Walking into your own bank for a loan feels like the safe, grown-up move. Sometimes it is. Banks tend to charge lower rates than online lenders for the same borrower, many skip origination fees entirely, and the bank already knows your paycheck lands there every two weeks. But a surprising number of the biggest names in American banking do not make ordinary personal loans at all, a few will only lend to people who have banked with them for a year, and one major bank’s lending arm shut its doors to new applicants this month.
This guide is built around the questions people actually get stuck on. Which banks will lend to me? Do I have to be a customer first? What happens to my credit score when I apply? What does a bank mean by “debt-to-income,” and how do I know if mine is too high? And if I need $400 by Friday rather than $15,000 over five years, does my bank have something for that?
Nine Questions People Ask Before They Talk to a Banker
Short answers first. Each one is unpacked further down, along with the exceptions that tend to catch people out.
At some banks, yes. Wells Fargo lends only to existing customers, and one of its pages specifies a qualifying account open at least 12 months. Citi, U.S. Bank, PNC, TD Bank and Discover accept new customers, though existing ones often get bigger limits or lower rates.
Not traditional ones. Chase offers My Chase Loan, which carves a lump sum out of an existing credit card’s limit. Bank of America offers Balance Assist, a $100 to $500 loan for a $5 flat fee, to checking customers of at least a year.
Pre-qualification at most banks uses a soft pull that doesn’t affect your score. The hard inquiry comes when you submit the full application, and it usually costs fewer than five FICO points.
Most don’t publish a minimum. Bank personal loans are aimed at good-to-excellent credit, generally upper 600s and above, and the lowest advertised rates usually go to scores in the mid-700s or higher.
Often one to five business days. Wells Fargo says nearly all borrowers are funded the day they sign; Discover can send funds the next business day after acceptance. Being an existing customer usually speeds verification.
Often, for strong borrowers, mainly because many banks charge no origination fee. Online lenders sometimes advertise lower floors but deduct fees of up to 8% to 12%. Compare the dollar total, not the headline rate.
Frequently not. Discover can’t be used to pay any Capital One account, including Discover cards, and Citi’s loan can’t pay Citi cards. If you’re consolidating, borrow from a bank that doesn’t hold the debt.
By law it must tell you in writing, either listing the reasons or explaining how to request them within 60 days. If your credit report played a part, you’re entitled to a free copy of it within 60 days of the notice.
Take it if it’s free, but don’t move banks for it alone. On $20,000 over five years at 10%, a half-point discount saves about $294 in total interest.
Which Banks Still Make Personal Loans
Before anything else, find out whether your bank is even in the business. When we went through the published rules at a dozen of the largest consumer banks, the answers split into five very different groups.
| Bank | APR range | Amounts | Terms | Fees | Who can apply |
|---|---|---|---|---|---|
| Wells Fargo | 6.74%–26.74% | $3k–$100k | 12–84 mo | No origination fee | Existing customers only |
| American Express | 6.99%–19.99% | From $3,500 (up to $50k) | 12–60 mo | No origination fee | Card Members with an offer |
| Discover (Capital One) | 6.99%–24.99% | $2.5k–$40k | 36–84 mo | No fees of any kind | Anyone; $25k income minimum |
| PNC Bank | 6.99%–25.29% | $5k–$35k | 12–60 mo | None reported | Customers and non-customers |
| TD Bank (Fit Loan) | 7.99%–23.99% | $2k–$50k | 36–60 mo | No origination fee | 16 states + DC |
| U.S. Bank | 9.24%–24.99% | Varies by status | Up to 84 mo for customers | No origination fee | Customers and non-customers |
| Citi | 10.24%–18.49% | $2k–$30k new; up to $50k existing | 12–60 mo | No origination fee | No co-applicants |
Ranges as published or recently reported. Wells Fargo’s includes a 0.25% relationship discount; PNC’s and Citi’s floors include autopay discounts. U.S. Bank’s range was published as of July 20; Amex’s as of July 19.
Bank, credit union or online lender?
