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Best Debt Consolidation Loans in Arkansas of 2024
Updated: December 28, 2023
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- Best Overall Debt Consolidation Loan Lender in Arkansas
- Runner-Up for Best Overall Debt Consolidation Loan Lender in Arkansas
- Best Debt Consolidation Loan Lender for Bad Credit in Arkansas
- Best Debt Consolidation Loan Lender for Good Credit in Arkansas
- How to Choose the Right Personal Loan for You
- What to Do if You Can’t Get a Debt Consolidation Loan in Arkansas
- Calculate Your Monthly Payment
- Frequently Asked Questions About Personal Loans in Arkansas
Best Debt Consolidation Loan Lenders in Arkansas
MoneyGeek analyzed the best lenders offering loans for debt consolidation in Arkansas based on 30+ data points, including APR ranges, minimum credit score, loan amounts, fees, funds disbursement time and other essential factors.
Based on our analysis, Upgrade offers the best debt consolidation loans in Arkansas, while LightStream is the second-best provider in the state. For borrowers with a bad credit history, Upstart is the best option. If you have a good credit score, SoFi will suit you best.
Best Overall Debt Consolidation Loan in Arkansas: Upgrade
Runner-Up for Best Debt Consolidation Loan in Arkansas: LightStream
Best Debt Consolidation Loan for Bad Credit in Arkansas: Upstart
Best Debt Consolidation Loan for Good Credit in Arkansas: SoFi
How to Choose the Best Debt Consolidation Loan in Arkansas for You
MoneyGeek's data shows that the average credit score in Arkansas is 690, so most people in the state will be able to qualify for a debt consolidation loan. While it's important to consider factors like your credit score and the lender's requirements, you should also know how much funding you'll need. A debt consolidation loan can help you lower your monthly payments and may also help you pay off your loan early. However, such a loan won't be beneficial if you don't qualify for a lower interest rate. If you've decided to apply for a debt consolidation loan, we recommend following these steps:
Ask Yourself the Important Questions
Before researching different lenders offering debt consolidation loans, it’s essential to consider your financial needs and the lender’s credit score requirements. MoneyGeek recommends asking yourself the following questions before proceeding:
- How much funding do you need?
- What’s your credit score?
- Can you afford the monthly payments?
- Do you have existing debts?
- Is your debt manageable through other means?
Do Your Research
Once you’ve decided how much funds you need, you can start shopping around and comparing the rates of different lenders. Since a debt consolidation loan is a long-term commitment and involves hard credit checks, it’s important to do your research and explore all your options. MoneyGeek’s guide is a great place to start, but you should complete your own research to find the best lender for you.
Wait
After you’ve finalized a lender, it’s best to wait a few days before applying for a loan. During this period, you can research the lender’s customer service and general reputation. You can also explore other options to meet your financial needs.
Read the Fine Print
Reading the fine print of your loan agreement is very important because it could help you identify hidden fees like prepayment penalties, origination or those for late payments.
Apply
Once you’ve read the fine print and understand the lender’s fees, you can apply for a loan. At this stage, the lender may ask you for identification documents, income details and other financial and personal information. While it’s easy to apply online, you can also visit the lender to apply for a loan.
What to Do if You Can’t Get a Debt Consolidation Loan in Arkansas
If your loan application is rejected, you should reach out to the lender to find out why it was denied. Lenders can reject loan applications for various reasons, including low credit scores, high debt-to-income ratios, unstable employment, insufficient income or an incomplete application.
After you find out why your application was rejected, you can work on improving your application prior to reapplying. For instance, if the lender did not approve your loan due to a low credit score, you can get a credit card to rebuild your credit history. While applying with a different lender may be tempting, you’re unlikely to get approval without improving the factor that caused you to be denied in the first place.
Some borrowers may think about opting for a payday loan. However, MoneyGeek strongly recommends against this as such loans have a very high APR and short repayment terms, resulting in more debt.
Calculate Your Monthly Payment
A personal loan is generally repaid in monthly installments, including interest. That’s why it’s essential to analyze your financial situation and estimate if you can afford the monthly payments. MoneyGeek’s personal loan calculator can help you determine your capacity to make monthly payments on a new loan.
FAQs About Debt Consolidation Loans in Arkansas
In Arkansas, the best debt consolidation loan will depend on your financial needs, credit score, income level and other important factors. MoneyGeek researched the following frequently asked questions to help you understand debt consolidation loans work in this state.
Based on MoneyGeek’s analysis, Upgrade is Arkansas's best lender for debt consolidation loans, while Lightstream is the runner-up lender. For borrowers with a bad credit history, Upstart is the best option. If you have a good credit score, SoFi will suit you best.
In Arkansas, Upstart offers the lowest interest rates to the borrowers, starting at 3.22%.
Most lenders do not allow the use of loan funds for paying off student loans. However, it would be best to contact your lender and ask if they have any restrictions on the usage of loan funds.
The maximum loan amount generally depends on the lender. In Arkansas, you can get a maximum loan of $100,000 for debt consolidation.
Fund disbursement time varies based on the lender. Some lenders disburse funds on the same day, while others take up to seven days for disbursement.
Yes, lenders allow borrowers to pay off their loan early in Arkansas. However, some lenders may charge you a prepayment penalty for doing so.
MoneyGeek reviewed over 30 personal loan lenders using at least 35 individual data points across six key categories: loan affordability, accessibility, consumer friendliness, customer service, flexibility and lender transparency.
Within each ranking 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 chosen with your best interests in mind. Our personal loan recommendations and expert tips are meant to help you make smart financial decisions when choosing a lender that meets your needs.
sources
- Lightstream. "Debt consolidation." Accessed June 30, 2022.
- Upgrade. "Debt consolidation." Accessed June 30, 2022.
- Upstart. "Debt consolidation loans." Accessed June 30, 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.
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