payday lenders must be licensed by the California Department of Financial Protection and Innovation (DFPI).

Always check that the lender is properly licensed before signing anything — especially if you’re applying online.

Final Thoughts: Borrow Smart

✅ Payday loans in California can be a helpful short-term solution — if used carefully.

✅ Always borrow only what you need, understand the fees, and have a plan to repay on time.

At FundMyWeek, we make it easy to compare payday loan options and find trusted lenders who follow California laws and treat borrowers fairly.

👉 Explore Payday Loan Options in California

Quick FAQ

Q: How much can I borrow with a payday loan in California?

A: Up to $300 maximum.

Q: How fast do I need to repay a payday loan?

A: Within 31 days — usually by your next paycheck.

Q: Are payday loans legal in California?

A: Yes, but lenders must be licensed and follow strict rules on loan amounts, fees, and terms.