• Mon. Mar 4th, 2024

U.S. Bank Personal Loans Review in 2024

ByTheMost

Feb 4, 2024
U.S. Bank Personal Loans Review in 2024U.S. Bank Personal Loans Review in 2024

U.S. Bank Personal Loans Review in 2024

U.S. Bank excels for its existing customers, offering affordable rates, larger loan limits of up to $50,000, and flexible loan durations ranging from 12 to 84 months. When combined with no origination costs and no penalties for early repayment, it’s simple to see why it’s a popular choice among many. The bank’s same-day funding is another perk.

However, there is a catch for non-customers: the conditions are more stringent if you do not already have an account with US Bank. These include a higher minimum credit score of 720, a loan limit of $25,000, and loan terms of only 60 months. So, if you don’t already bank with them and aren’t eager to move, it’s worth looking into other possibilities. the conditions are more stringent if you do not already have an account with US Bank

U.S. Bank’s loan rates are competitive overall, with rates as low as 8.24% as of this writing. However, if you have good credit and believe you qualify for the lowest rate, lenders such as PenFed, LightStream, and Discover have annual percentage rates (APRs) beginning at 7.99%, so you may be able to save money by shopping around.

Overview of U.S. Bank Personal Loans
Loan Details U.S. Bank Customer Non-U.S. Bank Customer
Loan Range $1,000 to $50,000 $1,000 to $25,000
Loan Terms 12 to 84 months 12 to 60 months credit
t Score Requirement 660+ 720+
Loan Origination Fees None None
Early Repayment Penalties None None

Pros

Competitive interest rates allow you to save money over the life of your loan.
There are no origination costs or prepayment penalties.
If you have a great credit score and are a U.S. Bank customer, you can obtain loan money within hours.
Sign up for automatic payments from your bank account and receive a 0.5% interest rate savings.
U.S. Bank provides both personal loans and lines of credit based on your needs.

 Cons

US Bank requires a credit score of 660 or above.
The maximum loan is set at $25,000 for non-customers and $50,000 for clients.
Specific lending programs are not available in all states.
Variable rates on lines of credit can fluctuate, affecting borrowing costs.
To take advantage of the best rates and terms, you must be an existing bank customer.

Types of Personal Loans Offered by U.S. Bank

U.S. Bank provides personal loans for a variety of objectives, including vacations, medical expenses, and debt consolidation.

In addition to its basic personal loan product, U.S. Bank provides other loan options for selected customers:

  • Home Improvement Personal Loan: Qualified checking customers can receive up to $50,000, while non-customers can get $25,000.
  • U.S. Bank Simple Loan: Existing U.S. Bank checking account clients can borrow $100 to $1,000 and receive the funds in minutes. The loan is a short-term emergency loan that is paid back in three monthly payments. Rather than an APR, the loan charges a fee of $6 for every $100 borrowed.

Who Are U.S. Bank Personal Loans Best For?

U.S. Bank’s loans are ideal for existing customers or those looking to move banks. If you fall into this category and have a credit score of at least 660, you’ll profit the most from a U.S. Bank personal loan.

On the other hand, U.S. Bank’s loans may not be the ideal option for people with credit scores below 660 (or 720 if you’re not a customer), as they may face more difficult approval processes or less favorable terms.

Also, if you need to borrow more than $50,000, you may need to look into other lenders, as U.S. Bank’s upper limit is $50,000 for existing clients and $25,000 for non-customers.

How To Get a U.S. Bank Personal Loan

If you’re thinking about getting a U.S. Bank personal loan, here’s what to expect during the application and funding process.

  • Application Process
  • Approval and Funding

1. Application Process

To begin, go to U.S. Bank’s website and use the platform to verify your rates, apply, and become prequalified. This will necessitate providing some personal information, such as your name, contact information, annual income, and Social Security number. During this stage, U.S. Bank will perform a soft credit check that will not influence your credit score.

In addition, you must select the loan amount and objective, such as debt consolidation, auto purchase, house remodeling, or another reason. Once you’ve provided this information and reviewed your personalized loan rates, you may move on to the formal application.

The length of the application procedure varies, but for U.S. Bank customers with high credit ratings, approval and funding can be received within hours. Non-customers may encounter a somewhat longer procedure, and approval durations might be influenced by factors such as application completeness and information verification.

2. Approval and Funding

After you complete your formal application, US Bank will analyze your credit history, financial details, and loan purpose. If approved, you will receive a loan offer that includes the conditions, interest rate, and repayment plan.

To speed up the approval process, give correct and comprehensive information in your application. Also, consider signing up for autopay to take advantage of the 0.5% interest rate savings, which might reduce your monthly payments.

Once you accept the loan offer, U.S. Bank will deposit the cash into your account. This can be a U.S. Bank checking account, savings account, or any other account of your choosing.

