How Do Bank Loans Work?
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Who can get a personal loan from a bank?
When does it make sense to get a personal loan from a bank?
Banks that offer personal loans
- Citibank lends to consumers in all states and Washington, D.C. Citibank customers may be eligible for faster funding and rate discounts.
- Discover offers online bank loans to consumers in all states and Washington, D.C. Its loans have features that make them ideal for debt consolidation.
- PNC Bank offers loans to consumers in 26 states and Washington, D.C. Existing customers with a PNC checking account may receive a rate discount if they opt for automated payments.
- Santander offers personal loans in 28 states, plus Washington, D.C., to existing account holders or qualifying borrowers with an offer code.
- TD Bank lends to borrowers, including non-customers, in 15 states and Washington, D.C. Loans are funded quickly.
- Truist Bank offers loans to good- and excellent-credit borrowers in 17 states and Washington, D.C., and you don’t have to be an existing customer to apply.
- U.S. Bank personal loans are available in 26 states, including for non-customers. Existing customers can get faster funding, longer repayment terms and larger loans.
- Wells Fargo offers loans in all states but only to existing customers. Its loans come with a wide range of amounts and repayment terms.
| Lender | Minimum credit score | Loan amounts | APR range |
|---|---|---|---|
| 660 . | $2,500 - $35,000. | 7.99% - 24.99% . | |
 on Citibank's application | 740 . | $2,000 - $30,000. | 11.49% - 20.49% . |
 on NerdWallet's secure website | Not disclosed. | $1,000 - $35,000. | 8.19% - 24.99% . |
 on NerdWallet's secure website | 700 . | $5,000 - $50,000. | 7.99% - 24.99% . |
 on NerdWallet's secure website | Not disclosed. | $2,000 - $50,000. | 8.99% - 23.99% . |
 on NerdWallet's secure website | Not disclosed. | $3,500 - $50,000. | 8.87% - 17.82% . |
 on NerdWallet's secure website | 0 . | $1,000 - $25,000. | 8.74% - 24.99% . |
 on NerdWallet's secure website | Not disclosed. | $3,000 - $100,000. | 7.49% - 23.74% . |
Small bank loans
How to get a personal loan from a bank
How can I improve my chances of getting approved?
- Build your credit. Your credit score is one of the most important factors on a personal loan application. Check your credit report and resolve any mistakes that might be hurting your score. You can get a free credit report with NerdWallet or at AnnualCreditReport.com.
- Be consistent about on-time payments toward all of your debts. This will help improve your debt-to-income ratio and build up your payment history — a significant factor determining your credit score.
- Apply only for the amount of money you need. Requesting a high loan amount means you’ll be making higher loan payments each month. A lender might view that as risky, since it could strain your budget and ability to pay your debts.
- Consider a co-applicant or secured loan. Adding a co-signer or co-borrower with a higher credit score and income can boost your approval chances. Some banks offer secured loans backed by a savings account or vehicle, which makes the loan less risky for the bank.
Additional options for personal loans
Article sources
- 1. National Credit Union Administration. Payday Alternative Loans Final Rule. Accessed Apr 17, 2025.
- 2. National Bureau of Economic Research. Prodigals and Projecture: An Economic History of Usury Laws in the United States from Colonial Times to 1900. Accessed May 2, 2025.
- 3. Federal Register. Federal Interest Rate Authority: A Rule by the Federal Deposit Insurance Corporation on 07/22/2020. Accessed May 2, 2025.
- 4. Consumer Financial Protection Bureau. What Is a Debt Relief Program and How Do I Know if I Should Use One?. Accessed Jan 16, 2025.
- 5. Federal Reserve Bank of St. Louis. Finance Rate on Personal Loans at Commercial Banks, 24 Month Loan. Accessed May 23, 2025.
- 6. Consumer Financial Protection Bureau. Truth in Lending Act (TILA) examination procedures. Accessed May 2, 2025.
- 7. Experian and Oliver Wyman. Financial Inclusion and Access to Credit. Accessed Jan 23, 2025.
- 8. Internal Revenue Service. Canceled debt – Is it taxable or not?. Accessed Apr 1, 2025.
- 9. Consumer Financial Protection Bureau. What is a payday loan?. Accessed Apr 17, 2025.
- 10. Center for Responsible Lending. Payday and Other Small Dollar Loans. Accessed May 2, 2025.
- 11. National Credit Union Administration. Credit Union and Bank Rates 2024 Q4. Accessed May 23, 2025.
- 12. Federal Reserve. Military Lending Act. Accessed May 2, 2025.
- 13. Consumer Financial Protection Bureau. Consumer Use of Buy Now, Pay Later and Other Unsecured Debt. Accessed Jan 24, 2025.
- 9. Consumer Financial Protection Bureau. What is a payday loan?. Accessed May 2, 2025.
- 15. Center for Responsible Lending. Unsafe Harbor: The Persistent Harms of High-Cost Installment Loans. Accessed May 2, 2025.
- 16. Angi.com. How Much Does It Cost to Make My Home Accessible?. Accessed Nov 12, 2024.
- 17. Consumer Financial Protection Bureau. What are the costs and fees for a payday loan?. Accessed Jun 6, 2025.
- 18. Internal Revenue Service. Home energy tax credits. Accessed Mar 6, 2024.
- 19. Center for Responsible Lending. Unsafe Harbor: The Persistent Harms of High-Cost Lending. Accessed Jun 6, 2025.
- 20. Solar Energy Industries Association. Solar Power Purchase Agreements. Accessed Mar 7, 2024.
- 13. Consumer Financial Protection Bureau. Consumer Use of Buy Now, Pay Later and Other Unsecured Debt. Accessed Jan 27, 2025.
- 22. SolarReviews.com. Homes with Solar Sell for 6.8% More [2024 Zillow Data Study]. Accessed Dec 10, 2024.
- 23. Internal Revenue Service. Retirement Topics - Plan Loans. Accessed Apr 8, 2025.
- 9. Consumer Financial Protection Bureau. What is a payday loan?. Accessed Apr 4, 2025.
- 25. The Pew Charitable Trusts. Payday Loans Cost 4 Times More in States With Few Consumer Protections. Accessed Apr 4, 2025.
- 12. Federal Reserve. Military Lending Act. Accessed Apr 4, 2025.
- 27. Internal Revenue Service. Retirement topics: Exceptions to tax on early distributions. Accessed Apr 8, 2025.
- 28. Administrative Office of the U.S. Courts. Bankruptcy Basics. Accessed Apr 8, 2025.
Methodology
How we chose the best personal loans
Our team of consumer lending experts follow an objective and robust methodology to rate lenders and pick the best.
35+
Lenders reviewed
We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.
25+
Categories assessed
Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
70+
Data points analyzed
Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.
Star rating categories
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 70 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
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