Compare personal loans from banks | Pros and cons | How to apply

Personal loans from banks

Banks can offer safe and secure borrowing solutions with a familiar experience.

Finding the right personal loan can leave you feeling overwhelmed by the sheer number of lenders and loan types on the market. You want a loan that offers both safety and convenience, and you want the confidence that comes with knowing you’ve got the best rate and terms you’re eligible for.

A personal loan from a bank could offer you some of the features you need — like convenience of already having a banking relationship with them. Learn about the pros and cons and how you can compare your options.

How do bank loans differ from other loans?

Bank loans don’t differ much from personal loans through other lenders. The main advantage of a bank loan with your existing bank is that you could apply through your current online dashboard and manage your accounts in one place. Banks sometimes offer perks — like fee reductions — for bundling multiple financial products.

Your bank may be able to use your checking and saving account activity to verify your income and expenses. But you’ll likely be required to provide additional documentation to confirm your eligibility.

Reviews of personal loans from top banks

What types of loans can I get from a bank?

Banks offer a wide range of loan products to meet most borrowing needs. Here are just a few of the loan products you can expect to find at a bank:

  • Secured personal loan. Typically used to finance a car or other large purchase, secured loans use that new purchase as collateral. This security lessens the risk of default for the lender: If you can’t make repayments, they can simply take your newly purchased asset as payment. This decreased risk generally results in lower rates and fees, but you’re typically required to use the entire loan amount solely to finance the specified asset.
  • Unsecured personal loan. Unsecured loans offer more flexibility in use than a secured loan and don’t require you to use an asset as a guarantee. These loans increased the risk of default for a bank, typically resulting in higher rates and fees. Banks also usually impose stricter eligibility criteria for an unsecured loan.
  • Line of credit. With a line of credit, you are able to withdraw a set amount of funds as you need to. The main difference between a line of credit and a term loan is that you have ongoing access to a credit limit without a cutoff date. Usually, you do not pay any rates or fees on this service until you use it and the rates are only charged on the amount of money you withdraw rather than the total amount available.
  • Debt consolidation loan. If you have a few separate loans or credit accounts — anything from credit card debt to a car loan — you might want to consolidate this debt into one loan. With a debt consolidation loan, you can pay off your other loans and then have just one monthly payment. The benefit is that you can better manage your payments with only one loan to worry about. You could also reduce the interest and fees you’re paying across your separate loans.

Should I get a bank personal loan? The pros and cons

Pros

  • The convenience of keeping your loan and other financial products in one place.
  • Could offer more advanced and flexible features over other smaller lenders.
  • If you have a current banking relationship, you could expedite the approval process.

Cons

  • Interest rates and fees can be higher than with other lenders.
  • Strict eligibility criteria could limit people with limited credit history.

What else should I consider?

If you’re considering going with your current bank for a personal loan because it seems like the easiest way to access credit, consider comparing your options online as well. To ensure you get the best value, you can shop around to see what nonbank loans you might be eligible for and then choose a loan that best suits your needs.

Top online lenders to compare

Rates last updated April 22nd, 2018

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Unfortunately, none of the personal loan providers offer loans for that credit score. If you are in urgent need of a small loan, you might want to consider a short term loan.
Name Product Product Description Min. Credit Score Max. Loan Amount APR
Even Financial Personal Loans
Get connected to competitive loan offers instantly from top online consumer lenders.
580
$100,000
4.99%–35.99% (fixed)
Monevo Personal Loans
Quickly compare multiple online lenders with competitive rates depending on your credit score.
580
$100,000
3.09%–35.99% (fixed)
Upgrade Personal Loans*
Affordable loans with two simple repayment terms and no prepayment penalties.
620
$50,000
5.96%–35.97% (fixed)
Prosper
Borrow only what you need for debt consolidation, home improvements and more — with APRs based on overall creditworthiness.
640
$35,000
5.99%–35.99% (fixed)
LendingClub Personal Loan
A peer-to-peer lender offering fair rates based on your credit score.
660
$40,000
5.98%–35.89% (fixed)
CompareFirst Personal Loans
An easy-to-use loan connection service geared toward introducing first-time borrowers to affordable personal loans.
580
$50,000
2.99%–36% (fixed)
Best Egg Personal Loans
A prime lender with multiple repayment methods.
640
$35,000
5.99%–29.99% (fixed)
FreedomPlus Personal Loans
Consolidate debt and more with these low-interest loans. Cosigners welcome.
640
$35,000
4.99%–29.99% (fixed)
Laurel Road Personal Loans
Get a personal loan with no application or origination fees and a rate discount for autopay.
680
$45,000
5.5%–11.74% (fixed)
LendingPoint Personal Loans
Get a personal loan with reasonable rates even if you have a fair credit score in the 600s.
600
$25,000
15.49%–34.99% (fixed)
NetCredit Personal Loan
Check eligibility in minutes and get a personalized quote without affecting your credit score.
550
$10,000
34%–155% (fixed)
OneMain Financial Personal and Auto Loans
An established online and in-store lender with quick turnaround times. Poor credit is OK.
Varies
$25,000
typically around 18.49%* (fixed)

Compare up to 4 providers

How do I apply for a personal loan?

First, weigh your bank loan options against the online options in our comparison table above. If you’ve found an online lender you’re interested it, click Go to site for a secure transfer to that lender’s online application form.

The details you’re required to submit as part of the application process will depend on the lender you choose. However, lenders generally require personal and financial details that include your income, assets and debts.

To get a personal loan, you’ll also need to be at least 18 years old, a US citizen or permanent resident and have a good to excellent credit score. Most lenders also require you to provide proof of steady employment.

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US Personal Loans Offers

Important Information*
Even Financial Personal Loans

Get connected to competitive loan offers instantly from top online consumer lenders.

Prosper

Borrow only what you need for debt consolidation, home improvements and more — with APRs based on overall creditworthiness.

LendingClub Personal Loan

A peer-to-peer lender offering fair rates based on your credit score.

SoFi Personal Loan Fixed Rate (with Autopay)

Borrow up to $100,000 with a competitive APR and no fees.

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