U.S. Bank Personal Loans Reviews

A common topic in US Bank evaluations is the bank’s great customer service and user-friendly rules. Despite some poor evaluations, many clients value the bank’s accessibility, both online and offline. Its A- rating from the Better Business Bureau (BBB) demonstrates the bank’s dedication to client satisfaction and dependability.

Here are some specific reviews by customers:

  • “My account with them has always been excellent. Not a problem, and I would suggest them to anyone. Wonderful bank.

    — Teresa B., Mayflower, Ark., Sept. 17, 2023, Best Company

  • “US Bank is a world-class bank that provides competitive rates, reasonable fees, and convenient access to my funds. They provide superb lending solutions and assist you in converting savings accounts into reliable financial vehicles. They have financial professionals available to assist.”

— Eddie R., Ogden, Utah, Oct.17, 2020, Best Company

  • “US BANK GOES OUT OF ITS WAY TO BE ACCESSIBLE TO ALL OF ITS CUSTOMERS. THEY HAVE A VERY COURTEOUS SERVICE STAFF, and there is always online help available. They have extremely customer-friendly practices. “I’ve been using this bank for over 25 years!”

— Carol, Batavia, Ohio, June 14, 2021, ConsumerAffairs

  • “The US Bank app does not always work. When I phoned about one of the concerns, a customer support representative advised me to simply remove and reinstall it. Knowing that customer support departments can provide messaging as ordered by the corporate office, I wonder if the corporate office is aware of the difficulties and has no intention of resolving them, expecting its customers to run crippled, if you will.”

— Rhett, Manti, Utah, July 16, 2022, ConsumerAffairs

In response to the last comment, a U.S. Bank official stated that the customer’s experience could have occurred during a planned outage for app updates.

“At U.S. Bank, we are committed to great client experiences and take app reliability and performance very seriously,” the spokesman stated. “We are proud of our app’s reliability; there are no known foundational concerns with it or the website. While we don’t have enough information to investigate this particular client experience, it’s possible that they encountered the problem during a planned outage.”

U.S. Bank Personal Loan Details

1. Loan Amounts and Terms

  • Loan amounts. If you already have a U.S. Bank checking account, you can borrow between $1,000 and $50,000. If you don’t have a checking account at U.S. Bank, you can only borrow up to $25,000. Customers in California and Nevada are similarly limited to borrowing $25,000, even if they are US Bank customers.
  • Loan terms. Noncustomers’ terms range from 12 to 60 months, whereas customers’ terms can be up to 84 months long.

2. Personal Loan Costs

  • APR. 8.24% to 24.99%, including a 0.50% reduction for borrowers on autopay.
  • Origination fees. U.S. Bank does not charge origination fees. Many other personal loan providers charge an origination fee, which can total hundreds of dollars.
  • Late fees. If you are more than five days late, you will be charged a $10 fee.
  • Prepayment penalty fees. U.S. Bank has no prepayment penalty. If you want to pay off your loan early, there will be no additional expenses.

3. Perks and Features

In addition to the autopay discounts, US Bank allows you to finish your loan online. If you are already a U.S. Bank customer, you can complete the loan procedure entirely online. If you are not a customer, you must visit a U.S. Bank branch to finalize the loan.

Eligibility Requirements for U.S. Bank Personal Loans

Applicants for a US Bank personal loan must meet certain qualifying standards. Understanding these standards might help you assess whether you’re eligible for a loan.

  • Credit Score and Financial History
  • Income and Employment

1. Credit Score and Financial History

Your credit score is an important factor in evaluating whether you qualify for a U.S. Bank personal loan. Typically, US Bank wants a FICO score of 660 or above for acceptance. FICO ratings are a typical method for determining your likelihood of repaying a loan.

A higher credit score, preferably 720 or above, can increase your chances of not just meeting the minimum qualifying standards, but also receiving the best U.S. Bank personal loan rates.

Your credit history, which includes factors like payment history, credit utilization, and previous delinquencies, is also considered in the approval process. If you have a strong financial history that demonstrates your ability to appropriately manage credit cards and other debts, it can improve your eligibility and strengthen your application.

2. Income and Employment

In addition to your credit history, U.S. Bank will consider your income and work status while considering your loan application. While exact income requirements are not listed on its website, having a consistent source of income is typically required for personal loans. Applicants who have permanent work or a consistent source of income, such as investments or retirement money, are more likely to meet these requirements.

Do you qualify?

U.S. Bank discloses just the following loan eligibility requirements:

  • Non-customers must have a FICO score of 720 or higher.
  • Customers at U.S. Bank must have a FICO score of at least 660.

Most lenders, however, require a debt-to-income (DTI) ratio of 36 percent or below and a stable source of income to be authorized. Furthermore, U.S. Bank’s loans are not available in all states, so you should check to see if they are available in your state before applying.

