Payday lending is prohibited in the state of Arizona. However, there are other ways to get short term loans – some options are consumer-friendly, and others can mean bad news for your finances.
Let’s take a closer look at the online lending landscape in Arizona and a few safe alternatives you should consider to the cash you need right away.
Options For Payday Loans in Arizona
Short-term loans offered by local lenders in Arizona often require a credit check and are accompanied by steep interest rates – state law caps this figure at 36%, and fees are limited to 5% of the loan amount. You may also be asked to provide proof of employment to qualify for a loan.
Each time you apply for a loan, if the lender does a hard credit pull, your credit score could drop by 2 to 5 points even if you aren’t approved. If you choose a lender that doesn’t require a credit check, you can typically expect to pay a fortune in interest.
State law doesn’t specify the maximum amount for short-term loans. The lender will usually determine this amount based on what they feel you can comfortably afford to pay back.
Loan terms are also at the discretion of the lender. An extended repayment period will result in a lower monthly payment, but know that it gives the lender more time to collect interest from you. Consequently, the loan that once seemed affordable could end up costing you a fortune.
Beware of Secured Loans
Other types of “instant” loans, such as registration or title loans that require you to put up a piece of property like a car as collateral, are legal in Arizona. Many are predatory and have high or hidden fees, inflated interest rates, and other terms that may result in default. This sets the stage for a perpetual cycle of indebtedness that’s quite difficult to escape.
Payday Loan Alternatives in Arizona
Not impressed by the short-term loan options available to residents of Arizona?
Try asking a relative or friend for a small loan to hold you over until the next payday. Just be sure to get an agreement in writing that clearly spells out the terms of the loan.
You can also use your credit card and pay off the amount you spend when you’re paid again or sell your valuables at a local pawn shop.
Still no luck? Consider the loan products from MoneyLion as a solution to overcome your money woes.
Instacash
MoneyLion offers interest-free cash advances of up to $250 to its customers through the Instacash feature. There are no credit checks, and it only takes a few minutes to sign up via the mobile app.
Cash advances can be requested 24/7 at the tap of a fingertip. Learn how much you’re qualified for by creating an account, customizing your profile and linking your bank account. There’s no membership fee or commitment, and you can use it anytime you need.
Credit Builder Loan
A Credit Builder Loan is another way to get the cash you need right away. It is an ideal option for individuals who need to establish credit for the first time or want to “reboot” their credit history and improve a bad credit score.
With a MoneyLion credit builder loan, you could be approved for as much as $1,000 in minutes at a competitive rate. And there’s no credit check to apply. You just link your checking account.
Based on your finances, you could get up to the full amount automatically deposited to your bank account. Any remainder will be saved in an interest-earning Credit Reserve Account in your name, and you’ll get those funds when your the loan is paid off.
Payments are automatically deducted from your bank account, so you won’t ever have to worry about missing the due date and incurring fees. Plus, payment activity is reported to the 3 credit bureaus – Equifax, Experian and TransUnion – to strengthen your payment history.
Over time, your credit score will improve as long as you responsibly manage your other debts too.
This loan product is a component of the Credit Builder Plus membership, which also includes access to banking, managed investing, and Instacash for only $19.99 per month.
Apply for a Credit Builder Loan
Be in Control of Your Short-Term Cash Needs
Predatory loans aren’t your only option to get over a financial hump. Consider a safe cash advance from MoneyLion that puts you in control, even when financial emergencies arise. Even better, MoneyLion can help turn your short-term need into a lasting opportunity to build and improve your credit score.
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Disclosures
Instacash® is an optional service offered by MoneyLion. Your available Instacash Advance limit will be displayed to you in the MoneyLion mobile app and may change from time to time. Your limit will be based on your direct deposits, account transaction history, and other factors, as determined by MoneyLion. Expedited delivery requires Turbo Fee. See Instacash Terms and Conditions for more information and eligibility requirements.
Credit Builder Plus membership ($19.99/mo) unlocks eligibility for Credit Builder Plus loans and other exclusive services. This optional offer is not a Pathward product or service. A soft credit pull will be conducted which has no impact to your credit score. Credit Builder Plus loans have an annual percentage rate (APR) ranging from 5.99% APR to 29.99% APR, are made by either exempt or state-licensed subsidiaries of MoneyLion Inc., and require a loan payment in addition to the membership payment. The Credit Builder Plus loan may, at lender’s discretion, require a portion of the loan proceeds to be deposited into a reserve account maintained by ML Wealth LLC and held by Drivewealth LLC, member SIPC and FINRA. The funds in this account will be placed into money market and/or cash sweep vehicles, and may generate interest at prevailing market rates. You will not be able to access the portion of your loan proceeds held in the credit reserve account until you have paid off your loan. If you default on your loan, your credit reserve account may be liquidated by the lender to partially or fully satisfy your outstanding indebtedness. May not be available in all states. Credit Reserve Accounts Are Not FDIC Insured • No Bank Guarantee • Investments May Lose Value. For important information and disclaimers relating to the MoneyLion Credit Reserve Account, see Investment Account FAQs and FORM ADV.
MoneyLion does not provide, nor does it guarantee, any third-party product, service, information, or recommendation. The third parties providing these products or services are solely responsible for them, as well as all other content on their websites. MoneyLion is not liable for any third party's failure with regard to those advertised products, services, and benefits. These advertised products and services may not be FDIC insured or bank-guaranteed, and may be subject to a different privacy policy than MoneyLion’s. You should check individual offers, products, and services to become familiar with any applicable restrictions or conditions that may apply. MoneyLion may receive compensation from third parties for referring you to the third party, their products or to their website.
Instacash is a 0% APR cash advance service provided by MoneyLion. Your available Instacash advance limit will be displayed to you in the MoneyLion mobile app and may change from time to time. Your limit will be based on your direct deposits, account transaction history, and other factors as determined by MoneyLion. This service has no mandatory fees. You may leave an optional tip and pay an optional Turbo Fee for expedited funds delivery. For a $40 Instacash advance with a Turbo Fee of $4.99, your repayment amount will be $44.99. Generally, your scheduled repayment date will be your next direct deposit date. An Instacash advance is a non-recourse product; you will not be eligible to request a new advance until your outstanding balance is paid. See Membership Agreement and help.moneylion.com for additional terms, conditions and eligibility requirements.