Looking for a short term loan in Arizona? Here’s what you need to know.
Maybe you’ve hit a small snag and need a little extra cash to get you to your next payday. If you’re living in Arizona and looking for a small-dollar loan you might have considered a payday loan. Read through our guide to find out about payday lending in Arizona.
Are payday loans legal in Arizona?
Payday loans are no longer legal in Arizona. The law that permitted payday loans in Arizona expired on June 30, 2010, and consumer loans with annual percentage rates (APRs) over 36% became illegal as of July 1, 2010.
However, the change in law did not mean that all short term lenders had to close up shop. Some businesses continued operations by offering other products and services that are permitted by the state law, such as installment loans. Lenders can no longer advertise availability of short term loans in the state, with the exception of tribal lenders.
Keep in mind that if you choose to apply for any kind of loan or line of credit, it’s very important read all the paperwork (including all the fine print) before signing anything. It’s also a good idea to have a solid plan to pay back your loan, so you don’t find yourself needing to borrow more money to repay debt.
The hidden consequences of payday loans
Installment loans you could apply for
Installment loans are legal in Arizona and have to be repaid in equal installments over a fixed loan term. Like short term loans, you can apply even if you have less than perfect credit. Also like short term loans, there are some risks you should consider when applying.
- If the provider quotes a different rate to the one above please let us know
What other options do I have if I need extra cash in Arizona?
While short term loans are off the table, there are other alternatives. These include:
- Personal loans. To apply for an Arizona personal loan through a standalone lender or a bank you should ideally have fair to good creditworthiness, but there are options even if you don’t. The interest such loans attract is typically lower than what you’d have to pay towards an installment loan or an auto title loan, and the payments may be more flexible.
- Apply for a credit card. Whether you have good or bad creditworthiness, there is a huge selection of credit cards worth considering if you need extra money. Credit cards also have more reasonable payments and lower interest rates.
- Tribal loans. If you live in a state like Arizona where payday loans are illegal, you still have the option of getting one if you go through a tribal lender like SWIFT or Blue Trust Loans. Since these lenders are based on tribal land, they are considered a sovereign entity and are able to abide by their own laws.
- Short term loans from other states. If you’re in Arizona temporarily but are normally a resident of a state where payday loans are legal, you can consider applying for an online payday loan. To do this you’ll have to provide documented evidence of your residence in another state. Also make sure the lender is backed by the OLA or similar.
- Pick up side work. Looking for side jobs, selling things online with a service like eBay or LetGo, or signing up to drive with a company like Uber are some of the many ways people get extra cash when they’re in a bind. It’s a great alternative to getting a loan or credit card because there is nothing to repay.
What are the typical costs of an Arizona loan?
No matter what kind of loan you apply for, you will have to pay more than you borrow. If you get any kind of a consumer loan in Arizona you can be certain that the APR will not exceed 36%, but you may also have to pay some authorized fees.
If a check or an electronic payment does not go through because of insufficient funds in your account you may have to pay a non-sufficient funds (NSF) fee. Late payments can also attract penalty fees. If your account reaches collections because of unpaid installments or charges, you may have to pay additional fees.
Have any more questions about Arizona short term loans?
Why did payday loans in Arizona become illegal?
The very high loan costs that borrowers had to bear led to the end of payday lending in Arizona.
Do lenders such as Check Into Cash and Check ‘n Go provide short term loans in Arizona?
No, as short term loans are illegal in Arizona these lenders don’t provide short term loans in this state. However, Check Into Cash provides auto loans in Arizona.
Who should I get in touch with if I wish to report a problem with a short-term loan provider?
You should contact the Attorney General’s Office.