U.S. Bank premier personal loan review: Worth a look for existing customers

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In a Nutshell

U.S Bank premier personal loans may be worth exploring if you’re a current customer. There’s no origination fee and a discount for automatic payments. But there’s a prepayment penalty if you want to pay off your loan in less than a year.

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Pros Cons
No origination fee Must be a U.S. Bank customer
Fixed interest rate and payments $25,000 loan maximum for online applicants
Interest-rate discount with automatic payments Prepayment penalty if you pay off your loan in less than a year

What you need to know about a U.S. Bank personal loan

U.S. Bank is one of the largest banks in the country and has branches nationwide. But unlike some large competitors, such as Chase and Bank of America, U.S. Bank offers personal loans.

U.S. Bank offers two types of personal loans: a premier loan and a simple loan. Both are only available for existing customers. This review will focus on U.S. Bank’s premier loan, but we’ll touch on a few details about the simple loan later.

U.S. Bank’s premier loan is unsecured, which means the bank won’t ask for collateral to back up the loan. Your loan term can be one to five years, and the loan amounts offered online range from $3,000 to $25,000. If you apply in person at a branch, the bank may approve loans of up to $50,000, depending on the state you live in, according to a U.S. Bank representative.

Here’s a look at what else you need to know about premier personal loans from U.S. Bank.

U.S. Bank customers only

To qualify, you must be an existing U.S. Bank customer, with an account open for at least 120 days, who lives in a state with branch locations, according to a U.S. Bank representative.

U.S. Bank doesn’t specify minimum income or credit score requirements, but it will evaluate factors like annual income, housing costs and cash flow when you apply, according to a U.S. Bank representative.

Interest-rate discount with automatic payments

If you set up automatic monthly payments through your U.S. Bank checking account, you’ll be eligible for a 2% interest-rate discount, according to a U.S. Bank representative. This is a competitive perk. But even with this discount, the bank’s lowest possible annual percentage rate, or APR, still isn’t the lowest on the market.

Prepayment penalty during the first year

While U.S. Bank doesn’t charge an origination fee, you may end up paying if you want to pay off your loan before the end of the first year. U.S. Bank charges a prepayment penalty that’s 1% of your original loan amount, with a $50 minimum and $100 maximum, according to a U.S. Bank representative.

A closer look at U.S. Bank personal loans

Here are a few things to consider before you apply for a U.S. Bank personal loan.

  • Loan terms as short as one year — Many other lenders don’t offer 12-month personal loans. If you can pay off your balance in one year, a U.S. Bank loan may be attractive — and help you save on interest. But keep in mind that the bank charges a prepayment penalty for paying your loan off in less than a year.
  • Smaller than average loan limits — If you’re looking to borrow a large amount online, U.S. Bank may not offer enough. A number of other lenders offer loans over $25,000.
  • Alternative to payday loans — If you need cash fast, consider U.S. Bank’s simple loan for up to $1,000. It may be a good alternative to a payday loan.
  • Accepts joint personal loan applications — U.S. Bank’s premier loan allows joint applicants, but co-signers aren’t allowed, according to a U.S. Bank representative.
  • Use the money for many purposes — A U.S Bank personal loan may help you pay off high-interest credit cards through debt consolidation, make home repairs or finance a major event like a wedding.

Who a U.S. Bank personal loan is good for

If you’re a U.S. Bank customer living near a local branch, its premier loan may be worth exploring, especially if you prefer closing in person. The interest rates aren’t the most competitive, even with automatic payments. But it still may be a good option if you want a 12-month personal loan.

To potentially qualify for the best rate, you’ll need to …

  • Take out a loan of at least $5,000
  • Have a loan term of 12 months to 48 months
  • Set up automatic payments from a U.S. Bank personal checking account

How to apply with U.S. Bank

You can apply for a U.S. Bank personal loan online, by phone or in person at a local branch.

You’ll want to have to following details ready: Your identifying information, including full name, address, date of birth and social security number.

You’ll also want to know your desired loan amount, term and loan purpose.

The U.S. Bank website notes that if approved, you could receive your loan funds in as soon as a couple of days. However, it could take up to three to five days to receive your funds if U.S. Bank needs to see more paperwork. You’d receive the funds via cashier’s check or direct deposit to your bank account.

Not sure if a U.S. Bank personal loan is right for you? Consider these alternatives.

  • Discover: Discover may be a good choice if you want to consolidate debt, because it can pay your creditors directly.
  • Wells Fargo: Wells Fargo offers secured personal loans with competitive rates to eligible customers.