I get a lot of questions regarding the $3000 payday loan. Many people search (in vain btw) for such a loan, only to find that in reality a single payday loan for $3000 does not really exist. The fact is, most payday lenders will not offer more than $1,500 – and on average the maximum you can generally borrow from such a lender is around $1,000.
So why is this the case, and why do people still advertise 3000 payday loans? First off, let’s look at why loans for such an amount are non-existent. In order to understand this, it’s important to understand the financial requirements for taking out a payday loan.
Financial Requirements / Limits
Typically, short term cash lenders (cash advances or payday loans) will only lend 35% of your gross income for the month. That means that if you make $4,000 each month, the maximum they will lend is $1,400.
A second limitation on the amount you can borrow will be set by 1) the state you live in, and 2) the company offering the loan. Many states won’t even allow you to borrow $1,000, let alone $3K. However, if the state does not have a limit then most lenders will either cap the loan amount offered at $1,500 or $1,000.
In other words, you are going to be limited in the amount you can borrow by three things:
- Your income, as you can only borrow up to 35% of your monthly income
- State regulations and laws (some states do not allow any payday loan companies at all)
- The amount the lender will loan
How Can Companies Advertise Such Loans for $3000?
Given the above restrictions, it’s would be hard to see a situation where someone would be able to find a payday lender who offers loans for such a large amount of money. So how are there so many advertisements for such loans?
First of all, you need to read the fine print. Most people ‘offering’ such loans are not really making the loans themselves – they are selling leads to lenders who then make the loan and pay a commission to the person who generated the lead.
Second, the only real way to get a 3000 payday loan is to actually take out two payday loan at the same time (apply twice). However, many lenders will not allow you to take out one loan while you have another short term loan currently due (which makes sense given that you would have to pay back both loans within a few short weeks).