Installment Loans in Arizona

Steps

1. Submit one request through LendUp or contact a licensed lender directly.
2. Gather what you'll need: government-issued ID, proof of income (pay stubs, benefit letters, or bank statements), and your bank account details for deposit and repayment.
3. Review the offer: confirm the APR, the full payment schedule, and the total amount you'll repay — not just the monthly payment, but all finance charges and fees added together.
4. Verify the lender holds an active Arizona consumer lender license before you sign. Save a copy of the signed agreement.

What to expect

• Credit check: You may see a soft check (no score impact) for prequalification and a hard check (small score impact) if you accept. Ask before you agree.
• Income verification: The lender may ask for pay stubs, bank statements, or benefit letters. If they request bank login access, ask whether uploading statements is an option instead.
• How charges work: Arizona caps the finance charge (interest) on consumer loans and prohibits compounding interest on installment loans. Beyond the finance charge, only specifically authorized additional charges are permitted — these may include items like late fees, deferral fees on loans where interest was calculated upfront, certain third-party costs on secured loans, authorized insurance premiums, and court costs or reasonable attorney fees if a loan goes to collection. If you see a charge you don't recognize, ask the lender to show where it's authorized under state law.
• Equal payments: Your loan must be repaid in approximately equal periodic installments. No installment can be substantially larger than the ones before it — which means no surprise balloon payment at the end.
• Automatic payments: Most installment loans use automatic withdrawals from your bank account. If your paydays don't match the due dates, ask whether the lender can adjust the schedule to avoid overdraft fees.

Before sharing your Social Security number or bank details, confirm the lender holds an active consumer lender license from DIFI. Arizona offers two ways to check.

1. Start with DIFI's e-Licensing Lookup. Select "Business" and search by the lender's name. Look for a Consumer Lender license with an active status.
2. You can also check NMLS Consumer Access by the company's NMLS number or legal name. Confirm Arizona is listed under State Licenses.
3. Confirm the name and license number match what appears on the lender's website or loan documents.
4. If you can't find the lender, call DIFI at (602) 771-2800 before you proceed.

This matters in Arizona: Any loan made by an unlicensed consumer lender is void under state law. The lender has no right to collect any principal, finance charges, or fees on that loan. If an unlicensed lender is trying to collect from you, contact DIFI and the Arizona Attorney General.

To file a complaint or report an unlicensed lender, visit the DIFI complaints page or call (602) 771-2800. You can also file with the CFPB.

If you apply through LendUp, we'll try to match you with licensed providers, but you should still verify the lender before accepting an offer.

Your rights in Arizona

• Pay off early: If you want to pay off your loan before the scheduled term ends, check your contract for any prepayment terms. If the loan has precomputed interest (where the total interest is calculated upfront and added to the balance), the lender must refund the unearned portion. Ask the lender to confirm in writing whether any prepayment fee applies before you sign.
• Right to cure before collections escalate: If you default, the lender must give you written notice and time to correct the default before taking further action. However, Arizona does not require pre-notice before repossessing collateral on secured loans — if your loan is secured by property, that property may be at risk immediately upon default.
• Penalty for overcharging: If a lender charges interest above the legally allowed rate, the loan may become a zero-interest loan — the lender loses the right to collect any interest. You may also be able to sue for damages, court costs, and attorney fees.

Walk away if

• An upfront fee is required before you receive any money.
• The lender shows only the monthly payment and won't state the total you'll repay in writing.
• You're pressured to sign immediately or told you can't review the agreement on your own time.
• The lender can't be found in DIFI's e-Licensing Lookup or NMLS Consumer Access with an active Arizona consumer lender license.
• The lender describes the product as a "payday loan" — payday lending has been illegal in Arizona since 2010. If you see a storefront advertising payday loans, report it to the Arizona Attorney General.
• The contract includes a balloon payment or compound interest — both are prohibited on consumer installment loans in Arizona.

If payments look tight, compare alternatives and review red flags on scams and safety.