Advertiser Disclosure

Personal Loans

Requirements to Get Your Personal Loan Approved

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

iStock

For the right consumers, personal loans can be a quick way to get much-needed cash for anything from a home repair to a college tuition. With the right qualifications, you can be approved for a personal loan in the morning and have the cash deposited into your account in as little as one day depending on the lender.

While applying is easy, qualifying for a personal loan may be more difficult. Here’s what you need to know about personal loans and how to get approved for one.

What is a personal loan?

A personal loan allows a consumer to borrow a lump sum of money for personal use and pay it back in fixed monthly payments over a set amount of time.

One significant difference between unsecured personal loans and other types of loans is that they don’t require collateral. When you buy a car, for example, the car serves as collateral and the lender can repossess it if you fall behind on your mortgage payments. To get an unsecured personal loan, you just have to qualify.

Personal loans come in a wide range of amounts and interest rates. The terms of personal loans vary by lender and range from six months to 84 months as of Feb. 2, 2018. They can be for as little as $2,000 and as much as $100,000, although the majority of personal loans are for much less. Best Eggs’ loans average between $13,000 and $14,000, according to Bobby Ritterbeck, chief marketing officer for the company.

What are personal loans used for?

iStock

Unlike a mortgage, which is a loan for a house, or an auto loan, which must be spent on a vehicle, personal loans can be used for almost anything.

“People use it for a ton of reasons, from home repairs to medical [expenses] to all kinds of major purchases,” Ritterbeck said. People most commonly take out personal loans, however, for debt consolidation. In this process, borrowers use a personal loan to pay off other high-interest debts, which can simplify and reduce their monthly debt payments.

Alia Dudum, millennial money expert at LendingClub, said that LendingClub encourages anyone who needs credit to think about personal loans as “a responsible way to pay for something expensive,” whether the expense is planned or unexpected.

“You can’t always control when you have a major expense, but you can make good decisions,” she said. LendingClub’s borrowers primarily use personal loans to pay off high-interest debt, unexpected expenses such as medical bills or car repairs or a planned expense such as a vacation or home remodel.

How do I qualify for a personal loan?

Most lenders will look at two factors when you apply for unsecured personal loans: your credit history and your ability to repay the loan. Borrowers don’t have to provide collateral, such as a house or car to back their loan, nor do they need a cosigner (unless a cosigner is needed to strengthen your odds of getting approved).

Instead, lenders will look at your personal credit history and other factors, such as your income.

“That makes it easier for us to provide you quicker and easier access to your loan in comparison, to say, a mortgage loan that requires an appraisal of your home,” Dudum said.

Here’s a breakdown of how lenders determine whether you qualify for a loan.

Credit score

Each lender will determine its minimum credit score for receiving a personal loan, and some are more lenient than others regarding what scores they will accept. For BestEgg, for example, the average credit score for qualified applicants is 710. Ritterbeck said that most conservative financial institutions are comfortable issuing personal loans to applicants with scores around 680 and above.

Your credit score matters because it is a reflection of your ability to repay a loan. The score is compiled from information gleaned about how you handle credit, which could include:

  • Types of credit or loans you’ve carried (revolving, like credit, or non-revolving, like a mortgage)
  • The amount of each loan or the credit limit for each credit card you own vs. how much of that balance you are using from month to month
  • Whether you paid on time
  • Collections activity, bankruptcies, foreclosures or other negative marks

There are three federal credit reporting agencies that compete to compile American consumers’ credit histories: Equifax, Experian and Transunion. While each agency collects about the same information on each consumer, their credit score calculations may differ because the agency may not have collected the exact same information or it may store or display the information differently than the other agencies.

It’s important to note that your credit score will change over time as credit reporting agencies collect more information and tweak their calculation models. That means your score could be different from one month to the next.

Get your credit report and score for free

Each of the three reporting agencies will provide one free credit report a year, which you can get by visiting AnnualCreditReport.com or calling 1-877-322-8228.

There are lots of ways to get your credit score or credit score estimate for free these days. The Discover Scorecard, for example, offers a free FICO score.
Here’s our guide on getting your free credit score >

How to improve your credit score to get better loan terms

 

First, look for errors on your credit report, where you may find information that is inaccurate or wrong. If you find errors that could have lowered your credit score, dispute the error with the appropriate credit bureau. Check all three reports.

Then, take a look at your financial situation and make some changes.

