We at the MarketWatch Guides team researched these features across 33 online and traditional banks to give you the most accurate information available.
In our most recent survey, nearly 61% of our 1,500 respondents said their biggest regret was taking out a personal loan with a high interest rate, so it’s smart to shop around before you apply to find the best fit for your financial needs.
Key Takeaways
- Our top recommendations for the best personal loan banks are SoFi, Discover, U.S. Bank, Wells Fargo, T.D. Bank, Citibank, and PNC Bank
- The best banks offer personal loans with low annual percentage rates (APRs), low fees, great customer service, flexible terms, solid reputations and quick funding.
- It’s important to compare options and prequalify with several banks to get the best terms and prevent expensive errors.
The Best Banks for Personal Loans
We compared more than 20 banks and credit unions, looking at factors like funding speed, interest rates, customer service options, available discounts and more. Here are our favorites:
SoFi
OUR TOP PICK FOR PERSONAL LOANS
4.4
Interest Rate (APR)8.99% to 29.49%Term Options24 months to 84 monthsLoan Size Offered$5k to $100k
SoFi Overview
With low interest rates starting at 8.99%, a versatile range of repayment terms and a substantial loan amount range, SoFi stands out as our favorite bank for personal loans in the market.
One thing that sets it apart is its free financial coaching service where a trained professional can help you improve your savings, reduce debt and raise your credit score. This makes it a solid choice for debt consolidation, the most common reason people take out a personal loan, according to a 2023 MarketWatch Guides survey.
However, keep in mind that SoFi only offers loans to borrowers with good credit or excellent credit scores, which means 680 or higher.
Pros and Cons of SoFi
Pros High borrowing limit: Offers personal loans up to $100,000 Quick Funding: Same-day funding in most cases No fees: No late fees, origination fees or prepayment penalties Free financial coaching: SoFi has trained professionals to help you get control of your money Unemployment protection: 12-month forbearance program in case of job loss Cons Higher interest rates for some borrowers: SoFi offers competitive rates, starting at 8.99%, but those with less-than-perfect credit might find slightly lower rates with other lenders High minimum loan amount: The minimum loan amount of $5,000 might be higher than some borrowers need High credit score requirement: You’ll need a score of at least 680 to qualify
Why SoFi Stands Out
SoFi stands out for its unique features like unemployment protection and free financial counseling. However, since you need a higher credit score to qualify, it won’t work for people struggling with their credit.
Who Is SoFi Best For?
SoFi personal loans are an excellent fit for those trying to get out of debt and improve their finances. It offers loan amounts up to $100,000 and free financial coaching. This means you could potentially pay off all of your debt and get help from a trained expert in taming your money situation. They’ll help you with things like getting your finances under control and raising your credit score.
Discover
BEST FOR LOW RATES
4.1
Interest Rate (APR)8.49% to 25.99%Term Options36 months to 84 monthsLoan Size Offered$2.5k to $40k
Discover Overview
Perhaps best known for its credit card offerings, Discover also offers several types of loans, including personal loans. While Discover’s maximum loan amount of $40,000 is lower than other popular lenders, it has some of the lowest rates (starting at 8.49%) and fees among lenders we researched for those who meet Discover’s eligibility criteria.
Pros and Cons of Discover
Pros Low interest rates available: Starting at 7.99%, one of the lowest on this list No fees: No origination fees or prepayment penalties Fast funding: Funds often available as soon as the next business day Cons Low maximum loan amount: Discover has a $40,000 maximum, which is lower than many other lenders that offer up to $50,000 or more Limitations on usage: Can’t use funds to pay off Discover credit card debt Longer terms: Repayment terms start at 36 months, when other lenders offer shorter terms
Why Discover Stands Out
Discover offers same-day approvals and long payoff times, an advantage if you need more time but a downside if you’re hoping to pay off the loan quickly. You don’t need to be a Discover cardholder to qualify, but the lender will check your credit history and income, among other information. It also requires a minimum household income starting at $25,000.
Borrowers cannot use a Discover personal loan to pay off a secured loan, pay for college or consolidate high-interest debt from a Discover credit card. Late payments may also carry a $39 fee each time you miss your deadline.
Borrowers who pick Discover will get free monthly FICO credit score updates, which is helpful if you’re trying to rebuild or monitor your credit.
Who Is Discover Best For?
Discover personal loans are well-suited for people who want competitive rates with no hidden fees. It’s also for someone with a lower household income as Discover will consider applicants with annual salaries as low as $25,000.
U.S. Bank
Best for Bank Switchers
4.0
Interest Rate (APR)8.74% to 24.99%Term Options12 months to 60 months for non-customersLoan Size Offered$1k to $50k
US Bank Overview
If you’re looking for a new bank as well as a personal loan, you could consider switching to U.S. Bank. There are perks if you do: U.S. Bank offers faster approval and funding than many lenders, and the maximum loan amount and repayment terms are some of the best on the market. Its rates, starting at 8.74%, are also competitive. Based in Minneapolis, U.S. Bank has branches in 27 states and online banking nationwide.
