Best Personal Loans in Arkansas for 2024

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Updated: July 26, 2024

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MoneyGeek's analysis finds that First Tech, with a score of 98, and PenFed, scoring 96, are the best personal loan lenders in Arkansas due to their customer service and fair interest rates. MoneyGeek gauged lenders on important aspects like service, costs and transparency.

Before applying, know that lenders look at your credit score, income and how you manage debt. Arkansas's average credit score is 696 according to 2023 Experian data, which means the average borrower there has a good shot at favorable loan rate and term options. But if that score were lower, loans might not come as easily or with such nice rates.

MoneyGeek Logo IconBest PersonalLoan LendersArkansas
2024

Best Personal Loan Lenders in Arkansas

Best Overall - First Tech
Runner-Up - PenFed
Best for Bad Credit - Happy Money
Best for Debt Consolidation - Truist

MoneyGeek's personal loans scoring system is designed to give a comprehensive overview of each lender’s performance in key areas that matter to borrowers. We use a point-based system, assigning scores according to the presence or absence of certain desirable features in various critical categories.

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Our analysis was completed in March 2024 and considers banks and lenders who are licensed to do business in Arkansas. We also consider financial companies who partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

    Overall Best Personal Loan Lender in Arkansas

  • 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 Arkansas with a MoneyGeek score of 98 out of 100. It has competitive rates ranging from 8.94% to 18.00% — lower than other listed APRs—and outstanding customer support options. First Tech also excels at offering guidance. Its loan conditions include flexibility in terms, spanning from 6 to 84 months, accommodating diverse financial scenarios. These strengths make it a reliable financial institution for borrowers seeking personal loans.

    Pros

    • Insured by the National Credit Union Administration (NCUA)
    • No early repayment penalty
    • Provides granular APR data for a variety of loan terms

    Cons

    • Need to be a member to apply
    • Provides limited details on loan application process
    • Little published information about credit score requirements
    First Tech

    Runner-Up for Best Personal Loan Lender in Arkansas

  • 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 best personal loan lender in Arkansas with a score of 96 out of 100. Their APR ranges from 7.99% to 17.99%, starting lower than some competitors. Offering terms up to 60 months, PenFed also provides relatively extensive repayment flexibility. PenFed balances competitive costs with lending versatility.

    Pros

    • Offers some of the lowest APRs available
    • No early repayment penalty
    • Insured by the National Credit Union Administration (NCUA)

    Cons

    • Partner lenders charge an origination fee
    • Longer time to wait for loan approval than competitors
    PenFed
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UNDERSTAND YOUR DEBT-TO-INCOME RATIO

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 Arkansas Loan Payment

According to our analysis, lenders in Arkansas offer personal loan products averaging about 48 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.

Personal Loan Calculator

Estimate the monthly payment for your loan.

Updated: Jul 26, 2024

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    Best Personal Loan Lender in Arkansas for Bad Credit

  • 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 the best personal loan option in Arkansas for people with low credit scores, with a MoneyGeek score of 94 out of 100. Happy Money is not a direct lender; it partners with various federally insured financial institutions to originate loans. It provides valuable access to comparably low APR ranges of 11.72% to 17.99% for borrowers with a minimum credit score of 640. The company offers detailed upfront information regarding the lending process and options, and has a strong reputation for consumer transparency.

    Pros

    • Works with 10 federally insured lenders to originate all loans
    • Transparent eligibility requirements, including credit score minimum
    • Straightforward application process with minimal paperwork.

    Cons

    • Partner lenders charge an origination fee
    • Longer wait time to for loan approval than competitors
    Happy Money

How does MoneyGeek score lenders for bad credit loans?


    Best Personal Loan Lender in Arkansas for Debt Consolidation

  • Truist
    • 96MoneyGeek Score
    • 8.74% to 17.39%APR Range
    • UndisclosedMinimum Credit Score
    • From $3,500Loan Amount Range
    • 24 to 60 monthsRepayment Terms

    With a MoneyGeek score of 96 out of 100, Truist is the best in Arkansas for borrowers looking to consolidate debt. It offers competitive APRs ranging from 8.74% to 17.39%. Truist streamlines the application and approval experience and provides adaptable repayment terms.

    Pros

    • FDIC insured
    • No origination fees

    Cons

    • High minimum loan requirement than competitors
    • Difficult to qualify for the lowest rates
    Truist

How does MoneyGeek score lenders for debt consolidation?

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IS INTEREST ON PERSONAL LOANS TAX DEDUCTIBLE?

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 Arkansas

When you're considering a personal loan in Arkansas, acknowledge factors such as your creditworthiness, income level and debt-to-income ratio. Lenders evaluate these factors to determine your loan terms. MoneyGeek's rankings for the best personal loan lenders in the state take into account elements such as lender reputation, transparency, APR ranges, minimum credit requirements and flexibility in loan terms.

Your credit score is a key indicator for lenders; a higher credit score can help secure lower APRs, making it worthwhile to bolster your credit standing before applying for a loan. To understand how different credit scores might affect your monthly payments, refer to the table below.

Data filtered by:Results filtered by:
Credit Band:
Credit Band:690 to 719
Loan Amount:
Loan Amount:$2,000
$348Term Length (Months)6
$180Term Length (Months)12
$97Term Length (Months)24
$69Term Length (Months)36
$55Term Length (Months)48
$47Term Length (Months)60
$42Term Length (Months)72
$38Term Length (Months)84

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 Arkansas

Personal loans in Arkansas can offer lower interest rates for those with good credit and serve as a versatile financial solution for consolidating debt, covering unexpected costs or funding home improvements. With potential benefits like fast funding and the ability to strengthen your credit history through on-time payments, these loans are a flexible tool in managing personal finances.

But personal loans also carry risks such as origination fees and the possibility of accruing unnecessary debt. Consider the pros and cons of personal loans to ensure a well-rounded decision.

The pros and cons of personal loans

  • Competitive interest rates
  • Consolidation of multiple debts
  • Rapid funding after approval
  • Option to add a co-signer
  • Origination fees increase the cost of borrowing
  • Prepayment penalties for early loan settlement
  • Risk of asset forfeiture with secured loans
  • Enticement to accrue excessive debt due to easy approval

FAQ About Arkansas Personal Loans

If you have questions about personal loans, MoneyGeek has answers to help you make an informed decision before applying.

What is the best lender in Arkansas for personal loans?
Where is the best place to get a personal loan in Arkansas?
What has the best personal loan interest rates in Arkansas?
What can I use a personal loan for in Arkansas?
What are some personal loan red flags to look out for?
Do lenders consider income level when applying for a personal loan?

About Zachary Romeo

Zachary Romeo headshot

Zachary Romeo is the Head of Loans and Banking at MoneyGeek, with over 10 years of experience and forthcoming certification as a Commercial Banking and Credit Analyst (CBCA). Previously, he led production teams for some of the largest online informational resources in higher education.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt through people-first content.

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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 our editorial policies and expert editorial team.

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