If you’re looking for a personal loan with competitive rates, relationship discounts, or in-person support, a bank loan may be worth considering. Here are our picks for the best banks for personal loans.
- Best for home improvements: Wells Fargo
- Best for short term loans: PNC Bank
- Best for co-applicants: U.S. Bank
- Best for a range of loan options: Regions Bank
- Best for lower credit scores: OneMain Financial
- What are bank personal loans?
- When is a personal loan from a bank a good idea?
- Alternatives to banks for personal loans
- FAQs about personal loans from banks
Best for home improvements: Wells Fargo
Why a Wells Fargo personal loan stands out: Wells Fargo offers unsecured loans for home improvement projects. You can apply to borrow up to $100,000 without using collateral, like your home.
Pros
- Competitive APRs
- No origination fees or prepayment penalties
- Long repayment terms of up to 84 months
Cons
- Must be an existing customer
- Late payment fees
- Credit requirements aren’t disclosed
Read reviews of Wells Fargo personal loans to learn more.
Best for short term loans: PNC Bank
Why a PNC Bank personal loan stands out: If you want to pay off a personal loan quickly, PNC Bank offers repayment terms as short as six months. Loan amounts range from $1,000 to $35,000, and you can quickly apply online.
Pros
- Allows co-applicants
- Autopay rate discount with PNC checking account
- No origination fees or prepayment penalties
Cons
- Must enroll in online banking to apply online
- Late and returned payment fees
- Only available in some states
Read reviews of PNC Bank personal loans to learn more.
Best for co-applicants: U.S. Bank
Why a U.S. Bank personal loan stands out: U.S. Bank lets you apply for a personal loan with a co-borrower, so you can potentially improve your chances of approval and lock in a better rate. As long as you’re a U.S. Bank member, you may get up to $50,000.
Pros
- Loan terms as short as 12 months
- No origination fees or prepayment penalties
- Online prequalification option
Cons
- Can only borrow up to $25,000 if you’re not a U.S. Bank member
- Funding can take a few business days
- Not available in every state
Read our review of U.S. Bank personal loans to learn more.
Best for a range of loan options: Regions Bank
Why a Regions Bank personal loan stands out: Regions Bank offers a few different types of personal loans, including unsecured loans, deposit secured loans, and secured installment loans. Depending on the loan you choose, you can apply online, over the phone or at a local branch.
Pros
- Can borrow up to $50,000 with an unsecured loan
- No origination fees or prepayment penalties
- Autopay discount available
Cons
- Unsecured and deposit secured loan requires a Regions deposit account
- Late and returned payment fees
- Must apply for some loans over the phone or in person
Read reviews of Regions Bank personal loans to learn more.
Best for lower credit scores: OneMain Financial
Why a OneMain Financial personal loan stands out: OneMain Financial personal loans are designed for borrowers with all types of credit scores. Even if you have a low credit score, you can get approved.
Pros
- Secured and unsecured options
- Potentially fast funding
- No prepayment penalties
Cons
- Higher APRs
- Multiple fees
- Not available in every state
Read our review of OneMain Financial personal loans.
What are bank personal loans?
Bank personal loans are installments loans you can use to cover a variety of purposes, such as debt consolidation and home improvements. Typically, you can apply for one online, over the phone, or in person at a local branch. If you’re approved, you’ll receive a lump sum of money upfront.
Then, you’ll repay your bank loan through fixed monthly payments. Depending on the bank you choose and your unique situation, you may be able to borrow anywhere from $1,000 to $100,000. Repayment terms vary but typically range between six and 84 months.
When is a personal loan from a bank a good idea?
You might benefit from a personal loan from a bank if …
- You have good to excellent credit: Most banks look for borrowers with strong credit. If you have a high credit score, you may be able to land a competitive rate.
- You already have a relationship with a bank: If you have a checking and savings account at a bank, you may want to get a personal loan with it, too. This could lead to relationship discounts or other customer benefits.
- You prefer in-person support: Usually, banks let you apply for personal loans in person at a local branch. If you want some guidance with the application process or value individualized service, a bank loan can fit the bill.
If you need money quickly, a bank loan might not make sense as funding can take longer than it does with most online loans. Also, if you don’t have the best credit, you may need to look elsewhere as it can be difficult to qualify or receive a good rate.
Alternatives to banks for personal loans
If you decide a bank personal loan isn’t a good fit, here are a few alternative options to consider.
- Online loans: Offered by banks, credit unions, and online lenders, online loans let you apply online quickly. In many cases, you can get approved quickly and receive the funds that same day or the next day.
- Buy-now, pay-later apps: A BNPL app can help you break up a large purchase into several equal installments. Most apps don’t charge interest or fees.
- Secured loans: If you have a low credit score, you might find it easier to qualify for a secured loan. But you’ll need to use an asset, like your vehicle or savings account as collateral.
Our methodology: How we pick the best personal loans
Credit Karma’s editors evaluate the best personal loans by reviewing key features of dozens of popular lenders. Those features fall into three important categories:
- Affordability: We start by checking if a lender’s rates are competitive: are they higher than average or are they lower than many competitors? From there, we analyze if fees — particularly an origination fee — may make your loan more unaffordable. Last, we’ll check if the lender offers rate discounts for items such as automatic payments that may reduce your rate.
- Customer-friendly features: Taking out a personal loan is a big financial commitment, so we prioritize lenders that make things easier for you. For instance, do they offer a wide range of loan amounts for people with different borrowing needs? Do they offer at least several loan terms to give you more flexibility with your monthly payment? And, crucially, can they fund your loan quickly? A lender will also get bonus points for offering direct payments for debt consolidation or other customer-friendly features.
- Transparency: We believe personal loan terms should be easy to find and decipher. Prequalification, which lets you check what rate you may qualify for without a hard credit inquiry, is particularly important. We also check to see if a lender has been recently penalized by regulators.
Estimate personal loan costs
To better understand the total cost of any personal loans you’re considering, use an online calculator like Credit Karma’s simple loan calculator. A loan calculator can help you estimate your monthly payment and how much you’d pay in interest versus principal over the length of the loan.
FAQs about personal loans from banks
Yes, you may qualify for a personal loan with bad credit as some lenders have lenient credit score requirements. But you might have to accept less favorable terms, such as a higher interest rate.
A personal loan from a bank can be a smart move, especially if you can land a good rate or qualify for a relationship discount. A bank personal loan might also make sense if you prefer personal service at an in-person branch.
Choosing a bank for a personal loan might be better if you already have an account at the bank you’re considering. You may be eligible for a lower rate, a relationship discount or other perks.
*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.