A bank is the right first stop when you already have a checking account there with steady deposits, your credit is good or better, and you value having a branch or a phone line you can call if a payment goes wrong. The biggest practical advantage is fees: every bank in the table above advertises no origination fee, while many online lenders take 1% to 12% off the top.
A credit union is often better if your credit is fair or you want a low worst-case rate. Federal credit unions are limited to 18% on most loans under a ceiling the National Credit Union Administration has extended through September 10, 2027. You’ll need to join, which is usually simple.
An online lender makes sense when your bank doesn’t lend, when you need a loan amount or term a bank won’t offer, or when your credit is uneven and you want a lender that looks at more than your score. Just read the fee line carefully.
How to Get a Personal Loan From a Bank, Step by Step
The order matters. Doing these steps in sequence keeps your credit score intact and puts you in front of the best offer rather than the first one.
1. Write down the amount and the payment you can live with
Start with the purpose, not the lender. If you’re paying off a contractor or a set of card balances, get the exact payoff figure. Then decide the highest monthly payment that fits your budget without leaning on a credit card. That figure, more than the rate, decides which term you should pick. A loan that only works on a seven-year term is usually a sign to borrow less.
2. Check your credit reports and score
Pull your reports free from AnnualCreditReport.com, the site set up under federal law, and look for accounts you don’t recognize or late payments that aren’t yours. Banks price in tiers, so an error that drops you from 721 to 715 can push you into a noticeably higher rate band. Many banks also show your FICO score free inside their app.
3. Work out your debt-to-income ratio
Add up your monthly debt payments, including rent or mortgage, car loan, student loans and the minimum on each card, and divide by your gross monthly income. That’s the number underwriters look at right after your credit score. There’s no single published cutoff, but the lower it is, the better your odds and your rate. The worked example in the next section shows how one new loan changes it.
4. Start with your own bank, then add two or three others
Your bank already has your deposit history, which can mean a faster decision and a relationship discount. But don’t stop there. Add at least one bank that accepts non-customers (Discover, PNC, U.S. Bank, Citi or TD if you live in its footprint) and one credit union. Most of these let you check your rate with a soft pull.
5. Compare offers by total cost
For each offer, note the APR, any fee in dollars, the monthly payment and the total of all payments over the term. The lowest total of payments, at a term you’re comfortable with, is the cheapest loan. If two offers are within a few dollars, choose the bank with the better service hours or branch access.
6. Submit one full application
This is the step that triggers a hard inquiry. FICO’s rate-shopping rules that group inquiries are written for mortgage, auto and student loans, so don’t assume several personal loan applications will be counted as one. Pick first, then apply. Upload documents promptly; most delays come from a missing pay stub or a mismatched address.
7. Turn on autopay before you sign
Autopay and relationship discounts typically have to be selected before the loan funds. Wells Fargo’s discount requires automatic payments from a qualifying Wells Fargo account; PNC’s and Citi’s floors assume autopay at origination. You can’t usually add the discount later.
8. Read the Truth in Lending box, then sign
Your loan documents include a standard federal disclosure showing the APR, the finance charge, the amount financed and the total of payments. If any of these differ from what the offer screen showed, ask before signing. Then set a calendar reminder for the first payment date, which is often 30 to 45 days out.
What a Bank Looks at Before It Says Yes
Bank underwriting is more conservative than most online lenders, but it is also more predictable. Five things carry almost all the weight.
Banks want a record of on-time payments and modest card balances. Recent late payments, collections or a bankruptcy weigh heavily, and a thin file with only a year or two of history can be enough for a decline even with a decent score. Most big banks won’t publish a minimum score, but their loans are built for good-to-excellent credit.
Take a borrower earning $5,000 a month before tax who pays $1,200 in rent, $350 on a car and $250 in card minimums. That’s $1,800 in debt, a 36% ratio. Add a $10,000, three-year loan at the Fed’s 11.90% average, about $332 a month, and the ratio rises to about 43%, unless the loan pays off the cards, in which case it can actually fall. Run this math before you apply: if the new loan replaces debt, say so in the application.
Banks want to see income that will still be there in a year. Two years with the same employer or in the same field helps. Discover requires at least $25,000 in individual or household income; Truist’s lending page has asked for two years of address and employment history. Self-employed borrowers usually need tax returns rather than pay stubs.
Regular direct deposits, a checking account in good standing and no recent overdraft problems all help. Some banks build this into eligibility: Wells Fargo lends only to customers, Bank of America’s Balance Assist needs a checking account at least a year old, and U.S. Bank’s Simple Loan requires six months of account history and three months of recurring direct deposits. Citi warns that card-only customers of under 12 months with no Citi deposit account may be ineligible.
Banks generally won’t lend for college costs, business purposes or investing, and some ban specific uses: Truist’s loan terms exclude buying stocks or crypto, and TD’s Fit Loan can’t be used for business or education. Some banks price home improvement or debt consolidation lower than other purposes, so choose the purpose honestly; it can affect your rate.
What lending conditions look like right now
The Federal Reserve’s quarterly survey of senior bank loan officers, the most direct read on how picky banks are being, found that standards for auto and other consumer loans were basically unchanged in the second quarter, while credit card standards tightened modestly. Demand for other consumer loans also held steady. In plain terms: banks aren’t loosening up, but they aren’t clamping down on personal loans either. A strong application today gets roughly the same reception it would have six months ago.
The Documents to Have Ready
Having these on hand before you click “apply” is often what separates a same-day decision from a three-day back-and-forth.
- Government-issued photo ID such as a driver’s license or passport, plus your Social Security number.
- Proof of income. Recent pay stubs or a W-2 if employed; the last one or two years of tax returns if self-employed; award letters for Social Security, pension or disability income.
- Employer details: name, address, phone and how long you’ve worked there.
- Housing cost: your monthly rent or mortgage payment.
- Proof of address if your ID shows an old one: a recent utility bill or lease.
- Payoff details for debts you want paid directly: account numbers and payoff amounts for each card or loan.
- Your bank’s routing and account number for where the funds should land.
Most banks now run personal loans online, and some only online: Truist described its unsecured loan as a fully digital product, and Discover and Citi steer applicants to the web. Wells Fargo and U.S. Bank also take applications by phone or in a branch, and many branch-based banks do the same. A branch visit is worth it if your income is unusual, you want a banker to explain an offer, or you’d rather hand over documents face to face.
Relationship Discounts: Worth It, With Limits
Banks love to advertise their lowest rate “with relationship discount.” It’s real money, but smaller than the ads imply.
Discounts at the banks we reviewed run from 0.25 to 0.50 percentage points. Wells Fargo’s 0.25% requires a qualifying Wells Fargo checking account and autopay from a Wells Fargo deposit account, and only one relationship discount can apply per loan. U.S. Bank’s discount, reported at 0.50 points, requires autopay from a U.S. Bank checking or savings account. PNC and Citi bake autopay into their advertised floors.
The takeaway: if you already bank there, claim the discount; it costs nothing. If you’d have to open and fund a new account just for the discount, compare that hassle against a lender whose undiscounted offer is already lower.
Which Situation Sounds Like Yours?
The right bank depends far more on your circumstances than on who has the lowest advertised rate.
Start there and check your rate in online banking or the app. You’ll often see a pre-filled application, a relationship discount and faster funding because your identity and income are already on file. Use that offer as your benchmark, then price one outside bank and one credit union to make sure loyalty isn’t costing you.
Chase and Bank of America don’t make traditional personal loans. Chase cardholders whose account has been open at least 180 days may see My Chase Loan, which turns part of the card’s limit into a fixed-payment loan with no credit check; it’s convenient but it uses up your card’s available credit. Bank of America’s Balance Assist only goes to $500. Capital One customers can look at Discover, now part of Capital One, though a Discover loan can’t pay off Capital One or Discover cards. In all three cases, you’ll likely be borrowing from a second bank.
Borrow from a bank that doesn’t hold your cards. Several banks bar using their loans to pay off their own cards: Discover can’t pay any Capital One account, and Citi’s loan can’t pay Citi cards. Ask whether the bank pays creditors directly; Discover and Citi both can. Then compare: if your offer isn’t comfortably below your card APRs (cards that charge interest averaged 22.36% in the Fed’s latest survey), the loan may not save enough to justify itself.
