Best Bank Loans of August 2022

Final Verdict

All of the bank loans that made our list have attractive features and some negative aspects as well. Some offer competitive interest rates and high maximum loan amounts such as $100,000. Others offer longer repayment terms up to 240 months and flexible repayment schedules.

Overall, we recommend checking out Wells Fargo for a bank loan. The company has a long history in the industry and offers a variety of loans with varying terms. It also provides additional banking services and in-branch assistance.

Guide to Choosing the Best Bank for Your Personal Loan

Are You in Need of a Personal Loan?

Are you facing a sudden financial emergency, or struggling to pay down multiple high-interest debts? Do you have a big (necessary) purchase coming up that you can’t afford to pay for all at once? A personal loan could help you meet the cost, giving you one or more years to pay back the money, with interest.

Unsecured personal loans tend to have lower interest rates than credit cards, making them a good option if you have an expense and need more than a few months to pay. If you have multiple credit cards with high balances, for example, a personal loan for debt consolidation could help you get a lower interest rate and the convenience of a single monthly payment.

Before applying for a loan, or any financial product, consider how the monthly payments will fit into your budget. Will you be able to repay it on schedule? If not, it could add to your debt and lead to a worse financial situation.

Compare Bank Loan Lenders

Consider the following when comparing bank loan lenders:

Loan amounts: Check the minimum and maximum loan amounts—some borrowers have relatively high maximums, but you shouldn’t borrow more money than you need. Find a lender with loan amounts that fit your purpose.
Interest rates: Lenders will likely offer you different interest rates, so take the time to pre-qualify with several companies to shop around for the lowest rate you can get. The lower your APR, the less you’ll pay over the life of the loan.
Fees: Loans may come with origination, pre-payment, and late fees, among others. Be aware of any costs you’ll be expected to pay before signing the loan agreement.
Monthly payment: Loans come with fixed monthly payments, which you may be able to adjust as you select different repayment periods. Be sure your payment fits into your budget. Most lenders don’t charge prepayment fees, so there’s usually no harm in paying more than your regular payment each month.
Repayment periods: Will you have long enough to repay the loan? Falling behind on payments can damage your credit and finances in general.
Funding time: If you need the money tomorrow and the funding time is seven days, the loan won’t work for you. Find out how long the loan takes to fund and how you will receive the funds.

Apply for a Bank Loan

After you’ve shopped around for quotes from different lenders and found the right offer for you, you can complete the application process. If approved, you can sign the loan agreement. You’ll need to provide some personal information and bank tài khoản details; for debt consolidation loans, you may be able to provide creditor information for the lender to send the funds.

Some companies will disburse loan funds as soon as the same or the next day, while others may take several business days. You’ll typically be given an online dashboard from which you can view your payoff timeline, make payments, and otherwise manage your loan.

Frequently Asked Questions

What Do I Need to Qualify for a Personal Bank Loan?

Different banks have different requirements for personal loans. Some require better credit and relatively higher income, while others allow lower credit scores and smaller incomes. Many banks offer a range of interest rates and fees to offer borrowers with different credit levels and financial situations. The better your credit and overall finances, the better your offers will be; if you have poor credit you may qualify in some cases, but you’ll likely get higher APRs and fees.

If you’re wondering if you’ll qualify for a bank loan it’s wise to check your pre-qualification status with a variety of lenders. You can do this without hurting your credit or actually applying. You’ll need to provide some personal information to pre-qualify, including your name, address, and Social Security number; full applications will usually require more information.

Do All Banks Offer Personal Loans?

No, not all banks offer personal loans. Bank of America, one of the biggest financial institutions in the country, doesn’t provide them, and neither do several others. Most personal loans are unsecured, meaning they are not backed up by an asset that the lender can take if you default, and some banks don’t want the risk. Others just don’t want to deal with the expense of lending and servicing relatively small amounts.

Other large banks that do not offer unsecured personal loans are Capital One and Chase.

Do I Need to Be an Existing Bank Client to Get a Loan?

You typically don’t need to be an existing client to get a loan from a bank, but some banks do have this as a requirement. It’s best to check with the specific lender to see if this is necessary.

Some banks allow non-customers to apply, but will limit certain services, like pre-qualification, to clients. In other cases only current customers can apply online, and other prospective borrowers must apply at a branch location.

What Are Alternatives to Bank Loans?

While many banks offer personal loans, there are some limitations. Some require memberships, or have too-strict qualification standards. In some cases the minimum loan amount may be higher than what you’re looking for. Consider the following types of lenders along with typical banks:

Online lenders: Much like traditional banks, many online lenders give you quick and easy access to personal loans. You can usually see if you pre-qualify before applying, which doesn’t hurt your credit. After approval, you can usually get funds fairly quickly—sometimes within a day. The best online lenders offer little to no fees, flexible repayment terms, and competitive APRs.
Credit Unions: If you have less-than-stellar credit, you may want to reach out to credit unions near you for personal loans. While many require a member tài khoản first, they offer competitive APRs and low minimum borrow amounts. This is helpful if you don’t need to borrow too much to cover an emergency.
Credit card balance transfers: If you want to consolidate debt, a credit card balance transfer may be helpful, especially if you already have an available card. Many credit cards even offer 0% APR for a limited period of time, which may be long enough to help you catch up on payments.

How We Chose the Best Bank Loans

Our team evaluated 38 lenders and collected 1,520 data points before selecting our top choices. We weighed more than 20 criteria and gave a higher weight to those with a more significant impact to potential borrowers.

The top picks were selected based on factors like membership requirements (weighted 15%), average fixed APR (weighted 15%), and average origination fees (weighted 10%).

We also took into tài khoản the flexibility of repayment terms, helpful features like prequalification, and whether a co-signer or joint applications are permitted to ensure borrowers get the best possible experience. For further information about our selection criteria and process, our complete methodology is available.

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