Having poor credit can make it tough to get approved for a loan from traditional lenders like banks. However, there are online lenders specializing in bad credit personal loans that can provide the financing you need even with a low credit score. If you live in Arkansas and need cash quickly, these bad credit loan options could be the solution.
Bad credit loans, also called bad credit installment loans, are a type of personal loan designed for borrowers with poor credit scores, typically below 670. Traditional personal loan lenders rely heavily on credit scores to determine approval and interest rates. Bad credit lenders take a more holistic view factoring in other aspects like income and existing debts.
While the higher APRs aren’t ideal, bad credit loans provide essential financing to borrowers who cannot qualify for lower rate loans due to previous credit issues or thin credit files. Used responsibly and paid back on time, they can help rebuild poor credit.
Since credit score requirements are relaxed, bad credit lenders evaluate other factors heavily when assessing loan applications:
Income: You’ll need to provide proof of steady income from employment or other sources like disability, Social Security, etc. Minimum income requirements vary but $2,000+ per month is common.
Existing Debts: Lenders calculate your debt-to-income ratio to ensure you have enough disposable income for a new loan payment. High balances on credit cards, auto loans, etc. can hurt your approval chances.
Collateral or Co-Signer: Some bad credit loans require you to pledge collateral like a vehicle or get a co-signer with good credit to mitigate the lender’s risk if you default.
Not all bad credit loans are created equal in Arkansas. Here are some top options and how they compare:
Online lenders like CashUSA.com, PersonalLoans.com, and BadCreditLoans.com are great options for bad credit borrowers in Arkansas. Their online marketplaces allow you to get pre-qualified by filling out a single form and get offered quotes from multiple lenders suited for your credit situation.
| Feature | CashUSA.com | PersonalLoans.com | BadCreditLoans.com |
|---|---|---|---|
| Credit Score Minimum | 500 | 580 | 500 |
| Loan Amounts | $500 - $10,000 | $1,000 - $35,000 | $500 - $5,000 |
| APR Range | 5.99% - 35.99% | 5.99% - 35.99% | 5.99% - 35.99% |
| Repayment Terms | 3 - 72 months | 3 - 72 months | 3 - 60 months |
Some major providers of bad credit installment loans with physical locations across Arkansas include:
These lenders tend to have higher APRs in the 25-36% range. But they also offer higher loan amounts up to $20,000 and will lend to credit scores below 600 in some cases.
If you own your vehicle outright, using it as collateral for an auto title loan can be a relatively fast way to get cash even with very poor credit. You can typically borrow between 25-50% of your car’s value. But title loans have very high interest rates, often 200%+ APR.
Even with imperfect credit, there are steps you can take to qualify for lower interest rates on bad credit loans in Arkansas:
One key benefit of bad credit loans is their ability to help rebuild your credit if used responsibly. Here’s how:
Payment History: Each on-time loan payment gets reported to the credit bureaus and makes up the largest component of your credit score. Missing payments will hurt, not help.
Credit Mix: Taking out different types of credit like a bad credit loan, auto loan, credit card, etc. creates a healthy credit mix that improves your score.
Credit Utilization: Using a bad credit personal loan to pay off maxed credit cards can reduce your overall credit utilization ratio.
The key is making full payments on time each month until the loan is paid off. Consistent good habits over time will boost your score and expand your lending options in the future.
Most bad credit lenders will approve applicants with scores as low as 500-600. But having a slightly higher score in the 600s can qualify you for better rates and terms.
Not likely from a reputable lender. Any legitimate bad credit lender will check your credit report to view your score and payment history. Avoid lenders offering “no credit check loans” as these are typically predatory.
Many online bad credit lenders provide approval decisions instantly or within 1-2 business days after applying. Funding can occur as soon as the next business day in some cases.
Loan amounts vary by lender but generally range from $500 up to $20,000+ depending on your income and ability to repay. Smaller loans of a few thousand dollars are most common for borrowers with very low scores.
You should contact the lender immediately before missing any payments as they may be able to work out a modified payment plan or extension. Missing multiple payments will negatively impact your credit and could result in repossession of collateral if applicable.