U.S. Bank Personal Loan: 2020 Review
The U.S. Bank personal loan has low rates and an autopay discount for borrowers with an account, but it may charge for early repayment.
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Our Take
3.5
The bottom line: An option for existing U.S. Bank customers, with competitive interest rates and no origination fee.
Full Review
U.S. Bank Personal Loan
Min. Credit Score
None
Est. APR
6.49 - 16.49%
Loan Amount
$1,000 - $25,000
Pros & Cons
Pros
No origination fee.
Option to include a co-signer.
Rate discount for autopay.
Cons
Charges prepayment fee.
No option to pre-qualify.
Must be an existing bank customer.
Full Review
To review U.S. Bank, NerdWallet collected more than 30 data points from the lender, interviewed company executives 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.
U.S. Bank, the fifth-largest national bank by assets, has a competitive personal loan offering when it comes to interest rates and options to help people qualify, such as having a co-applicant.
This loan is an unsecured personal loan, but U.S. Bank also offers loans secured by automobiles, boats, RVs and motorcycles, as well as deposit accounts, Evan Lapiska, U.S. Bank spokesman, said in an email.
The loan is only available to existing bank customers, and while you can apply online, you have to visit a branch to complete the application. Customers who opt for automatic payments receive more favorable rates than those who do not, provided the payments are made from a U.S. Bank personal checking or savings account, Lapiska says.
The bank is one of few lenders that modified its personal loan offering to accommodate customers who needed assistance as a result of the COVID-19 crisis. When the pandemic began to show up in the economy, U.S. Bank dropped its minimum loan amount from $3,000 to $1,000 and assigned all loans below $5,000 an annual percentage rate of 2.99% and a maximum term of 4 years.
A loan $5,000 or above will have a higher APR of above 2.99% and a maximum term of 5 years, according to the lender's website.
Joint applications: Having a co-applicant may increase your chances of qualifying for a loan or snagging a lower rate.
Prepayment penalty: This is the only personal loan reviewed by NerdWallet that carries a prepayment penalty for paying off the loan early. (Paying off your loan early can save you money on interest.) The fee doesn't currently apply to loans below $5,000, Lapiska says.
Other financial products: U.S. Bank also has a payday-style loan called the Simple Loan that is meant for emergency expenses. The bank also offers a personal line of credit and an overdraft line of credit, which work differently from a personal loan.
Customer service: U.S. Bank has phone, chat and email customer service as well as physical branches in 25 states. The bank has a mobile app for tracking loan payments.
Fees: U.S. Bank doesn’t charge an origination fee on the loan, a feature that only a handful of banks and online lenders offer. It does charge other fees:
Late fee: $29 after 5 day grace period.
Unsuccessful payment fee: $25.
Prepayment fee: 1% of loan amount, ranging from $50 to $100 if loan is paid off within first 12 months.
How to qualify:
Good or excellent credit.
U.S. Bank account open for at least 120 days.
Stable, sufficient income.
Loan example: For a borrower with excellent credit, an $8,000 personal loan with a repayment term of 24 months at 13.9% APR would carry monthly payments of $384, according to NerdWallet’s personal loan calculator.
How U.S. Bank compares
U.S. Bank’s rates are lower than other lenders that also target the same consumer, such as Wells Fargo or Marcus by Goldman Sachs, but loan amounts at U.S. Bank aren’t as high as the other two. Neither Wells Fargo nor Marcus charges a prepayment penalty.
Like U.S. Bank, Wells Fargo requires a hard credit pull, which can temporarily shave points off your credit score. Existing Wells Fargo customers can apply and receive funds online, but new ones have to apply at a branch. The bank also lets you send your money to pay off existing credit cards, which can improve your odds of successfully paying off debt.
Marcus is an online-only lender that requires a soft credit check, charges no fees and offers more flexibility in picking a loan that’s right for you. U.S. Bank has some degree of flexibility: Borrowers can change their payment due date by 15 days under certain circumstances, says Lapiska.
How to apply for a U.S. Bank loan
You can apply on U.S. Bank’s website by logging into your online banking account and then filling out an application for this loan. You can also apply over the phone.
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Before you shop for a personal loan
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.
