Personal loans can be beneficial in several ways. They can help cover emergency costs, fund essential home repairs, contribute to weddings, finance holidays, and more. That said, in some cases, individuals may face challenges in securing a personal loan due to their creditworthiness. Fortunately, this is not the case anymore. Today, many banks grant personal loans to applicants with poor or fair credit scores, with the process of approval being straightforward.
1. U.S. Bank
This is one of the easiest banks to get a personal loan, as it offers users quick access to funds of up to $25,000 for their one-time financing needs. Potential customers can get a loan from the bank to cover a significant expense or consolidate debt.
With U.S Bank, customers can get unsecured personal loans.
- Existing customers – Between $1,000 and $50,000 with terms ranging between 12 and 84 months
- Non-customers – Between $1,000 and $25,000, with terms ranging between 12 and 60 months
If one is approved, one will have to pay the same monthly amount for a 12- or 24-month period at a fixed annual percentage rate (APR) that may be between 8.74 percent and 24.99 percent. The final loan amount and the rates may vary depending on the customer’s creditworthiness. Apart from this, those who agree to automatic payments are eligible for good discounts.
The U.S Bank consistently emerges as a frontrunner on lists evaluating the ease of personal loan approval. Their approach to lending primarily hinges on the customer’s credit score, allowing them to distinguish between applicants more effectively. So, naturally, those with a higher credit score can bag loans at lower interest rates and without collateral requirements.
In addition, this bank does not charge an origination fee or a prepayment penalty, so customers can repay the loan before the due date. Also, their loan application process is straightforward. Existing customers can apply for a loan directly online. That said, some may have to visit the branch if additional documentation or information is needed. If one clears all the documentation and the loan gets approved, the applicant will be granted the disbursement within a few hours.
2. SoFi Bank
This bank offers several discounts to its customers to decrease the total cost of the loans. The autopay feature allows customers to get a flat 0.25 rate discount. Also, SoFi offers an extra 0.125 percent discount to customers if they already have an account with the bank. Besides that, the bank also provides customers with a discount of 0.25 if they opt for a personal loan in order to combine all debts, while the rest is paid off by the bank to the creditors directly.
The interest charges for personal loans could be as high as between 8.99 and 29.49 percent. One can also consolidate their debts and make one fixed payment. Also, the percentage rates may be subject to change based on the customer’s credit score and other eligibility factors. While it is one of the easiest banks to get a personal loan, SoFi has a minimum credit score requirement of 680.
In addition, SoFi does not charge a loan fee. This can save customers a significant amount of money. Moreover, customers can enjoy the advantages of membership, like financial planning. SoFi offers loans starting from $5,000 to $100,000, and its lending terms range between two and seven years.
3. TD Bank
It offers quick funding on personal loans, which the bank refers to as TD Fit Loans. The loan amount typically ranges between $2,000 and $50,000 and is often granted on the same day. Also, the bank does not restrict its personal loan financing to TD Bank customers. So, anyone can apply for a personal loan online, in person, or via phone call. However, the rate discount functionality is only limited to existing TD Bank customers.
In addition to its advantages, the bank does not charge any prepayment or origination fee. That said, the bank levies a late payment fee of 5 percent of the minimum due or $10, whichever is lower. Moreover, the bank lets customers check their rates online without hampering their credit score. However, the loans from TD Bank are only accessible to residents of certain locations.
The bank does not specify the minimum credit score required to acquire a loan. On the other hand, a minimum score of 670 is preferred for excellent loan conditions. Applicants can look at APR between 9.99 percent and 23.99 percent.
4. Discover
For customers hoping to use their loan proceeds to consolidate debt, one of the easiest banks from where they can avail of loans is Discover. Their interest rates start from 7.99 percent, but depending on the customers’ credit score, they may go up to 24.99.
Customers seeking loans from Discover can borrow amounts ranging from $2,500 to $40,000. The loan terms offer flexibility, spanning 36 to 84 months, making it easy for borrowers to find a suitable repayment plan. Discover has relatively low-income requirements, which opens the door for many individuals to access these loans. Further, the usage restrictions on the loans are minimal, allowing borrowers to use the funds for various purposes. It’s also important to note the specific criteria for consolidating existing debt. Customers have the option to consolidate certain types of debt, including credit card debt, with the exception of balances on Discover cards and bills.
On the other hand, borrowers cannot consolidate secured loans, auto loans, and mortgages.
Also, Discover charges a late fee penalty of $39, and they do not accept co-applicants or co-signers. Their minimum credit score requirement is only 660, while the income requirement for an applicant is $25,000 annually.