U.S. Bank, which is part of U.S. Bancorp was established in 1863. It offers everything you need, including checking and savings accounts, credit cards, loans, mortgages and wealth management. According to the website, U.S. Bank operates more than 2,000 branches in 26 states.
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U.S. Bank offers a variety of personal loan products. These include a standard personal loan and unsecured home improvements personal loans. Personal lines of credit are also available. U.S. Bank also offers a unique product called U.S. Bank simple loan. Customers with an existing U.S. Bank account are not eligible for simple loans. A Simple Loan allows you to borrow up $1,000 directly from your checking bank account. You can receive the money in minutes and then pay it back in three monthly installments.
U.S. Bank’s website contains conflicting information regarding the requirements of borrowers for regular personal loans. This includes information on whether existing U.S. Bank customers are eligible. We reached out to U.S. Bank for clarification, but we have not received any response at the time of publication. We do know that non-U.S. Bank customers might face higher borrowing restrictions, including credit scores, loan terms, and limitations on how much they can borrow.
How to Get a Personal Loan
Personal loans are a quick way to get cash when you need it. You can use them to pay bills, cover rent, consolidate debt or cover emergencies.
It is important to understand what personal loans are and how to responsibly use them. Make sure you are able to repay the loan on time. Personal loans have no grace period. You will need to create a plan to repay your loan on-time and in full.
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The rate that you are eligible for when you apply for a personal loans may be different from what you see advertised. Your income, credit score and loan amount will all affect your rate. You might be eligible to pre-qualify, depending on which lender. This will allow you to get a rate quote without having your credit pulled. Some lenders may pull your credit. This can cause a small credit ding. To get the best rate, you’ll need to do your research and compare rates with several lenders.
Alternatives to Personal Loans
A personal loan is a good option to help pay for expenses. However, it’s not the only option. These are some other options:
Home equity loans, home equity lines of credit (HELOC), and cash-out refinances. You might be eligible to cash out your home equity if you are a homeowner. You might be able get a better rate with these options than an unsecured personal loan. You should be aware, however, that these loans can also lead to foreclosure if your loan is not paid on time.
A balance transfer credit card. A balance transfer credit card is a good option if you have excellent credit and are looking to consolidate your debt. Some credit cards offer an intro offer at 0% APR for 18 to 20 months. It is important to pay off your balance before the intro offer expires. If you don’t pay the balance in full, your credit card APR will apply. This can be costly. A balance transfer card may have a one-time fee for balance transfers. This is typically a percentage of your balance that you are moving to the card.
Save money for big expenses. Consider opening a personal savings account if your financial needs are not urgent. If you are planning on a big purchase, you might set aside money each month to pay for it in cash. You can set automatic transfers to your savings account every paycheck and have a goal date for reaching it. You can avoid taking on debt by creating an emergency fund that covers three to six months of your expenses.
Borrowing money from family and friends. Asking trusted friends and family for assistance if you’re in financial trouble or need cash fast. Be clear about your expectations and repayment terms to avoid any awkwardness. It is a good idea for both the parties to have everything written down so they know what to expect.
Credit counseling. Not-for-profit credit counseling agencies offer low-cost or free help to those who are struggling with debt. They won’t lend money, but they can give financial advice and resources to help you meet all your financial needs.
The pros and cons of U.S. Bank personal loans
Pros
- You can borrow up to $50,000 (for borrowers who live in CA or NV and those who aren’t U.S. Bank customers).
- Online application is simple and quick
- There are no origination fees nor prepayment penalties
- Simple Loans allow for quick approval and funding of small loans amounts (100 to $1,000) with a 3-month repayment period
- Within one day of closing a loan, funds can be available
Cons
- There is a lot of confusion on the website, making it difficult to find detailed eligibility criteria.
- In every state, not all programs and loan amounts are available
- Borrowers who do not have a U.S. Bank checking or savings account will be subject to increased restrictions. They must visit a U.S. Bank branch in order to close the loan
- Only current U.S. Bank checking customers can apply for simple loans
- How to Qualify For a U.S. Bank Personal loan
Conflicting information on the U.S. Bank website regarding the requirements for personal loans is displayed, including whether non-U.S. Bank customers can apply. According to the website, you are not a U.S. Bank client. The website states that you may be eligible to borrow up to $25,000 in one location, but “approval for Personal Line of Credit/Personal Loan requires that you have a U.S. Bank personal checking account.” In another location. We reached out to the company seeking clarification but have not received any response at the time this article was published.
To be eligible for a personal loan at U.S. Bank, you must also be 18 years old. Your Social Security number, Individual Taxpayer Identification Number, address and employment information will also be required.
According to U.S. Bank’s website, you will need a FICO score at least 660 (or higher if not a U.S. Bank client) to be eligible for a personal loan. A customer service representative also stated that you must have a minimum annual income of $12,000.
Customers 18 years and older must have an open U.S. Bank checking accounts for at least six months to be eligible for simple loans — small, short-term loans of up to $1,000. To be eligible, you must have at least three months worth of regular direct deposits to a U.S. Bank account. We were unable to find information on income and credit scores for Simple Loans.
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Who should get a U.S. Bank personal loan?
For existing U.S. Bank customers, a personal loan from U.S. Bank can be a good option if you need a loan quickly with low fees and competitive rates. You can get funds within one business day of closing your loan. There are no origination fees or prepayment penalties.
The drawbacks for non-U.S. Bank customers may be greater than the benefits. Non-customers may face lower loan amounts (upto $25,000), more stringent credit requirements (the exact amount of which is unknown), and will need to visit a U.S. Bank Branch to close the loan. This assumes that U.S. Bank will grant loans to non-customers, which is hard to verify based on information on the website.
U.S. Bank Simple Loan is a separate product to its regular personal loans and can be used by current customers to cover their immediate financial needs. You can apply quickly for the loan and borrow up $1,000 in $100 increments. Then, you will repay it in three monthly installments. For every $100 borrowed, there is a $6 fee. Due to the short term and small loan amount, the APR can be quite high at 35.65% for a $400 loan. The Simple Loan is still a good option for those in dire need. It’s easier to obtain and quicker to fund than traditional personal loans.
How to apply for a U.S. Bank personal loan
- Online application. The U.S. Bank website has the personal loan application. You will need to submit your application by providing a Social Security Number, Individual Taxpayer Identification Numbers (ITIN), and your address.
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To access Simple Loans, you will need to log into your U.S. Bank checking accounts in order to access the application menu.
- Wait for approval. During the approval process, U.S. Bank will examine your credit history, income, debt to income ratio and other financial factors. You will be notified of your approval status via the website within minutes.
- Receive your loan funds. If you are a U.S. Bank personal savings or checking customer, you can close your loan online once it has been approved. You will need to go to a U.S. Bank branch in order to close your loan. Within one business day of closing the loan, you will receive your loan funds.