Things do happen that you have to pay for treatment, training or an early purchase, and the funds will arrive only in the near future – this situation forces you to contact banks or financial organizations. What if long-term conditions (and with them the interest rate) are not suitable? Then it is worth considering a short-term loan in Arizona.
Short-term payday loans are cash loans issued by MFOs, banks, pawnshops or credit cooperatives for up to 12 months. Basically, such loans serve the circulation of capital and the current needs of customers (purchase of goods, training, treatment, repair).
Table of contents
- What are short-term loans in Arizona (AZ)?
- Are payday loans legal in Arizona?
- Options of cash advance in Arizona
- What are the common reasons for speedy short-term loans in AZ?
- Is it possible to get declined for 24 hour payday loans Arizona AZ?
- What are the AZ lenders’ requirements?
- Can your bad credit hinder you from issuing payday loans to sort the emergency?
- The main pros of Arizona payday loans
What are short-term loans in Arizona (AZ)?
Short-term loans Arizona are an opportunity to get a small cash advance to people for urgent needs (the reason is not asked). At the same time, as a rule, no collateral is required, and the lender sets minimum requirements for documents.
In addition, short-term loans are issued at an increased interest rate, and their registration takes place according to a simplified scheme. It takes no more than 30 minutes to issue small loans online in Arizona (AZ).
Such a lending scheme has a big “minus” — the lender takes a lot of risk, and the risk is transformed into the amount of remuneration that are imposed on the borrower.
Short-term payday loans are a profitable financial instrument that you need to use when money is needed urgently. In order to benefit from cooperation with payday lending company, you need to correctly assess your capabilities and take as much money as you need. You will have to pay interest for every day of the borrowed funds’ use.
Are payday loans legal in Arizona?
Arizona imposes certain rules and regulations on online payday loans. It means it is illegal to But we can offer you various options of a cash advance:
- installment loans ($1,000 – $5,000);
- personal loans ($5,000 – $35,000).
The activity of all the lenders operating in the state is restricted by limiting the APR to 36% and 5% fees.
Options of cash advance in Arizona
Payday loans may be off the table, but there are still three short-term loan options available to you in Arizona:
Installment loans. They are a short-term lending option issued for several months. Keep in mind: The longer your credit term is, the more interest you have to repay.
Title loans. This cash advance requires clients to utilize your car’s title as a security. These options are often assessed as one of the more risky short-term financial options, but it can be used as a safety bag when you need extra funds urgently.
Tribal loans. Tribal lenders operate outside of federal and state regulations. It implies you may be eligible to borrow a payday loan despite Arizona’s APR cap (36%).
What are the common reasons for speedy short-term loans in AZ?
Over the past years, respondents most often took out small personal loans in 69%. 22% of borrowers took out payday loans in Arizona for business development. Most of the borrowers – 62% – borrowed up to $1,000 at a time.
Most often, citizens in Arizona took out cash advance for unforeseen expenses (38%) and everyday expenses (32%). A quarter of respondents identified both points at the same time (25%).
Online loans were also used to cover daily expenses (54%), closing other loans and credits (21%), for real estate repairs, special events and interest payments on another loan (17%).
Is it possible to get declined for 24 hour payday loans Arizona, AZ?
Yes, it is. There are common reasons why you are denied this lending option.
Reason #1: Error when filling out the application
If you were refused payday loans, it makes sense to check first of all, and whether you specified the data correctly in the application?
Yes, quite often in half of the fields borrowers indicate the incorrect phone number, invalid email. Many are not eager to indicate their personal data and this is their main mistake.
Reason #2: Bad credit history
The second reason is the presence of a bad credit history (or a bad history of MFIs). Until recently, it was believed that payday lending companies were good because they did not check the credit history of borrowers and many even issued small loans with a bad credit history, but nevertheless, due to the over-crediting of the population, even MFOs began to collect a database of “black” borrowers.
Reason #3: “Bad” social media profiles
Many sites and online services now offer to log in through a social network account in order not to undergo formal registration or directly ask for a link to your social network profile.
A number of other reasons why you may be denied a 24 hour payday loans Arizona, AZ:
- you are on trial or under investigation;
- you will soon be taken away for military service;
- you have not been working for a long time (although it is quite possible to get a loan to an unemployed person);
- you are registered in a mental health institution;
- you don’t pay rent and have debts;
- you have collected loans from banks and do not give them back. Have delays;
- loans were taken on your ID without your knowledge;
- you have many children and the monthly loan payment will be unbearable;
- you have debts on taxes and penalties;
- you have a full namesake who issued many credits and does not pay them back.
What are the AZ lenders’ requirements?
There are common requirements to qualify for AZ small personal loans:
- be at least 18 years old;
- be a U.S. citizen;
- be employed and have a reliable source of income;
- have a checking account;
- have a valid email address and phone number.
The procedure for application is simplified. The requirements for the borrower are more loyal in comparison with lending in a bank. It is necessary to meet the age limits, have an identity document, a bank account or card, and sufficient income to repay the debt. The absence of serious violations or bankruptcy is sufficient in the credit history. The procedure for issung payday loans is actively shifting to online.
Can your bad credit hinder you from issuing payday loans to sort the emergency?
Online loan to a card with a bad credit history can be issued in payday lending service, which has seized leadership in the market of short-term microfinance of the population. In MFIs, there is a high probability of getting a loan with a poor history. The main term when taking out a short-term loan to an MFO is the absence of debts in the lending service where the loan is issued.
The client must submit an application in which to specify the amount of the loan and its term. The application can be submitted at any time of the day, it will be considered within 15 minutes, and the borrower will receive a notification of the decision. If it turns out to be positive, the borrower will have to sign a loan agreement, after which the required amount will be credited to his bank card.
After the borrower has applied for cash advance in Arizona, a special program will find the borrower’s credit history in the bank and conduct a cursory analysis of it. The algorithm of the MFI program is quite liberal, and often customers with a bad credit history receive a loan.
! The client should understand that the sooner he repays the payday loan taken out, the less money he will overpay.
MFOs do not want to once again conflict with problem borrowers, and provide the opportunity to extend the loan, subject to repayment of interest on it. On the one hand, it is beneficial to the borrower, who expands the loan repayment in time. On the other hand, it is beneficial to the MFI, which receives additional profit by increasing the loan term.
The main pros of Arizona payday loans
Application procedure
In the case of payday lending services, you can apply for a loan completely remotely. Companies transfer funds to bank cards, through payment transfer systems, to electronic wallets. In addition to this:
- the application is submitted only by an ID – without providing additional documents;
- it takes max 24 business hours from the application to the actual deposit of funds.
Such terms are not offered by any bank. Therefore, some citizens prefer not to ask friends or relatives for a loan, but to address the services of MFIs. Witin 10 minutes, the required amount will be at the user’s disposal.
Reviewing of the application
The reviewing timing of incoming applications is also considered a plus. Some companies consider customer requests within several minutes. Therefore, the borrower does not have to spend a lot of time waiting for the final decision from the company.
Customer categories
MFOs have no client categories as such. Potential borrowers are all citizens of the country who meet the age requirements. Current indicators are 18-75 years old. Consequently, any citizen of Arizona who has an ID at his disposal can get a loan from an MFO. There are no additional requirements for candidates. The availability of payday loans is one of their significant advantages.
The approval rate
Deadlines/terms
The last advantage in the list of others is the timing for which loans are issued. The maximum limits are 30 days (for most companies). The minimum period is 1-5-7 days, which is very convenient for those who need a small amount for just a couple of days.