  • Lower your debt: Stop spending on credit cards and come up with a strategy for paying down your balances.
  • Pay your bills on time: As much as 35 percent of your credit score could be based on your payment history, so make sure you pay all of your bills on time. If you are forgetful, set up automatic payments or monthly reminders.
  • Don’t close your unused credit card accounts: Unless your credit cards carry expensive annual fees, there’s no real benefit to closing them even if you aren’t using them. Your credit score will take into account the average length of time you’ve been using credit, so holding an account for a long time could actually benefit your score.
  • Don’t open new credit: As you rein back your spending, avoid the temptation to apply for more credit cards. Lenders may consider you risky if you open a lot of new accounts in a short amount of time.

The length of time it takes to improve your credit score depends on why your credit score is low in the first place. In any case, the personal financial discipline you develop as you work to improve your score will leave you with better spending and saving habits.

Debt-to-income ratio (DTI)

Your DTI is the amount of monthly debt obligations you have, including credit card payments, auto loans and student loans, divided by your monthly gross income. The calculation shows lenders the percentage of your income that you use to pay off debts.

“Lenders see this as an indicator of your ability to comfortably take on and pay off more debt,” Dudum said.

Wells Fargo lists a DTI of 35 percent as “looking good” and indicating that your debt is manageable in relation to your income, and that you likely have spending money left over after you pay your bills.

If you have a DTI between 36 and 49 percent, you may want to improve your financial situation so that you are in better shape to handle extra expenses. If your DTI is in this range, lenders
may look at additional eligibility criteria, like your income or whether you have a cosigner.

Credit utilization rate: This rate is calculated by dividing how much credit you’re using (the statement balance for each of your accounts) by the amount of credit you have
access to. “If it’s higher than about 30 percent, many financial companies see this as an indicator that you might not be as responsible as you could be,” Dudum said.

Credit history: How you’ve managed debt in the past can be a good determinant for how likely you are to pay back a personal loan. That means if you have little or no credit history, lenders may not approve your personal loan application.

“If you don’t have a track record with credit, it’s difficult for lenders to guess how you might handle paying your debts,” Dudum said.

Cosigner: If you have trouble meeting personal loan requirements, which could happen if you have a low credit score, no credit history or a bankruptcy in your past, you may need a cosigner.

Typically, cosigners are trusted friends or family members with good credit who will agree to take responsibility for the loan if you can’t make the payments. Lenders will factor in your cosigner’s credit history and credit score rather than yours when determining whether you qualify for the loan, which will up your chances of qualifying and securing a good interest rate.

Proceed with caution when considering a cosigner. If you don’t make your loan payments, you could ruin your cosigner’s credit history, stick them with the balance of the loan, and wreck your relationship with your cosigner.

How to apply for a personal loan

The application process for an unsecured personal loan is simple and fast.

“The old way is you’d walk into your local bank, wait in line to speak with a loan officer and apply that way,” Ritterbeck said. “In a lot of cases today you can still do that, but you also can go online, and in some cases call, and get a decision in a couple of minutes of what options are available to you.”

Online lending platforms will first ask you to fill out an application to check your credit rate. The personal loan industry can often show you your personal loan options without running a “hard” credit inquiry that would impact your credit score. These are typically called pre-approvals or prequalification checks but they aren’t final. When you are ready to apply for the loan, it will result in a hard credit inquiry. You may be able to get free quotes from LendingTree’s personal loan marketplace by filling out a short online form. LendingTree is the parent company of MagnifyMoney.

After you receive options for a personal loan, including the amount you qualify for and the interest rate, you can choose one to apply. “Generally speaking, the better your credit profile, the lower the rate of interest you’ll be charged in exchange for borrowing,” Dudum said. “That said, there are many other factors we take into consideration. One number couldn’t tell your whole financial story.”

Interest rates vary, but they can be as high as each state allows. OneMain, for example, can offer interest rates as high as almost 35.99% on personal loans, and Best Egg’s highest rate is 29.99%.

Once you decide which loan to apply for, you’ll need to submit proof of employment and income, such as a pay stub, said Kim Wijkstrom, chief marketing officer for OneMain Financial. Decisions on the loan can come within the hour, and the money could be deposited in your account the same day.

Lenders with alternative qualifications

Not all lenders follow the typical formula for personal loan requirements. OneMain, for example, uses credit scores as a guideline that gives a picture of a consumer’s credit history and focuses more on the applicant’s income and debt obligations, Wijkstrom said.
Here are others:

SoFi: SoFi is strict about approvals, as it prefers applicants with a good job and a history of on-time payments. It also does not allow cosigners or joint applicants. SoFi is unique in that there is No origination fee and has additional perks like loan forbearance if a borrower loses a job through no fault of his or her own. Interest will continue to accrue and is added to the loan balance, and SoFi will not report your payments to a credit bureau as being overdue.
Read our review of SoFi here.

