In South Carolina, payday loans come with specific limits to help protect borrowers. By law, the maximum loan amount is $550, and the loan term must be between 7 and 31 days. That means you’ll need to repay the loan—plus any fees—on your next payday or within about a month.
Some lenders may offer installment-style payday loans, which allow you to repay the loan over several weeks. These options ease the burden of repayment but also come with higher overall costs.
If you can’t repay your loan on time, some lenders offer one-time extensions or payment plans, but this can vary. Be sure to ask about these options before borrowing.
At the Services Center FCU, we believe in fair and transparent terms. We help our members understand all the repayment details before they commit to any loan.
Costs and Fees Associated with Payday Loans
Payday loans may seem simple, but the costs can add up quickly. In South Carolina, lenders can charge a fee of up to 15% of the loan amount. On a $550 loan, that’s $82.50 in fees.
While 15% might not sound like much, it adds up when you look at it as an annual percentage rate (APR). A two-week loan with a 15% fee has an APR of nearly 400%.
Late fees or rollover charges may apply if you can’t repay the loan on time. Some borrowers fall into a cycle of borrowing again just to pay off the original loan. That’s why payday loans should only be used when necessary.
As a member-owned credit union, Services Center FCU provides more affordable options, helping you avoid high fees and keep your finances on track.
South Carolina Regulations on Payday Lending
South Carolina regulates payday loans under the Deferred Presentment Services Act. These rules are designed to protect borrowers while allowing short-term credit access.
Key regulations include:
- Loan limit: $550 per loan
- Only one active payday loan per person
- Loan terms: 7 to 31 days
- Max fee: 15% of the loan amount
Mandatory Use of a Statewide Database to Track Loans
Lenders must also provide a written agreement outlining all loan terms and fees. Borrowers can cancel the loan without penalty by the end of the following business day.
The state requires lenders to offer a free repayment plan if you can’t repay your loan after 10 consecutive loans. This helps prevent borrowers from getting stuck in a cycle of debt.
At Services Center FCU, we encourage smart, legal lending practices and help our members understand their rights and responsibilities under South Carolina law.
Alternatives to payday loans
Payday loans aren’t your only option if you’re facing a financial emergency. There may be better, safer alternatives—especially through a credit union like ours.
Here are a few examples:
- Small personal loans. Many credit unions offer low-dollar personal loans with better rates and more flexible terms than payday lenders.
- Payday alternative loans (PALs). These loans are designed to be safer alternatives to traditional payday loans. They’re available to credit union members and have capped fees and reasonable interest rates.
- Credit card cash advances. While not ideal for long-term borrowing, a cash advance may be more affordable than a payday loan.
- Emergency assistance programs. Some employers, churches, or nonprofits offer financial help during emergencies.
- Overdraft protection. If you have a checking account with overdraft protection, it might help you cover unexpected shortfalls.
At Services Center FCU, we offer solutions that protect your financial well-being—not drain it. We aim to help you find the right option, not just the fastest one.
How Services Center FCU Supports Members with Short-Term Needs
We understand that life happens. A sudden expense shouldn’t throw your entire budget off track. At Services Center FCU, we provide fair, honest, and affordable financial solutions when you need them most.
Here’s how we help:
- Small-dollar personal loans. With flexible terms and lower interest rates than payday loans.
- Emergency loan assistance. Quick decisions and support when you need cash fast.
- Financial counseling. Free guidance to help you understand your options and manage your money.
- Loan payment plans. Built to fit your budget and help you avoid falling behind.
Unlike payday lenders, we don’t charge excessive fees or trap you in a cycle of borrowing. As a member-owned credit union, your financial health is our top priority.
Tips for Responsible Borrowing
Borrowing money can help in the short term, but it’s important to do it wisely. Here are some tips to borrow responsibly and avoid unnecessary stress:
- Borrow only what you need. Avoid taking out more than you can repay.
- Read the terms carefully. Make sure you understand the fees, due date, and repayment options.
- Have a plan to repay. Before you borrow, ensure you’ll have the money to repay it on time.
- Avoid repeat borrowing. If you keep needing payday loans, consider talking to a financial advisor.
- Build an emergency fund. Even small savings can help you avoid future loans.
We’re here to help you make smart financial decisions. If you’re ever unsure, talk to a team member. We’ll walk through the options with you—no pressure, just honest advice.
FAQs
Can I get a payday loan online in South Carolina?
Online payday loans are available, but they must still follow South Carolina’s laws. Be sure to choose a licensed lender.
What’s the maximum amount I can borrow?
The legal maximum for a single payday loan in South Carolina is $550.
Can I have more than one payday loan at a time?
No. The state’s database tracks payday loans to ensure borrowers don’t take out more than one at once.
What happens if I can’t repay the loan on time?
You may be charged additional fees or face collection efforts. However, you can request a free repayment plan after 10 loans from the same lender.
Are payday loans available through Services Center FCU?
We don’t offer traditional payday loans. Instead, we provide safer, more affordable loan options for short-term needs.
How fast can I get the money?
Many payday lenders offer funds within one business day. At Services Center FCU, we process personal loan applications quickly and provide fast funding upon approval.
Need help covering unexpected expenses?
We’re here for you. Whether you’re looking for an affordable short-term loan or want to discuss your options, the Services Center FCU team is ready to help. Visit us, stop by a branch, or give us a call to learn more.