6 Best Banks for Getting a Personal Loan

Not all personal loans are created equal, which is why it's important to shop around when sorting through potential lenders. Some personal loans have limited loan amounts and sky-high interest rates. Others have hidden fees that make the loan more expensive than the rate suggests.

Here's a look at the best banks for personal loans.

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.

Citi

• APR: 9.99% to 19.49%

• Loan amount: $2,000 to $30,000

• Terms: 12 - 60 months

• Processing speed: Receive your funds the same day you are approved through Citi deposit account. Expect funding to take two business days if direct deposited into a non-Citi account.

• Autopay discount: Score a 0.50% APR rate discount when you sign up for automated payments when your loan is originated.

• Late fees: No

• Prepayment penalties: No

• Origination fee: No

To qualify for the Citi personal loan, you must already be a Citi customer. Current Citigold® and Citi Priority customers receive a 0.25% APR discount. Defaulting on your payments increases your rate by 2%.

Discover

• APR: 7.99% - 24.99%

• Loan amount: Up to $40,000

• Terms: 36 - 84 months

• Processing speed: Funds sent as soon as the next business day after acceptance.

• Autopay discount: No

• Late fees: No

• Prepayment penalties: No

• Origination fee: No

With the Discover® personal loan, there are no hidden fees. Additionally, Discover can send funds directly to your creditors or direct deposit them into any of your bank accounts as soon as one business day after acceptance, according to the bank's website. Checking your rate has no impact on your credit score.

Truist

• APR: 6.49% to 24.89%

• Loan amount: $3,500 to $50,000

• Terms: 24 - 60 months

• Processing speed: Same-day funding may be available.

• Autopay discount: No

• Late fees: No

• Prepayment penalties: No

• Origination fee: No

Truist makes quick credit decisions and can fund your personal loan on the same day if you work with a loan officer to submit the necessary documents and expedite the process. Truist also offers personal lines of credit. If you run into issues during the repayment process, you might qualify for payment relief for up to 90 days.

TD Bank

• APR: 9.99% - 23.99%

• Loan amount: $2,000 to $50,000

• Terms: 36 - 60 months

• Processing speed: After approval, funds might be available within one to three business days.

• Autopay discount: No

• Late fees: 5% of minimum payment due or $10, whichever is less

• Prepayment penalties: No

• Origination fee: No

The TD Bank personal loan comes with a fixed interest rate. You can check your loan options with no effect on your credit unless you decide to move forward with the loan.

U.S. Bank

• APR: 8.74% - 24.99%

• Loan amount: $1,000 to $25,000 ($50,000 for current U.S. Bank customers)

• Terms: 12 - 60 months (Up to 84 months for current U.S. Bank customers)

• Processing speed: It may take only hours for U.S. Bank customers.

• Autopay discount: Yes

• Late fees: Up to $40

• Prepayment penalties: No

• Origination fee: No

Qualified U.S. Bank customers can apply for a loan of up to $50,000 — and if you meet the credit score requirements and other qualifying factors, you could receive your funds the same day. Non-U.S. Bank customers can apply for up to $25,000.

Wells Fargo

• APR: 6.74% to 25.99%

• Loan amount: $3,000 to $100,000

• Terms: 12 - 84 months

• Processing speed: Same-day credit decisions

• Autopay discount: Yes, varies based on Wells Fargo accounts

• Late fees: Yes, an undisclosed amount

• Prepayment penalties: No

• Origination fee: No

Wells Fargo personal loans come with a simple online application and funding process. You'll need to have a Wells Fargo account that's been open for at least 12 months. Once you're approved, you can get your loan amount by the next business day at the earliest.

Customers who have a qualifying Wells Fargo consumer checking account and make automatic payments from a Wells Fargo deposit account qualify for a 0.25% relationship discount.

How To Get Approved for a Personal Loan

Once you've decided on a bank, credit union or online loan, the next step is getting approved. Approval for a personal loan depends largely on your creditworthiness. If you have excellent credit, you're likely to receive approval at most financial institutions, an attractive interest rate and reasonable loan terms.

Even if your credit is less than perfect, you may have options. Many lenders will also consider other factors such as your employment history, income and overall financial stability. Some lenders specialize in lending to those with poor credit or no credit history, though you'll typically pay much higher interest rates with this kind of lending.

Other than your basic creditworthiness, you'll want to be ready to prove your ability to pay back the loan. Usually, this involves providing proof of regular income, whether through your job or another source (lenders consider pensions and benefits as income, so even if you're on disability, you may be able to find a loan).

Tips to Increase Your Chances of Personal Loan Approval

As you explore your personal loan options, consider implementing the following tips to boost your approval odds.

• Boost your credit score. Not only can a higher credit score improve your approval odds, but it can also help you tap into lower interest rates. One way to increase your score includes sticking with on-time payments to credit accounts.

• Check your credit report. You'll also want to be sure your credit report is accurate. Errors in your credit report can negatively impact your ability to get approved, so be sure to review a recent copy. You can get one free credit report each year from AnnualCreditReport.com, which (despite the dot com domain name) is a website maintained by the federal government.

• Increase your income. A higher income tends to get a lender more confidence in your ability to repay the loan.

• Grow your savings. If you are able to build up more savings, a robust stash can indicate to lenders that you are able to make on-time payments.

• Do your research. The best banks for personal loans with good credit might not necessarily be the same as the best banks for personal loans with bad credit. Evaluate your credit score and choose to apply for loans with banks that align with your credit needs. This is an especially important tip for people with bad credit because the easiest bank to get a loan from will likely be willing to work with bad credit borrowers.

Weigh Your Options Carefully

As you consider which bank is best for a personal loan, remember that a personal loan is a significant financial obligation. Don't take it lightly. Make sure it fits within your budget and will allow you to achieve your goals without adding more stress. The choice you make can greatly impact your finances.

FAQs

What's the minimum credit score required for a personal loan?

Different lenders have different requirements to qualify for a personal loan. But generally, you'll need a credit score of at least 580 to obtain a personal loan.

How long does it take to get approved for a personal loan?

Although the approval timeline varies based on the base, many personal loan borrowers receive their loan within one to three business days.

Can you refinance a personal loan from one bank to another?

Yes, you can refinance a personal loan by applying for a new loan through a different lender. When you receive the loan funds, you can pay off your old loan to finalize the refinance.

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