Payday Loans and Cash Advance in Phoenix, AZ
Prohibited since 2010; 36% consumer loan cap in Arizona. What a shortfall looks like on Phoenix rent and pay, the local rules, who to call for help, and how to request a cash advance online.
Phoenix has grown into one of the biggest job markets in the country, and most of that growth is in mid-wage work: distribution centers in the west valley, semiconductor and construction jobs tied to the plants on the north side, call centers, hospitals like Banner and Mayo, Sky Harbor and the airlines, and the restaurants and hotels that serve all of it. Wages have risen, but rents in Maryvale, Alhambra, South Phoenix and the central corridor rose faster, and a household that was fine in 2019 can be a few hundred dollars short each month now. Summer is the money season in reverse. Four months of triple-digit heat means APS and SRP bills that double, and a car with a dead air conditioner or a failed battery is a real emergency in a city where the light rail covers one line and most jobs need a vehicle. Arizona has not allowed payday loans since 2010, so a cash advance request here goes to consumer lenders licensed under a different law with lower rate limits. This page explains those limits, notes that Phoenix sets no additional rule on loan terms, and lists the city and nonprofit offices that can cover a bill first.
What a $500 Shortfall Looks Like in Phoenix
Phoenix's median household income of $81,332 is about $6,778 a month before taxes, so a $500 shortfall is roughly 7.4 percent of a typical month's income. Against the median gross rent of $1,582 it is about 32 percent of one month's rent. In a summer month, when an APS or SRP bill can run several hundred dollars on its own, the same $500 is often the whole gap between the paycheck and the bills, which is why the city and nonprofit utility programs listed below are worth a call before any loan.
Arizona Rules That Apply in Phoenix
| Rule | AZ |
|---|---|
| Maximum amount | No payday product; consumer lender rates are set by balance tier rather than a loan cap (A.R.S. 6-632) |
| Maximum fee per $100 | No payday fee; consumer lenders are capped at 36% a year on the first $3,000 and 24% above that (A.R.S. 6-632), plus an origination fee of up to 5% but not more than $150 (A.R.S. 6-635) |
| Maximum term | Not applicable; consumer lender loans are installment loans with no payday-style term limit |
| Rollovers | Not applicable; the deferred presentment statute expired July 1, 2010 |
| $300 for 14 days | $4.14 fee, 36% APR |
The full law, the regulator's phone number and the statute citations are on the Arizona cash advance page.
Local Ordinance in Phoenix
Phoenix has no city ordinance setting the cost, size or term of a small loan; Arizona's deferred presentment (payday loan) law expired on June 30, 2010, and small consumer loans are governed statewide by the Consumer Lenders Act, A.R.S. Title 6, Chapter 5, under the Arizona Department of Insurance and Financial Institutions.
Free Help in Phoenix Before You Borrow
- 2-1-1 Arizona: Free statewide referral line for utility assistance, rent and shelter, food programs and a housing crisis hotline, 9 a.m. to 7 p.m. daily in English and Spanish; toll-free 877-211-8661. Call 211 or visit 211arizona.org.
- City of Phoenix Human Services Department: City family services: crisis and emergency assistance, case management, eviction legal services, tenant and landlord education and free VITA tax preparation. Call (602) 262-6150 or visit phoenix.gov/administration/departments/humanservices/programs-services.html.
- Wildfire (formerly Arizona Community Action Association): Statewide directory of LIHEAP energy assistance providers and Community Action agencies, plus help with cooling and appliance repair costs. Call (602) 604-0640 or visit wildfireaz.org.
- Take Charge America: Phoenix-based nonprofit credit counseling agency offering free budget reviews, debt management plans and HUD-certified housing counseling; new clients (866) 750-9618. Call (866) 750-9618 or visit takechargeamerica.org.
Frequently Asked Questions
Are payday loans legal in Phoenix?
No. Arizona's payday loan law expired on June 30, 2010, and it has not been renewed, so no lender may make a traditional two-week deferred presentment loan anywhere in the state. What is available in Phoenix are consumer loans from lenders licensed by the Department of Insurance and Financial Institutions under the Consumer Lenders Act, and auto title loans made under a separate registration. A cash advance request here is matched with those lenders.
What can a licensed consumer lender charge on a small loan in Phoenix?
Under A.R.S. 6-632, a consumer lender may charge a finance rate of up to 36 percent per year on the first $3,000 of principal and 24 percent on any amount above that, plus limited fees set by statute. The loan must be in writing with the finance charge disclosed. That is a much lower ceiling than Nevada's uncapped payday loans, but a title loan under A.R.S. 44-291 can cost far more, so know which product you are being offered.
Does the City of Phoenix add any rules on small loans?
Not on cost or terms. Interest, fees, loan size and collection practices for consumer loans are set by state law and enforced by the Department of Insurance and Financial Institutions, whether the lender is on Indian School Road, in Mesa or online. City zoning only affects where a storefront can open. Check the lender's license on the DIFI site and get the finance charge in writing before you sign anything.
My APS or SRP bill is the problem. Is a loan the best fix in Phoenix?
Usually not first. The Human Services Department's family services centers offer emergency assistance, Wildfire can point you to the LIHEAP provider for your address, and both utilities have their own hardship programs. A consumer loan makes sense only for a gap the next paycheck will close. If you do borrow, the 36 percent cap on the first $3,000 keeps the cost predictable, but a missed payment still adds fees and collection risk.
