Many Americans want to finance a life event or home remodel or struggle with an unexpected expense. A personal loan can get you access to funds paid back over time with interest and other fees. Our partners at ConsumerAffairs researched the best personal loans in Tucson to find companies offering an easy application, streamlined process and fast access to funds.
Personal loans can pay for a large purchase, such as a vacation, wedding or home remodel, or help with debt consolidation. One advantage of a personal loan is that you can use the money for anything, unlike a car loan that goes to finance your vehicle.
Other advantages of personal loans in Tucson include their low and fixed interest rates and that often collateral is not required because loans are based solely on your creditworthiness and ability to pay the money back.
Types of personal loans in Tucson include:
Unsecured personal loans
Rate based on credit score, not backed by collateral
Secured personal loans
Low rates, backed by collateral
Fixed interest rate and payment
Choose what you borrow, fluctuating interest rates
Backed by co-signer with good credit
Little-to-no credit history
Debt consolidation loans
Roll multiple debts into one loan with a single payment and interest rate
Paying off debt
Unsecured short-term loan, very high interest rate. Illegal in some states, including Arizona
Even if you have bad credit, a low credit score won’t prevent you from getting a personal loan. However, it does limit your lender options and will come with higher interest rates. If you have bad credit, there are two good options for personal loans:
Credit union. A credit union is a non-profit financial cooperative owned by members. Many credit unions offer special programs for borrowers with poor credit history. Another benefit: credit unions usually cap their interest rate at 18 percent, regardless of your credit score.
Online lender. Online lenders have loan-qualification requirements and terms similar to traditional banks. However, many online lenders charge very high interests rates for people with low credit. When considering a lender, check the consumer complaint database to find out if a lender has many complaints from borrowers.
Starting the personal loan process in Tucson begins with checking your credit score and history so you can get an idea of what loan to apply for. Next, you want to research which personal loan works best with your credit. Typical requirements for a personal loan include a credit score of 630 - 750, a maximum debt-to-income of up to 45 percent and an interest rate of 8.50 percent to 18 percent.
Arizona has capped the interest rate for personal loans at 10 percent. Any Arizona lender with a higher interest rate will incur penalties. Arizona law also caps the minimum loan amount at $1,000 and the maximum loan amount at $25,000.
Also be aware of additional fees that you may incur, such as:
Origination fee that can vary depending on your credit
Late fees on late payments
Personal loans are paid back in installments, much like a credit card. The timeframe of your payments is determined by the specific terms of your loan. Make sure your loan representative gives you all the information you need before agreeing to a personal loan.
Founded by a team of financial experts with decades of experience, Best Egg focuses on helping people with paying off personal debt from credit cards, home improvements, medical expenses and other life events. Customers love the quick application and low percentage rates, as well as quick access to funds.
Founded in 2014, FreedomPlus provides customers with a personal consultation to discuss your financial goals and needs. They offer a custom rate based on many factors other than your credit score, such as your job profile and payment history. Customers praise the honesty of the loan officers, as well as their knowledge and quick assistance.
Cash Time Loan Centers
Founded in Arizona and with over 20 years of service, Cash Time Loan Centers offers multiple cash loan programs. They work with people of all credit scores because they believe everyone should have access to financial services. Customers rave about the respect they felt when working with representatives as well as the ease of receiving a loan.
In business for over 25 years, Checkmate offers title/registration loans, installment loans, check cashing and cash for gift cards. They focus on providing the highest level of integrity and confidentiality. Many reviews praise the customer service, yet some find the process long and unhelpful.