SoFi
APR

6.79%
To
15.49%

Credit Req.

680

Minimum Credit Score

Terms

24 to 84

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

SoFi offers some of the best rates and terms on the market. ... Read More


Fixed rates from 6.79% APR to 15.49% APR (with AutoPay). Variable rates from 6.54% APR to 14.60% APR (with AutoPay). SoFi rate ranges are current as of January 4, 2019 and are subject to change without notice. Not all rates and amounts available in all states. . See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.54% APR assumes current 1-month LIBOR rate of 2.51% plus 4.28% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.

See Consumer Licenses.

SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, VA, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, TX, VA, WY, or for residents of IL for loans greater than $40,000.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

Upstart: While Upstart initially focused on helping graduate students with significant debt, it now also offers loans to consumers with a strong credit history. Upstart’s formula for calculating approval is unique and considers an applicant’s career, education, job history and standardized test scores.
Read our review of Upstart here.

APR

7.74%
To
35.99%

Credit Req.

640

Minimum Credit Score

Terms

36 & 60

months

Origination Fee

0.00% - 8.00%

SEE OFFERS Secured

on LendingTree’s secure website

Upstart is an online lender created by ex-Googlers.... Read More

Earnest: Unlike most lenders, Earnest uses a merit-based system for determining who qualifies for a loan. Recent graduates and others who are starting to build credit history may qualify for these loans, which offer some of the most flexible terms along with customized loan and repayment plans.
Earnest
APR

6.99%
To
18.24%

Credit Req.

680

Minimum Credit Score

Terms

36 to 60

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Instead of offering credit-based loans, Earnest has taken a very nontraditional approach using a merit-based system.... Read More

What if you are rejected for a personal loan?

You may not qualify for a personal loan the first time you apply, but it is possible to improve your financial position and successfully qualify later.

“People are of course usually very disappointed if they don’t get a loan, and the first thing to address is the emotional response,” Wijkstrom said. “Don’t be defeated when rejected.”

At OneMain, financial advisers will talk with clients about why they were not approved and what they can change. Sometimes that means fixing their credit history, such as paying bills on time for a set period. Others may find errors on their credit report that hurt their chances of qualifying for a personal loan.

You may also want to look into other options for credit, such as equity in your home that could help you get a different kind of loan, Ritterbeck said.

When used wisely, personal loans can help you get out of debt and manage large expenses. Regardless of when you need a personal loan, it’s never too early to integrate good habits into your financial life to ensure that when you do apply for a personal loan, you will qualify for the amount you need.

 

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Marty Minchin
Marty Minchin |

Marty Minchin is a writer at MagnifyMoney. You can email Marty here

TAGS:

Get A Pre-Approved Personal Loan

$

Won’t impact your credit score

Advertiser Disclosure

Personal Loans

Citibank Personal Loan Review

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

Citibank
APR

7.99%
To
17.99%

Credit Req.

Not specified

Minimum Credit Score

Terms

12 to 60

months

Origination Fee

Not specified

APPLY NOW Secured

on Citibank’s secure website

Citibank personal loan details
 

Fees and penalties

  • Term lengths: 12 to 60 months
  • APR range: 7.99%-17.99%
  • Loan amounts: $2,000-$50,000
  • Time to funding: Checks are sent within five business days of approval.
  • Credit check: Hard Pull
  • Origination fee: Not specified
  • Prepayment fee: No
  • Late payment fee: Not specified
  • Other fees: Not specified

Citibank product details

Perks offered to Citibank personal loan customers aren’t largely advertised online. However, linking a personal loan account to an eligible checking account enrolled in Citi ThankYou Rewards can help earn points on a monthly basis. Points never expire and can be redeemed for gift cards, travel rewards, cash and more. This can allow customers to save money while repaying their loan.

Eligibility requirements

  • Minimum credit score: Not specified
  • Minimum credit history: While a minimum credit score isn’t listed, Citibank does specify that the lowest quoted personal loan rate requires the borrower to have excellent credit.
  • Maximum debt-to-income ratio: Not specified

Citibank personal loans are only available to borrowers with a maximum of one existing personal loan account with the financial institution. If consumers have another Citibank personal loan account, it cannot have been opened within the past six months. Qualified applicants are also required to have a minimum annual income of $10,500.

