Payday Advance Arizona
If you live in the state of Arizona and desire to obtain a payday advance loan, there is some important information you need to know. The Arizona law allowing payday loan companies to operate within the state expired on June 30, 2010, making such businesses illegal as of July 01, 2010, unless they are willing to lower annual interest rates to below 36 percent, an option many companies have refused to accept.
Arizona Payday Loan Law Explained
The reason legislators did not renew the payday loan law was because they were concerned about companies utilizing predatory lending practices by charging well over 36 percent interest. Therefore, payday lenders operating within the state have been restricted as of July 01, 2010. However, lenders operating outside Arizona (such as you might find online) can provide payday loans as long as they adhere to the state's set restrictions.
The bad news is that it may be more difficult to find companies willing to make payday loans to Arizona residents. The good news is that if you do find them then they must adhere to specific guidelines such as charging annual interest rates of less than 36 percent, which includes fees. Alternatives for acquiring quick cash are title loans, Credit Union loans, personal bank loans, government assistance, or social services.
Why You Might Want a Payday Loan
Payday loans are advance funding that uses verifiable employment as collateral with loan amounts payable upon your next payday, thus the term "payday" loan. Such loans should only be used in emergency situations. This is due to the fact that payday advance loan contracts require repayment on your next scheduled pay date and they charge higher interest rates and fees than traditional consumer bank loans.
However, payday loans are good sources of quick cash that allow you to cover daily expenses, make due or past due payments on vehicle loans, house payments, rent, utilities, medical bills, insurance premiums, etc., for which you might not have immediate funds available. Payday loans also do not normally require any other verification other than current employment, are approved rapidly (usually within 24 hours), and usually don't require credit checks.
Preparation for Payday Loan Application
Before you actually apply for an Arizona payday advance, you should first prepare by considering a few points. First, you should determine the amount of money required. It is not advisable to request more money than you need simply because the amount requested is due in a short amount of time and contains high interest, fees, and penalty charges.
Rollovers, or extensions on payment, are usually allowed on payday loans, but the number of times you can rollover a payday loan varies from state to state. You should check with your lender on how many rollovers they offer for Arizona residents. Also, keep in mind that high fees are charged for making rollovers, so it is advisable to avoid them if possible.
The Payday Loan Process
Once you select a payday advance Arizona lender, you will be asked to fill out a fairly simple application form. Normally, you will be asked to provide your income source (usually your employer) along with some sort of proof verifying it as well as a form of personal identification. You will also be asked to provide checking or savings account information where the requested loan amount can be deposited.
The lender will process the provided application, which normally takes less than 24 hours, but in some cases it may take longer. When your application is approved, the requested funds are deposited into your bank account.
Further Arizona Payday Loan Information
Keep in mind that there are strict regulations governing payday loan companies doing business in Arizona. Therefore, be sure to ask your lender if there are other specific requirements that might apply to Arizona residents.
More information on Alaska payday loans can be acquired by contacting:
Arizona Department of Financial Institutions
2910 N. 44th Street, Suite 310
Phoenix AZ 85018