When it comes to borrowing money, trust is everything. With countless financial institutions offering personal loans, discerning which lenders are reliable and which ones might lead you into trouble can be a daunting task. Tower Loan is one such company that has been around since 1936, offering installment loans to individuals who often struggle to access credit through traditional means. With over 230 locations across the country, the company is far from obscure. However, its reputation is anything but pristine.
So, is Tower Loan a legitimate financial partner—or is it best avoided? Let’s explore the facts, customer feedback, and how this lender operates so you can make an informed decision.
What Is Tower Loan?
Tower Loan is a privately held lending company headquartered in Flowood, Mississippi. The lender provides personal, installment, and online loans primarily targeting individuals with subprime credit. Tower Loan operates physical branches in six states: Alabama, Illinois, Louisiana, Mississippi, Missouri, and Texas.
Its loan offerings range from $1,000 to $20,000, with repayment terms that span from 12 to 36 months or more. The company allows co-borrowers, and most loans are secured with collateral—although this depends on the loan type and location.
Notably, Tower Loan does not publish its interest rates or fee structures online, which can be a red flag for those who want transparency before beginning the application process.
How Does the Loan Process Work?
Applying for a Tower Loan can be done online or by visiting a branch. The application requires basic personal details, financial information, proof of employment, and identification. Once submitted, the application goes through a verification process that may include answering security questions or visiting a branch for in-person validation.
If approved, borrowers are presented with loan options and repayment terms tailored to their financial situation. In-person applicants can receive a check on the spot, while online applicants have funds deposited directly into their bank account after signing the final documents.
To qualify, applicants must:
- Be at least 18 years old
- Have a steady source of income
- Reside in one of the six serviced states
- Own an active checking or savings account
- Provide a valid email address
The Customer Experience: Red Flags and Complaints
Despite its long history, Tower Loan struggles to maintain a positive public image. The Better Business Bureau (BBB) has given the company a D- rating, citing 153 closed complaints and overwhelmingly negative feedback from customers. Tower Loan is not BBB-accredited, further raising concerns.
Many reviewers describe aggressive collection tactics and unprofessional conduct. For example:
- One customer reported that Tower Loan representatives showed up at her home asking about someone she allegedly knew, despite her having no association with the borrower.
- Another expressed frustration over misleading terms and added charges for online payments.
- Others called the management disrespectful and the company’s practices predatory.
These complaints are not isolated, with numerous customers echoing similar issues. While every lender receives some negative reviews, the consistency and intensity of these criticisms are hard to ignore.
The Cost of Borrowing: What You Should Know
Transparency is a recurring issue with Tower Loan. Interest rates, APRs, and prepayment penalties are not disclosed online, making it difficult for potential borrowers to understand what they’re signing up for.
Additionally, while Tower Loan might initially conduct a soft credit inquiry (which doesn’t impact your credit score), proceeding with a full application will trigger a hard inquiry—potentially lowering your score.
Borrowers are also warned that once the loan is finalized and funds are disbursed, there is no way to cancel the transaction. In other words, once you’ve signed, you’re locked in.
Is Tower Loan Right for You?
Tower Loan may offer a lifeline for people with limited credit options, but that lifeline comes with significant caveats. While its long tenure and physical presence suggest legitimacy, its reputation for poor customer service and lack of transparency should give any borrower pause.
If you’re considering Tower Loan, ask yourself:
- Do I understand the full cost of this loan?
- Can I realistically afford the monthly payments?
- Have I explored alternative lenders with more favorable reviews and transparent terms?
It’s also wise to seek advice from a financial advisor, especially if you’re struggling with debt or have a limited income. Budgeting, negotiating with creditors, and finding nonprofit financial counseling can often provide better long-term solutions than high-cost loans.
Final Thoughts
Tower Loan is, without doubt, a real lender with a long history—but legitimacy alone doesn’t make it the best choice. The overwhelming number of complaints, questionable customer service practices, and lack of fee transparency make it a risky option for borrowers.
If you’re in a financial bind and considering Tower Loan, proceed with caution. Be sure to read the fine print, ask for a full breakdown of terms, and compare other lenders before making a final decision. Remember, the cheapest loan isn’t always the one with the lowest monthly payment—it’s the one that helps, not hurts, your financial future.
Have you had experience with Tower Loan? Sharing your story could help others make better decisions.
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