Pros and Cons of U.S. Bank
Pros U.S. Bank customers may receive loan funds within hours No origination fees or prepayment penalties Interest rate discount if you sign up for automatic loan payments Cons Lower loan amounts for non-customers than for current U.S. Bank customers ($25,000 vs. $50,000) Shorter loan terms for non-customers than current customers (60 months vs. 84 months)
Why U.S. Bank Stands Out
If you’re already a U.S. Bank customer, the bank’s personal loans have some of the most attractive terms on the market. Customers with a credit score of 660 or greater may even get their funds within a few hours. This is a relatively low credit score requirement, ideal if you need funds quickly and don’t have a perfect credit history.
Who Is U.S. Bank Best For?
If you already have a U.S. Bank checking account, you’ll likely want to choose its personal loans, as well. Existing customers get the best rates and the fastest funding, often receiving their loan money within hours.
Wells Fargo
BEST FOR IN-PERSON SERVICE
4.0
Interest Rate (APR)7.49% to 24.99%Term Options12 months to 84 monthsLoan Size Offered$3k to $100k
Wells Fargo Overview
Headquartered in San Francisco, Wells Fargo is one of the largest banks in the country. Wells Fargo offers personal loans that provide a wide range of loan terms, but borrowers should be aware of the company’s past mismanagement across its student loan, mortgage, auto loan and deposit account lines of business. While settling the matter with federal regulators, Wells Fargo described the allegations as “behind” them.
Pros and Cons of Wells Fargo
Pros No minimum credit score: You can apply for a personal loan with any credit score Competitive interest rates: APR ranges from 7.49% to 24.99% No fees: No origination fees or prepayment penalties Large loan amounts: Higher maximum loan amount than other lenders, at $100,000 Fast approval: Most customers can find out if they’re approved on the same day Cons Company has a history of poor business practices, but a December 2022 release showed the company was on its way to improving past issues. “We have made significant progress over the last three years and are a different company today,” CEO Charlie Sharf said in a statement. Autopay discount only available if paying from a Wells Fargo account
Why Wells Fargo Stands Out
If you prefer to apply for a loan in person at a traditional bank, Wells Fargo has branches across the country. It also offers the highest maximum loan amount on our list at $100,000, more than double some other lenders.
Who Is Wells Fargo Best For?
Wells Fargo is for those who prefer to do business in person. With more than 7,000 locations in 38 states, you can bank in person throughout the U.S.
TD Bank
Best Hours
Interest Rate (APR)8.99% to 23.99%Term Options36 months to 60 monthsLoan Size Offered$2k to $50k
TD Bank Overview
Although TD Bank Group is based in Toronto, its U.S. banking arm offers plenty of banking products, including personal loans. While amounts are fairly generous, up to $50,000, TD Bank offers a relatively narrow window of repayment terms of 36 to 60 months. Its rates are competitive, with a range from 8.99% to 23.99%. Unfortunately, only borrowers in 15 states, primarily those on the East Coast, and Washington, DC., can apply for a TD Bank personal loan.
Pros and Cons of TD Bank
Pros No fees: No origination fees, application fees or prepayment penalty Generous maximum loan amount: Up to $50,000 Convenient hours: Open earlier and later than many banks, including Sundays Cons Limited repayment terms: Terms of 36 to 60 months. Many other lenders offer terms as low as 12 or 24 months. Slower funding: No same-day funding (next business day availability) No autopay discount: Most other lenders offer this Limited availability: Currently only available in 15 states
Why TD Bank Stands Out
T.D. Bank is designed for borrowers in the mid-Atlantic region, and its personal loans offer funding within one business day and preapproval without a hard credit check. Interest rates are comparable to other lenders, and borrowers don’t have to worry about prepayment penalties or origination fees. Borrowers can, however, incur a late fee, $10 or 5% of the minimum payment due, whichever is less.
Who Is TD Bank Best For?
If you live in one of the states where TD Bank offers services, you might enjoy their convenient hours. Its tagline is “America’s Most Convenient Bank” because they have longer hours than most banks and are even open on Sundays.
Citibank
Best Bank Discounts
4.1
Interest Rate (APR)11.49% to 20.49%Term Options12 months to 60 monthsLoan Size Offered$2k to $30k
Citibank Overview
Born and based in New York City, Citibank is a national lender that offers banking and lending products to customers across the country. Citibank doesn’t charge fees for its personal loans, but the starting interest rate is higher than other providers at 11.49%. The most you may borrow is $30,000, and you’re not allowed to spend the money on post-secondary education or business.