It’s also worth noting that anyone who wants to apply for a personal loan online must either be a current Citi checking or savings account customer registered for Citibank online or have received a Citi Personal Loan offer with an invitation number. Without an invitation, current customers who don’t have online account and non-customers must apply in person at a Citibank branch or call a

Applying for a personal loan from Citibank

Personal loans are available in increments from $2,000 to $50,000, but applications cannot be submitted online for amounts exceeding $30,000. Applicants who wish to borrow up to $50,000 must call 1-877-362-9100 or visit a Citibank branch location.

Depending on the requested loan amount, prospective borrowers with a current Citi checking or savings account who are registered for Citibank online and anyone who has received a Citi Personal Loan offer with an invitation number can submit a personal loan application online. Everyone else must apply in person at a Citi branch or call 1-877-362-9100.

To begin the online application process, current Citibank customers registered for online access will need to enter their user ID and password. Non-Citibank customers who have received a Citi Personal Loan offer with an invitation number will be directed to an application site and asked to enter the invitation code, their last name and zip code. Do note, credit scores are not impacted for viewing the personal loan offer. Upon approval, a check for the full amount of the loan will be mailed within five business days.

Pros and cons of a Citibank personal loan

Pros:

Cons:

  • Fixed rate: Citibank personal loans come at a fixed rate, allowing borrowers to enjoy fixed monthly payments. Do note, defaulting on the loan may come at the cost of a 2% APR increase.
  • No hidden fees or prepayment penalties: Borrowers don’t have to worry about being hit with added costs attached to the loan.
  • Competitive rates: Fixed rates range from 7.99% APR to 17.99% APR.
  • Flexible terms: Borrowers can choose from a variety of repayment terms, consisting of 12 to 60 months.
  • Fast cash: Checks for the full amount of the approved loan are mailed within five business days.
  • Limited online application access: To apply online, prospective borrowers must either be a current Citi checking or savings account customer registered for Citibank online or have received a Citi Personal Loan offer with an invitation number. Without an invitation, current customers who don’t have an online account and non-customers must apply in person or by phone.
  • Loan amount constraints: To receive the lowest quoted rate, borrowers must use Citibank Auto Deduct to repay the loan, have excellent credit, borrow at least $10,000, have a loan term of 36 months or less and sufficient relationship balances.

Who’s the best fit for a Citibank personal loan?

A Citibank personal loan can be a great option for consumers with a one-time need to borrow money. Specifically, Citibank customers willing to repay their loan with Citi Auto Deduct, who have excellent credit, need to borrow at least $10,000, can repay the loan within 36 months and have sufficient relationship balances are eligible for the most competitive rates.

Loan amounts range up to $50,000, so this product can also be a good fit for consumers who need a higher loan amount. The ability to lock in a fixed rate and face no hidden fees or prepayment penalties can make it good choice for those looking for peace of mind in a fixed monthly payment.

Alternative personal loan options

LightStream

APR

3.34%
To
16.99%

Credit Req.

660

Minimum Credit Score

Terms

24 to 144

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

LightStream is the online lending division of SunTrust Bank.... Read More


Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates under the invoicing option are 0.50% higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 3.34% APR with a term of 3 years would result in 36 monthly payments of $292.31.


LightStream, a division of SunTrust Bank, offers personal loans from $5,000 to $100,000. Rates are fixed and vary by loan purpose. There are no fees attached to the loan, including prepayment penalties, making it a good choice for consumers who might want to pay the loan off early. Loans can be funded as quickly as one day of approval, so this isn’t the best option for anyone who needs cash fast.

PenFed Credit Union

PenFed Credit Union
APR

Starting at 6.49%

Credit Req.

700

Minimum Credit Score

Terms

60

months

Origination Fee

No origination fee

APPLY NOW Secured

on PenFed Credit Union’s secure website

Pentagon Federal Credit Union (PenFed) offers personal loans with terms up to five years and maximum loan amounts of $25,000.... Read More


PenFed grants personal loans from $500 to $25,000. Along with no origination fee, there’s also no other hidden costs, making it a great choice for borrowers looking to avoid additional expenses. Funds are available immediately, which is advantageous for consumers who need cash now. Do note, personal loans are only available to PenFed members.

SoFi

SoFi
APR

6.79%
To
15.49%

Credit Req.

