Axos Bank personal loan review: Same-day funding and a low maximum APR

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In a Nutshell

Axos Bank offers personal loans that can be deposited into your account the same day your application is approved, with a maximum APR lower than many of its competitors. But you’ll need to have minimum credit scores of 700.
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Pros

  • Online prequalification
  • Same-day funding possible
  • Personal loan refinancing available

Cons

  • High credit score requirement
  • Origination fee on all loans

What you need to know about an Axos Bank personal loan

Axos Bank is a full-service online financial institution founded in 2000 and based in San Diego. In addition to personal loans, the bank offers a wide range of personal and business financial services, including checking accounts, mortgages, investment accounts, car loans, small business banking and commercial lending.

Axos Bank gives customers access to ATMs across the country, many with no surcharge. Personal loans are only offered online, though you can reach the company by phone or email with questions.

Online prequalification

Axos Bank makes it relatively easy to prequalify for a loan and see what rates and terms you may be offered on a personal loan. The company says the process takes about three minutes. You’ll see potential loan offers quickly based on the information you provide about your income, employment and credit — though you’ll need to back this up with documents once you decide to move forward with completing a loan application.

Same-day funding possible

Personal loans from Axos may be deposited into your bank account the same day you accept the loan terms. The company says it may take up to two business days to receive your money though, and you should take into account your bank’s policies as well.

Origination fee required on all loans

Axos charges an origination fee of between 1% and 2% of your loan amount, based on your credit. This amount is deducted from your loan funds. You may also face insufficient funds fees if you don’t have enough money in your bank account to cover a payment, and late fees if payments aren’t on time.

A closer look at an Axos Bank personal loan

  • High minimum credit score requirement — To qualify for an Axos Bank personal loan, you’ll need credit scores of at least 700. That’s higher than some other lenders require.
  • Relatively high minimum APR — Personal loans from Axos Bank have an APR ranging from 7.15% to 17.99%. While this maximum APR is lower than some lenders, you can find a lower minimum APR elsewhere.
  • Midrange loan amounts — Axos Bank loans can range from $5,000 to $50,000. That’s a higher minimum than you’ll find at some lenders, as well as a lower maximum.
  • Flexible loan terms — You may be able to choose a loan term between three years and six years.
  • Loan refinancing available — Once you’ve had your Axos Bank personal loan for six months, you may be able to refinance it at a lower interest rate or longer term — just keep in mind that refinancing means another credit check and a new origination fee.
  • No co-signers — Axos Bank does not allow co-signed personal loans.
  • Available nationwide — Axos Bank issues personal loans in all 50 states.

Who is an Axos Bank loan good for?

Axos Bank may be a good option for somebody with credit scores around 700, the bank’s minimum for personal loan borrowers. Because Axos has a maximum APR lower than many competitors, you’re more likely to receive a better rate here than elsewhere if you have good credit. If you’ve got excellent credit though, you may want to research other lenders with a lower minimum APR.

How to apply with Axos Bank

The application for a personal loan from Axos Bank is entirely online. Before applying, you’ll want to make sure you meet the company’s requirements for a personal loan. You must have the following:

  • Credit scores of at least 700
  • Income you can verify
  • At least four years of credit history

When you’re ready to move forward, you’ll start by prequalifying, using a relatively simple online form that the company says takes about three minutes to complete. You’ll fill in how much money you’re looking to borrow, what you’d like to use the money for, and your contact information. Axos recommends that you have a valid ID and your Social Security number handy to make the process smoother.

Once you finish the prequalification process, you should receive loan offers and options within minutes if you qualify. If you choose to move forward, you’ll need to provide documents that prove your income and assets. These can include …

  • Paystubs
  • W-2s
  • Tax returns
  • Bank statements
  • Benefits statements

Completed applications are sent to the Axos Bank underwriting team, and loan decisions are typically made within 48 hours. You’ll need to connect a bank account to Axos, which the company will use to deposit your loan funds and collect automatic payments.

Like most personal loans, Axos Bank’s loans are paid back at a fixed interest rate and a payment that does not change for as long as you have the loan. You can pay back your loan early or make extra payments with no prepayment penalties.

Not sure if Axos Bank is right for you? Consider these alternatives.

  • SoFi: If you’re looking to avoid fees, SoFi might be a good option. There are no origination or late fees, and loans can be as large as $100,000.
  • Happy Money: People wanting to consolidate debt may choose a Happy Money “Payoff” loan, specifically tailored to climbing out of credit card debt. This includes paying off your creditors directly.

About the author: Andrew Dunn is a veteran journalist with more than a decade of experience as a reporter and editor at North Carolina news organizations, including the Charlotte Observer and the StarNews in Wilmington. In those roles,… Read more.