Best Personal Loans in Arizona for 2024
Updated: April 25, 2024
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In Arizona, when you need a personal loan, choosing the right lender is important. First Tech and PenFed are top picks from MoneyGeek, with scores of 98 and 96, respectively. They stand out for their excellent customer service, transparent terms and competitive rates.
If you live in Arizona, where the average credit score is 713 according to Experian data from 2023, you're likely to get good loan terms. But remember, lenders also look at your income and debt when deciding to give you a loan.
MoneyGeek's analysis includes the lender's reputation, transparency, range of annual percentage rates (APR), minimum credit scores needed and flexibility in loan terms. These factors matter regardless of whether your budget is tight or you need clarity and ease in the loan process.
- First Tech
- 98MoneyGeek Score
- 8.94% to 18.00%APR Range
- UndisclosedMinimum Credit Score
- $500 to $50,000Loan Amount Range
- 6 to 84 monthsRepayment Terms
First Tech is MoneyGeek's pick for the best personal loan lender in Arizona with a MoneyGeek score of 98 out of 100. Offering an APR range from 8.94% to 18.00%, which is lower than many competitors, it stands out with competitive interest rates and low fees. The lender's repayment terms range from 6 to 84 months, providing flexibility for borrowers. It particularly excels in making the loan application process efficient and straightforward.
Pros
- Insured by the National Credit Union Administration (NCUA)
- Balanced, low APRs
- Doesn't charge an application or loan origination fee
Cons
- Need to be a member to apply
- Provides limited details on loan application process
- Little published information about credit score requirements
Overall Best Personal Loan Lender in Arizona
- PenFed
- 96MoneyGeek Score
- 7.99% to 17.99%APR Range
- UndisclosedMinimum Credit Score
- Up to $50,000Loan Amount Range
- Up to 60 monthsRepayment Terms
PenFed Credit Union is MoneyGeek's runner-up for the best personal loan lender in Arizona with a score of 96 out of 100. Its APR range of 7.99% to 17.99% is competitive, sitting below the other lenders' rates. PenFed distinguishes itself particularly in repayment term flexibility, offering terms up to 60 months.
Pros
- Offers some of the lowest APRs available
- No early repayment penalty
- No origination fee
Cons
- No information provided about credit score requirements
- $50 minimum monthly loan payment
Runner-Up for Best Personal Loan Lender in Arizona
The amount of monthly debt payments you have relative to your monthly gross income is called your debt-to-income ratio, or DTI. Most lenders prefer to see a debt-to-income ratio of 35% to 40% or below for secured loans, and 40% to 45% or below for unsecured personal loans.
Debt includes items like mortgages, car loans, credit cards and existing personal loans. A debt-to-income ratio above 50% is considered high and so approval may be more difficult, or your loan may come with higher interest rates.
— Alvin Yam, CFP®
Calculate Your Monthly Arizona Loan Payment
According to our analysis, lenders in Arizona offer personal loan products averaging about 49 months. Explore your loan options with our personal loan calculator, a simple tool to calculate monthly payments and total loan costs based on amount, interest rate and term length, helping you make informed decisions before committing.
- Happy Money
- 94MoneyGeek Score
- 11.72% to 17.99%APR Range
- 640Minimum Credit Score
- $5,000 to $40,000Loan Amount Range
- 24 to 60 monthsRepayment Terms
Happy Money is MoneyGeek's pick for the best personal loan provider for those with low credit in Arizona, boasting a MoneyGeek score of 94 out of 100. Despite not being a lender itself, Happy Money partners with various federally insured institutions to offer loans, ensuring access to competitive rates. With APRs ranging from 11.72% to 17.99%, these loans are available to those with a credit score of at least 640. Happy Money particularly excels in providing detailed information upfront and maintaining a high level of customer service and educational materials for borrowers.
Pros
- Tailors partnerships with 10 federally insured lenders specifically for loan origination.
- Clearly delineates credit score and requirements for loan eligibility.
- Does not require a payment for the application process.
