Payday loans in Colorado

Are payday loans legal in Colorado?

Colorado caps the cost of small loans at 36% APR, so high-cost single-payment payday loans are not offered by licensed lenders there.

The governing law is Colo. Rev. Stat. 5-3.1-101 et seq. (2018 Ballot Measure capped APR at 36%). Colorado Attorney General, Consumer Credit Unit licenses lenders and takes complaints. Check a lender’s license there before you share bank details; how to tell if a lender is legitimate lists the other checks.

What the 36% cap means

A lender licensed in Colorado cannot charge more than 36% APR on a small loan. At that price the two-week payday loan is not a viable product, so storefront payday lenders do not operate in Colorado. Longer installment loans from licensed lenders and credit unions are the legal options.

A loan that meets the Northlight standard

Northlight works only with loans that carry an APR of 35.99% or less, fees included, and give you at least 3 months to repay. Colorado’s own cap draws nearly the same line.

For example, $1,000 repaid over 12 months at 35.99% APR is 12 payments of $100.46, or $1,205.52 in total. The calculator prices other amounts and terms.

If you cannot repay a loan in Colorado

Contact the lender before the due date and ask for a payment plan in writing. If a lender or collector breaks the rules, file a complaint with Colorado Attorney General, Consumer Credit Unit and with the CFPB. Our guide to what happens if you don’t pay covers each step.

Lower-cost options in Colorado

• Credit union payday alternative loans (PALs): $200 to $2,000 at no more than 28% APR.
• A payment plan with the landlord, utility or hospital you owe often costs nothing.
• Local assistance: dial 211 for rent, utility and food programs near you.

See all payday loan alternatives.

How Colorado got here

Voters approved Proposition 111 in November 2018 with about 77% of the vote, and the 36% cap took effect on February 1, 2019. Before that, Colorado payday loans cost several times the new cap.