Payday Loans are Legal in Missouri

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Beware of predatory lending

Payday Lenders in Missouri

Missourians can use a short-term loan option, known as payday loans, to get instant access to cash. These loans can be used for unexpected costs or to bridge the gap until the next payday.
Missouri law requires that borrowers meet specific criteria to qualify but they still come with high financial risks given the interest rates and fees that are allowed. Missouri has some of the highest allowable interest rates of any state when it comes to payday loans and over 1,100 licensed payday lenders operating in the state, making it easy to obtain one. The average loan amount in Missouri is around $300, with an average repayment period of two weeks.
Payday loans can seem attractive as a solution for unexpected financial crises. However, their high interest rates and short payment periods make them a trap for those who are unable to pay on time. When considering payday loans, borrowers should be cautious and make sure they know exactly what they are signing.

Payday Loan Laws

Payday loans has a series of regulations in place that govern payday lenders in the state of Missouri. These laws require that lenders be licensed by the Division of Finance, provide copies of all agreements and regulate the amount that can be borrowed and fees that can be assessed.

The State of Missouri has one major piece of legislation surrounding payday loans:

  • Mo.Rev Stat. §408.500: Only loans that are $500 or less fall under these laws. This statute regulates the loan amount, term, finance charge and debt limits.

Loan Terms and Conditions

Maximum loan amount: $500

Maximum Interest Rate: 1955%

Minimum loan term: 14 days

Maximum loan term: 31 days

Number of rollovers allowed: 6

Finance Charge: 75% of original loan amount

Legal action: 10 Years

Certified Payday Lenders in Missouri

Company NameCompany scoreLicense Status
CURO Intermediate Holdings7.8Valid
ENOVA INTERNATIONAL, INC7.4Valid
Populus Financial Group, Inc.6.8Valid
QC HOLDINGS INC6.1Valid

History of Missouri Payday Loans

Payday loans in Missouri have a long and controversial history. It all began in the 1930s when lenders devised a way to circumvent the state’s usury laws by issuing short-term loans with post-dated checks as collateral. Interest rate limits were eventually imposed on payday lenders in the 1980s, but they proved ineffective by 1998 when the Missouri Legislature eliminated the usury cap altogether. By 2001, an audit by Missouri Auditor Claire McCaskill revealed an average APR of 391% for a payday loan, prompting recommendations for a cap on the number of loan renewals. Despite this, the state’s attempt to limit fees and interest at 75% of the principal amount of the loan backfired, resulting in the highest allowed APR of over 1000% on a 2-week loan. While legislators have attempted to introduce a 36% APR usury cap, it has failed to pass, leaving consumers with few protections against the predatory practices of payday lenders in Missouri.

State Resources

How to file a complaint

The Missouri Division of Finance provides information on payday loans and regulations and is where borrowers can go to file a complaint against a lender. Forms can be submitted both online or by printing out and sending via email, mail or fax. They will then review the complaint along with all of the facts to see if there was a violation of lender law.
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Missouri Payday Loans Debt Relief

How to Get out of Payday Loan Debt?

Missouri payday loan debt can be difficult to escape, but there are steps borrowers can take to find their way back to financial stability. The first is to stop taking out additional payday loans to cover existing ones – doing this only adds further debt and makes it harder to recover. Next, borrowers should assess their finances and create a budget to identify how much they can repay each month. Next, they should contact the lenders to negotiate repayment plans or apply for hardship programs that may be out there. Borrowers can also seek assistance from credit counseling agencies or legal aid services that specialize in debt management strategies and can negotiate a lower interest rate. These organizations can also give advice and strategies on debt reduction. It is crucial that borrowers stay committed to their repayment plan and avoid defaulting. That could lead to additional fees and damage their credit score.

Support Resources

Types of Quick Loans in Missouri

Alternatives to Payday Loans in Missouri

Personal Loans

In Missouri, personal loans can be obtained from online lenders, banks and credit unions. This type of loan is not a secured loan, which would require collateral to secure repayment. Instead, they are approved based solely on the creditworthiness of an individual. Personal loans can be used for a variety of purposes, including consolidating high-interest debts, covering unexpected costs or financing large purchases. Missouri's personal loan regulations limit lenders maximum interest rates, protecting consumers.

Home Equity Loans

Missouri home equity loans let homeowners borrow against the equity they have built up in their home over time. These loans can be used for a number of reasons, including debt consolidation and education expenses, as well as improvements. These loans have lower interest rates than unsecured ones because they are secured by the property. Borrowers should be aware that defaulting on a home equity loan can lead to foreclosure. Therefore, it's important to consider your ability to pay before taking out one.

Construction Loans

Missouri Construction Loans are available to help finance the construction or renovation of your home. They can be used to pay for everything from contractors to permit fees. The repayment term for construction loans is usually short - six to eighteen months, with interest rates that are linked to prime rates. Missouri banks and credit unions also offer construction-to-permanent loans, which convert to traditional mortgages after the construction is complete; such loans must meet stringent underwriting criteria, including income verification and property inspections, before being approved as mortgage loans. When thinking about a construction loan it is important to plan for unexpected costs, like changes in construction plans and unexpected fees, to ensure that loan payments are made on time.

Bad Credit Loans in Missouri

Personal loans are a type of loan that individuals can obtain in Missouri from banks, credit unions, and online lenders. Unlike secured loans that require collateral as security against repayment, personal loans rely solely on creditworthiness for approval; as a result, the amount, interest rate, and repayment terms are based on individual factors. Personal loans may be used to consolidate high-interest debt, cover unexpected expenses or finance large purchases. In Missouri, the state's regulations on personal loans limit the maximum interest rate lenders can charge, providing some protection to consumers.

