Online Payday Loans in Kentucky – Know Your Alternatives to High-Cost Lending

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You need cash now but you don’t get paid for another 2 weeks. What do you do? 

Like many people (12 million in the US alone!) you start searching for a short-term payday loan to get the money you need as fast as possible.

Payday loans are short term loans often carrying a high interest rate that provides you immediate cash within 24 hours. Lenders often forego traditional underwriting using a credit score and other underwriting variables to get you signed up for their loans as quickly as possible. Lenders will also tack on as many fees as the law allows to maximize profit.

Payday loans are a legal option in Kentucky for those looking for cash today, but they aren’t the only option. Learn more about how payday loans work, how to avoid them, and the better options that are available to you today.

Options For Payday Loans in Kentucky

The biggest drawback to payday loans is their extremely high APR or annual percentage rate. Kentucky payday lenders can charge an APR up to 460%. In simple terms, a $30 pair of shoes financed over a year at a 460% APR would result in the shoe’s actual cost of $138.00. Secondly, a payday loan can often have a very short loan term. For example, in Kentucky, you will have to pay back the loan in a couple of days with a maximum of 60 days.

Requirements – To qualify for a payday loan in Kentucky:

  • 18 years old
  • Have an active bank account
  • A government-issued ID
  • Proof of income

Most of the time, there is no minimum credit score needed to qualify for a payday loan. In some instances, you may need to bring your checkbook.

Credit Check – Payday lenders in Kentucky will generally not do a credit check.

RegulationsKentucky regulations allow you to have up to two payday loans from one payday lender. There is no minimum loan term requirement, but the maximum is 60 days. Rollovers are not allowed.

Max Loan Amount – The payday lender is legally allowed to lend up to $500 and up to 2 payday loans to one customer.

Penalties – Payday lending regulations in Kentucky only allow one Non-Sufficient Funds (NSF) fee to be charged although the amount of the fee is not specified.  

Payday Loan Alternatives in Kentucky

Payday loans can be far too expensive and keep you in the debt cycle. However, there are better, safer alternatives to payday loans in Kentucky, so let’s look at two of the best options.


MoneyLion understands that sometimes you need cash right away, so we built Instacash cash advances to provide a safer alternative to a payday loan. And the best part of all? These cash advances have 0% APR, meaning you pay back exactly what you borrowed and not a penny more. MoneyLion didn’t just stop there. In addition, Instacash doesn’t pull your credit, it’s mobile-friendly, and it has no hidden stipulations.

Credit Builder Loans

Another great, safe alternative to a payday loan is the Credit Builder Loan from MoneyLion. You are able to get the funds instantly and you can borrow up to $1,000 and paying back the loan helps you build your credit score as your loan performance is reported to all three major credit bureaus. Plus a Credit Builder Plus members not only gives you access to loans but also to Instacash advances and additional financial tools at no additional cost.

In addition, more than half our members see their credit score increase by over 27 points in the first 60 days.

InstacashCredit Builder LoanLocal Payday Lender
How Much Can You Borrow?Up to $250Up to $1,000$500
Fees & Interest0% APRCompetitive APR, $19.99/month feeUp to 460% APR
Impacts Your Credit?NoYes, it builds your credit score. No
AvailabilityOnline & MobileOnline & MobileIn-person & Online
Wait TimeInstantly*Instantly24-hour wait period
Next StepsSign UpSign Up
*24-48 hours to receive your advance at 0 cost. $3.99 for instant deposit to your MoneyLion bank account, $4.99 to instantly deposit to an alternative bank account.

Keep Calm and Get Cash Safely

Thankfully there are safe alternatives to a traditional payday loan that take care of your immediate needs without penalties. The process is not only better for you, but it’s also much simpler. Instead of having to find your checkbook, drive to a location, and fill out a check dated for your payday, you can start by simply signing up, downloading the MoneyLion app and choosing your account type. 

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Get cash fast, pay no interest

Enjoy Instacash advances up to $250. No credit check, no monthly fee, no interest. Just cash.

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