Best Debt Consolidation Loans in Arkansas 2024

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Updated: November 19, 2024

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Debt consolidation loans are personal loans that borrowers use to pay off multiple debts, including student loan debt, at a lower interest rate.

MoneyGeek analyzed 25 lenders and found Truist to be the top choice for debt consolidation loans in Arkansas, with a MoneyGeek score of 96 out of 100. Although Truist stands out in our analysis, there are other lenders available in Arkansas that are not included in our study. You may also want to contact local lending options like Arkansas Federal Credit Union and Arkansas Superior Federal Credit Union to see if they fit your borrowing needs.

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2024

Best Debt Consolidation Loans in Arkansas

Best Overall - Truist
Runner-Up - PenFed
Best for Affordability - Wells Fargo
Best for Large Loans - PNC
Best for Fast Funding - Rocket Loans

Overall Best Debt Consolidation Loan Lender in Arkansas

Company logo for Truist
Truist
MoneyGeek Score:
96/ of 100
APR Range8.87% to 17.82%
Loan Amount RangeFrom $3,500
Repayment Terms24 to 60 months
Time to Receive FundsSame Day
Overview

Truist offers the best debt consolidation loan in Arkansas, with a MoneyGeek score of 96 out of 100. Several features contribute to an ideal debt consolidation loan lender, such as competitive rates, how much you can borrow, how quickly you can get your funds, the quality of service it provides and its reputation.

Borrowers can benefit from Truist's competitive APR range of 8.87% to 17.82%. Its loan amount range starts from $3,500 and provides flexibility for various financial needs. It offers same-day funds disbursement, ensuring borrowers can quickly access the funds they need to consolidate their debt.

Runner-Up for Best Debt Consolidation Loan in Arkansas

Company logo for PenFed
PenFed
MoneyGeek Score:
96/ of 100
APR Range8.99% to 17.99%
Loan Amount RangeUp to $50,000
Repayment TermsUp to 60 months
Time to Receive Funds1 to 2 Business Days
Overview

PenFed is another solid option for a debt consolidation loan in Arkansas, with a MoneyGeek score of 96 out of 100. Its low APR range of 8.99% to 17.99% can help you save on interest payments, making it easier to manage your debt. For example, consolidating debt with a PenFed loan can reduce your overall interest costs if you have high-interest credit card debt.

PenFed also offers loan amounts of up to $50,000, which is beneficial if you have significant debt to consolidate. This helps you combine multiple debts into one manageable payment. Its funds disbursement time is one to two business days, ensuring you can start paying off your debts sooner and reducing the stress of waiting for funds.

Best Debt Consolidation Loan in Arkansas for Affordability

Company logo for Wells Fargo
Wells Fargo
MoneyGeek Score:
94/ of 100
APR Range7.49% to 24.99%
Loan Amount Range$3,000 to $100,000
Repayment Terms12 to 84 months
Time to Receive Funds1 to 3 Business Days
Overview

Wells Fargo offers the best debt consolidation loan in Arkansas for borrowers who prioritize affordability, with a MoneyGeek score of 94 out of 100. Its APR range is 7.49% to 24.99%, making it a competitive option for those looking to consolidate their debts.

Wells Fargo has no origination fees and offers rate discounts, which can significantly reduce the overall cost of the loan. For example, a borrower consolidating multiple high-interest credit card debts can benefit from Wells Fargo's no-fee structure, ensuring that every dollar goes toward paying off the principal rather than extra charges. Rate discounts can also help you lower your monthly payments, making it easier to manage your finances and stay on track with repayment.

Best Debt Consolidation Loan in Arkansas for Large Loan Amounts

Company logo for PNC
PNC
MoneyGeek Score:
96/ of 100
APR RangeUp to 24.99%
Loan Amount Range$1,000 to $35,000
Repayment Terms6 to 60 months
Time to Receive Funds3 Business Days
Overview

PNC offers the best debt consolidation loan in Arkansas for borrowers who need a large loan amount or longer repayment terms. It has a MoneyGeek score of 96 out of 100. PNC provides loan amounts ranging from $1,000 to $35,000 with repayment terms of six to 60 months.

PNC's flexible repayment terms can help borrowers who need more time to pay off their consolidated debt, making monthly payments more manageable. It disburses funds quickly, within three business days, ensuring that borrowers can promptly address their financial obligations.

Best Debt Consolidation Loan in Arkansas for Fast Funding

Company logo for Rocket Loans
Rocket Loans
MoneyGeek Score:
95/ of 100
APR Range9.116% to 29.99%
Loan Amount Range$2,000 to $45,000
Repayment Terms36 or 60 months
Time to Receive FundsSame Day
Overview

Rocket Loans offers the best debt consolidation loan in Arkansas for borrowers who need funds quickly. It has a MoneyGeek score of 95 out of 100. You can receive funds the same day, making it a convenient option for urgent financial needs.

Rocket Loans' quick approval process means you can get your loan approved and pay off high-interest debts sooner. Its flexible loan terms allow you to choose a repayment plan that fits your budget, reducing financial stress.

Should You Get a Loan to Consolidate Debt in Arkansas?

Using a debt consolidation loan in Arkansas can simplify your finances by merging multiple payments into one. This can also lower your overall debt costs if the new loan has a lower interest rate. However, despite these benefits, debt consolidation may not be the best choice for all situations. For instance, if the interest rate on the new loan is higher than your current debts, it might not make sense. Consider your specific situation before deciding.