680

Minimum Credit Score

Terms

24 to 84

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

SoFi offers some of the best rates and terms on the market. ... Read More


Fixed rates from 6.79% APR to 15.49% APR (with AutoPay). Variable rates from 6.54% APR to 14.60% APR (with AutoPay). SoFi rate ranges are current as of January 4, 2019 and are subject to change without notice. Not all rates and amounts available in all states. . See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.54% APR assumes current 1-month LIBOR rate of 2.51% plus 4.28% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.

See Consumer Licenses.

SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, VA, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, TX, VA, WY, or for residents of IL for loans greater than $40,000.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)


SoFi provides personal loans ranging in value from $5,000 to $50,000, making it a good choice for borrowers who need a significant amount of money. Rates are fixed and loans are completely free of fees. Funds are typically deposited in consumers’ accounts a few days after approval and the successful completion of required paperwork. An added bonus, SoFi’s unemployment protection benefit offers an additional layer of security by allowing borrowers to temporarily pause payments and helping them find a new job if they become unemployed.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Laura Woods
Laura Woods |

Laura Woods is a writer at MagnifyMoney. You can email Laura here

TAGS:

Get A Pre-Approved Personal Loan

$

Won’t impact your credit score

Advertiser Disclosure

Personal Loans

U.S. Bank Personal Loan Review

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

U.S. Bank
APR

7.49%
To
17.99%

Credit Req.

Not specified

Minimum Credit Score

Terms

12 to 60

months

Origination Fee

No origination fees

APPLY NOW Secured

on U.S. Bank’s secure website

U.S. Bank Personal Loan Details
 

Fees and Penalties

  • Term lengths: 12 to 60 months
  • APR range: 7.49%-17.99%
  • Loan amounts: $3,000-$25,000
  • Time to funding: Not specified
  • Credit check: Hard

  • Origination fee: None
  • Prepayment fee: Not specified
  • Late payment fee: Not specified
  • Other fees: Not specified

U.S. Bank product details

The U.S. Bank Premier Loan is an unsecured personal loan that you can use for almost anything. U.S. Bank highlights debt consolidation, home remodeling and major purchases (such as a vacation, wedding or new vehicle) as potential options.

To qualify for the lowest advertised rate, you must have a credit score of 760 and take out between $5,000 and $25,000 loan with a 12- to 48-month term. You also have to sign up for automatic payments from an eligible U.S. Bank account.

But you can get approved with a lower credit score and without signing up for autopay. Additionally, you can choose to borrow as little as $3,000 and your loan’s term could be as long as 60 months.

There is a potential 1% interest rate discount if you use the money to make green home improvements or energy-efficient purchases, which could make this loan a good option if you want to finance a home improvement with an unsecured loans. (Alternatively, a home equity loan or home equity line of credit might offer a lower interest rate and tax benefits.)

If you’ve been a U.S. Bank checking account customer for six months and had direct deposits into the account for the previous consecutive three months, you may also qualify for the U.S. Bank Simple Loan. Although it’s also an unsecured personal loan, the Simple Loan has a $1,000 loan limit and expensive fees. It may be a good alternative to a payday loan if you need to cover an emergency expense, but it’s not a substitute for a large personal loan.

Eligibility requirements

  • Minimum credit score: Not specified, but at least 760 for the lowest advertised rate
  • Minimum credit history: Not specified
  • Maximum debt-to-income ratio: Not specified

Besides meeting U.S. Bank’s financial and credit requirements, you’ll need to be at least 18 years old and may need to live within a certain radius of a U.S. Bank branch to qualify for a Premier Loan.

Applying for a personal loan from U.S. Bank

You can start an application for a U.S. Bank Premier Loan by visiting a bank branch, calling a bank representative or with the online application.

Open an account. If you’re not already a U.S. Bank customer, you’ll need to open a different account, such as a checking account, before continuing.

Apply online. When applying online, you can either log in to your U.S. Bank account or continue with an application and mark that you don’t bank online. Fill in your personal and financial information, including your name, address, contact information, income and employer.

Next, you’ll need to choose your desired loan amount (from $3,000 to $25,000) and loan term (from 12 to 60 months). You’ll also need to indicate if you’ll use the money outside the U.S. (and, if yes, in which country), and whether you plan to use the money for an auto purchase, debt consolidation, home improvement or “other.”

You will need to agree to a credit check before reviewing your application results, which could put a hard inquiry on your credit reports and may result in a small ding to your credit scores.

Complete the application in person. After submitting your application online, you’ll need to visit a U.S. Bank branch to finish the application.

