Interest rates for payday loans are extremely high and due to their rates, payday loans have been banned in the state of Arizona starting July 1st, 2010. Due to payday loans being illegal in Arizona, people have been getting other bad credit loans, not payday loans, for their short term financing needs.
Payday loans are personal bad credit loans that are short term, unsecured high interest loans that provide fast cash for people who need the money to cover expenses until their next payday or paycheck. Payday loans are also known as paycheck advances or cash advances.
When someone goes in to get a payday loan, the borrower usually must bring in some type of verification of employment or income, which can be shown with pay stubs or bank statements. When someone brings that verification in, the lender provides a personal bad credit loan that is to be repaid at the borrower’s next payday.
On the maturity date of the loan (usually the payday or shortly after) the person borrowing the money must pay back their loan with the lender. If the person does not return to pay back the money, the lender redeems the check.
Interest rates for payday loans are extremely high. Lenders usually loan $100-$300, depending on a person’s income, for about a 17.5% interest fee, for a two week loan. If you annualize this 17.5% fee, a borrower is looking at an APR of 420% for an average payday loan of $300 for eight days. Payday loans are legally the most expensive and high interest loan you can receive and for that reason, many people find other ways to obtain a loan or credit for themselves.
In addition, a person without a job would be unable to get a loan since payday loan companies do not offer bad credit jewelry loans or loans on other types of collateral.
Because of the very high interest rates of close to 500% APR and higher, as well as payday loans being banned in Arizona, many people who need short term financing have been looking for other bad credit loans, not payday loans, when trying to get cash fast.
From personal bad credit loans to bad credit jewelry loans and more, Biltmore can provide you with a fast collateral loan at a rate that is reasonable and fair to the consumer.
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If you have a question or are unsure if we are interested in your item(s), Biltmore will be more-than-happy to evaluate what you have for free with no obligation. Please use our appraisal form here or you can visit our How it works page for more information. Walk-ins are accepted at our Chandler and Scottsdale locations. No need to set an appointment!
Chandler: 480-705-5626, 670 N. 54th Street, Chandler, AZ 85226
Scottsdale: 480-991-5626, 10830 N Scottsdale Road, Scottsdale, AZ 85254