Tower Loan Review: Is It a Scam or Is It Legit?

Taking out a personal loan is a significant decision that requires careful research and consideration. With numerous lenders available, it’s crucial to choose the right one that aligns with your financial needs and goals. Tower Loan is a lender that has recently gained attention for its services. In this comprehensive review, we’ll delve into the details of Tower Loan, explore its offerings, and analyze customer feedback to determine whether it’s a legitimate choice for borrowers.

Tower Loan: A Trusted Financial Partner Since 1936

Tower Loan has been assisting customers with their financial needs since 1936, boasting a long history of serving individuals across the United States. With over 230 locations nationwide, Tower Loan ensures convenience by providing accessible branches for customers to access the funds they require. Their commitment to customer satisfaction is evident in their dedication to offering equal installment loans, helping borrowers avoid revolving debt.

To explore the services offered by Tower Loan, prospective borrowers can visit their website, towerloan.com. However, before committing to any loan agreement, it’s crucial to have a thorough understanding of the terms and conditions. In the following sections, we’ll delve into key aspects of Tower Loan to help you make an informed decision.

Tower Loan Summary: Digging Deeper

Upon investigating Tower Loan’s website and terms and conditions, we discovered several noteworthy details that require closer examination. Here are a few key points that caught our attention:

• Loan Amount and Terms: It allows borrowers to access loan amounts ranging from $1,000 to $20,000. The loan terms vary from 12 to 36 months or more, offering flexibility to borrowers depending on their specific needs.
• Absence of Listed Interest Rates: Unlike some lenders who prominently display their interest rates, it does not provide specific interest rate information on its website. The interest rate and Annual Percentage Rate (APR) can vary based on factors such as the type of loan, loan amount, and repayment schedule.
• Collateral Requirement: It mandates that loans must be secured with collateral, adding an additional layer of security for the lender.
• Limited Availability: It operates in six states, namely Alabama, Illinois, Louisiana, Mississippi, Missouri, and Texas. To be eligible for an online loan through Tower Loan, borrowers must reside in one of these states.

With these key points in mind, let’s examine the pros and cons of Tower Loan to gain a comprehensive understanding of its offerings.

Pros of Tower Loan: Highlights of Their Services

• Quick and Easy Application Process: One significant advantage is its straightforward and user-friendly application process. Customers can apply for a loan online, over the phone, or in person at any of their branches. The application process takes only a few minutes, and applicants can receive a response within one business day so you can apply online today.
• Wide Range of Loan Amounts: It accommodates borrowers with varying financial needs by offering a broad range of loan amounts, starting from $1,000 and going up to $20,000. This ensures that customers can access the necessary funds, regardless of the magnitude of their financial requirements.
• Flexible Repayment Terms: It provides customers with the flexibility to choose their repayment terms, making it easier for them to manage and repay their loans. Borrowers can select a repayment period ranging from 12 to 36 months, depending on their preferences and financial capabilities.
• Competitive Interest Rates: It aims to offer competitive interest rates compared to other lending companies. The specific interest rates charged by Tower Loan vary based on factors such as the borrower’s credit score, loan amount, and repayment term.

While Tower Loan provides several advantages to borrowers, it’s essential to consider the potential drawbacks before making a final decision.

Cons of Tower Loan: Points to Consider

• Limited Availability: Its services are restricted to just six states in the United States. This limited availability means that individuals residing outside these states cannot access their loan services.
• High Fees: Although it offers competitive interest rates, they charge high fees for late payments, prepayments, and origination fees. These additional fees can impact the overall cost of the loan and should be considered when assessing affordability.
• Limited Loan Purpose: It solely offers personal loans, meaning borrowers cannot utilize the funds for business purposes. If you require financing for a business venture, you’ll need to explore alternative lenders that specialize in business loans.
• Strict Eligibility Criteria: It imposes strict eligibility requirements, which may restrict access to their services for some individuals. Borrowers must possess a good credit score, a stable income, and be at least 18 years old to be eligible for a loan.

By evaluating both the pros and cons, borrowers can make an informed decision regarding Tower Loan’s suitability for their financial needs.

Tower Loan: A Closer Look

Tower Loan is a privately owned finance company that has been operating since 1936. As one of the most trusted independent finance companies in the United States, Tower Loan provides an array of financial services, including personal loans, debt consolidation, and credit report accounts.

The company offers personal loans, installment loans, and online loans, catering to individuals with varying credit scores, including those with bad credit. Tower Loan is headquartered in Flowood, MS, and operates multiple locations throughout the country. However, it’s worth noting that contacting the company is limited to postal mail, as there is no listed email address or phone number on their website.

