Payday Loans Arizona The payday loans Arizona residents have been seeking for ages are as popular today as they have ever been. The lagging economy has many people reaching out for short term help and the payday loans are a great option. Payday loans are a new concept for many people, so it is important that these loans are understood for what they area. Payday loans are meant to be short term loans. These loans are based on when your payday is and are only offered to those who have a paycheck as well as a checking account. The borrower will be required to write a check to the lender for the amount of the loan plus interest. If the borrower pays off the loan on or before the due date, the check will not be cashed. If they do not pay off the loan on or before the due date, the check will be deposited and the loan will be cleared. What sets payday loans apart from other types of loans is that the interest rate is relatively high. This is because the loans are very short term and the interest is what allows for the lender to make money. The state allows for these interest rates to be high, although they do put some limits on interest rates. Payday loans Arizona residents can apply for can only be offered by cash advance lenders that are licensed by the state. Each agreement must be written and the loan borrower will be required to provide a current address and phone number. Each borrower is only allowed to have one contract out at a time. Some at a glance payday loan Arizona stipulations include:
- The maximum amount of a loan may not exceed $1500
- The borrower is only allowed to have one payday loan out at a time
- The minimum loan term under the law is five days
- Borrowers are allowed up to three extensions or rollovers
- The maximum origination fee is 15% of the loan amount
- The annual percentage rate for a 14 day loan of $100 is 259%
These rules provide guidance as well as regulation for the payday business. When you consider the interest rates as well as the short term nature of the loans it becomes apparent that payday loans Arizona residents apply for should only be done in situations when there really is no better option for getting the money that is needed. Payday loans are very costly loans to take out because the interest rate is so high but when you are really in a pinch it is a quick and easy way to get the cash that you need. If one simply remembers that this is a type of loan only for emergent situations, they will be a lot better off in the long run.
Payday loans charge high interest rates to the borrower and require no collateral, making them a type of unsecured personal loan. These loans can be considered predatory loans because they have extremely high interest rates, ignore the borrower’s ability to repay, and have hidden provisions that charge additional fees to borrowers. Credit repair company are there to guide you.