Missouri Small Business Loans

Missouri offers various types of small business loans with specific requirements and terms; each option offers benefits unique to itself:

  • SBA loans: The Small Business Administration (SBA) offers loans to small businesses through partnering lenders. These loans include the SBA 7(a) loan, SBA 504 loan, and microloans.
  • St. Louis Economic Development Partnership Small Business Loan Program: This program provides loans to small businesses in the St. Louis area for a variety of business needs, including working capital, equipment purchases, and real estate acquisition. Loans can range from $5,000 to $500,000.
  • Missouri Women's Council Microloan Program: This program provides microloans up to $5,000 to women-owned small businesses in Missouri. Loans can be used for a variety of business needs, including working capital, inventory, and equipment purchases.
  • Missouri Agricultural and Small Business Development Authority (MASBDA): Offers loans to Missouri small businesses involved in agriculture or related industries. Loans can be used for equipment purchases, land and building acquisition, and working capital.
  • Equipment Financing: Allows small businesses to purchase new equipment or upgrade existing equipment. This type of financing is typically secured by the equipment itself, making it easier to qualify for than other types of loans.

VA loans in Missouri

VA loans are mortgage loans designed for eligible veterans, active-duty service members, and their surviving spouses that are guaranteed by the U.S. Department of Veterans Affairs (VA). Lenders offering VA loans have more favorable terms when lending them, making Missouri VA loans perfect for purchasing or refinancing an existing home loan, making improvements, or making modifications with zero down payments and no private mortgage insurance (PMI) requirement. VA loans in Missouri have a loan limit of $726,200, which is higher than the standard loan limits set by the Federal Housing Finance Agency.

Missouri Income Information

Missouri students have various options available to them to finance their college education, including:

  • Federal Student Loans: Missouri students have access to federal student loans as a vital financial tool that they can utilize towards covering college tuition and related costs.
  • Missouri Department of Higher Education and Workforce Development Bright Flight Scholarship Program: Provides merit-based scholarships to Missouri high school graduates who have achieved high academic performance. The scholarships can be used to pay for tuition, fees, and other educational expenses.
  • Show-Me Loan Program: This program offers low-interest loans to Missouri residents who are enrolled in graduate or professional degree programs. The loans can be used to pay for tuition, fees, and other educational expenses, and repayment terms are flexible.
  • Advantage Education Loan Program: This program provides low-interest loans to Missouri residents who are attending college or graduate school. Borrowers can choose from a variety of repayment plans, including deferred repayment while in school.
  • Private Student Loans: Offered by banks, credit unions, and other private lenders, and often have higher interest rates than federal or state funding. Students can use these to cover education expenses that federal loans don't cover.

Missouri Income Information

Missouri has a diverse economy, with major industries including aerospace, automotive manufacturing, healthcare, and agriculture. The state’s central location and transportation infrastructure make it an attractive location for businesses looking to distribute their products across the country. Missouri had an overall median household income of $61,043 in 2021 which was a bit lower than the national median of $69,021. Income varies drastically depending on which borough an Missourian lives in – St. Charles County had an overall median household income of $87,644 while regon County had the lowest at $32,766. The poverty percentage in Missouri for 2021 was 12.7%.

United States Census Bureau. “Poverty in the United States: 2021.” Accessed on April 29, 2023.
United States Census Bureau. U.S. Census Bureau QuickFacts:Missouri. Accessed on April 29, 2023.

Missouri Payday Lender Complaints

Below are trends associated with the top payday lenders in Missouri, as reported to the Consumer Financial Protection Bureau.
Company Name Count
CURO Intermediate Holdings 14
ENOVA INTERNATIONAL, INC. 14
Populus Financial Group, Inc. (F/K/A Ace Cash Express) 9
QC HOLDINGS INC 8
Total Complaints 131

Consumer Financial Protection Bureau. Consumer Complaint Database. Accessed on April 29, 2023.

Most Common Issues

Complaint type Count
Charged unexpected interest or fees 30
Struggling to pay loan 21
Can’t stop withdrawals from account 20
Received a loan never applied for 14
Problem with payoff process 10

What are the main reasons residents of Missouri 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

  • Kansas City
  • St. Louis
  • Springfield
  • Columbia
  • Independence
  • Lee's Summit
  • O'Fallon
  • St. Joseph
  • St. Charles
  • Blue Springs
  • St. Peters
  • Florissant
  • Joplin
  • Chesterfield
  • Wentzville
  • Jefferson City
  • Cape Girardeau
  • Wildwood
  • Oakville
  • University City
  • Ballwin
  • Liberty
  • Raytown
  • Kirkwood
  • Mehlville
  • Maryland Heights
  • Gladstone
  • Grandview
  • Hazelwood
  • Belton

Frequently Asked Questions

Will applying for a payday loan impact my credit?

Payday loans are generally not reported to the three major credit reporting agencies, and lenders generally do not check your credit report as part of the application process.

What do I need to apply for a payday loan?

To apply for a payday loan in Missouri, you will typically need a checking account, income, have no outstanding loans, proof of employment and meet the minimum age requirement.

Can I cancel my payday loan?

Yes, you can cancel a payday loan in Missouri.

Can a payday loan lender garnish my wages?

Yes, payday lenders can garnish wages in the state of Missouri if a borrower fails to repay their loan.

Can spouses have separate loans?

Yes, spouses can have separate payday loans in Missouri as long as they individually meet the lender’s eligibility requirements and can provide the necessary documentation and information to apply.

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

You will receive your funds on the same day or the next business day, depending on the lender’s policies and the timing of your application.

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

If you are unable to repay your payday loan on time in Missouri, you may be charged additional fees and interest, and face legal action.

When could I apply for another payday loan?

After paying off an existing payday loan, Missouri allows borrowers to apply for a new one immediately.
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