Mainstream bank personal loans may be out of reach for now, but you have options. Ask about a loan secured by a CD or savings account, which many banks and credit unions offer at rates tied to your deposit; U.S. Bank has offered a CD-secured path. A co-borrower helps at banks that allow joint applications, such as U.S. Bank, but not at Citi, which doesn’t accept co-applicants. A credit union, with its 18% federal ceiling, is often the better next stop.
Expect to document two years of income with tax returns, and be ready to explain big swings. Banks look at net income after business expenses, so heavy write-offs can work against you here. Applying where your business and personal accounts both sit can help, since the bank can see deposits directly. If an online form keeps declining you, a branch conversation sometimes gets a human to review the file.
Relationship-based products won’t help yet. Wells Fargo and Balance Assist require an established account, Simple Loan needs six months of history, and Citi may decline new card-only customers. Go straight to banks that lend to non-customers, such as Discover, PNC, U.S. Bank or TD, or a credit union you can join on the spot.
Neither is taking new personal loan applications right now. LightStream stopped in October as Truist sold the loan book to Carlyle; Santander paused personal lending and hasn’t set a return date. If you already have a loan with either, keep paying as usual and treat any request to send payments somewhere new with suspicion until you get written notice from the bank itself.
When You Need a Few Hundred Dollars, Not a Few Thousand
A standard personal loan usually starts at $2,000 to $5,000. If the gap is a car repair or an electric bill, your bank’s small-dollar program may be far cheaper than a payday loan or an overdraft.
| Program | Amount | Cost | Repay | Who qualifies |
|---|---|---|---|---|
| Bank of America Balance Assist | $100–$500 | $5 flat fee | 3 monthly payments | Checking open 1+ year, regular deposits |
| Huntington Standby Cash | $100–$750 | 5% fee; no interest with autopay | 3 months | $1,000+ monthly deposits for 3 months |
| U.S. Bank Simple Loan | $100–$1,000 | $6 per $100 (~35.65% APR) | 3 monthly payments | Checking 6+ months, 3 months of direct deposit |
| Credit union payday alternative | Varies | Capped at 28% APR | Varies | Federal credit union members |
A few details matter. Balance Assist reports payments to all three credit bureaus, so on-time payments can help your score, and it involves a hard credit check; you can have one at a time, with a new one available 30 days after payoff. Huntington’s Standby Cash looks at your deposit history rather than your credit score, but charges 1% a month in interest if you skip automatic payments, and suspends the line if you use 90% or more of it for three straight cycles. U.S. Bank’s Simple Loan is the priciest of the three but goes up to $1,000.
If the Bank Says No
A decline is information. Federal law gives you the right to know why, and that answer tells you exactly what to fix.
Under the Equal Credit Opportunity Act and Fair Credit Reporting Act, a lender that turns you down must send a written notice that either lists the specific reasons or tells you how to request them within 60 days. If your credit report played a role, the notice must also give the score it used, the key factors behind it, the credit bureau’s contact details, and your right to a free copy of that report within 60 days.
- Fix errors first. If the reason traces to something wrong on your report, dispute it with the bureau before reapplying anywhere.
- Lower your utilization. If the notice cites high balances, paying cards down before the next statement date can lift your score within a month or two.
- Reduce the request. If debt-to-income was the problem, a smaller amount or a different purpose (paying off existing debt) may change the answer.
- Try a different kind of lender. A credit union or a secured loan may approve what a bank wouldn’t.
- Wait before reapplying at the same bank. Reapplying immediately with nothing changed just adds another hard inquiry.
Bank Impersonation and Loan Scams
Scammers know people trust their bank, so they pretend to be it.
A call or text “from your bank” offering a pre-approved loan if you pay a fee first. A request for your online banking password or a one-time code. A loan offer that arrives by text with a link instead of through your bank’s app. Pressure to act today. A real bank deducts any fee from the loan itself and never asks you to read back a security code. When in doubt, hang up and call the number on the back of your debit card.
