Best Loans for Bad Credit in Arkansas for 2024

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Updated: July 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.

MoneyGeek Logo IconBest Bad CreditLendersArkansas
2024

Best Bad Credit Loans in Arkansas

Best Overall - Happy Money
Runner-Up - Avant

MoneyGeek scored personal loan lenders in Arkansas that explicitly disclose their minimum credit score requirements on their websites to find the state's best personal loan for bad credit. Only 12% of lenders disclose this information.

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

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

34Lenders Analyzed

    Overall Best Bad Credit Loan Lender in Arkansas

  • 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
    Happy Money

    Runner-Up for 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
    Avant

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, typically an unsecured 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.

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Updated: Nov 13, 2024

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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.

Avant5809.95% to 35.99%$2,000 to $35,00012 to 60 monthsNext Day92
Prosper6008.99% to 35.99%$2,000 to $50,00024 to 60 months1 business day90
Achieve6208.99% to 35.99%$5,000 to $50,00024 to 60 monthsSame Day 92
Happy Money64011.72% to 17.99%$5,000 to $40,00024 to 60 months3 to 6 Business Days94

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.

1
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.

2
Modify your loan terms

Consider discussing with your lender the possibility of changing the loan amount or repayment terms to secure approval.

3
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.
4
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.

5
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.

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EXPERT TIP

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.

Who is the best personal loan lender for bad credit in Arkansas?
Which lender in Arkansas has the lowest APR rates for personal loans?
Which lender in Arkansas has the lowest minimum credit score requirement for personal loans?
How to apply for a personal loan for bad credit in Arkansas?
How long does it take to get a bad credit loan in Arkansas?
Can I pay off my personal loan early in Arkansas?
Is there a difference between personal loans and installment loans in Arkansas for bad credit?

Sources

Experian. "What Is the Average Credit Score in the US?." Accessed April 8, 2024.

TransUnion. "Credit Industry Snapshot." Accessed April 8, 2024.

About Zachary Romeo, CBCA

Zachary Romeo, CBCA headshot

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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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.

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