Best Personal Loans in Arizona for 2024

Q: What are some personal loan red flags to look out for?

When considering personal loans , watch out for red flags such as extremely high APRs, unusually strict repayment penalties, and a lack of transparency about the loan's origin. Furthermore, be cautious of lenders with a high number of poor consumer reviews or a history of predatory practices.

With a MoneyGeek score of 98, First Tech provides the best personal loans in Arizona, featuring exceptional customer service, competitive interest rates and a reliable reputation.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Lukas Velunta

Updated: November 27, 2024

Advertising & Editorial Disclosure

In Arizona, when you need a personal loan, choosing the right lender is important. First Tech and PenFed are top picks from MoneyGeek, with scores of 98 and 96, respectively. They stand out for their excellent customer service, transparent terms and competitive rates.

If you live in Arizona, where the average credit score is 713 according to Experian data from 2023, you're likely to get good loan rate and terms. But remember, lenders also look at your income and debt when deciding to give you a loan.

MoneyGeek's analysis includes the lender's reputation, transparency, range of annual percentage rates (APR), minimum credit scores needed and flexibility in loan terms. These factors matter regardless of whether your budget is tight or you need clarity and ease in the loan process.

Best PersonalLoan LendersArizona

2024

Best Personal Loan Lenders in Arizona

Best Overall - First Tech

Runner-Up - PenFed

Best for Bad Credit - Happy Money

Best for Debt Consolidation - Alliant Credit Union

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, including customer service and annual percentage rate (APR). We use a point-based system, assigning scores according to the presence or absence of certain desirable features in various critical categories.

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

34Lenders Analyzed

Overall Best Personal Loan Lender in Arizona

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 Arizona with a MoneyGeek score of 98 out of 100. Offering an APR range from 8.94% to 18.00%, which is lower than many competitors, it stands out with competitive interest rates and low fees. The lender's repayment terms range from 6 to 84 months, providing flexibility for borrowers. It particularly excels in making the loan application process efficient and straightforward.

Pros

Insured by the National Credit Union Administration (NCUA)
Balanced, low APRs
Doesn't charge an application or loan origination fee

Cons

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

SEE THE BEST PERSONAL LOANS IN ARIZONA CITIES

Runner-Up for Best Personal Loan Lender in Arizona

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 the best personal loan lender in Arizona with a score of 96 out of 100. Its APR range of 7.99% to 17.99% is competitive, sitting below the other lenders' rates. PenFed distinguishes itself particularly in repayment term flexibility, offering terms up to 60 months.

Pros

Offers some of the lowest APRs available
No early repayment penalty
No origination fee

Cons

No information provided about credit score requirements
$50 minimum monthly loan payment

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 Arizona Loan Payment

According to our analysis, lenders in Arizona offer personal loan products averaging about 49 months, but this can change depending on the financial institution and the borrower's credit profile. 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: Dec 25, 2024

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Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.

Best Personal Loan Lender in Arizona 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 MoneyGeek's pick for the best personal loan provider for those with low credit in Arizona, boasting a MoneyGeek score of 94 out of 100. Despite not being a lender itself, Happy Money partners with various federally insured institutions to offer loans, ensuring access to competitive rates. With APRs ranging from 11.72% to 17.99%, these loans are available to those with a credit score of at least 640. Happy Money particularly excels in providing detailed information upfront and maintaining a high level of customer service and educational materials for borrowers.

Pros

Tailors partnerships with 10 federally insured lenders specifically for loan origination.
Clearly delineates credit score and requirements for loan eligibility.
Does not require a payment for the application process.

Cons

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

How does MoneyGeek score lenders for bad credit loans?

We use our standard methodology and weights, but we limit our analysis to lenders that explicitly mention their minimum credit score requirements on their public websites. Only 12% of lenders that offer personal loans fit this criteria.

We filtered our analysis to include lenders with minimum credit score requirements between 580 and 640, which happens to meet Experian's definition of fair credit. Our research did not find any published minimums lower than 580.

Getting a personal loan is still possible if you have a lower credit score than 580, but you will not have access to the best interest rates and terms available. Some lenders allow you to prequalify, which won't affect your credit score, to help you understand what you might be eligible for.

Best Personal Loan Lender in Arizona for Debt Consolidation

Alliant Credit Union

96MoneyGeek Score
10.99% to 13.99%APR Range
UndisclosedMinimum Credit Score
$1,000 to $100,000Loan Amount Range
12 to 60 monthsRepayment Terms

The best personal loan lender for debt consolidation in Arizona is Alliant Credit Union, with a MoneyGeek score of 96 out of 100. Although Alliant requires borrowers to be members for at least 90 days to be eligible for a personal loan, its competitive offerings make it stand out. Alliant's APR range is notably low, from 10.99% to 13.99%, demonstrating its commitment to affordability. It particularly excels in competitive rates and fees.

Pros

Among the highest loan limits available in our analysis
Insured by the National Credit Union Administration (NCUA)
No prepayment penalties

Cons

An online-only credit union, no physical branches
Must be a member for 90 days to apply

How does MoneyGeek score lenders for debt consolidation?

We looked only at interest rates and fees (60% weight) and loan terms and flexibility (40% weight). If the winner in our analysis also won Best Overall or Runner-Up, we selected the next-best winner for diversity.

Some lenders have minimum interest rates that are higher for debt consolidation loans compared to their rates for general-use loans. When consolidating debts, finding the lowest interest rate possible will help you save the most money over the long term.

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 Arizona

When seeking a personal loan in Arizona, consider your creditworthiness, including your credit score, income and debt-to-income ratio. Lenders will also evaluate factors such as reputation, APR ranges, minimum credit scores and loan term flexibility.

A strong credit score is key to securing favorable loan terms; enhancing your score may lead to lower APRs, which can significantly reduce your borrowing costs. Refer to the table below to understand how your credit score might influence your monthly loan payments.

Data filtered by:Results filtered by:

Credit Band

Select

Credit Band:690 to 719

Loan Amount

Select

Loan Amount:$2,000


$348	6
$180	12
$97	24
$69	36
$55	48
$47	60
$42	72
$38	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 Arizona

Personal loans offer considerable advantages, such as potentially lower interest rates than credit cards and the convenience of consolidating various debts into one manageable payment. They can also provide quick financial relief with a straightforward application process that, in many cases, allows for versatile use of the borrowed funds.

But consider the potential downsides, like origination fees and prepayment penalties, which can increase the cost of borrowing. Assessing the pros and cons of personal loans will help you make a judicious financial choice.

The pros and cons of personal loans

Lower interest rates than many credit cards
Consolidation of multiple debts into one payment
Swift approval and access to funds
Potential to enhance credit score through on-time repayments

Potential for high origination fees increasing loan costs
Prepayment penalties for early loan settlement
Risk of asset forfeiture with secured personal loans
Enticement to accumulate excessive debt due to easy approval

FAQ About Arizona 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 Arizona for personal loans?

According to MoneyGeek's analysis, the best lender in Arizona for personal loans is First Tech, with a MoneyGeek score of 98. Its average APR is around 14%.

Where is the best place to get a personal loan in Arizona?

In Arizona, you can get personal loans from online lenders, banks and credit unions. For local access and in-person services, you can consider Arizona Central Credit Union, Arizona Financial Credit Union or OneAZ Credit Union among the local options available.

What has the best personal loan interest rates in Arizona?

PenFed offers the lowest starting APR for personal loans in Arizona at 7.99% according to MoneyGeek's analysis. However, the best rates for you can vary based on your needs and financial situation, and securing a low rate often requires an excellent credit score.

What can I use a personal loan for in Arizona?

In Arizona, you can use personal loans for a variety of needs such as to consolidate debt, for home or auto repair, or for emergency circumstances. Typically, you cannot use personal loans for illegal activities or for gambling.

What are some personal loan red flags to look out for?

When considering personal loans, watch out for red flags such as extremely high APRs, unusually strict repayment penalties, and a lack of transparency about the loan's origin. Furthermore, be cautious of lenders with a high number of poor consumer reviews or a history of predatory practices.

Do lenders consider income level when applying for a personal loan?

Yes, lenders do consider income level when you apply for a personal loan. They assess your debt-to-income ratio, credit report, employment history and other financial factors to determine your eligibility. Opening new lines of credit during the application process can negatively impact your chances of getting a loan.

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About Zachary Romeo, CBCA

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

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

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sources

Experian. "What is the Average Credit Score in the US?." Accessed October 13, 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 our editorial policies and expert editorial team.