Are you looking for personal loans in Arkansas? If you have bad credit, you may think that your options are limited. However, there are bad credit loans out there that are affordable and manageable. If you have bad credit in Arkansas, installment loans are an excellent way to start fixing financial issues. Here’s what you need to know to find personal loans in Arkansas that work for you.
Arkansas: The Basics
Arkansas is a state in the south-central region of the United States. It became the 25th state in the Union in 1836. With just over 3 million Americans, Arkansas is the 33rd most populous state.
Arkansas is great for those who love the outdoors and those who enjoy a bustling urban lifestyle. Arkansas has a diverse economic base with strong industries in both agriculture and tourism. Additionally, the manufacturing industry in Arkansas is one of the essential segments of the state’s economy. Exports include wood products, fabricated metal, transportation equipment, and furniture.
What Is a Personal Loan
A personal loan is a loan used for handling your expenses as you see fit. They are also known as installment loans, as they are generally repaid with monthly payment plans.
People use personal loans for various reasons, such as consolidating debt, buying a car, or taking a vacation. Whatever the reason, personal loans are a great way to finance your life. With fixed interest rates and reasonable repayment terms, the right personal loan can provide you with the money you need quickly and easily.
Advantage of Personal Loans
Personal loans offer a simple, predictable repayment schedule that can be easier to manage than the varying repayment terms and amounts that come with credit cards. Additionally, they are a much better option than an online payday advance, which can trap borrowers in a cycle of debt with their complicated terms.
Types of Personal Loans in Arkansas
People can get personal loans to cover various expenses, and different needs call for different types of loans. In Arkansas, a personal installment loan can come in two different forms— secured and unsecured.
Secured Personal Loan
You need to offer something as collateral to get a secured personal loan. This could be anything of value that you own. If you can’t repay the loan, the lender can take your collateral to sell and get their money back. Mortgages and auto loans are examples of secured loans.
Unsecured Personal Loan
An unsecured personal loan is a loan that does not require collateral. These loans are backed by your creditworthiness, which means that the approval will largely depend on your credit score and credit history. Student loans are one of the best examples of an unsecured loan.
Secured vs. Unsecured
The ideal personal loan depends on the borrower’s needs and how much money they want to borrow. Collateral can also help you get a lower interest rate on your loan, so it’s a good idea to include it when you’re applying. Because they are a higher risk to the lender, unsecured installment loans have tighter terms and higher interest rates.
What Your Credit Score Means
Your credit score is a reflection of your financial trustworthiness. It tells potential lenders whether or not you are a responsible borrower who is likely to repay debts on time. Essentially, your credit score is a way to assess your risk as a borrower.
A credit score can range from 300 – 850. The higher your credit score, the better!
- 300-579: Poor Credit
- 580-669: Fair Credit
- 670-739: Good Credit
- 740-799: Very Good Credit
- 800-850: Excellent Credit
Credit scores are created by credit bureaus that analyze consumer behavior. When applying for a personal loan, your potential lender may perform a credit check to get your credit score and credit history. After a credit check, installment loans are either approved or denied.
Good credit can give you access to the best lenders for personal loans with low, fixed rates. On the other hand, bad credit can limit your loan options.
Payday Loans in Arkansas
Payday loans are short-term loans with high-interest rates and extremely short loan terms. These loans are meant to provide quick cash loans to handle emergencies that can then be repaid with the borrower’s next paycheck. However, payday loans are commonly not repaid on time. When that happens, those balances are converted into new payday loans and slapped with more interest and origination fees. Since the debt continues to grow, payday loans are one of the more difficult loans to manage, as they push many borrowers into a cycle of debt.
Since 2008, payday loans have been illegal in Arkansas.
Online Installment Loans in Arkansas
If you’re looking for Arkansas installment loans, there may be many options available to you! With many lenders now you can apply for loans online. Many online installment loans are more affordable than payday loans and credit cards. Just make sure you do plenty of research no matter which type of loan you’re considering. And if you need a fast cash loan, consider applying for a personal installment loan!