Jason Rathman
Written by Jason Rathman

Jason writes about all financial topics such as loans, debt solutions, and bankruptcy. He is an expert when it comes to subjects like APR, loan fine print, debt collection laws within the United States. With his in-depth knowledge of all things financial, he is a great asset to Greendayonline.

Tower Loan Reviews: Are They Decent Loans for Bad Credit?

Tower Loan is a lender committed to offering personal loans to consumers, providing loans for borrowers with a diverse range of credit backgrounds. During loan approval, they usually review a borrower’s credit report from the major credit bureaus. It helps them determine the borrower’s creditworthiness and the loan option and terms. These include the personal loan rates and loan amount. The loan term varies depending on the loan and the borrower’s credit score. Tower Loan offers personal loans to consumers with a wide range of credit scores, even those with a bad credit score.

Borrowers with lower credit scores get a higher interest rate, making the loan more expensive. Even those with less-than-perfect credit are still able to qualify for a loan. However, Tower Loan aims to offer a competitive interest rate. In addition, they focus on helping borrowers improve their credit mix by consolidating high-interest debt through personal loans.

Tower Loan mainly received good reviews from customers. Trustpilot gave Tower Loan a rating of 4.75. The Better Business Bureau website has fewer positive reviews. What do you need? Fixed rates, installment loans with monthly payments, and over 230 offices in over 170 cities.

Tower Loan Highlights

Tower Loans can be used to finance personal or business purposes. They are known for their smooth application process and timely response to loan applications.

Soft Credit Pull – Prequalify

Tower Loan offers a soft credit check option for consumers wanting to prequalify for a loan. They check the borrower’s credit rating without it affecting their credit score. It is a useful option for consumers who want an idea of what loan terms they qualify for without a hard inquiry appearing on their credit report.

Tower Loan has branch offices in various states throughout the United States, making them comparable to credit unions. Thus, they make it accessible to many consumers. Prequalifying for a loan does not guarantee that borrowers get loan approval. The final loan terms vary depending on the borrower’s credit score and other factors. Borrowers need the following to apply online:

  • Contact information and Personal information
  • Their financial records
  • Proof of income and Employment proof

Loan Approval

One of the essential aspects of Tower Loan is that they handle late payments and other financial issues with understanding, which enables borrowers to maintain their credit personal record while working with online lenders like Tower Loan to access the funds they need.

The approval process for Tower Loan begins with evaluating the borrower’s credit criteria. It helps the lender determine the type of loan terms to offer the borrower. It’s important to consider the cost of credit associated with the loan. It includes the interest rate and other fees, such as those from a credit card issuer. These costs add up quickly, so borrowers must review the loan terms and compare them with different financing options and reputable lenders before making a final decision.

Line of Credit

Tower Loan offers a line of credit to its customers as one of its financial resources. A line of credit allows borrowers to access funds up to a pre-approved credit limit as needed. A line of credit allows borrowers to borrow and repay funds as needed, unlike a traditional loan that is disbursed in a lump sum and must be repaid in full. It is useful for managing unexpected expenses or covering short-term cash flow needs. With a flexible payment plan and a lower credit utilization rate, online loans like this can benefit both borrowers and lenders.

The line of credit offered by Tower Loan comes with a revolving credit limit. The credit limit becomes available again as the borrower repays the funds borrowed. Additionally, borrowers choose between a secured or unsecured line of credit. A secured loan requires collateral, such as a savings account or property. An unsecured line of credit is not backed by collateral. It’s important to note that borrowers are charged interest on the funds borrowed from a line of credit. The interest rate is mostly variable. Additionally, fees are associated with establishing and maintaining a line of credit. An example is the annual fee.

With an online application process, Tower Loan offers various types of loans for people with a fair credit score and a steady income. They also provide credit card refinancing options and assist with choosing between credit cards for their customers.

Credit Health Tools

Tower Loan offers credit health tools too. They aim to help customers better understand and manage their credit standing. These tools provide valuable information about a customer’s credit file. It helps them know what to do with their credit scores, credit history, and alerts for certain credit transactions. The company also takes pride in its customer service and supports individuals needing time payments or other financial assistance.