What U.S. Bank doesn’t allow the funds to be used for

U.S. Bank does not reveal any restrictions on how borrowers can spend their personal loan proceeds. However, most lenders will not let you utilize personal loans to pay for tuition, fees, gambling, or criminal activities.

U.S. Bank Personal Loans Usage Rules

U.S. Bank allows you a lot of flexibility when it comes to how you use your loans. It does not have specific regulations governing what you can and cannot do with the money. So, whether you want to fix up your house, pay for a special wedding, relocate, or cover an unforeseen medical expenditure, you can use a U.S. Bank personal loan to do so.

Just remember that a personal loan is a type of debt. And because it’s unsecured, which means there’s no collateral to back it up, you can have to pay more interest. Always borrow properly and spend the money for required purchases. This prevents you from becoming locked in a debt cycle.

U.S. Bank Personal Loans Fees and Penalties

Before taking out a personal loan, make sure you understand any fees or penalties that may apply.

  • Loan Origination Fees
  • Early Repayment Penalties

1. Loan Origination Fees

U.S. Bank is on your side when it comes to origination fees, as it does not charge any. Origination fees are often one-time charges for setting up your loan. Because U.S. Bank does not charge these fees, you do not have to worry about them reducing the amount you receive or raising the overall cost of your loan.

When evaluating personal loan offers, always consider the origination fees. These fees can dramatically raise a loan’s total cost.

2. Early Repayment Penalties

More excellent news awaits you if you choose to pay off your loan with U.S. Bank ahead of time. It does not impose any early repayment penalties, which are fees charged by some lenders to compensate for lost interest payments.

Understanding prepayment penalties is critical, as they can influence your decision to repay a loan early. With U.S. Bank, you can make extra payments or pay off the entire balance without incurring any fees.

Features and additional perks

Borrowers who sign up for automated payments at US Bank receive a 0.50 rate discount. The discount applies to both customers and non-customers.

Fees and penalties

U.S. Bank does not impose origination or application fees, which can drastically cut borrowing costs, although many lenders do. The bank also does not charge a prepayment penalty. That means you can repay your loan early without incurring a penalty cost.

However, if you miss your due date, U.S. Bank charges a late payment fee, the specific amount of which is not published.

How U.S. Bank Compares to Other Lenders

Wondering how U.S. Bank stacks up against other popular personal loan providers such as LightStream, SoFi, and PenFed? Let’s have a closer look.

  • U.S. Bank vs. LightStream
  • U.S. Bank vs. SoFi
  • U.S. Bank vs. PenFed

1. U.S. Bank vs. LightStream

U.S. Bank makes loans ranging from $1,000 to $50,000, with the maximum limit for non-customers set at $25,000. LightStream, on the other hand, provides substantially greater credit restrictions, which max out at $100,000.

Both lenders target applicants with solid credit histories. U.S. Bank’s suggested minimum FICO Score for non-customers is 720, whereas LightStream favors applicants with good to exceptional credit, which is often a score of 700 or higher. Neither institution charges an origination or early repayment fee.

2. U.S. Bank vs. SoFi

SoFi offers personal loans up to $100,000, which is quadruple U.S. Bank’s maximum for clients and four times the maximum for non-customers.

Non-customers must have a FICO score of at least 720 and loan amounts are limited to $25,000. In contrast, SoFi does not have a hard credit score cutoff because it examines the entire borrower profile. Both provide competitive pricing but ultimately serve slightly different audiences.

3. U.S. Bank vs. PenFed

U.S. Bank and PenFed offer a variety of loan amounts. U.S. Bank gives current customers $1,000 to $50,000, whereas PenFed provides $600 to $50,000.

While US Bank has a minimum credit score for borrowers, PenFed does not. If you don’t have a bank account in the United States and your credit score is less than 720, you may be able to receive a loan more easily.

To apply for a loan, you do not need to be a PenFed member; nevertheless, you must join before receiving funds. Joining PenFed is simple. All you need to do is open a savings account and deposit $5.

How We Rated U.S. Bank Personal Loans

Our experts developed a detailed 100-point rating system to assess U.S. Bank and other personal loan firms based on the criteria that are most important to you, the potential borrower. We then collected dozens of data points from across the industry, including disclaimers, license paperwork, sample loan agreements, marketing materials, and websites for more than two dozen of the most well-known personal lending organizations in the United States.

Our scoring system includes four basic categories. Here’s a brief description of each.

