Tower Loan is a financial institution that offers personal installment loans to individuals. The company was founded in 1936 and has since expanded to operate over 250 branches across five states in the southern United States, including Louisiana, Mississippi, Missouri, Illinois, Texas, and Alabama.
Pros and Cons
Pros
Easy Access to Funds. Tower Loan has a wide network of branches, which makes it easy for borrowers to access funds quickly.
Flexible Repayment Terms. Tower Loan offers flexible repayment terms to help borrowers manage their finances and repay their loans on time.
Educational Resources. Tower Loan provides educational resources to help borrowers improve their financial literacy and make informed decisions about borrowing money.
Personalized Service. Tower Loan takes the time to understand each borrower's unique financial situation and needs, which can lead to personalized loan options.
Competitive Interest Rates. Tower Loan's interest rates are often competitive with other lenders in the industry.
Cons
Credit Check. Tower Loan checks borrowers' credit history before approving loans, which can be a disadvantage for those with poor credit scores.
High Interest Rates. While Tower Loan's interest rates can be competitive, they can still be higher than other lenders.
Late Payment Fees. Tower Loan charges late payment fees, which can add up if borrowers are not able to make payments on time.
Limited Availability. Tower Loan only operates in six southern states in the United States, which can limit access for borrowers in other areas.
Personal Loan Only. Tower Loan only offers personal loans, which means borrowers looking for other types of loans, such as business loans or auto loans, will need to look elsewhere.
How to Apply for a Tower Loan Loan?
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Visit The Website. Go to the Tower Loan website.
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Click Apply Now. Click on the "Apply Now" button.
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Enter Personal Information. Enter your name, phone number, zip code, state, and email address in the provided fields.
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See Estimated Rates. Click on the "See Estimated Rates" button to view your potential loan rates.
Conditions and Requirements
Conditions
- Loan Amounts. You can apply for loans up to $6,000 through Tower Loan's online platform. This option is convenient and quick for smaller loan amounts. For larger loan amounts, you can visit a Tower Loan branch. Here, you can apply for loans up to $20,000. This in-person visit may provide a more personalized service and a better understanding of your needs.
- Annual Percentage Rate (APR). Tower Loan offers a fixed APR of 32.99%. The APR represents the annual cost of borrowing, including interest and any fees. This rate is relatively high compared to typical personal loans, reflecting the risk the lender takes on and the convenience provided.
- Term Length. The loan terms range from 12 to 36 months. This means you can choose to repay your loan over a period of one to three years. Shorter terms may result in higher monthly payments but less interest paid over time, while longer terms lower the monthly payments but increase the total interest paid.
Requirements
- Age Requirement. Applicants must be at least 18 years old. In the state of Alabama, the minimum age requirement is 19.
- Residency. Applicants must reside in one of the areas serviced by Tower Loan. These areas include Alabama, Illinois, Louisiana, Mississippi, Missouri, and Texas.
- Income. Applicants must be employed or have a regular source of income. This ensures that borrowers have the means to repay the loan.
- Contact Information. Applicants must have a valid email address. This is necessary for communication and managing the account.
- Bank Account. Applicants must have a savings or checking account. This is required for the disbursement of loan funds and for making loan payments.
Editorial Opinion
Important
How to Choose a Lender
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Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.
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Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.
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Carefully review all the terms and conditions of your payday loan contract.
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Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.
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Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
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Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.
Additional Resources
- About Tower Loan
- Full Tower Loan Account Review
- How to Apply for a Tower Loan Loan
- How to Repay a Tower Loan Loan
- Tower Loan Customer Reviews
- All Tower Loan Coupons and Promo for October 2024