Cons
- Partner lenders charge an origination fee
- Longer time to wait for loan approval than competitors
Best Personal Loan Lender in Arizona for Bad Credit
- Alliant Credit Union
- 96MoneyGeek Score
- 10.99% to 13.99%APR Range
- UndisclosedMinimum Credit Score
- $1,000 to $100,000Loan Amount Range
- 12 to 60 monthsRepayment Terms
The best personal loan lender for debt consolidation in Arizona is Alliant Credit Union, with a MoneyGeek score of 96 out of 100. Although Alliant requires borrowers to be members for at least 90 days to be eligible for a personal loan, its competitive offerings make it stand out. Alliant's APR range is notably low, from 10.99% to 13.99%, demonstrating its commitment to affordability. It particularly excels in competitive rates and fees.
Pros
- Among the highest loan limits available in our analysis
- Insured by the National Credit Union Administration (NCUA)
- No prepayment penalties
Cons
- An online-only credit union, no physical branches
- Must be a member for 90 days to apply
Best Personal Loan Lender in Arizona for Debt Consolidation
Interest on personal loans is generally not tax deductible because personal loans are considered consumer debt. But there are some exceptions where the interest may qualify:
- When consolidating high-interest qualifying debts like credit cards or student loans, if used to pay off those debts.
- If used for home improvements that increase the home's value.
- If the loan proceeds can be demonstrated as used exclusively for business expenses or starting a business.
- In some cases, if the loan is used for investment purposes related to income-generating assets.
— Alvin Yam, CFP®
Impact of Credit Score on Loan Repayment in Arizona
When seeking a personal loan in Arizona, consider your creditworthiness, including your credit score, income and debt-to-income ratio. Lenders will also evaluate factors such as reputation, APR ranges, minimum credit scores and loan term flexibility.
A strong credit score is key to securing favorable loan terms; enhancing your score may lead to lower APRs, which can significantly reduce your borrowing costs. Refer to the table below to understand how your credit score might influence your monthly loan payments.
This table approximates monthly payments, calculated using median personal loan interest rates typical for various credit score ranges. These numbers are median estimates provided for general guidance. They should not be taken as precise rates for everyone in each credit score category. Actual interest rates can differ due to lender-specific policies, prevailing market conditions and unique borrower profiles.
Pros and Cons of Personal Loans in Arizona
Personal loans offer considerable advantages, such as potentially lower interest rates than credit cards and the convenience of consolidating various debts into one manageable payment. They can also provide quick financial relief with a straightforward application process that, in many cases, allows for versatile use of the borrowed funds.
But consider the potential downsides, like origination fees and prepayment penalties, which can increase the cost of borrowing. Assessing the pros and cons of personal loans will help you make a judicious financial choice.
FAQ About Arizona Personal Loans
If you have questions about personal loans, MoneyGeek has answers to help you make an informed decision before applying.
According to MoneyGeek's analysis, the best lender in Arizona for personal loans is First Tech, with a MoneyGeek score of 98. Its average APR is around 14%.
In Arizona, you can get personal loans from online lenders, banks and credit unions. For local access and in-person services, you can consider Arizona Central Credit Union, Arizona Financial Credit Union or OneAZ Credit Union among the local options available.
PenFed offers the lowest starting APR for personal loans in Arizona at 7.99% according to MoneyGeek's analysis. However, the best rates for you can vary based on your needs and financial situation, and securing a low rate often requires an excellent credit score.
In Arizona, you can use personal loans for a variety of needs such as to consolidate debt, for home or auto repair, or for emergency circumstances. Typically, you cannot use personal loans for illegal activities or for gambling.
When considering personal loans, watch out for red flags such as extremely high APRs, unusually strict repayment penalties, and a lack of transparency about the loan's origin. Furthermore, be cautious of lenders with a high number of poor consumer reviews or a history of predatory practices.
Yes, lenders do consider income level when you apply for a personal loan. They assess your debt-to-income ratio, credit score, employment history and other financial factors to determine your eligibility. Opening new lines of credit during the application process can negatively impact your chances of getting a loan.
sources
- Experian. "What is the Average Credit Score in the US?." Accessed April 8, 2024.
The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.
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