Best Personal Loans in Arkansas for 2024
Updated: April 25, 2024
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MoneyGeek's analysis finds that First Tech, with a score of 98, and PenFed, scoring 96, are the top picks for personal loans 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 terms. But if that score were lower, loans might not come as easily or with such nice rates.
- 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 choice 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
Overall 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
Runner-Up for Best Personal Loan Lender in Arkansas
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.
- 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
Best Personal Loan Lender in Arkansas for Bad Credit
- 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
Best Personal Loan Lender in Arkansas 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 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.
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.
FAQ About Arkansas Personal Loans
If you have questions about personal loans, MoneyGeek has answers to help you make an informed decision before applying.
According to MoneyGeek, First Tech is the best lender for personal loans in Arkansas, with a MoneyGeek score of 98. The average APR for First Tech is approximately 14%.
In Arkansas, personal loans can be obtained from online lenders, banks and credit unions. For those looking for local in-person services, the Arkansas Federal Credit Union, Arkansas Superior Federal Credit Union and Telcoe Federal Credit Union are among the local credit unions offering personal loans.
LendingPoint offers the lowest starting APR on personal loans in Arkansas, according to MoneyGeek's analysis, starting at 7.99%. However, the best option for you may vary depending on your individual financial situation and getting a low rate often requires an excellent credit score.
In Arkansas, you can use personal loans for a host of needs such as consolidating debt, covering emergency circumstances or funding a vacation. Typically, personal loans cannot be used for college tuition or gambling.
When considering personal loans, watch out for red flags like extremely high APRs, a lack of transparency about the lender and negative public spotlight regarding predatory practices. Be wary of lenders that don't require verification of identity or income.
Yes, lenders do consider income level when applying for a personal loan, along with debt-to-income ratio, credit score, employment history, employment status (self-employed or on a W2) and credit history. Opening new lines of credit during application can affect your chances of approval.
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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