TD Bank Personal Loans: 2023 Review
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Our Take
4.5
The bottom line:
TD Bank promises fast approval and funding time for a wide range of loan amounts, but they’re only available in 15 states.
Full Review
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Pros & Cons
Pros
- Option to pre-qualify with a soft credit check.
- No origination fee.
- Fast funding.
- Option to change your payment date.
- Wide range of loan amounts.
Cons
- Available in a limited number of states.
- No rate discount.
- No direct payment to creditors with debt consolidation loans.
- No co-sign or joint loan option.
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Full Review of TD Bank Personal Loan
TD Bank provides unsecured personal loans to borrowers in 15 East Coast states and Washington, D.C.
The lender can fund loans quickly with a 100% online process, but it lacks some key features, like a rate discount and the option to send loan funds directly to creditors for debt consolidation loans.
» MORE: Best bank loans
Table of contents
TD Bank personal loans at a glance
Minimum credit score | Not disclosed. |
APR | 6.99% - 19.99%. |
Fees | Late fee: $10 or 5% of minimum payment (whichever is less). |
Loan amount | $2,000 to $50,000. |
Repayment terms | 3 to 5 years. |
Time to fund after approval | Funds can be sent within one business day. |
Loan availability | Loans available in CT, DE, FL, ME, MD, MA, NH, NJ, NY, NC, PA, RI, SC, VT, VA and Washington, D.C. |
Where TD Bank personal loans stand out
Soft credit check: Unlike some other banks, TD lets borrowers — including non-customers — pre-qualify for its personal loan, meaning they can check their potential loan amount and interest rate without hurting their credit score.
Quick approval and funding: TD Bank has a quick approval and funding process. According to the lender, borrowers can be approved the day they apply — some as fast as 60 seconds — and funds are typically received the next business day. If TD requires additional documents, like proof of income, processing the application could take longer.
» COMPARE: Fast personal loans
Option to change payment date: Though borrowers can't choose their payment date when signing a loan agreement, they can change it once during the course of the loan. Having a flexible payment date is beneficial for borrowers whose payday may change over the life of the loan.
Wide range of loan amounts: TD offers small, medium and large personal loans, so borrowers can choose the amount that best fits their needs. While a small loan may be right for an emergency car repair, a large loan can help fund a major expense like a home improvement project.
» MORE: Best home improvement loans
Where TD Bank personal loans fall short
No joint, co-sign or secured loan option: TD Bank offers unsecured personal loans only, and borrowers don't have the option to add a co-borrower or co-signer to their application, nor to secure the loan with collateral. These options can allow borrowers to qualify for a higher loan amount or get a lower rate.
No direct payment to creditors: If borrowers want to use a TD loan to consolidate high-interest debt, TD doesn't send funds directly to creditors, which is a feature offered by some other lenders. Instead, the money will be deposited into your bank account, and you’ll have to pay off your creditors.
» COMPARE: Best debt consolidation loans
No rate discount: TD Bank doesn't offer a rate discount of any kind. Many lenders will issue a discount, ranging from 0.25 to 0.5 percentage point, for things like setting up automatic payments. This helps save money on interest.
Limited loan terms: Borrowers can choose from a three-, four- or five-year repayment term. Though those repayment terms aren’t uncommon, some lenders offer longer repayment terms, which could lower your monthly payment.
Regulatory action against TD Bank
In August 2020, the Consumer Financial Protection Bureau announced a settlement with TD Bank regarding its overdraft practices, in which customers were charged unlawful overdraft fees without their consent. As part of the settlement, the CFPB required TD Bank to provide $97 million in restitution to affected customers and pay a civil money penalty of $25 million.
How to qualify for a TD Bank personal loan
TD Bank doesn't publicly disclose many of its borrower requirements, but the lender says your credit score, credit history and debt-to-income ratio will be considered. Here’s what you need to apply:
Must provide basic personal information, including your address, date of birth and Social Security number.
Must provide information related to your income, employment history and expenses, including your mortgage or rent.
Before you apply
Check your credit. You can get your free credit report on NerdWallet or at AnnualCreditReport.com. Doing so will help you spot and fix any errors before you apply.
Calculate your monthly payments. Use a personal loan calculator to determine what APR and repayment term you’d need to get a loan with affordable monthly payments.
Make a plan to repay the loan. Review your budget to see how the loan’s monthly payments impact your cash flow. If you have to cut other expenses in order to repay the loan, it’s better to know that before you borrow.
Gather your documents. TD Bank may request proof of income, which can be a W-2 or pay stub, as well as photo identification, like a driver’s license or passport. Having these documents handy can speed the application process.
How to apply for a TD Bank personal loan
Pre-qualify on TD Bank’s website. You’ll be asked how much you want to borrow and what the funds are for, as well as some personal information. There’s no hard credit pull at this stage.
Preview loan offers and accept the one that fits your budget. Once you accept a loan offer, you’ll submit a formal personal loan application. This step could require more documents, like W-2s, pay stubs and bank statements to confirm the information you gave during pre-qualification. TD Bank will also do a hard credit check when you apply, so your credit score could temporarily dip.
Stay on top of your loan payments. TD Bank reports payments to the three main credit bureaus, so on-time payments will help build your credit, but missed payments will hurt it. Setting up automatic payments and keeping an eye on your budget are two ways to manage your loan payments.
Compare TD Bank with other lenders
Personal loan 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.
Best Egg and LendingClub are two online lenders that offer similar loan amounts and repayment terms as TD Bank, but may be easier to qualify for. They also lend in most states.
TD Bank vs. Best Egg
Best Egg offers personal loans to borrowers with a minimum credit score of 600. Similar to TD Bank, its loans come in a wide range of amounts, and you can pre-qualify with a soft credit check. You can also apply for a secured personal loan. However, Best Egg charges an origination fee, while TD Bank does not.
» MORE: Read our review of Best Egg
TD Bank vs. LendingClub
LendingClub personal loans are also available to borrowers with a minimum credit score of 600, and you can add a co-borrower to your application to boost your chances of getting approved. LendingClub may be an especially good fit if you’re looking for a debt consolidation loan, since it sends funds directly to creditors and may include a discounted rate.
» MORE: Read our review of LendingClub
How we rate TD Bank personal loans
NerdWallet writers rate lenders against a rubric that changes each year based on how personal loan products evolve. Here’s what we prioritized this year:
Category | Star rating |
|---|---|
Affordability | |
Transparency | |
Loan flexibility | |
Customer experience | |
Overall |
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Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial institutions. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product. 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. 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.
This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
