Best Loans for Bad Credit in Arkansas for 2024
Updated: April 26, 2024
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Happy Money is the best personal loan lender for bad credit in Arkansas. It offers competitive interest rates and flexible payment options. It is credible and transparent about its loan terms and process, with a MoneyGeek score of 94 out of 100. Avant is the runner-up, known for its strong customer service, broad payment options and quick application and approval process.
Other lenders, such as Arkansas Federal Credit Union, Arkansas Superior Federal Credit Union and Telcoe Federal Credit Union, also offer valuable localized services. They are worth considering for a more personalized loan experience. When finding the best personal loans for bad credit, MoneyGeek reviewed lenders that set and disclosed their minimum credit score requirements between 580 and 640.
- 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 lender for bad credit in Arkansas, with a MoneyGeek score of 94 out of 100. It is a fintech company that partners with federally insured lending institutions by the NCUA to originate loans. With a minimum credit score requirement of 640, loan amounts range from $5,000 to $40,000, and funds can generally be received the next day. Happy Money provides flexible repayment terms from 24 to 60 months and offers to pay creditors directly, which can simplify debt consolidation efforts. However, applicants should be aware that it only offers loans for debt consolidation and charges an origination fee.
Pros
- Doesn't charge late, early repayment, bounced check, failed ACH, or other fees
- Flexible repayment terms from 24 to 60 months
- Offers to pay creditors directly
Cons
- Only offers loans for debt consolidation
- Charges an origination fee
- No co-signers or co-borrowers
Overall Best Bad Credit Loan Lender in Arkansas
- Avant
- 92MoneyGeek Score
- 9.95% to 35.99%APR Range
- 580Minimum Credit Score
- $2,000 to $35,000Loan Amount Range
- 12 to 60 monthsRepayment Terms
Avant is the runner-up for the best bad credit loan lender in Arkansas, with a MoneyGeek score of 92 out of 100. It works with WebBank, a state-chartered, member FDIC bank, to originate personal loans. Avant caters to borrowers with a minimum credit score of 580 and offers a loan amount range from $2,000 to $35,000, with the possibility of receiving funds the next day. Flexible repayment terms and the option to check loan options without impacting credit score are key features for borrowers with bad credit. However, applicants should consider the administration fee up to 9.99% and be aware of possible late fees.
Pros
- Doesn't charge a prepayment penalty
- Offers next-day funding
- Has a mobile app
Cons
- Charges an administration fee up to 9.99%
- Low borrowing limits at $35,000
- Doesn't allow co-signers or joint applications
Runner-Up for Best Bad Credit Loan Lender in Arkansas
Calculate Your Monthly Loan Payment in Arkansas
The average new account balance for personal loans in Arkansas stands at $4,955, according to the Credit Industry Snapshot report from TransUnion. When you take out a personal loan, you agree to repay the borrowed funds, plus interest, over a set period of time through fixed monthly payments.
Calculating your monthly loan payments becomes particularly useful when you have a less-than-perfect credit history, as it can help you manage your budget effectively and avoid missed payments. If you are looking to estimate your loan payments, you can use the personal loan calculator provided by MoneyGeek to get a clear picture of your monthly obligations.
Best Bad Credit Loans by Credit Score in Arkansas
In Arkansas, the average credit score is 696, which is below the national average of 715, according to Experian data.
Even with a lower credit score, obtaining a personal loan is still possible. Lenders in Arkansas may consider applicants with less-than-perfect credit, but keep in mind these loans often come with increased interest rates and less favorable terms. Refer to the table below to explore personal loan lenders in Arkansas and see which options match your credit profile.
What to Do if Your Loan Application Is Denied in Arkansas
It's not uncommon to face a personal loan application denial, but this doesn't halt your borrowing journey. Understanding the next steps can help you navigate this setback. Here are some measures to enhance your chances for approval on future applications.
Find out the reason for the denial
Understand why your loan application was rejected. Common reasons include a poor credit score, a high debt-to-income ratio, insufficient income or errors in your application. Review these reasons to address the issues and avoid future denials.
Modify your loan terms
Consider discussing with your lender the possibility of changing the loan amount or repayment terms to secure approval.
Find another lender
Recognize that lender requirements differ. Shopping around is beneficial to find a suitable lender based on factors such as credit score, income level and credit history.
- Eligibility requirements: Different credit score, income, debt-to-income ratio and employment history criteria must be met. Be aware of these criteria.
- Interest rates: Seek out competitive rates, which are especially significant for those with bad credit.
- Additional fees: Understand the potential for origination, late fees and prepayment fees. This is particularly relevant with bad credit.
- Loan terms: Options vary among lenders, affecting the choice between short and long terms.
- Customer service and reputation: Investigate the lender's customer service level and overall reputation.
Look for alternatives
Borrowers with bad credit might consider different options such as secured loans, credit builder loans or finding a co-signer. These alternatives may be more accommodating than personal loans for those with bad credit.
Improve your credit score
By improving your credit score, you can enhance your chances of loan approval. Methods include making payments on time, reducing outstanding debts, 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 Arkansas
When shopping for personal loans in Arkansas, 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 Arkansas is Happy Money with a MoneyGeek score of 94 out of 100.
Avant has the lowest minimum credit score requirement for personal loans at 580.
The time to get a bad credit loan in Arkansas will depend on the lender. Some lenders may provide funding the same day, while others can take from a few business days up to a week.
You can pay off your loan early in Arkansas. Make sure to check with your lender regarding potential prepayment penalties.
Sources
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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