Other Ways Your Bank Can Lend You Money
A personal loan isn’t the only product behind the counter. Sometimes another one fits the job better, and the banker won’t always bring it up unless you ask.
| Option | Best for | Rate style | Main risk |
|---|---|---|---|
| Personal loan | One-time cost with a known amount | Fixed | Hard inquiry; fixed payment you must keep up |
| Personal line of credit | Costs that arrive in pieces over months | Often variable | Easy to keep borrowing; rate can rise |
| Home equity loan or HELOC | Large renovations for owners with equity | Fixed or variable | Your home is the collateral |
| CD- or savings-secured loan | Building or rebuilding credit | Usually fixed, tied to deposit | Savings are frozen until repaid |
| Card balance transfer | Debt you can clear within the promo period | Promo, then standard card APR | Transfer fee; high rate after the promo |
The honest test is how sure you are about the number and the timeline. If you know the cost to the dollar and can repay in three to five years, a fixed personal loan gives you a finish line. If a renovation will be paid in stages and you own a home with real equity, a home equity product may cost less, but only take one if you’re comfortable that missing payments puts the house at risk. A balance transfer can beat any loan on price for debt you can clear inside the promotional window; it’s a poor fit if the balance will still be there when the promo rate ends.
Five questions to ask the banker
- Is there a relationship or autopay discount, and does it have to be set up before funding?
- Is the rate you’re showing me the same if I choose a shorter or longer term?
- Can you pay my other creditors directly, and are any of my accounts excluded?
- When is my first payment due, and can I choose the due date?
- Are there any fees at all: late, returned-payment or state taxes like Florida’s documentary stamp tax?
Our Verdict
It’s Wells Fargo, Citi, U.S. Bank, PNC, TD or Discover, your credit is good or better, and your deposits land there. You’ll likely get no origination fee, a relationship discount and a quicker decision.
Your bank is Chase, Bank of America, Santander or Truist, you’re consolidating that same bank’s cards, or your credit is fair. Discover, PNC or a credit union are the natural next stops.
You need less than about $1,000 to bridge a gap. Balance Assist, Standby Cash or Simple Loan will almost always cost less than a payday loan or a string of overdraft fees.
Questions people still ask
Can I get a bank personal loan with no credit history?
It’s difficult at most big banks. A savings- or CD-secured loan, a credit-builder loan at a credit union, or a co-borrower at a bank that allows joint applications are the realistic routes.
Is a bank personal loan fixed-rate?
The bank loans in this guide quote fixed APRs, so the payment doesn’t change over the term.
Can I pay off a bank personal loan early?
Yes. Wells Fargo, Discover, Citi, TD Bank and American Express all advertise no prepayment penalty; check the disclosure at any other bank.
How much can I borrow from a bank?
Typically $2,000 to $50,000. Wells Fargo goes up to $100,000 for customers; Citi raises its $30,000 limit to $50,000 for eligible existing customers. Your income and debt load usually cap you lower than the advertised maximum.
Is a personal loan or a personal line of credit better?
A loan suits a one-time, known expense with a fixed payoff date. A line of credit suits ongoing or uncertain costs, but rates are often variable. Ask your bank which it offers; not all have both.
Does applying at a branch get a better rate?
Not usually; pricing is generally the same online or in person. A branch helps when your situation needs explaining.
How this page was checked. Bank offerings, APR ranges, amounts, terms and eligibility rules were compared against each bank’s own pages and disclosures where available, and against recent reporting where a bank shows rates only after pre-qualification, on or before October 22. Average rates come from the Federal Reserve’s G.19 release; lending-standard trends from the Federal Reserve’s Senior Loan Officer Opinion Survey; emergency-savings data from the Federal Reserve’s Survey of Household Economics and Decisionmaking; denial rights from the Consumer Financial Protection Bureau. Payment and ratio examples are our own math. Banks change products and pricing often; the bank’s application screen is the final authority.
This page is independent and not affiliated with any bank named. It is general information, not financial or legal advice.
Key sources: Federal Reserve (G.19, SLOOS, SHED) · Consumer Financial Protection Bureau · National Credit Union Administration · Federal Trade Commission · bank disclosures