Payday loans in Arkansas – Current Status
When money is tight, it is normal to look for a quick solution normally in the form of a payday loan. But owing to the high-interest rates charged on this line of credit, the state of Arkansas has made it illegal. Nevertheless, there are other options available to a borrower.
Personal loans in Arkansas- Use Them Alternatively
When you are looking to consolidate your debt, plan a special event, or have major unexpected expenses, then a personal loan in AR is what you need.
Depending on the lender, you can apply online or in person for limits of between $1,000- $35,000.
Some lenders are able to facilitate limits of up to $100,000 when you have a good credit score of between 640 and 740. However, you are encouraged to apply as much as you need, not more.
This loan is unsecured with a turnaround time of 24 hours. Interest rate of 5.99 % and APR of 36% are the going rates in Arkansas State
Installment loans in Arkansas – Second Option
Installment loans are unsecured lines of credit with payments spread for between 6-24 months. The longer the term the more you pay in interest and fees.
Installment online loans are good options for you if you have poor or bad credit. However, lenders will examine your existing financial situation before approval.
The cost of a typical loan will depend on credit rating, loan amount and the lender you choose. But, The APR for installment loans is normally higher than the 17 % cap.
Bad credit unsecured loans of up to $5,000 are also available; although loans of over $2,000 attract high-interest rates above the set fees. But, with the convenience of online application and minimal or no credit checks, they are still a good option in dire situations.
How it works
Nation 21 is a platform that brings both lenders and borrower together matching their needs. You can fill out an application online or by visiting the shop, get matched with a lender, and if approved, money is deposited directly into your checking account.
What you need to qualify:
- Must be at least 18 years.
- Must be a U.S citizen.
- Currently employed and receiving a steady
- Must have an open bank account to deposit the funds.
Average credit score in AR
While nationwide the credit score is between 350 and 850, the credit score for the state of Arkansas is 624. With the score of above 700 being excellent and below 620 regarded as bad, the majority of Arkansas residents are poor.
Lending regulations in Arkansas
All lending companies are required to follow the rules in the Federal Fair Debt Collection Practices Act whenever they try to recoup money from their debtors. This law protects borrowers from lenders who may harass them when collecting installments loans.
Criminal charges are also preferred against a borrower who closes his accounts with no intention of repaying the loan because this is fraud. Moreover, your lender may set up late payment fees in accordance with the state regulations.
APR is capped at 17% and the office of the Attorney general is allowed to prosecute any lender charging a higher interest than stipulated.
Population and demographics
Arkansas is home to 3 million residents as of 2017 according to the U.S Bureau of Statistics. This population is made up of 77% white American, 15.4% blacks, 1.2% Asians and 6.4 % Hispanics.
With Little Rock being the capital city and hub of culture and Government, Arkansas State is the 29th largest state by area and 33rd most populous state in the United States.
Arkansas State’s gross domestic product was $119 billion by 2015. Six fortune 500 companies are located in this state with catfish farming bringing in excess of $71.5m annually. The sale of civilian air craft’s contributed a total of $5.6 billion in 2011.
The average per capita income of Arkansas State is $36,027, while the main economic drivers are in manufacturing, mining, logging, and construction.