Best Loans for Bad Credit in Arizona for 2024
Updated: April 17, 2024
Advertising & Editorial Disclosure
Happy Money is Arizona's best personal loan lender for bad credit, with a MoneyGeek score of 93 out of 100. It stands out due to its credible and transparent approach, robust customer service and education, and swift application and approval process. Avant, which achieved a runner-up position, has a MoneyGeek score of 93 out of 100. It is recognized for having the broadest loan terms and flexibility, a quick application and approval process, and a commitment to customer service.
MoneyGeek reviewed four personal loan lenders in Arizona that disclosed minimum credit score requirements ranging between 580 and 640, identifying the best personal loans for individuals with bad credit. In addition to these featured lenders, Arizona Central Credit Union, Arizona Financial Credit Union and OneAZ Credit Union are also commendable options that cater to those seeking more localized financial services in Arizona.
Calculate Your Monthly Loan Payment in Arizona
In Arizona, the average new account balance for personal loans stands at $8,342, according to the Credit Industry Snapshot report by TransUnion. When you take out a personal loan, the repayment process typically involves monthly payments over a set loan term until the total amount borrowed plus interest is paid off.
Accurately determining your monthly loan payments is particularly beneficial if you have bad credit. To estimate your loan payments, consider using MoneyGeek's personal loan calculator. This tool can give you a clear picture of what to expect for your monthly outlay.
Best Bad Credit Loans by Credit Score in Arizona
In Arizona, the average credit score is 713, slightly below the national average of 715 based on Experian data.
Some Arizona lenders specialize in working with individuals with lower credit scores, though the interest rates may be higher and terms less beneficial. Review the table provided to identify Arizona personal loan lenders that align with your credit score range.
What to Do if Your Loan Application Is Denied in Arizona
It's not uncommon to face a personal loan application denial in Arizona, but this doesn't halt your borrowing journey. Here are some measures to enhance your chances for approval on future applications.
Find out the reason for the denial
A loan application may get rejected due to a poor credit score, high debt-to-income ratio, low income level or inaccuracies in your application. Review the lender's feedback to address these areas for your next application.
Modify your loan terms
Talk to your lender about changing the loan amount or repayment terms to enhance your chances of approval.
Find another lender
Lenders have different approval criteria. Research lenders and compare these features:
- Eligibility requirements: Credit score, income level, debt-to-income ratio and employment history vary by lender.
- Interest rates: Seek lenders with competitive rates to save money, especially with bad credit.
- Additional fees: Look for lenders without origination, late or prepayment fees, which can be costly.
- Loan terms: Compare short-term and long-term options for repayments.
- Customer service and reputation: Research a lender's support and track record before choosing one for personal loans.
Look for alternatives
Explore other borrowing options suitable for bad credit, such as secured loans, credit union loans or family loans.
Improve your credit score
Enhance your creditworthiness over time by improving your credit score through methods like paying bills promptly, reducing debt and checking credit reports for errors.
Work on improving your credit score before applying for a personal loan to increase your chances of approval and getting better terms. Here are some long-term steps to consider:
- Monitor your credit utilization ratio: Keep your credit utilization ratio low, as high credit utilization can negatively impact your credit score. Aim to use less than 30% of your available credit limit.
- Don’t close old credit cards: The length of your credit history contributes to your credit score. Even if you no longer use a credit card, keep it open unless it has an annual fee.
—Alvin Yam, CFP
FAQ About Bad Credit Loans in Arizona
When shopping for personal loans in Arizona, it's common for borrowers, especially those with bad credit, to have questions or concerns. To assist in this process, we compiled answers to some frequently asked questions, offering clarity and guidance to help you make well-informed decisions.
The best personal loan for bad credit in Arizona is offered by Happy Money, with a MoneyGeek score of 93 out of 100.
Avant has the lowest minimum credit score requirement, set at 580.
The time it takes to get a bad credit loan in Arizona varies by lender. Some lenders like Achieve offer same-day funding, while others may take from the next business day to a week.
You are able to pay off your loan early. However, it's recommended you verify with your lender about any potential prepayment penalties.
sources
- Experian. "What Is the Average Credit Score in the U.S.?." Accessed April 11, 2024.
- TransUnion. "Credit Industry Snapshot." Accessed April 11, 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.
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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