Pros and Cons of Citibank
Pros Discounts: 0.5% autopay discount and 0.25% existing customer discount No fees: No origination fees or prepayment penalties Availability: Available in all 50 states and Washington, DC Cons High interest rates: Rates start at 11.49%, which is higher than most lenders Usage limitations: Loans can’t be used to pay for post secondary education expenses or for business purposes On your own: Can’t add a co-borrower
Why Citibank Stands Out
Unlike some other lenders on this list, Citibank does not charge late fees, so if you’re prone to forgetting payments, you may be well matched with a Citibank loan. Further, if you sign up for automatic payments, you can qualify for an interest rate discount.
Who Is Citibank Best For?
Citibank is for the borrower with decent credit seeking discounts. While the starting interest rate is a bit higher than other lenders, the discounts can help offset that expense. Since it also doesn’t charge any fees, you won’t be hit with surprise costs with repayment.
PNC Bank
Best Credit Line Option
4.1
Interest Rate (APR)7.89% to 24.74%Term Options6 months to 60 monthsLoan Size Offered$1k to $35k
PNC Bank Overview
Headquartered in Pittsburgh, PNC Bank is a national bank that offers both personal loans and a personal line of credit. PNC’s personal line of credit option for borrowers can be more versatile than a standard personal loan, but its starting APR of 16.25% is higher than many personal loans. A line of credit allows you to borrow what you need, up to your approved maximum, whereas a personal loan is a lump sum. The PNC personal line of credit amount range is between $1,000 and $25,000, so if you need a larger amount, a personal loan might be a better bet.
Pros and Cons of PNC Bank
Pros No origination fees Interest rate discount for automatic payments May add co-borrowers Cons Maximum loan amount of $25,000 may be lower than other lenders based on your location Higher interest rates than many other banks Approval and funding can take several business days
Why PNC Bank Stands Out
While its maximum loan amount doesn’t match other major banks, PNC does offer a banking hardship program if you temporarily can’t afford your payments. This can help borrowers avoid late payments or going into default if they lose their job or have a medical emergency. Please note that loan amounts, terms and rates may vary by location.
Who Is PNC Best For?
PNC is for the borrower who is not sure how much they need upfront. For example, someone who is remodeling a kitchen and doesn’t yet know the full cost of the project. The line of credit makes it possible to only withdraw what you need and only pay interest on what you use.
*APR accurate as of September 5, 2024.
How to Get a Personal Loan From a Bank
The process for getting a personal loan from a bank isn’t complicated, but you do need to do some research and gather some information before you start.
1. Check your credit score
The first thing to do before applying for a bank loan is to get a copy of your credit report. You can do that for free once a year at annualcreditreport.com. This will be the first thing lenders look at to determine your eligibility. Check to see if your FICO score is on par with the banking requirements where you’re planning to apply.
2. Review your finances
Make sure you can afford the monthly payments on a personal loan. Evaluate your current debt and expenses against your current household income.
3. Research banks and other lenders
Compare various banks, credit unions and other online lenders to find the best personal loan options for you. Look into interest rates, requirements and customer reviews.
4. Get prequalified
Most lenders offer a prequalification form online that will allow you to check your eligibility without affecting your credit score. It will also typically give you estimated interest rates and monthly payments. Use this process for several banks to find the best rates and terms for you.
5. Gather your documents
You’ll be required to provide documentation to complete the loan process. This might include tax returns, bank statements, proof of address and proof of employment.
6. Submit your application
Once you’ve narrowed down your choices, submit your application. Be sure to use the most accurate and recent information you have available using your documentation.
7. Review your loan terms
Once you’ve received an offer for a loan, carefully review the terms and conditions. Make sure you understand monthly payments, interest rates and any associated fees.
8. Accept the loan offer
If you’re satisfied with the loan terms, accept the offer. Some banks may ask for additional documentation or verification before finalizing the agreement.
Remember, the specific steps and requirements may vary by bank, so it’s essential to carefully follow the instructions provided by the chosen lender.
Online Loans vs. Bank Loans
When choosing between an online loan and bank loan, the decision can come down to several important factors. To be clear, many traditional banks offer online options for obtaining loans. What we are comparing are online lenders that offer services exclusively online and traditional banks that offer both online and in-person services.
Considerations for Online Loans
- Convenience and speed: Online loans often provide a quick and convenient application process. While many banking institutions do this as well, some require you to finalize the process in a local branch. Online lenders allow you to go through the entire process online.
- Diverse lender options: The online lending space includes a wide range of lenders, giving you even more options to compare rates and terms.
- Flexible requirements: Online lenders may be more flexible in terms of credit and income requirements, making it more accessible for people with less than perfect credit.
Considerations for Bank Loans
- Reputation: Traditional banks typically have long-standing banking reputations that give a lot of people a sense of stability and reliability. This can be reassuring for many borrowers.
