Although payday loans have been illegal in Arkansas since 2008, people still apply for them when they need cash. Such loans offer fast cash, high interest, and quick repayment terms. But then, they also come with strings attached. While serving as your glossary for payday loans in Arkansas, this blog will also shortlist the best such loans in the market.
10 Best Payday Loans in Arkansas with Interest Rate
Navigating a payday loan in Arkansas can be daunting, but you can make the right choice when you have options. Here are some of the best options for payday loans in Arkansas.
Beem
Beem’s Everdraft™ feature is a standout option for emergency funds in Arkansas. With no credit checks or income restrictions, you can withdraw $5 to $1,000 from your verified bank deposits early, without interest or due dates. It’s a straightforward process with instant access to cash when needed, offering flexibility and peace of mind during financial emergencies.
First Tech
First Tech is Arkansas’s go-to place for personal loans. They have low-interest rates, starting from 8.94% and going up to 18.00%. You can choose how long to pay back, from 6 to 84 months.
PenFed
PenFed Credit Union is a reliable loan choice for personal loans in Arkansas. Their rates range from 7.99% to 17.99%, starting lower than others. You can repay over 60 months. PenFed combines fair costs with loan options.
Happy Money
Happy Money is another choice for personal loans in Arkansas, especially if you have a low credit score. They work with trusted banks to offer loans. With APRs between 11.72% and 17.99% and a minimum credit score requirement of 640, they’re transparent and helpful for borrowers.
Truist
Truist is the top choice in Arkansas for consolidating debt. They offer competitive rates from 8.74% to 17.39%. Applying and getting approved is easy, and they offer flexible repayment options. Truist is an excellent option if you need to combine your debts.
Viva Payday
Viva Payday Loans is a quick and inclusive option in Arkansas. They accept all FICO scores and offer loans from $100 to $5,000 with APR starting at 5.99%. You can get loan options in just 15 minutes. They have flexible repayment terms ranging from 2 to 24 months.
CashUSA
CashUSA is a popular choice for personal loans online. They have excellent customer ratings and provide financial education resources. With interest rates from 5.9% to 35.99%, you can borrow for any reason without origination fees. However, check your loan terms for late payment or application fees.
LendingPoint
With LendingPoint, you can get a $5,000 loan for 60 months with estimated monthly payments of $142. Their APR ranges from 7.99% to 35.99%. This means you could pay between 7.99% and 35.99% in interest annually on your loan, depending on your creditworthiness.
LendingClub
With LendingClub, you can borrow $5,000 for 60 months and expect to pay around $144 monthly. Their APR varies from 8.98% to 35.99%, reflecting the interest you’ll pay yearly. The rate depends on factors like your credit score. So, ensure you understand these terms before borrowing.
Best Egg
With Best Egg, you can get a $5,000 loan for 60 months and pay about $146 monthly. The APR, between 8.99% and 35.99%, shows how much interest you’d pay each year. Your rate depends on things like your credit score. Make sure you understand these details before you borrow.
How to Choose the Best Payday Loans in Arkansas?
To choose the best payday loan in Arkansas, consider these factors.
- First, compare interest rates and fees from different lenders. Look for transparent terms and conditions, avoiding hidden charges.
- Check customer reviews to calculate reliability and customer service. Ensure the lender is licensed to operate in Arkansas to avoid scams. Evaluate repayment options and choose a loan amount and term that fits your budget.
- Lastly, borrow what you need and can afford to repay, avoiding the cycle of debt. Considering these factors, you can make an informed decision and choose the best payday loan for your needs.
What Do I Need to Apply Online For Payday Loans in Arkansas?
To apply for payday loans online in Arkansas, you’ll need to meet these requirements:
- Have a verified bank account for deposits and withdrawals.
- Provide recent proof of income, typically within the last 30 days.
- Possess a valid driver’s license or state ID for identity verification.
- Be at least 18 years old.
Once these requirements are met, the loan approval process can take 15 minutes.
Alternatives for Payday Loans in Arkansas
Here are some alternatives to payday loans in Arkansas:
- Borrow from a Credit Union: Credit unions, owned by members, often offer lower interest rates and have more lenient eligibility requirements than traditional banks, making borrowing more accessible.
- Ask Family and Friends: Seek financial assistance from loved ones to avoid high fees and interest rates associated with payday loans, fostering a supportive borrowing environment.
- Personal Installment Loans: These loans feature lower interest rates and longer repayment terms, providing borrowers with a more manageable and affordable lending option.
- Negotiate with Creditors: Negotiate extended payment plans or settlements with creditors to alleviate financial burdens and avoid resorting to high-interest payday loans.
- Explore Government Assistance: Seek aid from local programs or non-profit organizations to access financial support during challenging circumstances, providing an alternative to payday loans with favorable terms.
Read Related Blogs: How do Payday Loans Work
Conclusion
When you need money in Arkansas, it’s important to look at options other than payday loans. You could borrow from credit unions or ask family and friends for help. Personal installment loans or negotiating with the people you owe can also work. Plus, there are government programs that can give you support without the high fees of payday loans. These options can help you avoid getting stuck in a cycle of debt.
Additionally, platforms like Beem provide convenient access to emergency funds without the burden of credit checks or interest.
FAQs
What is a payday loan?
A payday loan is a short-term loan that you repay with your next paycheck. These loans typically have high interest rates and fees, making them an expensive option for borrowing money. They are often used by individuals needing quick cash for emergencies, but they can lead to a cycle of debt if not managed properly.
How do payday loans work?
Payday loans are small, short-term loans that you agree to repay with your next paycheck, including fees and interest. Typically, you’ll write a post-dated check or authorize an electronic debit from your bank account for the loan amount plus any additional charges. These loans are designed for immediate cash needs but come with high interest rates, making them an expensive borrowing option if not paid back promptly. Failure to repay on time can result in renewing the loan with more fees, leading to a cycle of debt.
What are the risks of payday loans?
Payday loans can be exceedingly costly because of their high interest rates and other costs, which put borrowers at serious risk. You may be required to renew the loan and pay additional costs and interest if you are unable to pay it back on time. This can result in a debt cycle where you keep taking out new loans to pay off old ones.
Are payday loans legal in Arkansas?
Indeed, since 2008, payday loans have been prohibited in Arkansas. In an effort to shield customers from the high-interest debt traps that are frequently connected to payday lending, the state outlawed these loans. Some internet lenders continue to try to offer high-interest loans in spite of the ban, but these are usually regarded as predatory and are not advised.
What are alternatives to payday loans?
For better financial support, consider borrowing from credit unions, family, or friends, taking out personal installment loans, negotiating with creditors, or accessing government assistance programs.
