If you’re in need of quick cash and are looking for a small loan, getting one from a payday lender may have crossed your mind. This guide will help you navigate the laws surrounding short-term lending in Arkansas.
Can I get a payday loan in Arkansas?
No. Payday loans aren’t legal in Arkansas. The Check Casher Act, as defined by Arkansas Code 23-52-101 et. seq, was repealed in 2011. However, some loan brokers may be able to connect you with suitable lenders and some lenders may still provide installment loans that meet the state’s requirements.
When you get credit, you have to repay the principal along with interest in addition to other fees and charges. The cap on interest is 17%, however it could be lower depending on your credit score, the amount you wish to borrow, the loan term, the type of credit and the lender you choose.
Lenders can charge the following fees:
Loan disbursement fees
Loan settlement fees
Non-Sufficient Funds (NSF) fees
To find out how much your loan may end up costing you, go through the loan contract carefully. You’re under no obligation to sign, and comparing your options can help you pick out the best solution for your financial troubles.
What other options do I have if I need extra cash?
While you can’t get a payday loan or a cash advance in Arkansas, you can get funds in other ways. Your options include:
Credit card cash advance. If you have a credit card, consider a cash advance. Although expensive, this usually has lower interest than payday loans and can help you get through a rough financial period.
Settle your debt. Depending on your credit score, you may be able to settle your debt for less than you currently owe. This could help with your monthly budget. Consider a debt relief company for help in negotiating with creditors and paying off your debt.
Government assistance programs. You may also want to look into assistance programs like the Home Energy Assistance Program (HEAP) or Food Stamp Program when you’re struggling to pay your bills. These can lower your daily expenses so you can afford to pay for other things in your daily living budget.
I found a payday lender in Arkansas willing to give me a loan. Is it legit?
If the company is offering true payday loans that need to be paid back in one lump sum with costs above 17% APR, it’s not legit. Payday loans are prohibited in Arkansas.
You could look for a few things in a company to determine if it’s reputable. These include, among other things:
A physical address in the US
A phone number
Company registrations with the state
A legit lender won’t ask for advance fees before approving you for a loan or sending you funds. Read our guide on how to spot a payday loan scam to keep your money and personal information safe.
To report a payday lender operating in the state or a scamming company, contact the Arkansas State Attorney General. If you’ve accidentally accepted an illegal payday loan, you may not have to pay. Inform the State Attorney General and deal with the matter lawfully.
Although you won’t be able to get a payday loan in Arkansas, there are other short-term loan options that can help you get the money you need whenever an emergency hits. Just keep in mind that these forms of credit are costly and you could end up paying back more than what you borrow if you get stuck in debt cycle.
Have any more questions about Arkansas short-term loans?
Yes. Under state regulations, lenders can’t charge an APR of more than 17% per loan.
No. Due to the high interest rates, auto title loans are also illegal in Arkansas.
No, it isn’t. Out-of-state lenders can’t provide payday loans to residents of Arkansas, with the exception of tribal lenders. If you find an online lender offering a payday loan, report it to the State Attorney General.
Elizabeth Barry is Finder's global fintech editor. She has written about finance for over six years and has been featured in a range of publications and media including Seven News, the ABC, Mamamia, Dynamic Business and Financy. Elizabeth has a Bachelor of Communications and a Master of Creative Writing from the University of Technology Sydney. In 2017, she received the Highly Commended award for Best New Journalist at the IT Journalism Awards. Elizabeth's passion is writing about innovations in financial services (which has surprised her more than anyone else).
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