Payday Loans in Arizona Ended in 2010: What You Can Borrow Instead
Page last reviewed: October 28, 2026 · Reviewed for accuracy by Betty Walsh
Payday loans aren't available in Arizona: the state's payday law ended on July 1, 2010. What you can borrow instead is an installment loan of up to $10,000 from a licensed consumer lender, at no more than 36% a year on the first $3,000.
| Payday loans | Not available since July 1, 2010 |
| Borrow instead | Licensed installment loans of up to $10,000 |
| Rate cap | 36% a year to $3,000, 24% above; fee up to $150 |
| Example | $500 over 6 months: about $92.30 a month at the cap |
| You need | ID, proof of income and a bank account |
What an Arizona Installment Loan Costs Instead
On loans of $3,000 or less, a licensed consumer lender can charge 36% a year plus an origination fee of up to 5%, capped at $150:
| Loan | Payments | Cost (APR) |
|---|---|---|
| $500, 6 mo | 6 × $92.30 | ~$79 (~55%) |
| $1,000, 12 mo | 12 × $100.46 | ~$256 (~46%) |
| $2,000, 12 mo | 12 × $200.92 | ~$511 (~46%) |
| $3,000, 24 mo | 24 × $177.14 | ~$1,401 (~42%) |
Worked out from Arizona law, not offers from lenders in our network; a lender can charge less.
- The fee is why the APR on your disclosure can top 36%. Above $3,000, the rate drops to 24% on the part over $3,000.
- A payment more than 7 days late can bring a 5% late fee; a returned payment, up to $25 plus bank charges.
- You can prepay any amount at any time.
Why Arizona Has No Payday Lenders
Arizona licensed payday lenders as deferred presentment companies until July 1, 2010, when the program ended under state law. Today's statutes have no payday chapter, so small loans fall under the consumer lender rules.
- The math. At 36% a year, 14 days of interest on $300 comes to about $4.14.
- Online lenders count. A lender needs an Arizona consumer lender license whether it's based in Arizona or in another state.
- Unlicensed loans are void. A lender that needed a license and didn't have one can't collect or keep any principal, finance charges or fees.
Some lenders advertise cash advances to Arizonans. Apart from car title and pawn loans, which have their own rules, a consumer loan of $10,000 or less from anyone but a bank or credit union still needs a consumer lender license and must stay within the cap.
Car Title Loans: Arizona's High-Cost Exception
Car title loans are still legal, from sales finance companies licensed by the Department of Insurance and Financial Institutions (DIFI). The cap depends on the original loan amount:
| Original loan | Per month | Per year |
|---|---|---|
| $500 or less | 17% | 204% |
| Over $500 to $2,500 | 15% | 180% |
| Over $2,500 to $5,000 | 13% | 156% |
| Over $5,000 | 10% | 120% |
At 15% a month, a $1,000 balance runs $150 in interest every month, while a $1,000 consumer loan over 12 months costs about $256 in all at the 36% cap, fee included.
Getting a Licensed Arizona Loan in 3 Steps
- Have your ID, proof of income and bank account details ready, and decide how much you need.
- Submit one request through LendUp. Lenders in our network review it, and any offer shows the APR, payments and total cost before you sign.
- Before you sign, confirm the lender's Arizona license and a rate of 36% or less on the first $3,000.
Spotting an Unlicensed Lender in Arizona
- Search NMLS Consumer Access by the company's legal name or NMLS number.
- Look for an active Arizona Consumer Lender license, or a Sales Finance Company license for a title lender.
- Check that the licensed name and address match your offer.
Not listed? Call DIFI at (602) 771-2800 before you share bank details. The Attorney General takes complaints at (602) 542-5763.
- Overcharges cost the lender. An overcharge makes a loan of $5,000 or less voidable; on a larger loan, the lender loses all finance charges.
- Insurance is your choice. Apart from coverage on property securing the loan, you can't be required to buy it, and you can cancel within 30 days.
- Military borrowers. Federal law caps most loans to active-duty servicemembers and covered dependents at a 36% Military APR.
Common Questions
Are payday loans legal in Arizona?
No. Arizona's payday licensing program ended on July 1, 2010. Non-bank consumer loans of $10,000 or less need a license and are capped at 36% a year on the first $3,000.
How can I borrow $500 in Arizona?
From a licensed consumer lender, a bank or a credit union. At the 36% cap with the maximum $25 fee, $500 over 6 months is about $92.30 a month.
Are car title loans legal in Arizona?
Yes. Licensed sales finance companies can charge up to 17% a month on loans of $500 or less, falling to 10% a month over $5,000.
What if an online lender charged me more than 36%?
If it needed an Arizona license and didn't have one, the loan is void. If it was licensed, a loan of $5,000 or less is voidable. Call DIFI at (602) 771-2800.
How do I check an Arizona lender's license?
Search NMLS Consumer Access for an active Arizona consumer lender license, or a sales finance company license for a title lender.
Official Sources
General information, not legal advice. Facts on this page were checked against these sources on October 28, 2026.
- Arizona Legislature - SB 1239 (2008), text of A.R.S. 6-1263 payday program end date
- Arizona Revised Statutes - Title 6 table of contents
- A.R.S. 6-602 - Exemptions
- A.R.S. 6-603 - Consumer lender license required
- A.R.S. 6-613 - Voidable and void loans
- A.R.S. 6-632 - Finance charges
- A.R.S. 6-635 - Other allowable fees
- A.R.S. 6-636 - Insurance and cancellation
- A.R.S. 6-637 - Loan terms and payments
- A.R.S. 44-6852 - Dishonored check fee
- A.R.S. 44-282 - Sales finance company license
- A.R.S. 44-291 - Title loan rates and charges
- NMLS Consumer Access - license lookup
- Arizona Ombudsman-Citizens' Aide - State agency phone numbers
- Arizona Attorney General - File a consumer complaint
- CFPB - Rights under the Military Lending Act
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