TD Bank personal loans review: Great rates and quick funding, but loans are limited to East Coast residents
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Editor’s rating: 4 out of 5 stars
The bottom line: TD Bank offers excellent personal loans with a great rate range, no origination fees, and fast funding. However, only residents of 15 states and Washington, DC, are eligible to get a loan.
TD Bank personal loan amounts and interest rates
TD Bank offers unsecured personal loans, which don’t have to be backed by collateral. TD Bank Fit Loans range from $2,000 to $50,000, making the lender a great option if you need a little bit of cash to tide you over or a significant amount to cover a large expense. You’ll only be able to get a loan if you are a resident of the following states:
- Connecticut
- Delaware
- Florida
- Maine
- Maryland
- Massachusetts
- New Hampshire
- New Jersey
- New York
- North Carolina
- Pennsylvania
- Rhode Island
- South Carolina
- Virginia
- Vermont
- Washington, DC
You’ll get a rate from 6.99% to 19.99% with TD Bank, which is the same rate offered by competitor Marcus By Goldman Sachs. You may get a slightly lower minimum rate but a higher maximum rate with SoFi, which has a rate range of 7.99% – 22.73% (with all discounts). TD Bank’s loan term lengths range from three to five years.
Pros and cons of TD Bank personal loans
Pros
- Fast funding. You’re able to get your money in as little as one business day if approved by 4:30 p.m. ET Monday through Friday. It may take a little longer if the bank requests verification documents.
- No origination fees or prepayment penalties. TD Bank won’t charge you for paying off your loan early, and you won’t pay an origination fee — a percentage of your loan amount deducted from your overall loan proceeds.
- Competitive rates. TD Bank’s rates are in line with some of the top lenders on our list of best personal loans. Keep in mind that you’ll need good credit to qualify for the best rates.
- Wide range of loan amounts. The lender offers loans from $2,000 to $50,000.
- 24/7 customer service. TD Bank’s customer support line is available by phone 24 hours a day, seven days a week.
Cons
- Only available to borrowers in certain states. TD Bank only lends to borrowers in 15 states along the East Coast and in Washington, DC. If you live in a different region of the US, you won’t be eligible for a loan.
- Late fee. The fee is 5% of the minimum payment due or $10, whichever is less. While this isn’t a hefty fee compared to other competitors, it could still be a problem if you are late on your payments.
- No cosigned loans available. You aren’t able to apply with a cosigner, so if you have bad credit, you can’t enlist one to get a loan or land a lower rate.
Who is TD Bank best for?
TD Bank personal loans are good for borrowers who live on the East Coast and have strong enough credit to qualify for a top rate. The bank has 24/7 customer support over the phone, making it a great option for borrowers who place a high value on customer service. However, if you aren’t a resident of the states TD Bank operates in, you won’t be able to get a loan.
How TD Bank personal loans compare
TD Bank
Marcus High Yield Savings
SoFi
Editor’s rating
4
Editor’s rating
4.25
Editor’s rating
4.5
APR
6.99% to 19.99%
APR
6.99% to 19.99%
APR
7.99% – 22.73% (with all discounts)
Apply for a loan
Check rates
Check rates
While SoFi and Marcus are available to borrowers across the US, TD Bank only serves residents of 15 states and Washington, DC.
TD Bank has no origination fee or prepayment penalty, but it charges a small late fee. Marcus and SoFi don’t have any fees on their personal loans.
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A defining feature of Marcus’ loans is the company’s “on-time payment reward.” You can forgo a month of payments if you pay your loan on time and in full every month for one year, and you won’t accrue interest during that period. Your loan will then be extended by one month.
SoFi separates itself from the pack with its unemployment protection. The company offers forbearance for any personal loan borrower who loses their job during their loan repayment. Borrowers can apply for forbearance in three-month increments, for a total of up to 12 months.
Is TD Bank trustworthy?
TD Bank has an A- rating from the Better Business Bureau, a nonprofit organization focused on consumer protection and trust. The BBB determines the rating for a business by evaluating its responses to customer complaints, honesty in advertising, and truthfulness about business practices.
TD Bank has been involved in a recent controversy. In 2020, the bank paid out $122 million to settle allegations from the Consumer Finance Protection Bureau that it had illegally charged overdraft fees to customers. This controversy may cause you to consider a different lender.
Frequently asked questions
How hard is it to get a loan from TD Bank?
This depends on your financial profile and creditworthiness. Some borrowers may be immediately approved with a very low rate, while others may have to apply multiple times to qualify at all.
Does TD Bank’s Fit Loan check credit?
Yes, TD Bank does check credit before approving its Fit Loans, which is the bank’s name for its personal loans.
What credit score does TD Bank require?
TD Bank doesn’t disclose the minimum credit score you need to get a loan. However, you’re less likely to qualify with poor credit. TD Bank doesn’t allow you to apply with a cosigner, so if your credit isn’t in the best shape, you can’t use one to boost your chances of getting a loan or to qualify for a lower rate.
Ryan Wangman is a junior reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Educator in Personal Finance (CEPF).
In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership. He graduated from Northwestern University and has previously written for The Boston Globe.
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