6 Best Banks for Getting a Personal Loan in November

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Personal loans allow you to borrow a large sum of money all at once, at a fixed interest rate that keeps your payments consistent and predictable. But some banks and some personal loans are better than others. Take a look below to find the best banks for personal loans.

Best Banks for Personal Loans

Because personal loans are unsecured loans, they do not require any collateral to access funds, which makes them a more favorable loan option than a home equity loan or line of credit if you need to borrow some major cash. However, because there is no collateral, personal loan interest rates are often higher, and getting approved relies solely on your creditworthiness.

But 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.

Citi

• APR: 11.49% – 20.49%
• 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: Yes, 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: $39
• 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: 8.87% – 17.82%
• Loan amount: $3,500 to $50,000
• Terms: 24 – 60 months
• Processing speed: Same-day funding may be available.
• Autopay discount: No
• Late fees: Yes
• 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: 7.49% – 24.99%
• 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.

Is a Personal Loan the Right Choice for You?

Whether a personal loan makes sense for you depends on how you want to use it. It’s a good choice for consolidating high-interest credit-card debt or financing an emergency expense such as medical treatment or major home or auto repair. If you have good or excellent credit, you could get a much lower rate than you would with a credit card, and because it’s unsecured, a personal loan doesn’t put your home at risk like a home equity loan does.

While you can use a personal loan for nearly anything you want, lenders do impose a few restrictions. They don’t allow personal loans to be used for the following:

• Educational expenses and student loan repayment
• Business expenses
• Consolidating other debt from the same lender
• Down payment on a home you plan to finance

Getting a personal loan to bankroll major life events, whether they’re blissful occasions such as a dream wedding or an emergency, isn’t uncommon. But before you go this route, carefully consider the entire picture.

The kind of fees typically charged for loans and the cumulative interest over the repayment term can cost thousands more than the amount you initially borrowed. It’s important to weigh these factors against the advantages of taking out a loan — in many cases, it may be better to save up rather than borrow.

If your motivation for taking out a loan is related to expenses such as home renovation projects aimed at boosting your home’s value and curb appeal, an unsecured personal line of credit might be a smarter choice.

A personal line of credit shares many of the benefits of a personal loan with the added flexibility of allowing you to borrow only what you need at any given moment. You can renew your credit line just by paying down your outstanding balance.

The bottom line is that it’s not just about acquiring funds but managing your money and your loan in a way that aligns with your financial obligations and goals.

How To Choose the Right Bank for Your Personal Loan

Whether you’re thinking about renovating your dated bathroom, planning to grow your dream business from the seed of an idea, staring down an unexpected medical challenge, or simply needing a fresh lease on life, having access to extra funds can make all the difference. Here’s what you should know.

Bank Loans vs. Online Loans

The traditional method of getting a personal loan is to walk into a bank, fill out paperwork and await approval from the bank’s loan officers. However, thanks to the continuing digital revolution, online lenders have become an increasingly popular choice for people in search of competitive rates and convenience.

Banks often have stricter approval criteria and require excellent credit. Though it can be harder to get approved for a personal loan from an established brick-and-mortar bank and while they might take more time in processing the loan, they offer face-to-face customer service that most online lenders can’t match.

Online lenders, on the other hand, are a quicker alternative. With a lean online-only model, they’re able to cut overhead costs and pass the savings onto you in the form of lower interest rates. They’re also more likely to approve applicants with less-than-stellar credit.

Weighing the Pros and Cons

As with any financial decision, choosing a personal loan involves weighing the pros and cons. The primary advantages of bank loans include in-person customer service, the potential for longer repayment terms and the possibility of establishing a relationship with the bank.

The downsides of bank loans primarily relate to their stricter approval criteria, including tougher credit requirements and proof of a stable income. Traditional lenders may also have higher interest rates compared to online lenders.

On the flip side, the benefits of online loans include a simpler application process, faster loan disbursal times, and more lenient approval criteria for those with poor or limited credit histories. There are drawbacks to be aware of, such as the potential for fraud, the lack of in-person contact, generally poorer customer service and high interest rates for those with bad credit.

No matter where you choose to go for your loan, you should carefully consider each borrowing opportunity on its own merits, as well. If you opt for one of the established, brick-and-mortar banks listed above, you’ll want to carefully examine the different interest rates, how long you’ll have to repay the loan, and any fees, limitations or restrictions.

How To Get Approved for a Personal Loan

Once you’ve decided on a bank 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.

Final Take: 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 financial future.

Kristopher Kane, Sarah Sharkey and Taylor Bell contributed to the reporting for this article.

Rates are current as of Nov. 1, 2024. Information is subject to change.

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