U.S. Bank Personal Loans Review
Personal loans provide cash for debt consolidation, home repairs and other purposes. Read on to discover the pros and cons of U.S. Bank personal loans, as well as their accessibility, fees and more — and see why they made our list of best personal loan lenders.
One of the best features of a U.S. Bank personal loan is its repayment terms. For most U.S. Bank loans, you repay the money through equal monthly payments over a period ranging from 12 to 84 months. You can choose the length based on your repayment ability.
U.S. Bank Personal Loans Pros and Cons
- Can have a cosigner
- No origination fees or hidden fees
- Can prequalify with a soft credit check
- May have to go into a physical location
- Limited availability
- Fewer options for non-U.S. Bank customers
U.S. Bank personal loans offer several benefits for borrowers. Here are the top ones.
Can have a cosigner
If you don't qualify for a personal loan from U.S. Bank on your own, you can apply for one with a cosigner. U.S. Bank bases its approval decision on the cosigner's credit. Young people without credit and people with low credit scores benefit from this feature, and many of U.S. Bank's competitors don't offer it.
No origination fees or hidden fees
Many lenders charge anywhere from 0.5% to 1% or more for loan origination fees. U.S. Bank personal loans don't have an origination fee. They also don't have prepayment penalties or hidden fees. The only expense you incur is the interest charge.
Can prequalify with a soft credit check
Another benefit is that you can prequalify and find out the loan terms before U.S. Bank performs a hard credit inquiry.
First, you must submit some information to U.S. Bank. Next, the bank evaluates your information and provides you with the interest rate and payment information. You'll also learn how much you qualify to borrow. The bank determines the terms of your loan offer by performing a soft credit check. A soft credit check doesn't appear on your credit report, so it won't affect your credit score.
When you see the loan terms, you can decide if you want to accept the loan. If you want to accept, you have to complete the U.S. Bank personal loan application and submit it to the bank. At that point, U.S. Bank checks your credit reports, which requires a hard credit inquiry that will affect your score.
In addition to the benefits, you should understand the drawbacks of U.S. Bank personal loans.
May have to go into a physical location
You can complete the personal loan process online if you have a U.S. Bank savings or personal checking account, including closing on the loan. However, you must go to a physical branch to close the loan if you don't have an account.
U.S. Bank encourages borrowers to open a new account before closing their loan. If you're willing to open a checking or savings account, you can complete the loan closing online.
U.S. Bank only offers loans in the 26 states where it has branches. That means you can't get a personal loan from U.S. Bank if you don't live in one of those states. Even if you do live in a state where the bank has a branch, there's an additional restriction. If you don't have a U.S. Bank account, you must live within 50 miles of a branch to qualify for a loan.
Fewer options for non-U.S. Bank customers
U.S. Bank has different personal loan requirements for account holders and people who don't have an account with the bank. Current account holders can apply online and close their loans online. They also receive their funds within hours. However, people who don't have an account must visit a branch to close and might not receive their funds for at least one business day. In some cases, receiving the funds might take up to four business days.
U.S. Bank's Personal Loans Offerings
All U.S. Bank loans are unsecured, so you won't need to put up collateral. You can choose from several types of loans, including the following.
When you owe a lot of money on credit cards, the monthly payments can become overwhelming. You can reduce your monthly payments and simplify your debt payments with a debt consolidation loan. U.S. Bank offers personal loans of up to $50,000 for this purpose.
U.S. Bank doesn't send payments to your creditors. After getting approved, the bank transfers the money to your personal checking account, and you pay your credit card balances with those funds.
If your credit is less than stellar, it might be a good idea to look into our list of the best personal loans for bad credit.
You can apply for a personal loan from U.S. Bank if you need cash for any family planning event. This money could cover adoption fees, medical expenses and other family-related expenses.
U.S. Bank also offers a Simple Loan program. This option is for emergencies that require instant cash. You can borrow between $100 to $1,000 through a Simple Loan. These are ideal for emergency medical bills. These loans require an additional fee of $6 per $100 increment. They also require repayment within three months.
Home repair financing
You can use U.S. Bank home equity loans to pay for home repairs, updates and renovations. You can borrow up to $50,000 for these expenses if you have a U.S. Bank account. Because U.S. Bank's loans are unsecured, you can spend this money to make the improvements your home needs without using your house as collateral.
