To get a personal loan from a bank, first check your credit score, then compare the available offers to find the best rates, fees and repayment periods. After that, check the pre-eligibility, submit the application online or in person and wait for the decision. The steps may not seem that complicated, but preparing for a loan can take time.
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| How do you get a personal loan from a bank 2022? |
How to Get a Personal Loan from a Bank
Check Your Credit
The first step in getting a personal loan from a bank is always to check your credit score and reports because credit history is the biggest determining factor for approval and most personal loans require a credit score of 660 or higher. There are several major banks that offer secured personal loans for people with bad credit, including Wells Fargo, PNC, Fifth Third Bank, and KeyBank. But if you have a low score, you may want to consider credit unions or online lenders instead, as they are more likely to offer personal loans for bad credit.
Choose Between the Available Offers
Next comes the hardest part of the process, comparison shopping. WalletHub's tool can help you find available loans from banks that meet your credit level. From there, you can choose which loan is best for you based on their length, required repayments, interest rates and more.
Check for Pre-qualification
Once you've decided on a few good options, you'll want to check if you're pre-qualified for any of them. The bank may have a tool to do this on their website, or you can check in branch. If you want to pre-qualify with multiple lenders at once, you can use WalletHub's free pre-qualification tool. Being pre-qualified means you have a very high (but not 100%) chance of being approved. A pre-qualification also has no effect on your credit.
Apply Online or in Person
Eventually, you will settle on a personal loan. At that time, you can apply online or at a bank branch. Applying online usually gives you the fastest decision, as it is automated. But applying at a branch can also plug you into the automated system. And you will have the expertise of a banker.
Wait to Hear Back
In most cases, it does not take much time to receive a decision. You can get one instantly and usually won't have to wait more than a few business days. Occasionally, it may take a few weeks. After you are approved, it will usually take at least one business day for the bank to transfer the funds to you.
There aren't many differences between how to get a personal loan from a bank and how to get one from other types of lenders. But there are few. First, you likely need a credit score of 660 or better to get a loan from a bank, while credit unions and online lenders are more likely to cater to people with subpar credit. Additionally, unlike online lenders, banks offer the ability to apply in person. A credit specialist can sit with you while you apply.