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    Good Credit

    Having good credit can get you better terms on a debt consolidation loan in Arkansas, lowering interest rates and monthly payments.

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    High-Interest Debt

    Consolidating high-interest debt with a debt consolidation loan in Arkansas can lower your overall interest rates — for example, from 20% to 10%.

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    Multiple Payments

    Combining multiple monthly payments into one with a debt consolidation loan in Arkansas simplifies your finances. One payment is easier to manage than several.

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    Lower Monthly Payments

    A debt consolidation loan in Arkansas can lower your monthly payments, for example, from $500 to $300.

When You Shouldn't Get a Debt Consolidation Loan

  • When your new monthly payment is higher: A higher monthly payment can strain your budget further, leading to more financial stress rather than relief.
  • When you can pay off debt in a year: If you can clear your debt within a year, a consolidation loan might not be necessary. Short-term sacrifices could save you interest.
  • When your income is unstable: Unpredictable income makes it hard to commit to fixed monthly payments. This could lead to missed payments and additional fees.
  • When your debt-to-income (DTI) ratio is high: A high DTI ratio can result in loan denial or unfavorable terms. Improving your DTI before applying for a debt consolidation loan in Arkansas is a better strategy.

How to Get a Debt Consolidation Loan in Arkansas

The average amount of personal debt in Arkansas is $74,770, while the overall average debt for Americans across all states is $104,215. In Arkansas, the average monthly debt is around $6,231.

Using a personal loan to consolidate debt in Arkansas can simplify your payments and potentially lower your interest rates. Going into the process uninformed can lead to higher interest rates and damage your credit score. To avoid these risks, follow these steps to apply for a debt consolidation loan.

  1. 1

    Review your debts and credit score

    Account for your existing debts to see which ones to consolidate, like credit card debt. Choosing the wrong debts can lead to higher interest rates and longer repayment periods. Check your credit scores. To improve your credit score, pay bills on time and reduce outstanding balances.

  2. 2

    Compare loan terms from lenders

    Compare loan terms from multiple lenders to find the best deal. Contact lenders to ensure you can use the loan to consolidate debts. Look at APRs, loan limits and how soon you can receive the funds.

  3. 3

    Check for extra benefits

    Some lenders offer added features that benefit you long-term. For example, in Arkansas, Laurel Road and Upgrade offer rate discounts, which can save you money over the life of the loan.

  4. 4

    Watch out for fees and penalties.

    Some lender features could be drawbacks. In Arkansas, Avant charges an origination fee and a late fee. These fees can impact your short and long-term finances by increasing your overall loan cost.

  5. 5

    Get prequalified

    Prequalification helps you understand your chances of loan approval without affecting your credit score. It involves a soft credit check, which doesn't impact your credit score.

  6. 6

    Complete your loan application

    Complete your loan application by providing the necessary documents, such as proof of income, identification and bank statements. This ensures a faster and smoother process.

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WHAT TO DO IF YOU'RE DENIED A DEBT CONSOLIDATION LOAN IN ARKANSAS

Lenders might deny your loan application due to a poor credit score or a high debt-to-income ratio. Before applying for a debt consolidation loan in Arkansas, check your credit report for errors and work on reducing your existing debt.

You can also consider contacting some credit counseling agencies to help you manage your debts better. Another option is to use a 0% APR balance transfer credit card. This card allows you to transfer high-interest debt to a card with no interest for a promotional period, helping you pay off your debt faster without accruing additional interest.

Local Lenders for Debt Consolidation Loans in Arkansas

Consolidating debt can be a smart move if you're looking to lower your interest rates. However, note that the average APRs you can qualify for vary between cities. For instance, in Little Rock, the average APR is 9.6%.

Another option to find the best debt consolidation loan in Arkansas is to consider other local lenders. Below is a table of local lenders to help you make an informed decision.

Southern Gas Federal Credit UnionLittle Rock9% to 18%Up to 84 monthsUndisclosed96
Cooperative Extension Service Federal Credit UnionLittle RockFrom 9.49%24 to 60 monthsUp to $15,00096
Telcoe Federal Credit UnionLittle RockFrom 9.25%Up to 30 months$200 to $6,00096
Dillards Federal Credit UnionLittle Rock7.50% to 16%UndisclosedUndisclosed92
Little Rock Fire Department Federal Credit UnionLittle Rock12.90% to 14.90%36 to 60 monthsUndisclosed91

FAQ: Debt Consolidation Loans in Arkansas

MoneyGeek addresses common questions about debt consolidation loans in Arkansas, helping residents understand their options and make informed decisions about managing their debt.

What is a debt consolidation loan in Arkansas?

What's the best debt consolidation loan lender in Arkansas?

Can I get a debt consolidation loan in Arkansas if I have bad credit?

Can a credit counseling agency in Arkansas help manage debt?

When should I get a debt consolidation loan in Arkansas?

MoneyGeek analyzed 25 national lenders licensed to do business in Arkansas based on a rubric that includes APR ranges, loan amounts and repayment terms, among other key areas. We use a point-based system and assign scores according to the presence or absence of desirable features in various important categories.

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We conducted our analysis in September 2024.

25Lenders Analyzed

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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