- In-person assistance: Banks offer the advantage of in-person service. Borrowers who prefer face-to-face interactions may find this reassuring.
Regardless of which type of loan you choose, it’s important to do your research to make sure you’re dealing with a reputable lender.
“Always check their ratings with the BBB and read previous customer reviews”
“You should also verify that the lender is licensed to lend in your state. Their website should also have a prominent and clear privacy policy that explains how they protect your data.”
Leslie H. Tayne of Tayne Law Group, P.C
When Should You Consider a Personal Loan?
You might want to consider a personal loan when you need cash that is relatively fast to obtain, flexible to use and doesn’t risk your home, car or other property as collateral. This may make personal loans a wiser choice than other credit products in a variety of circ*mstances, including those highlighted below.
Debt Consolidation
Consumers with credit card debt might save by choosing a personal loan, which usually has a lower interest rate. Use the personal loan to pay off your higher-interest credit card debt, leaving you with a single fixed payment — as long as you don’t begin racking up new credit card charges.
Unlike credit cards, personal loans typically have fixed interest rates, so monthly payments stay the same for the entire loan term. This can make budgeting much easier. If interest rates drop in the future, you may also be able to refinance with another personal loan.
Emergency Costs
A personal loan can help you pay for an emergency without having to turn to a high-interest payday loan or title loan. If your home needs extensive repairs, and you don’t qualify for a home equity loan or line of credit, a personal loan may be a good option.
However, personal loans do have their risks. They often have higher interest rates than home equity loans, and missing payments can have negative effects on your credit score. Discuss your options with a credit counselor or financial adviser before making a final decision.
Key Considerations for Choosing the Right Bank
Choosing the right personal loan company may save you thousands in interest and fees. When comparing lenders, the most important factor to consider is the APR, not just the interest rate. The APR includes the interest rate and any fees included in the loan, including origination fees.
When selecting a loan term, remember that a shorter term means you’ll repay the loan quickly, but your monthly bill will be higher. A longer payment term means a lower monthly payment, but you’ll end up paying more in interest over the life of the loan.
Here are some other questions to ask before applying:
- Can I get prequalified without a hard inquiry on my credit report?
- Does this lender charge banking fees, including origination fees, prepayment penalties or late fees?
- What can I use the personal loan for? Are there any restrictions?
- Are there any interest rate discounts I am eligible for?
- Do I need to be a current customer to qualify for a personal loan?
- Can I add a co-borrower to the loan?
- What are my options for contacting customer support?
- Are you an online lender, or do you have brick-and-mortar locations?
The Bottom Line
You can use our top picks as a starting point if you’re looking for a personal loan, but do your own research, too. Sometimes, a bank or credit union you already have an account with can offer you a better rate. If possible, get preapproved with at least three lenders so you can see what interest rates and term lengths you’re eligible for.
Before finalizing the loan, read through the terms and confirm that you understand the fees, monthly payment and total interest.
Frequently Asked Questions About Banks for Personal Loans
Each bank uses its own criteria to determine eligibility, and most will consider your credit score, income, total debt and other factors. The easiest bank to get a personal loan from depends on the bank’s internal policies and your financial situation. Pick a bank that fits your credit score and income criteria, and you’ll likely have an easier time being approved.
If you’re a U.S. Bank customer, you can often get same-day funding after being approved for a personal loan. And Discover, Wells Fargo and TD Bank each offer funding as soon as the next day once you apply and are accepted.
Each bank has its own credit score requirements. The minimum credit score often falls between 620 and 680 for the lenders on this list, according to our research. If you’re looking for the lowest rates, you will likely need a credit score in the 700s.
Qualifying for a personal loan from a bank depends on several factors. While it’s possible for those with poor or fair credit and low salaries to be approved, borrowers with excellent credit and stable employment history will likely receive faster approvals and lower rates. The application process will be similar for everyone, lender to lender, so gathering your recent pay stubs, tax returns, W-2s and 1099s, bank statements and proof of address and employment may help speed up the operation.
Methodology: Our System for Ranking the Best Personal Loans
Our team put together a comprehensive100-point rating systemto evaluate personal loan companies. We gathered data points from 28 of the most prominent lenders in the US and analyzed disclosures, licensing documents, sample loan agreements, marketing materials and websites. Our rating system takes into account four broad categories.
- Affordability(35%): How expensive each company’s loans are to pay back.
- Loan features(35%): The breadth of loan terms and features available to prospective customers.
- Customer experience(20%): Ease of application, prequalification and customer service interactions.
- Company reputation(10%): An exploration of lenders’ Better Business Bureau files, customer reviews and outstanding regulatory actions.
Our top-rated lenders may not be the best fit for all borrowers. To learn more,read ourfull personal loans methodology.
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someoneyou trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.
