You won’t be able to get a payday loan anywhere in Arizona, including Phoenix, but you do have other options that might help you when you find yourself in a tight financial spot.
No, payday loans are prohibited in all of Arizona including Phoenix. If a lender wants to provide a consumer loan in Phoenix, it has to abide by Arizona Revised Statutes 6-601 et seq. The same laws also apply to out-of-state lenders that seek to provide online loans to residents of Phoenix. This comes after the new law that came into effect on July 1, 2010.
No lender can charge more than 36% APR for a loan. Since most payday lenders charge far more than that, they no longer offer their services in Phoenix.
Why are payday loans illegal in Phoenix?
Arizona lawmakers determined that the high interest rates charged by payday lenders, usually into the hundreds of percents, was a predatory practice designed to keep people in debt. This is a common opinion held by many consumer advocate groups and lawmakers of other states, so in 2010, APR was capped at 36%.
All cities in the state are required to abide by this law. This means payday lenders must either close up shop or start offering loans at this APR.
Auto title loans. An auto title loan may be your best bet if you’re in need of quick cash in Phoenix. Arizona still allows consumers to take out an auto title loan against the value of a vehicle. Lenders like Check Into Cash and Ace Cash Express have store locations and accept applications online for auto title loans. Keep in mind that these tend to be as costly as payday loans and come with the risk of repossession of your vehicle should you default.
Tribal loans. Because tribal lenders are located on sovereign tribal land, they still may choose to offer loans in the state of Arizona. You can compare your options here.
Find a local assistance program. The state of Arizona has options to help you if you’re struggling to make ends meet. Programs like the Cash Assistance Programs and the Low Income Home Energy Assistance Program (LIHEAP) are there for residents of Arizona.
See if you can get an advance on your credit card. If you have a credit card and haven’t maxed it out, you could take out an advance on the remaining line of credit. This option can be expensive, but when you need a little extra cash, it can make a difference.
Talk to your creditors. Although it may seem like a waste of time, explaining your financial situation to your creditors can help you negotiate a lower payment or a new schedule.
No. Whether you go through an online lender or visit a physical location in another state, you won’t be able to get a payday loan. Residents of Phoenix must abide by Arizona law and thus can’t take out a payday loan with interest higher than 36%.
You should get in touch with the Arizona Department of Financial Institutions.
One option to consider is applying for an installment loan in the comparison table above. You may also be able to find an auto title lender that operates online.
Aliyyah Camp is a SEO content strategist and former publisher at Finder, specializing in consumer and business lending. Her writing and analysis has been featured in CentSai, the Dough Roller and the Chicago Tribune. She holds a BA in communication from the University of Pennsylvania. See full bio
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