  • Affordability (35%): We calculate how expensive each company’s loans are to repay, taking into account both interest rates and fees. The lenders with the greatest credit scores will have low minimum and maximum annual percentage rates (APRs), as well as minimal or no origination costs.
  • Loan features (35%): This category measures the variety of loan conditions available to prospective consumers. The most points are awarded to lenders who offer a wide selection of loan lengths, low minimum loans, high maximum loans, and quick funding.
  • Customer experience (20%): This category score is calculated by reviewing each company’s application, prequalification, and customer service rules and processes. The greatest companies will offer straightforward web applications and many options for clients to solve their concerns.
  • Company reputation (10%): Our team looks at each company’s Better Business Bureau file, customer feedback, and any ongoing regulatory proceedings. Companies with an A+ rating from the Better Business Bureau, a track record of responding to consumer complaints, and no active regulatory orders will receive the highest points.
Affordability 34/35
Loan features 28/35
Customer experience 12/20
Company reputation 5/10
Total 79/100

This ranking system is meant to provide readers with a detailed overview of each personal loan firm. However, our top-rated lenders may not be the best option for all borrowers. To learn more, please read our whole personal loan methodology.

U.S. Bank’s relatively poor firm reputation score stems from multiple recent court settlements with federal agencies. The Consumer Financial Protection Bureau penalized the bank $37.5 million in 2022 for allegedly incentivizing employees to open phony accounts for their customers. According to media sources, the fine was connected to “legacy sales practices involving a small percentage of accounts,” according to the bank’s statement at the time.

In December 2023, the Consumer Financial Protection Bureau ordered U.S. Bank to pay around $21 million to resolve charges that the bank froze the accounts of some unemployment benefit recipients during the COVID-19 epidemic. In a statement, U.S. Bank told media outlets that it had improved its jobless benefits system and that account freezes had avoided around $375 million in fraud.

How to contact U.S. Bank

Borrowers can reach U.S. Bank by visiting a local branch or using the bank’s mobile app or online portal. The bank also provides 24-hour customer service over the phone at 800-872-2657 for domestic borrowers and 503-401-9991 for international customers.

How to apply for a personal loan with U.S. Bank

U.S. Bank’s loan application can be done online, and you will normally receive a decision nearly immediately. To apply, complete the steps listed below.

  • Get Prequalified
  • Fill out the application
  • Close the loan and begin repayment

1. Get Prequalified

Getting pre-qualified is the first step in applying for a personal loan from a US bank. If you are an existing client, you can either log in to your U.S. Bank account and import your information or continue as a guest.

Some of the information you’ll need to submit are:

  • Please provide your full name and birth date.
  • The desired loan amount.
  • The purpose of the loan.
  • Your annual income.

Your monthly housing payment (whether you rent or own the property).
Once this information has been entered, you must consent to the bank’s credit check before proceeding. This is a mild credit check, so it will not affect your credit.

2. Fill out the application

If you’re prequalified, you’ll be prompted to formally apply for the loan, which will include a rigorous credit check. This stage will also require you to enter your social security number and home address. If you’re asking for a joint loan, you’ll need to include your co-borrower’s details in this step.

According to the bank, you should receive a decision in less than a minute after submitting your application.

3. Close the loan and begin repayment

If you are authorized, you may sign and close your loan online. Funds will be provided to you within one to four days of closing, after which you will begin making payments on your designated due date.

Where Does U.S. Bank Operate?

U.S. Bank has branches in 26 states and is headquartered in Minneapolis.

What Credit Score Do You Need to Get a Personal Loan from U.S. Bank?

If you already have a bank account in the United States, you must have a credit score of at least 660. If you are not an existing customer, you need to have a score of at least 720.

How Much Money Can You Borrow From U.S. Bank?

Existing clients may borrow up to $50,000, while new customers are limited to $25,000.

How Long Does It Take to Get Approved for a Loan From U.S. Bank?

According to U.S. Bank, many applicants get accepted in less than a minute. Some applications, especially those from non-U.S. Bank customers, may take longer.

Does U.S. Bank Have Zelle?

Yes, U.S. Bank customers can use Zelle to send money to friends and family, and your funds are protected by the bank’s digital security measures.

Methodology

We evaluated U.S. Bank based on 16 data points covering loan information, loan fees, eligibility and accessibility, client experience, and the application procedure. We scored U.S. Bank using the weights allocated to each category:

  • Loan cost: 35%
  • Loan details: 20%
  • Eligibility and accessibility: 20%
  • Customer experience: 15%
  • Application process: 10%

We analyzed numerous variables within each category, such as possible loan amounts, payback terms, APR ranges, and fees. We also considered credit score restrictions, whether the lender accepts cosigners or joint applications, and the institution’s geographic availability. Finally, we assessed U.S. Bank’s support resources, borrower benefits, and features that make the borrowing process easier, including prequalification alternatives and mobile applications.

Our Loans Rating & Review Methodology explains how Forbes Advisor ranks lenders and our editorial process.

By TheMost

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