Looking for a payday 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 loan, you might have been considering a payday loan, but you’ll need to consider other options.
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 on July 1, 2010.
However, the change in law doesn’t mean that all short-term lenders had to close. Some businesses continued operations by offering other products and services that are permitted by state law, such as installment loans. Lenders can no longer advertise the availability of short-term loans, 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 the fine print) before committing to a contract. You should have a solid plan to pay back your loan, so you don’t find yourself needing to borrow more money to repay debt.
Installment loans you could apply for
Do I have other options if I need extra cash in Arizona?
While payday loans are off the table, there are other short-term loan alternatives.
- Tribal loans. You can still get a payday loan if you apply with a tribal lender like SWIFT or Blue Trust Loans.
- Pick up side work. Looking for side jobs or selling things online with a service like eBay or LetGo are some of the many ways people get extra cash when they’re in a bind.
- Ask for a loan from family or friends. If you’re in a bad financial situation, you might want to consider asking someone close to you for a little bit of help. They’re unlikely to charge interest, and you have a longer repayment period.
If you’re looking for an option that doesn’t require you borrow money, you may want to look into some Arizona assistance programs. Cash Assistance Program and the Low Income Home Energy Assistance Program (LIHEAP) can help you make your bills more affordable.
What are the typical costs of a loan in Arizona?
Lenders in Arizona can’t charge more than 36% APR. However, you need to also consider the possible fees a lender may charge when budgeting for your loan. These include non-sufficient funds (NSF) fees, late charges and possible collection fees if you default.
If you’re in need of some extra money, payday loans may be off the table, but there are plenty of other options for you to consider in Arizona. As with all loans, be sure you have the ability to repay what you borrow. Creating a budget can help you detertermine how much you can afford.