U.S. Bank Simple Loan Review

Simple Loan pros

Simple Loan cons

To apply for a Simple Loan, you must have a U.S. Bank personal checking account that’s at least six months old and has at least three months’ history of recurring direct deposits. You’ll also need to supply your Social Security number as part of the application.

The bank does not list a minimum credit score requirement, but it likely reviews your transactions, banking history and credit information to qualify you.

You can take one Simple Loan at a time. Once your first loan is paid off, you must wait 30 days before applying for another. With payday loans, there's usually no "cooling off" period between loans. A break between high-interest loans can help borrowers avoid overextending themselves and slipping into a cycle of debt.

U.S. Bank may perform a hard credit pull when evaluating your Simple Loan application, which is common when applying for credit and temporarily drops your credit score by a few points. According to the lender, applicants typically know whether they’ve been approved in less than a minute. Funds will be available in your U.S. Bank checking account soon after approval.

U.S. Bank Simple Loan costs

The Simple Loan costs $6 for every $100 borrowed and has a term of three months. That translates to an annual percentage rate of just under 36%.

That’s much cheaper than typical payday loans, where the average rate is almost 400%. The Simple Loan is also repaid over three months, not the two-week cycle that's common for payday loans. There are no other fees, including no fee for late or missed payments and no fee for paying off the loan early.

Loan example: A $400 loan with an APR of 35.65% repaid over three months would carry:

How U.S. Bank Simple Loan compares

Consumer advocates consider 36% to be the maximum APR for a loan to be affordable. The Simple Loan meets this threshold. Other small-dollar bank loans, like Bank of America’s Balance Assist, may offer a cheaper small-dollar loan based on the amount borrowed.

Some credit unions also offer loans under $1,000, though you’ll need to become a member before applying. Credit unions tend to look more favorably on fair- or bad-credit applicants (those with a credit score of 300 to the low 600s) and offer lower interest rates compared with other lenders.

Online loans are available, with most starting at $1,000 or higher. Some online lenders accept applicants with bad credit or a thin credit history. These lenders also fund loans quickly — often the same or next day — but may charge high interest rates.

» COMPARE: Best bad-credit online loans

U.S. Bank Simple Loan isn't a good idea if:

Alternatives to U.S. Bank Simple Loan

Here are alternatives that may be cheaper than a Simple Loan: