If you’re looking to get a bank personal loan, you need to get your paperwork in order first. Before applying, check your credit score and pull your credit report through . This will give you an idea of whether or not you’ll qualify for a bank personal loan, as well as how low your interest payments will be.
Most banks require good to excellent credit from personal loan applicants. So you might need a higher credit score than you would for, say, a secured loan (one that does require collateral, like an auto loan or mortgage) or even a credit card. Still, if you have a solid repayment history, avoid maxing out your credit cards, and can prove your creditworthiness, there’s a strong chance you’ll qualify for a bank personal loan.
If you’re interested in a personal loan from a bank you don’t have a relationship with, make sure that being a client isn’t a requirement before applying. Not all banks request personal loan borrowers be account holders, but some do-or they offer better terms to current clients. Also, you might need to open a checking or savings account there to take advantage of auto-pay discounts on the loan (the payments have to come from an in-house account).
While many banks offer personal loans, there are some limitations. As noted above, many require you to have an account with the bank before taking advantage of a personal loan. Others might take longer to get you your loan. You might want to explore the below alternatives to banks for personal loans.
The best banks for personal loans vary in your needs, but many have competitive offers for a variety of different potential borrowers. Before you choose to take out a personal loan with a bank, make sure you review all your options, including alternatives, first. Depending on your needs and how quickly you need money, you may find some banks or lenders are more friendly than others. If it takes you days or weeks to apply for a loan and get your money, that won’t help in a time-sensitive situation.
We researched and reviewed more than 20 different lenders that offer bank loans before narrowing it down to our top choices. We considered factors such as starting interest rates, borrower requirements, and if the bank has online banking and physical branches. It was important for us to recommend bank loans that come from reputable institutions with positive overall ratings and years in the industry.