It places a strong emphasis on customer service, evident through its knowledgeable and friendly customer service representatives. These representatives are dedicated to assisting customers in finding the best financial solutions to meet their unique needs. Additionally, Tower Loan plays a vital role in helping customers build their credit reports by reporting payment history to credit bureaus. This service can be particularly valuable for individuals looking to rebuild their credit after experiencing financial hardships.

Despite its long-standing history, it has received mixed reviews from customers, warranting further exploration into its reputation and customer satisfaction.

Tower Loan BBB Reviews: Customer Feedback and Ratings

When evaluating a financial institution, it’s essential to consider customer feedback and ratings. Tower Loan has an average customer review rating of only 1 star out of 5, with a total of 69 reviews and 153 closed complaints reported in the last three years. These negative reviews have resulted in a D- rating from the Better Business Bureau (BBB), along with the company’s lack of accreditation.

Some of the concerns raised by customers include reports of harassing phone calls and difficulties in contacting Tower Loan employees. These issues reflect a pattern of customer service problems and should be taken into account when assessing the overall reliability of the company.

FAQs

FAQ 1: How can I apply for a loan with Tower Loan?

Answer: Applying for a loan is a simple process. You can apply online through their website, visit one of their branches in person, or even apply over the phone. The application typically requires personal, financial, and employment information to assess your eligibility for a loan.

FAQ 2: What is the range of loan amounts that Tower Loan offers?

Answer: It provides borrowers with a wide range of loan amounts, starting from $1,000 and going up to $20,000. This flexibility allows borrowers to select the loan amount that aligns with their specific financial needs.

FAQ 3: How long can I take to repay a loan from Tower Loan?

Answer: It offers flexible repayment terms, allowing borrowers to choose a loan term ranging from 12 to 36 months. This flexibility enables borrowers to select a repayment period that suits their financial situation and ensures manageable monthly payments.

FAQ 4: Are interest rates fixed or variable with Tower Loan?

Answer: It does not provide specific interest rate information on its website. Interest rates are determined based on various factors, including the type of loan, loan amount, repayment term, and the borrower’s credit score. Tower Loan aims to offer competitive interest rates compared to other lenders.

FAQ 5: Is collateral required for loans from Tower Loan?

Answer: Yes, it requires loans to be secured with collateral. This additional security helps protect the lender’s interests and may allow borrowers to access larger loan amounts.

FAQ 6: Can I qualify for a loan from Tower Loan if I have bad credit?

Answer: It works with individuals who have bad credit, offering them the opportunity to secure a loan. While a good credit score may increase your chances of approval and favorable terms, Tower Loan considers various factors such as income and collateral when assessing eligibility.

FAQ 7: What states does Tower Loan operate in?

Answer: Tower Loan provides its services in Alabama, Illinois, Louisiana, Mississippi, Missouri, and Texas. Borrowers must reside in one of these states to be eligible for a loan through Tower Loan’s online service.

FAQ 8: Does Tower Loan charge any pre-payment penalties?

Answer: Tower Loan does not have any information available on pre-payment penalties on its website. It’s advisable to inquire about pre-payment penalties directly with a Tower Loan representative before finalizing the loan agreement.

FAQ 9: How does Tower Loan report payment history to credit bureaus?

Answer: Tower Loan reports borrowers’ payment history to credit bureaus, which can positively impact their credit scores over time. Timely payments and responsible borrowing behavior can help borrowers improve their creditworthiness.

FAQ 10: Can I cancel or reverse a loan transaction after the funds have been deposited?

Answer: Once the loan funds have been dispersed into your account, it is generally not possible to cancel or reverse the transaction. Therefore, it is crucial to carefully consider your decision before accepting the loan to avoid any unnecessary complications.

Conclusion: Making an Informed Decision

In conclusion, Tower Loan has been a reputable financial partner since 1936, offering personal loans and various financial services to customers in six states across the United States. While they provide several advantages such as a quick application process, wide loan range, flexible repayment terms, and competitive interest rates, there are significant drawbacks to consider, including limited availability, high fees, limited loan purpose, and strict eligibility criteria.

Additionally, negative customer feedback and the D- rating from the BBB raise concerns about Tower Loan’s customer service and reliability.

Ultimately, before deciding on a loan provider, it’s crucial to compare options, review customer feedback, and carefully assess the terms and conditions. By doing a thorough research and considering your financial needs and goals, you can make an informed decision that aligns with your requirements. Remember, taking out a loan should always be a responsible decision, and affordability should be a top priority to avoid potential financial difficulties in the future.