Sometimes you might not need a lump sum of cash all at once. In that case, you might want access to a credit line. A credit line is similar to a credit card. It gives you a sum of money you can borrow when you need it. But you don't have to borrow all the money, you can take only what you need. The benefit is that you only pay interest on what you borrow. U.S. Bank offers credit lines of up to $25,000 to current customers. Credit lines are only available to the bank's customers.
One additional benefit of a credit line is you can reuse it, whereas a loan is a one-time event. If you borrow money through a loan and need more money, you must apply for another loan.
U.S. Bank Personal Loans Pricing
Competitive interest rates are one feature of the best personal loans. The personal loan rates U.S. Bank offers vary by loan type and credit. Compared to its competitors, U.S. Bank personal loan interest rates are average. However, other factors also matter when choosing a lender, including the origination fees, hidden costs and qualifying criteria.
You can save money on interest fees by repaying your loan early. If you get a loan from U.S. Bank, you won't pay a prepayment penalty when doing this. Additionally, U.S. Bank provides a 0.5% discount on the interest rate if you enroll in automatic payments.
U.S. Bank Personal Loans Financial Stability
U.S. Bank has strong financial ratings from the top three financial rating institutions. Moody's gave U.S. Bank an A1, which is an upper-medium grade, meaning the company has a low risk of default. Standard and Poor's gave U.S. Bank an AA- rating. Additionally, U.S. Bank also has an AA- rating from Fitch.
U.S. Bank Personal Loans Accessibility
U.S. Bank allows its customers and those wanting to apply for a loan to access its services online and in person.
U.S. Bank loans are available in 26 states: Arkansas, Arizona, California, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin and Wyoming.
You can apply for a U.S. Bank loan online or in person.
You can contact U.S. Bank by calling (800) 872-2657 for 24-hour customer service assistance. You can check your account balances and U.S. Bank personal loan status online by visiting www.usbank.com. You can also visit a U.S. Bank branch to speak to a representative in person. Most U.S. Bank branches are open from 9 a.m. to 5 p.m. local time Monday through Friday, with limited hours on Saturday. The bank's main headquarters are located in Minneapolis, MN.
You can view your personal banking account information online by creating an account through U.S. Bank’s website. You can also check your U.S. bank personal loan status through the website.
If you have questions or run into an issue, the website allows you to browse through common questions or contact customer support. Unfortunately, it doesn't offer live chat services.
You can use the U.S. Bank mobile app to check your account balances, deposit checks and pay bills.
U.S. Bank Personal Loans Customer Satisfaction
U.S. Bank has a B+ rating from the Better Business Bureau (BBB). In addition, J.D. Power ranked U.S. Bank as one of the four top-performing banks in the financial health support index.
Customer reviews are mixed. Common consumer complaints include poor customer service, mobile app issues and problems with loan payoff amounts. The BBB has 1,019 consumer complaints on record for the last year. However, most complaints aren't related to personal loans.
U.S. Bank Personal Loans FAQ
How much can you borrow from U.S. Bank?
U.S. Bank asks for your annual income and housing costs. These factors affect the loan amount you can get. For example, you can apply for a $50,000 loan but you might only qualify for $25,000 due to your income and housing costs.
What minimum credit score do you need to borrow from U.S. Bank?
If your credit score is an issue, you can use a cosigner to improve your chances of getting approved for a loan.
How long does U.S. Bank take to approve a loan?
How we evaluated U.S. Bank personal loans
We evaluated U.S. Bank personal loans by looking at several factors, including:
- Types of loans offered
- Requirements to get a loan
- Ability to use a cosigner
- Costs and fees
- Prepayment terms
- Available loan amounts
- Interest rates and other terms
- Customer reviews
We also reviewed the information available through BBB, JD Power and others.
Summary of Money's U.S. Bank personal loans review
Several factors help U.S. Bank personal loans stand out from its competitors. These include loans with no hidden fees, soft credit checks and cosigner loans for people with lower credit scores. However, U.S. Bank only offers personal loans in some states, and the personal loan process can be more challenging if you don't have a U.S. Bank account. Weighing these pros and cons can help you decide if a U.S. Bank personal loan is right for you.