Payday loans are an alternative to fast cash for those who are in between pay checks and find themselves in a situation where they can’t pay their bills, have an expense due to an emergency medical or financial situation, unexpectedly lose their job, or have been denied for a traditional loan through their accredited banking institution due to bad credit history. While Arizona payday loans are not an option due to regulations implemented in 2010, a payday loan can be a good option if you live in a number of other states around the country.

Payday loans are designed to be paid back at the time of the borrower’s next paycheck. Normally ranging between $500 to $1500, paycheck loans are unsecured, meaning there is no collateral backing up the total amount of the loan. This results in a substantially higher risk to the lender who is lending money with no guarantee of getting their funds should the borrower not pay back the loan on time or in full. To supplement the risk, lenders implement high interest rates for these types of loans, often times in the triple digit range depending on state law.

Due to the high risk nature of payday loans for both the lender and the borrower, several states around the country have implemented strict regulations to the interest rate and regulations of payday loans. Some states have even made it illegal to offer these types of loans to consumers. According to Wikipedia, there are 35 states that still offer some form of payday lending, while 15 states have created laws that make it impossible to obtain this type of loan. If you work for any branch of the U.S. military, you are restricted from obtaining a payday loan no matter in what state you reside.

To obtain a payday loan, first check to see if payday loans are available in your state. Currently the states that are extending high regulations on payday lending or have made payday loans illegal are:

  • Arizona
  • Arkansas
  • Connecticut
  • Georgia
  • Kentucky
  • Maine


For people who need cash fast, taking out another type of loan may be their only option. If you live in Arizona, securing an auto title loan is your best bet since payday loans are no longer available.