Payday Loans Cash Advance Consumer Guide

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Arizona Cash Advance: Payday Loans in Phoenix AZ, Tucson

About the payday loan and cash advance industry in Arizona


Many consumers apply for Arizona payday loans when they are short on funds and don’t have the means to cover expenses until their next paycheck. If you are considering getting a payday loan or cash advance in Phoenix AZ, it’s important to take the time to review the terms and conditions of the agreement, and understand how much interest you would accumulate on the loan balance if you don’t pay off the loan in full right away. Borrowers who take out Arizona payday loans and cash advances are usually subject to very high fees and triple-digit interest rates. This means you could end up spending a lot more than you anticipated just to pay off your Phoenix cash advance or payday loan from an Arizona lender.


Whether you’re applying for payday loans in Tucson or Phoenix AZ, or are interested in Arizona cash advances, here’s what you need to know about the laws and regulations governing Arizona payday loans.


Interest Rates for Arizona Payday Loans


In 2008, the Phoenix Business Journal reported that there were over 700 licensed payday loan providers in the State of Arizona. By the end of 2010, the number of providers had dropped significantly because of new laws and stricter regulations.


The Arizona state legislature passed a law on June 30, 2010 that put many lenders who provided payday loans in Arizona out of business. Lenders who do not reduce their interest rates to less than 36 percent are breaking the law. You will find that many loan providers throughout the state are offering loans and cash advances well under this limit. However, this doesn’t mean that these loans are still your best option when you need cash quickly. Most borrowers still end up spending a significant amount of money on interest charges on this type of loan, especially if they carry the loan balance for several months.


Laws Governing Payday Loans in Arizona


Payday loans in Arizona are ultimately short-term loans that carry very high interest rates. These loans are granted based on a post-dated check and most lenders will require you to pay an origination fee and other processing fees just to obtain your loan. In the State of Arizona, the following laws and rules apply to payday loans and cash advances:


  • Arizona payday loans cannot exceed $500
  • Maximum fee for payday loans in Arizona and cash advances is 15% of the loan amount
  • The lender must provide you with a written agreement for the loan, that includes the transaction date, total fees, amount to be paid, an effective APR and a disclosure statement
  • You can only take out one payday loan or cash advance at a time
  • You cannot have the loan extended more than three times
  • The lender does not have the right to garnish any military wages or salary if you default on your Arizona payday loans, Phoenix cash advance or payday loans in Tucson
  • Interest rates must be less than 36%


If you are considering Arizona payday loans, it’s important to calculate how much you will end up paying for the service over time. If you end up carrying a balance forward after your paycheck arrives, you could end up spending several hundred – even thousands of dollars – in interest charges alone.