Are you thinking about getting a short term loan in Arkansas? Don’t apply without going through this guide.
If you’re in need of quick cash and are looking for a small-dollar loan, getting a payday loan may have crossed your mind. This guide will help you navigate payday lending in Arkansas.
Are payday loans legal 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 seq, was repealed in 2011. After which, lenders in Arkansas stopped providing these kinds of loans.
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.
Installment loans you can apply for
If you have poor credit you can consider getting an installment loan. Providers of these loans look at more than just your credit history. They take your existing financial situation and your ability to repay into account as well. Similar to payday loans, the interest is very high and there are still risks.
What other options do I have if I need extra cash in Arkansas?
While you can’t get a payday loan or a cash advance in Arkansas, you can get funds in other ways. Your options include:
- 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 Arkansas 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 abide by their own laws.
- Short term loans from other states. If you’re in Arkansas temporarily but are normally a resident of a state where payday loans are legal, you can apply 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 Online Lenders Alliance 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 Arkansas loan?
When you get credit, you have to repay the principal along with interest as well as other fees and charges. The interest you have to pay depends on multiple factors including your credit rating, the amount you wish to borrow, the loan term and the type of credit and the lender you choose. However, there is a small loan APR cap of 17%.
Lenders can charge fees including application fees, loan disbursement fees, loan settlement fees, late charges, and NSF fees. To find out how much your loan may end up costing you, go through the loan contract carefully.
Have any more questions about Arkansas short term loans?
I’m in Arkansas temporarily but a resident of a state where payday loans are legal. Can I still apply?
Yes, but remember that your approval depends on your eligibility.
Who should I get in touch with if I wish to report an instance of short term lending in Arkansas?
You should contact Arkansas State’s Office of the Attorney General.
Is there a limit to the interest I have to pay if I get a consumer loan of any kind in Arkansas?
Yes. Under state regulations, lenders cannot charge an APR more than 17% for providing consumer loans.
Are auto title loans legal in Arkansas?
No, due to the high interest rates, auto title loans are also illegal in Arkansas.
Why are payday loans illegal in Arkansas?
The high APR these loans come with and the high fees borrowers have to pay are some of the reasons payday loans are illegal.
I’ve come across an out-of-state lender that is willing to give me an online payday loan in Arkansas. Is this legal?
No, it is not. Out-of-state lenders cannot legally provide payday loans to residents of Arkansas unless they are a tribal lender.