These include new credit inquiries or changes to their credit account balances. One of the benefits of these tools is that they help customers identify potential errors or inaccuracies in their credit files. It allows customers to work to improve their credit standing, especially if they have a poor credit history or a limited credit history. Even a small mistake on their credit file negatively impacts their credit score, consequently affecting their income ratio, payment history, and minimum credit score requirements.

Additionally, these tools help customers stay on top of their credit accounts. It provides real-time alerts about changes to their credit balances or new credit inquiries, allowing them to manage their credit card payments more efficiently. Thus, it helps customers detect and prevent potential fraud or identity theft while considering their source of income and the feasibility of obtaining a bad credit loan.

Hardship programs

Tower Loan may offer hardship programs to help customers experiencing financial difficulties. These programs provide temporary relief from loan payments through monthly installments. These include deferred payments, reduced payments, or installment payments over a period. The exact details of the hardship program vary depending on the customer’s circumstances. Hardship programs provide temporary relief to customers facing unexpected financial challenges. These include job loss, medical emergencies, or other unforeseen events. They help customers get back on their feet and stay caught up on their loan payments.

Hardship programs are tailor-made by a loan specialist to meet individual needs Depending on the types of loan offered. However, they are temporary solutions, and customers must be responsible for repaying the loan. The terms of the hardship program vary depending on the customer’s loan and the specific circumstances of their hardship.

Financial Services offered at Tower Loan help customers navigate tough times. Customers interested in a hardship program must contact Tower Loan to discuss options. They must understand the terms and conditions of the program before enrolling and should pay attention to customer reviews for firsthand feedback. Planning to repay the loan after the hardship program ends is crucial to avoid increasing the credit risk involved.

No Prepayment Penalty

Tower Loan does not have a prepayment penalty for their loans. Thus, customers can pay off their loans early without incurring extra fees. It is a useful option for customers to pay off their loans early, allowing them to save money on interest charges. A prepayment penalty is a fee lenders charge when a borrower pays off a loan early. The fee discourages borrowers from paying off their loans early. It is because it results in lost interest revenue for the lender. The business day processing time can be minimized with Tower Loan.

Unsecured Loans

Tower Loans offer personal loans that can be unsecured or secured, depending on the client’s financial situation. They provide clients with various term options, and getting the lowest rates for those with excellent credit is possible. On the other hand, customers with poor credit might receive higher maximum rates.


Tower Loan doesn’t disclose the fee structure. The loan is repayable early, but there is no prepayment fee. However, inquire about any administrative fees or credit card loan fees before finalizing the loan agreement.

How to Qualify

Becoming a regular source of income and maintaining a good credit score can help increase your chances of qualifying for better loan terms. Listed below are the criteria to be eligible for a loan. Expect a decision within a business day after submitting your application.

  • 18-year-old (19 in Alabama). Or older
  • Living in Mississippi, Alabama, or Missouri.
  • Have a job or an income source.
  • Please enter a valid email address.
  • Open a checking/savings account.

The bottom line

Tower Loan is a well-known player in the financial industry. Upstart offers many repayment plans, including hardship programs that temporarily suspend repayment. Onemain Financial may be a good choice. They have similar industry experience and loan amounts.

Frequently Asked Questions

What do Tower Loan reviews say about their suitability for individuals with bad credit?

Many Tower Loan reviews cite approval despite bad credit. However, some note still needing a minimum 550 credit score along with sufficient income.

Are Tower Loans a good option for people with a low credit score?

Tower Loans are an option but still have high rates for bad credit. Building credit with a secured card may provide cheaper long-term financing.

What are the pros and cons of using Tower Loans for bad credit?

Pros include flexible credit requirements. Cons are very high interest rates. Compare options carefully as other lenders may offer better rates.

How do Tower Loan interest rates compare to other lenders for bad credit borrowers?

Tower Loan’s APRs of 89-149% are high but comparable to other subprime installment loan lenders serving those with poor credit.

What should I consider before applying for a Tower Loan if I have bad credit?

Consider your budget, alternatives like secured cards or credit union loans, and whether you can repay at 89-149% APR before accepting a Tower Loan.

Jason Rathman

Jason Rathman


Jason writes about all financial topics such as loans, debt solutions, and bankruptcy. He is an expert when it comes to subjects like APR, loan fine print, debt collection laws within the United States. With his in-depth knowledge of all things financial, he is a great asset to Greendayonline.