Personal Loans from U.S. Banks: 2022 Review

US Bank offers personal loans to existing customers with at least a 660 credit score. Non-customers will likely need a higher credit score, depending on the lender.

Funding is available in 26 states, and you must live near a branch to apply. Although the bank can fund loans online, if you don’t yet have a checking or savings account, you may need to visit the nearest branch to close the loan.

US Bank also offers a separate small loan called the Simple loan.

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US Bank Personal Loans at a Glance

  • Returned payment fee: $25.

  • For US Bank customers: $1,000 to $50,000.

  • For non-US Bank customers: $1,000 to $25,000.

  • For US Bank customers: 1 to 7 years.

  • For non-US Bank customers: 1 to 5 years.

Funding delay after approval

  • For US bank customers: Funds can be sent to a US bank account in minutes.

  • For non-US bank accounts: Funding may take 1-4 business days.

Loans not available in AL, AK, CT, DE, FL, GA, HI, LA, ME, MD, MA, MI, MS, NH, NJ, NY, OK, PA, RI, SC, TX, VT, VA, WV and Washington, D.C.

Where US Bank Personal Loans Stand Out

Rate reduction for automatic payment: Existing customers who make automatic payments from any checking account or personal savings account are eligible for a 0.5 percentage point rate reduction. A rate reduction means that you will pay less interest on your loan overall.

Offers solidarity and guaranteed loans: Applicants can add a co-borrower to their personal loan application or secure the loan with a proof of deposit, a kind of savings account. Adding collateral or a co-borrower with a higher credit score could help you qualify for a lower rate or a higher loan amount.

Quick Funding: Once they sign the loan agreement, current customers can expect to receive the funds in their US bank account within minutes, according to the lender. If you want the funds sent to an external account, you may have to wait one to four business days.

Wide range of repayment terms: Current customers can choose from seven repayment terms, ranging from one to seven years. If you choose a shorter term, you’ll pay less interest, while a longer term means lower monthly payments. Non-customers can apply for terms up to five years.

Where personal loans from US banks fall short

It may be necessary to go to a branch: Although US Bank allows borrowers pre-qualified and complete an online application, some will need to visit a branch to close their loan, depending on the lender.

No direct payment to creditors: If you want to use a personal loan for debt consolidation, US Bank does not send the loan proceeds to your other creditors. Some other banks and online lenders offer this feature to simplify the debt repayment process.

Regulatory action against US Bank

In July 2022, the Consumer Financial Protection Bureau issued an order against US Bank for illegal practices that violated federal laws, including the Truth in Lending Act, Consumer Financial Protection Act, and Fair Credit Reporting Act.

According to the CFPB, the bank implemented a financial incentive sales target, which led to employees opening credit cards, lines of credit and deposit accounts for consumers without their knowledge or permission. These actions then resulted in charges and damage to the credit reports of these individuals.

The CFPB ordered US Bank to stop the practice, develop a remediation plan for affected consumers, and pay a $37.5 million fine.

How to Qualify for a US Bank Personal Loan

To apply for a personal loan from US Bank, you must meet the following conditions:

  • Have a credit score of 660 or higher.

  • Provide a social security number.

  • Provide home address and employment information.

Before applying

  • Calculate your monthly payments. Use a personal loan calculator to determine the APR and repayment term you would need to get a loan with affordable monthly payments.

  • Make a plan to repay the loan. Review your budget to see the impact of the monthly loan payments on your cash flow. If you need to cut other expenses to repay the loan, it’s best to find out before you borrow.

  • Gather your documents. US Bank may request proof of income, which can be a W-2 or a pay stub, as well as photo identification, such as a driver’s license or passport. Having these documents at hand can speed up the application process.

How to Apply for a US Bank Personal Loan

  • Pre-qualify on the US Bank website. You’ll be asked how much you want to borrow and what the funds are used for, along with personal information like your annual income and whether you rent or own your home. Next, the lender will ask for your details before they can preview loan offers. There is no hard credit at this point.

  • Preview loan offers and accept the one that fits your budget. Once you have accepted a loan offer, you will submit a personal loan application. This step may require more documentation, such as W-2s, pay stubs, and bank statements to confirm the information you provided during pre-qualification. US Bank will also perform a credit check upon your application, so your credit score may temporarily drop.

  • Make a plan to repay the loan. US Bank reports payments to the three major credit bureaus, so on-time payments will help build your credit score, but missed payments will hurt it. Setting up automatic payments and keeping tabs on your budget are two ways to manage your loan repayments.

Compare US Bank with other lenders

Personal lenders offer different rates, loan amounts, and special features, so it pays to weigh other options. The best personal loan is usually the one with the lowest APR.

Discover and LightStream are two similar lenders that accept borrowers with good to excellent credit (credit score of 690 or higher) and can fund loans the same or next day after approval.

US Bank vs. Discover

Like US Bank, Discover lets you pre-qualify for its personal loan with a minimum credit score of 660, and it doesn’t charge origination fees. Although Discover doesn’t offer a rate reduction, it will send funds directly to creditors for debt consolidation loans, saving you this step.

US Bank vs. LightStream

LightStream’s personal loans are fee-free and its wide range of repayment terms are similar to those of US Bank. Its larger loan amounts are particularly well suited for financing large expenses, such as home improvement projects. You can add a co-signer to your application to increase your chances of being approved.

How We Rate US Bank Personal Loans

NerdWallet editors rate lenders against a rubric that changes every year as personal loan products evolve. Here is what we have prioritized this year:

Affordability

An affordable loan has low rates and fees compared to other similar loans and may offer rate reductions.
Transparency

A transparent lender makes loan information easy to find on its website, including loan rates, terms and amounts. Transparency also means allowing users to pre-qualify online to preview potential loan offers and report payment information to major credit bureaus.
Loan flexibility

A flexible loan is a loan that allows users to customize terms and payments. This means offering a wide range of repayment term options, allowing the borrower to change their payment date, offering loans in most states, and funding quickly.
Client experience

A good customer experience can include a fully online application process, financial education on the lender’s website, and a customer service team available most of the time and reachable in multiple ways.

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