Top Lenders & Best Picks for You
Best Personal Loans in Phoenix, AZ
Updated: December 28, 2023
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- The Best Overall Personal Loan Lender in Phoenix
- The Best Personal Loan Lender for Bad Credit in Phoenix
- The Best Personal Loan Lender for Good Credit in Phoenix
- The Best Personal Loan Lender for Debt Consolidation in Phoenix
- The Best Personal Loan Lender for Home Improvements in Phoenix
- How to Choose the Right Personal Loan for You
- Frequently Asked Questions About Personal Loans in Phoenix
MoneyGeek’s Pick for Best Personal Loan Lender in Phoenix: LightStream
Personal loan lenders look at your financial standing to assess your loan eligibility and calculate your rate. You can select a loan term length that works best for you — either a short-term loan or long-term loan. The latter reduces your monthly payments but increases the amount of time you pay back the loan.
In Arizona, the average personal loan debt is $20,113. This average can differ between cities, with metropolitan areas generally having higher averages than non-metropolitan areas. MoneyGeek found the best personal loan in Phoenix for different types of borrowers.
Best Overall Personal Loan Lender in Phoenix, AZ: LightStream
Best Personal Loan Lender for Bad Credit in Phoenix, AZ: Upstart
Best Personal Loan Lender for Good Credit in Phoenix, AZ: SoFi
Best Personal Loan Lender for Debt Consolidation in Phoenix: Upgrade
Best Personal Loan Lender for Home Improvement in Phoenix: Best Egg
How to Choose the Best Personal Loan Lender In Phoenix for You
As a borrower, there are a lot of factors you must consider before applying for a loan. Your credit score, current debt and income are all important. For example, the average credit score in Arizona is 714. Some lenders may require a lower credit score, making it easier for borrowers with relatively low credit scores to qualify. In addition, the average personal loan interest rate in the state is 8.93%. By considering your options, you may be able to find a personal loan with a lower interest rate.
MoneyGeek lists what you should take into consideration before applying for a loan. Here’s a step-by-step guide on how to choose the best personal loan lender in Phoenix.
Ask Yourself the Important Questions
Taking out a personal loan is a big financial decision, which is why you need to think it through carefully. Here are a few things you need to ask yourself to help you decide if applying for a loan is right for you:
- How much funding do you need?
- What is your credit score?
- Can you afford the monthly payment?
- How much debt do you already have?
Do Your Research
Understanding debt and how to pay it off is just the start. You also want to know the different options you have in your city and how much you can potentially save by comparing different loan packages. Know that a personal loan is a long-term commitment: you will have to make monthly payments for about two to four years on average.
MoneyGeek’s research is already a good resource that helps you understand what you need to know about personal loans. But, you can also learn about more options outside of our recommendations that may better fit your specific financial situation.
Wait
After getting to know your options and having a chosen lender in mind, wait it out for one to two more days before making a decision. It is important to think things over and really see if you can afford to make monthly payments before applying.
Read the Fine Print
The fine print will tell you about the fees, charges and all the terms and conditions of your loan. Know whether it comes with a fixed or adjustable interest rate, which tells you whether you will be paying the same or a different amount every month.
Apply
Once you feel good about your chosen lender, have read the fine print and thought it over, now you can apply for the loan. At this stage, prepare all the necessary documents, including your proof of income, as these will be required during the application process. For your security, calling or visiting the lender personally can be much safer than applying online.
What To Do if You Can’t Get a Personal Loan in Phoenix, AZ
Keep in mind that there is a possibility that your personal loan application may be denied based on a number of reasons. For instance, your application is more likely to be denied if you are trying to borrow more than you can afford. Other reasons include low credit scores, loan purpose mismatch, not meeting the basic requirements and many other things.
If your personal loan application in Phoenix has been denied, you may want to understand exactly why to improve your chances of getting approved in the future. Find out the reason you were denied and try to fix this particular factor before sending in another application.
In case of a loan purpose mismatch, you may want to look at other options. Let’s say you want to consolidate your credit card debt through a personal loan. You may have higher chances of getting a balance transfer credit card instead of a personal loan. Or let’s say you have been planning to start a business. There are small business loans that can better cater to your needs.
What you want to avoid is a payday loan. These are short-term loans that charge the highest interest. As the name suggests, you would need to pay the said loan after receiving your next paycheck.
Frequently Asked Questions About Personal Loans in Phoenix, AZ
Here are some frequently asked questions borrowers may have about personal loans in Phoenix:
Overall, the best personal loan lender in Phoenix is LightStream. However, borrowers may find other lenders with more suitable options for their financial situation. SoFi has the lowest rates for those with good credit. While Upstart can offer a low-interest personal loan, even for those with poor credit scores.
Personal loans from Upstart have the lowest interest rates starting at 3.22%.
Some lenders limit the use of funds on particular spending categories and deny applications that are within these categories. If you plan to use the funds for a vacation, the best course of action is to check with your lender if it is allowed.
A personal loan is usually a great solution if you are planning to take on a home renovation project. Best Egg is the best personal loan lender in Phoenix for home improvements.
Fund allocation is one of the things you should consider before your loan application. Funding post-secondary education or businesses and using the funds on stock and bonds investment are usually not allowed.
In Phoenix, you can borrow as low as $1,000 and as high as $100,000 depending on your chosen lender. Some lenders limit loans up to $50,000.
Some lenders immediately transfer the funds within the same day of your application, while others can last up to a week.
Some lenders charge a prepayment penalty if you pay off your personal loan before the term ends. Check with your lender to see if they charge for early loan repayment.
Our Personal Loan Methodology
We reviewed more than 30 personal loan lenders using 35+ individual data points across six key categories: loan affordability, accessibility, consumer friendliness, customer service, flexibility and lender transparency.
Within each ranking criteria category, we considered several individual data points that we feel carry the most weight when choosing a personal loan lender. These factors include APR ranges, available loan amount, minimum credit score, minimum income amount, application fees and disbursement time.
Here at MoneyGeek, we value you, the consumer, so we also factor in each lender’s customer support, business ratings and additional features that could make your experience easier and more accessible, like prequalification, payment options and mobile apps.
After careful consideration and calculation, our picks are determined with your best interest in mind. Our personal loan recommendations and expert tips are meant to help you make the best decision when choosing a lender that meets your needs.
sources
- LightStream. "Rates Loan Calculator." Accessed March 8, 2022.
- SoFi. "Personal Loans." Accessed March 6, 2022.
- Upstart. "Personal Loans." Accessed March 6, 2022.
- Upgrade. "Consolidate Your Debt." Accessed March 6, 2022.
- BestEgg. "Personal Loans for Home Improvement." Accessed March 6, 2022.
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.
Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about
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