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Payday Lending in Colorado
Updated November 2026 · By Payday Loans Reviews Editorial Team · Not a lender
Colorado short-term loan laws
- Max loan amount
- Prohibited
- Min loan term
- N/A
- Max loan term
- N/A
- Finance charge cap
- Capped at 36% APR
- Max absolute fee
- N/A
- Typical APR
- < 36%
- Rollovers (extensions)
- Prohibited
- Simultaneous loans
- N/A
- Right to rescind
- N/A
- Governing law
- Colorado Proposition 111 (2018)
- Regulator
- CO Div. of Banking
Colorado in context
- Population rank
- 21st
- of 50 states
- Median household income rank
- 10th
- of 50 states
- Households earning under $25,000
- 11.3%
- ▼ 3.5 pts vs US
- Median home value
- $531,452
- ▲ 37% vs US
- Home value to income
- 5.5×
- A $400 emergency expense
- 1.5 days
- of median household income
Payday lending in Colorado cities
A
B
C
D
E
F
G
L
P
W
Colorado options instead of payday loans
Struck by a bill you did not see coming? Getting emergency funds in Colorado first requires understanding what the rules allow. Because Colorado law blocks payday loans with APRs in triple digits, people there are shielded by firm consumer lending limits.
We connect you with lenders who hold Colorado licenses, offering protected, rule-abiding and budget-friendly choices with plain terms, payments you can manage and no harmful fees.
Why borrowers in Colorado choose regulated loans
- Capped APRs Interest rates are capped under Colorado law, making repayment more affordable.
- Licensed lenders Every provider must be licensed or otherwise approved to lend in Colorado, with the CO Div. of Banking providing oversight.
- Fixed installment terms You pay back the loan in steady monthly amounts rather than a single massive lump sum.
- Transparent financing Clear contracts with all fees disclosed upfront, in line with Colorado regulations.
Consumer notice for Colorado residents: Colorado law (Colorado Proposition 111 (2018)) prohibits classic short-term payday loans with steep APRs. We do not broker or advertise unlicensed, high-interest cash advances here. All displayed options must conform to Colorado's interest-rate ceilings and consumer lending regulations. Examine every term before signing.
Borrowing $500 for 6 months in Colorado
| Option | Payment | Total cost of borrowing |
|---|---|---|
| Installment loan at the Colorado rate cap (36% APR) | $92.30/mo | $53.79 |
| Credit union PAL (28% APR) | $90.27/mo | $41.62 |
| Payday loan renewed every 2 weeks (typical $15 per $100, not available in Colorado) | $75.00 every 2 weeks | $975.00 |
- Monthly payment at the Colorado rate cap vs median monthly household income
- 1.1%
Example calculation with fixed monthly payments; the payday row shows typical out-of-state pricing for comparison. Actual rates and terms vary by lender.
$500 payday loan vs options in Colorado
| Option | Term | Cost | Details |
|---|---|---|---|
| Payday loan | — | Not allowed | Colorado rate cap |
| Credit card cash advance | 30 days | $37.33 (typical) | 5% fee + 30% APR |
| Credit union PAL | 6 months | $62 total | $90.27/mo at 28% APR, $20 fee |
| Installment loan at state max | 6 months | $110 total | $102/mo at 72% APR |
Calculated from state rules in our database; card terms are typical, not a quote.
Top Colorado cities for payday storefronts
| City | Residents | Loan offices | Per 100,000 residents |
|---|---|---|---|
| Aurora | 463,814 | 13 | 2.8 |
| Greeley | 117,473 | 3 | 2.6 |
| Colorado Springs | 613,448 | 15 | 2.4 |
| Denver | 1,108,441 | 23 | 2.1 |
| Fort Collins | 201,525 | 3 | 1.5 |
| Brighton | 99,643 | 1 | 1.0 |
| Arvada | 138,109 | 1 | 0.7 |
| Littleton | 318,691 | 1 | 0.3 |
Cities with 20,000+ residents; counts from our directory.
Colorado at a glance
| Metric | Colorado | United States |
|---|---|---|
| Population | 5.8M | 332.3M |
| Median household income | $97,396 | $85,275 |
| Median rent | $1,730/mo | $1,432/mo |
| Income spent on rent | 32.4% | 31.6% |
| Homeownership | 67.3% | 65.4% |
| Poverty rate | 9.6% | 12.6% |
| Unemployment rate | 4.5% | 5.3% |
| Without health insurance | 7.7% | 8.6% |
| Veterans | 8.0% | 6.5% |
Source: U.S. Census Bureau, American Community Survey, by ZIP code. City and state figures are population-weighted averages of ZIP code data and are approximate.
Loan cost calculator for Colorado
Payday loans are not available in Colorado. See what a regulated installment loan or credit union PAL would cost instead.
Colorado cap for consumer loans: 36.0%
- Monthly payment
- $92.30
- Total interest
- $53.79
- Total to repay
- $553.79
- Share of median monthly household income in Colorado
- 1.1%
- Same loan as a payday loan
- A payday loan at a typical $15 per $100, renewed every two weeks for the same period, would cost $975
Estimate only, with fixed monthly payments. Actual rates and terms vary by lender.
Colorado payday loan answers
Do payday loans exist legally in this area?
Traditional payday lending is illegal here. Under the Colorado Proposition 111 (2018), consumer loans are capped at capped at 36% APR, preventing lenders from charging the steep APRs—typically 300% to 600%—that create long-term debt problems.
Is it allowed to borrow from an online lender outside the state?
No lender from outside Colorado can bypass local law, and when targeting Colorado residents, out-of-state and online companies must follow state consumer lending statutes where loans that exceed the rate limit or are made without CO Div. of Banking licensing may be void or unenforceable.
What led to the clamp down on payday loans?
Lawmakers acted to prevent harmful debt patterns. Consumer loans are capped at capped at 36% APR, whereas typical payday loans run 300% to 600% APR—rates the state forbids.
Where do I turn if an unlicensed lender approaches me?
Lending without a license is against the law. When an unlicensed lender contacts you or attempts to collect on an unauthorized high-rate debt, you may report it to the CO Div. of Banking.
How can I borrow money legally in Colorado?
Though payday loans carrying high interest are barred, residents can pursue these safer, lawful options:
- Payday Alternative Loans from federal credit unions: small-dollar credit at 28% APR maximum.
- Credit union personal loans: installment borrowing that meets state rate restrictions.
- Earned wage access applications: get wages you have already earned early, with clear flat fees or no interest.
- Area assistance efforts: nonprofit and community-based emergency financial aid.