# Colorado Payday Loans: 36% APR Cap & Alternatives (2026) | Fenix Loans > Colorado caps small-dollar loans at 36% APR. Real costs, installment-only (36% apr cap) lending rules, and lower-cost alternatives for 5.88M residents. Источник: https://fenixloans.com/state/colorado/ --- # Short-Term Borrowing Options in Colorado **Single-payment payday loans are prohibited statewide — the 36% APR ceiling permits only extended-term installment products at roughly 36% APR (a 36%-APR installment advance costs approximately $1.38 per $100 borrowed).** Below: how the rate limit affects 5.88M people in Colorado, safeguards available to you, and less expensive options to evaluate first. Fenix Loans is paid by the lenders we match you with. We rank options by cost, not commission. PB **Reviewed by [Priya Bauer, AFC®](/authors/priya-bauer/)** · Reviewed by [Sophia Petrov, CFP®](/authors/sophia-petrov/) · Last updated 2026-05-24 **On this page** What does a 36% APR loan actually cost in Colorado? How did Colorado get rid of payday loans? Is a 36% APR loan a good deal? What are my alternatives before taking a high-cost loan? Where can I complain if a Colorado lender breaks the rules? Questions from Colorado Borrowers Colorado has effectively banned traditional payday loans. In their place, you'll find installment loans capped at a 36% Annual Percentage Rate (APR). While that's a massive improvement over the 400%+ APRs of the past, it's still expensive money. Your goal shouldn't be to find the best 36% loan, but to avoid needing one at all. ### Colorado's Lending Rules at a Glance - **Rate Cap:** A strict 36% APR is the maximum any lender can charge. - **Loan Limit:** You cannot borrow more than $500 in principal. - **Loan Term:** Loans must be structured as installments over up to 180 days. - **Rollovers:** Extending or "rolling over" a loan is completely prohibited. - **Regulator:** The [Colorado Attorney General's Consumer Credit Unit](https://coag.gov/office-sections/consumer-protection/consumer-credit-unit/) handles complaints. ## What does a 36% APR loan actually cost in Colorado? A 36% APR is the all-in maximum cost by law. This isn't an interest rate plus fees; it's the total package. A lender charging a penny over 36% APR cannot legally collect the debt. Here’s what that looks like in real dollars for a short-term loan. | Loan amount | Term | Typical fee | Total cost | APR | $100 | 14 days | $1.38 | $101.38 | 36% | $300 | 14 days | $4.14 | $304.14 | 36% | $500 | 14 days | $6.90 | $506.90 | 36% ## How did Colorado get rid of payday loans? Colorado voters passed Proposition 111 in 2018, imposing a hard 36% APR cap that dismantled the storefront payday loan industry. Before Prop 111, lenders could charge fees that translated to APRs well over 200%. The campaign, supported by groups like the Center for Responsible Lending, argued that high costs trapped borrowers in cycles of debt. The 36% cap was a deliberate move to align Colorado with states like South Dakota and Nebraska, creating a supervised installment marketplace instead of a deferred deposit (payday) one. ## Is a 36% APR loan a good deal? No, a 36% APR is still extremely expensive and should be your absolute last resort. While it's a huge consumer victory compared to triple-digit rates, the math is punishing. On a $500 loan over six months, you'd pay about $90 in finance charges. That's $90 that won't go toward rent, groceries, or gas. The distance between a 36% loan and a 400%+ product translates here into weeks of financial recovery. Think of this cap as a protective ceiling, not a target. ## What are my alternatives before taking a high-cost loan? Before you commit to a 36% APR loan, exhaust every one of these options. The goal is to find capital at a 0% cost. 1. **Contact your local United Way:** Dial 2-1-1 or call **Mile High United Way** directly. Their specialists can connect you to local grants, utility assistance programs, and low-interest loans you likely don't know exist. This is your first and most important call. 2. **Reach out to community nonprofits:** Organizations like the **Salvation Army of Colorado** provide emergency aid for rent, utilities, and other critical needs. 3. **Check your bank's small-dollar loan program:** Some national banks offer small loans to existing customers. For example, Bank of America's Balance Assist program offers $100-$1,000 loans with APRs around 100-200%—still high, but potentially better than alternatives if you're already a customer. 4. **Use an Earned Wage Access (EWA) app:** If your employer offers a service like DailyPay or Payactiv, you can access money you've already earned ahead of payday. There's usually a small fee, but *no interest* (0% APR). This is far cheaper than any loan. 5. **Negotiate payment plans:** Call your bill providers—medical offices, utilities, credit card companies—and ask for a hardship extension or payment plan. They'd rather get paid slowly than not at all. ## Where can I complain if a Colorado lender breaks the rules? File a free complaint with the [Colorado Attorney General's Consumer Credit Unit](https://coag.gov/office-sections/consumer-protection/consumer-credit-unit/). This state regulator licenses lenders and examines grievances. If a lender in [Denver](/city/co/denver-co/), [Colorado Springs](/city/co/colorado-springs-co/), or anywhere else in the state is charging more than 36% APR, pressuring you, or violating the $500 limit, file a complaint. The process is straightforward, and most issues are resolved within 30–60 days. ## Questions from Colorado Borrowers Do Colorado lenders check my credit score for a 36% loan? Most likely, yes. The 36% cap doesn't leave much room for lenders to profit from high-risk borrowers. Unlike the old payday model that relied on high rates to cover defaults, lenders now have a strong incentive to check credit and ensure you can repay the installment loan. I live in Aurora. Are the rules different there? No. Colorado's 36% APR cap is a state law that applies uniformly everywhere, from [Aurora](/city/co/aurora-co/) to [Fort Collins](/city/co/fort-collins-co/) to [Thornton](/city/co/thornton-co/). You are protected by the same $500 maximum and rate cap regardless of your city. Can I get more than one loan at a time? No. The state uses a database to monitor lending and prevent "loan stacking," where a borrower takes out multiple loans from different lenders. This is a key protection to keep you from being buried under debt from several sources. Are there any loans with lower rates for military members? Yes. The federal Military Lending Act imposes a strict 36% APR ceiling on most types of consumer credit for active-duty service members and their dependents. This provides an additional layer of protection on top of Colorado's state law. Is it easier to get a loan in Lakewood? No. The lending rules are statewide. Whether you're in [Lakewood](/city/co/lakewood-co/) or any other Colorado city, every authorized lender must follow the same 36% APR cap and $500 limit. Your location within the state does not change the law or the offers available. #### See CO 36% APR options We'll match you to Colorado-licensed lenders only, and show lower-cost alternatives side by side. [See 36% APR options](/apply/) 🔒 256-bit encrypted · Colorado Office of the Attorney General, Consumer Credit Unit-aware --- #### Lower-cost first Always compare: [15 alternatives ranked by APR](/payday-loan-alternatives/). --- #### Compare cost See the 50-State Cost Index or read [the main payday-loans guide](/payday-loans/).