Pros and Cons of a U.S. Bank Personal Loan

Pros:

Cons:

  • Fixed interest rate. You’ll know exactly how much you’ll pay each month and don’t need to worry about your rate or payments increasing.
  • $3,000 minimum loan. Only borrowing what you need could help you save money on interest. The $3,000 minimum loan amount is lower than some other lenders’ minimums.
  • 12-month loan term. Other lenders may require you choose a longer term. If you can afford to pay off your loan sooner, a shorter loan term might help you get a lower interest rate.
  • Lowest advertised APR isn’t available on all loans. To qualify for the lowest rate, you need to apply for a loan for $5,000 to $25,000 with a 12- to 48-month term and agree to automatic payments.
  • Limited to existing customers. You need to be a U.S. Bank customer before you can qualify.
  • You have to visit a branch. If you’re looking for a simple, time-saving process, you may want to opt for a lender that offers an entirely online application and funding process.
  • $25,000 limit. Other personal loan lenders might approve you for up to $100,000.

Who’s the best fit for a U.S. Bank personal loan?

If you’re already a U.S. Bank customer, the U.S. Bank Premier Loan could be a good option if you’re looking for an unsecured personal loan to consolidate debts or pay for a major expense. But its drawbacks outweigh the pros.

Think carefully about how long you’ll need to repay the loan because of the possibility of a prepayment penalty. A longer term could help lower your monthly payments, but it will also cost you more in interest. While U.S. Bank offers 60-month term loans, if you’re borrowing at least $5,000, you may want to see if you can get a lower interest rate and still afford your monthly payments with a 48-month (or shorter) term.

If you need a loan quickly and aren’t a U.S. Bank customer, you could look for a loan from a different lender. Additionally, if you’re a U.S. Bank customer but don’t live near a bank branch, you could apply for a personal loan from a different lender and have the money deposited in your U.S. Bank account to save yourself the hassle of having to visit a branch.

Alternative personal loan options

Want to do some comparison shopping on your own? Here are three personal loan lenders that are worth considering.

Earnest

Earnest
APR

6.99%
To
18.24%

Credit Req.

680

Minimum Credit Score

Terms

36 to 60

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Instead of offering credit-based loans, Earnest has taken a very nontraditional approach using a merit-based system.... Read More

Earnest is an online lender that distinguishes itself with an innovative underwriting process. While your credit history and scores are still important, Earnest also considers your history of making payments on time, if you’ve built enough savings to cover your monthly expenses for at least two months and how well you manage your checking account. Even if you don’t have an excellent credit score, being financially responsible could help you get a lower rate.

LightStream

APR

3.34%
To
16.99%

Credit Req.

660

Minimum Credit Score

Terms

24 to 144

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

LightStream is the online lending division of SunTrust Bank.... Read More


Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates under the invoicing option are 0.50% higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 3.34% APR with a term of 3 years would result in 36 monthly payments of $292.31.

Although it is an online-only lender, LightStream is a division of SunTrust Bank, a brick-and-mortar bank. LightStream doesn’t have an exceptionally high minimum credit score requirement, but don’t let that fool you. The lender focuses on creditworthy applicants. If you can qualify, LightStream offers some of the lowest rates and longest terms. Plus, there are no origination fee or prepayment fees.

SoFi

SoFi
APR

6.79%
To
15.49%

Credit Req.

680

Minimum Credit Score

Terms

24 to 84

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

SoFi offers some of the best rates and terms on the market. ... Read More


Fixed rates from 6.79% APR to 15.49% APR (with AutoPay). Variable rates from 6.54% APR to 14.60% APR (with AutoPay). SoFi rate ranges are current as of January 4, 2019 and are subject to change without notice. Not all rates and amounts available in all states. . See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.54% APR assumes current 1-month LIBOR rate of 2.51% plus 4.28% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.

See Consumer Licenses.

SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, VA, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, TX, VA, WY, or for residents of IL for loans greater than $40,000.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

SoFi is an online-only lender that offers personal loans for $5,000 to $50,000 without any origination or prepayment fees. You can pre-qualify for a loan online with a soft pull, which won’t impact your credit scores. An official application still requires a hard pull, though. Once you accept a loan, you’ll be eligible for SoFi member benefits, such as discounts on other loans, career counseling and unemployment protection.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Louis DeNicola
Louis DeNicola |

Louis DeNicola is a writer at MagnifyMoney. You can email Louis at louis@magnifymoney.com

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