TD Bank Personal Loans: 2020 Review

TD Bank offers a competitive unsecured loan among bank lenders, but borrowers need a high credit score to be considered.

Annie MillerberndJune 29, 2020

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Our Take

5.0

NerdWallet rating 

The bottom line: TD Bank’s personal loan is ideal for good-credit customers and new customers with excellent credit.

TD Bank Personal Loan

TD Bank Personal Loan

Min. Credit Score

700

Est. APR

6.99 - 18.99%

Loan Amount

$2,000 - $50,000

Pros & Cons

Pros

  • Competitive rates among bank lenders.

  • Rate discount for autopay.

  • Offers direct payment to creditors with debt consolidation loans.

Cons

  • Requires an in-person visit.

  • No option to pre-qualify.

  • 7- to 10-day funding time is longer than most lenders.

Compare to Other Lenders

Marcus by Goldman Sachs
Lightstream
Est. APR

6.99 - 19.99%

Est. APR

5.49 - 20.49%

Loan Term

3 to 6 years

Loan Term

2 to 7 years

Loan Amount

$3,500 - $40,000

Loan Amount

$5,000 - $100,000

Min. Credit Score

680

Min. Credit Score

660

Compare estimated rates from multiple lenders

Compare Rates

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Full Review

To review TD Bank, NerdWallet collected more than 30 data points from the lender, called multiple bank locations and the bank’s corporate customer service department, and compared the lender with others that seek the same customer or offer a similar personal loan product. Loan terms and fees may vary by state.

TD Bank provides unsecured loans to existing TD Bank account holders with good credit and non-customers with excellent credit in the 15 East Coast states and Washington, D.C., where it has branches.

The bank’s unsecured personal loan is one of three loan offerings, along with the Express Loan, which has faster funding and a lower borrowing amount, and a secured loan that’s available to existing customers.

TD Bank is the product of a post-Great Depression merger between two Canadian banks, and its presence in the U.S. dates back to 1919. The bank began offering its unsecured personal loan broadly in 2020 after a testing period.

The lowest annual percentage rate available on a TD Bank loan is comparable with other banks; however, the highest available APR is below average for most other banks.

Autopay discount: TD offers a 0.25% rate discount on its personal and Express loans for borrowers who set up automatic deductions from a TD Bank checking or savings account.

Direct payment to creditors: With a TD debt consolidation loan, the bank pays your other creditors directly, leaving your only remaining obligation to the bank, according to a bank customer service representative. The feature is relatively rare among bank lenders.

Branch visit required: Borrowers can apply for an unsecured loan online with the bank. But like many banks, once approved, a borrower has to visit a TD Bank location to close the loan. For secured loans, applications are in-person only.

If you prefer to not have to visit a bank branch, bank lenders HSBC and Discover complete the entire loan process, from application to funding, online.

No soft credit pull to pre-qualify: TD Bank requires borrowers to apply for a loan in order to see what rate they'll get, which is more common among bank lenders than online lenders.

How to qualify: 

Qualifying may come easier to existing TD Bank customers than non-customers, as the bank has a higher credit standard for non-customers. TD doesn’t disclose many hard requirements, but it reviews an applicant’s existing debts, income, employment and expenses like rent or mortgage payments. The debt-to-income ratio the bank accepts from a borrower varies based on their credit score.

Here are features that customer service representatives say the bank looks for in a borrower.

  • Minimum credit score: 700 for customers; 760 for non-customers.

  • Maximum debt-to-income ratio: 60%, including mortgage.

  • Minimum credit history: None.

Fees:

  • Late fee: 5% of the payment due or $10, whichever is less.

  • Prepayment fee: None.

  • Insufficient funds fee: None.

Loan example: For a borrower with good credit, a $20,000 loan with a repayment term of 36 months at an 18% APR will have monthly payments of $723, according to NerdWallet’s personal loan calculator.

Other loan offerings

TD Bank Express Loan

TD Bank’s Express Loan is similar to its unsecured loan, but it has a smaller loan maximum ($25,000) and faster funding time (two business days). The terms, APR range and minimum credit score requirement for this loan are the same as the personal loan.

TD Bank Secured Loans

The bank’s secured loan has a higher minimum borrowing amount of $5,000, a $50 origination fee and a variable APR. A borrower can only use money from a TD Bank account as collateral, meaning loans are available to current customers only. There’s no minimum credit score requirement, but TD still considers a borrower’s credit profile on an application.

Summary of TD Bank Loans

Personal Unsecured Loan

Express Loan

Secured Loan

Loan amount

$2,000 - $50,000

$2,000 - $25,000

$5,000 - $50,000

APR

6.99 - 18.99%

6.99 - 18.99%

Variable (prime rate plus 2.00%)

Loan term

1 - 6 years

1 - 6 years

1 - 6 years

Autopay discount

0.25%

0.25%

None

Secured

No

No

TD Bank Savings, Money Market Savings, CD Account

Origination fee

None

None

$50

Late fee

The lesser of 5% of minimum payment due and $10.

The lesser of 5% of minimum payment due and $10.

$0

Before you shop for a personal loan 

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How to apply with TD Bank

Applications for the Express and Personal Unsecured loans are available online. The bank says it takes about 15 minutes to apply and tells applicants what information they’ll need at the beginning of the application. Once you submit your online application, a loan specialist will contact you to discuss your loan options.

Personal Loans Rating Methodology

NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including: soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus, and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews. Read our editorial guidelines.

Frequently asked questions