Best Personal Loans in Arkansas for 2024

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

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.

With a MoneyGeek score of 98, First Tech is the best place to get a personal loan in Arkansas, excelling in customer service, competitive interest rates and loan flexibility.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Lukas Velunta

Updated: November 27, 2024

Advertising & Editorial Disclosure

MoneyGeek's analysis finds that First Tech, with a score of 98, and PenFed, scoring 96, are the best personal loan lenders 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 rate and term options. But if that score were lower, loans might not come as easily or with such nice rates.

Best PersonalLoan LendersArkansas

2024

Best Personal Loan Lenders in Arkansas

Best Overall - First Tech

Runner-Up - PenFed

Best for Bad Credit - Happy Money

Best for Debt Consolidation - Truist

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. 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 Arkansas. We also consider financial companies who partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

Overall Best Personal Loan Lender in Arkansas

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 financial institution 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

SEE THE BEST PERSONAL LOANS IN OTHER STATES

Runner-Up for 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

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 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.

Personal Loan Calculator

Estimate the monthly payment for your loan.

Updated: Dec 21, 2024

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5 Years

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Why You Can Trust MoneyGeek

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 Arkansas 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 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

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 offer prequalification, which doesn't affect your credit score, to help you understand what you might be eligible for.

Best Personal Loan Lender in Arkansas for Debt Consolidation

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

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 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.

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 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.

The pros and cons of personal loans

Competitive interest rates
Consolidation of multiple debts
Rapid funding after approval
Option to add a co-signer

Origination fees increase the cost of borrowing
Prepayment penalties for early loan settlement
Risk of asset forfeiture with secured loans
Enticement to accrue excessive debt due to easy approval

FAQ About Arkansas 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 Arkansas for personal loans?

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%.

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

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.

What has the best personal loan interest rates in Arkansas?

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 credit report.

What can I use a personal loan for in Arkansas?

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.

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

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.

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

Yes, lenders do consider income level when applying for a personal loan, along with debt-to-income ratio, credit profile, 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.

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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.