Frost Bank traces its origins to the back of a small mercantile store in San Antonio. It weathered the challenges of the 1930 Great Depression when thousands of banks closed down. Today, it stands as a modern bank, offering a comprehensive range of banking services, including various lending options such as personal loans.
Features
Personal loans have gained popularity because it is a functional and quick solution to close the financial gap without overburdening the household budget. If at the moment when unexpected bills arise, you have a chance to pay for them without straining and repay your personal loan step by step.
Personal loans offered by Frost Bank are a convenient financial solution for customers as they possess the following features:
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Fixed and Variable Interest Rates. Frost Bank offers personal loans with the choice of fixed or variable interest rates. Fixed rates remain constant throughout the loan term, while variable rates may fluctuate based on market conditions.
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Unsecured and Secured Options. Frost Bank provides flexibility with personal loans. You can choose between unsecured loans, which don't require collateral, and secured loans, which involve collateral and may offer lower rates.
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Competitive Interest Rates, Based on Collateral. Secured loans come with competitive interest rates as the presence of collateral reduces the lender's risk, potentially leading to better terms for borrowers.
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0.25% Rate Discount with Automatic Payments. Borrowers can get a 0.25% rate discount by setting up automatic loan payments from their Frost Checking or Savings account, making it convenient and cost-effective.
Frost Bank Loan Options
The personal loan options that Frost Bank offers borrowers flexibility and favorable terms. Loan amounts range from $2,000 to $4,999, with a 36-month repayment term and a competitive interest rate of 10.75%. For higher loan amounts, borrowers can access $5,000 to $9,999 at a reduced interest rate of 10.25%. Loans within $10,000 to $24,999 come with an even lower interest rate of 10%. For substantial loan amounts of $25,000 or more, the interest rate remains at an attractive 10%. Additionally, borrowers can benefit from a 0.25% rate discount when they set up automatic payments from a Frost Checking or Savings account.
Notably, Frost Bank offers personal loans with no annual fees, pre-payment penalties, or origination fees, making their loan options even more appealing and cost-effective for customers.
Besides unsecured loans, you can opt for secured loans and typically get a lower rate.
Pros and Cons
Pros
Cons
How to Apply for a Frost Bank Personal Loan?
Applying for a Frost Personal Loan is a straightforward process, taking approximately 15 minutes, with a response typically received within two to four hours. To begin the application, individuals can either call a Personal Loan Advisor at +1 (866) 376-7889 or visit a nearby Frost financial center. The required documents for the application include a government-issued photo ID, such as a driver's license, state ID, or U.S. Military ID, as well as the individual's Social Security number. By providing these essential documents, applicants can initiate the loan application swiftly and efficiently, obtaining the necessary financial support from Frost Bank.
To get an idea of what you can apply for, Frost suggests you fill out a small survey. At first, you will be asked to answer a few questions about your loan purpose, the amount you wish to obtain, whether you like to secure your loan, and then hit the "Find my loan" button.
Requirements
The Bank does not provide a specific list of eligibility criteria for personal loans, but out of standard practice, the applicants usually should meet the following requirements:
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Age. Applicants must be at least 18 years old to be eligible for a personal loan.
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Citizenship/Residency. Borrowers must be U.S. citizens or legal residents residing in the bank's operating area to qualify.
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Credit History. Frost Bank evaluates the applicant's credit history to assess their creditworthiness and repayment capability.
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Income. A stable source of income is required to demonstrate the ability to repay the loan.
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Debt-to-Income Ratio. The bank may consider the borrower's debt-to-income ratio to ensure they can manage additional debt responsibly.
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Employment/Financial Stability. Proof of employment or financial stability may be necessary to demonstrate the borrower's financial situation.
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Documentation. Applicants must provide necessary documents, including identification (e.g., government-issued photo ID), Social Security number, and any other documents required by the bank.
Ways to Receive the Money
Generally, the funds from a personal loan with Frost Bank are conveniently transferred as a direct deposit. Once approved, the loan amount is electronically deposited directly into the borrower's designated bank account. This method ensures quick access to the funds, allowing borrowers to use the money for their intended purposes promptly and efficiently.
How to Pay Off a Frost Bank Loan?
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Automatic Payments. Set up automatic payments through a Frost Checking or Savings account.
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Online Payments. Make manual payments online through the bank's website or mobile app.
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In-Person Payments. Pay in person at any Frost financial center.
Things to Consider
When you ponder about applying for personal loans to compensate for lacking cash for unexpected expenses and bills, it is worth taking time and consider the following:
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Borrowing Amount. Consider your financial needs and borrow only the amount required to avoid overborrowing; this will help you manage your debt responsibly and avoid unnecessary interest costs.
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Repayment Terms. Review the loan's repayment terms and ensure they align with your budget and financial capabilities. Choose a term that allows you to make comfortable monthly payments without straining your finances.
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Interest Rates. Understand the interest rates associated with the personal loan and compare them with other lenders to ensure you get a competitive rate that suits your financial situation.
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Fees and Charges. Take note of any charges associated with the loan, such as origination or late payment fees, to avoid surprises during the repayment process.
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Credit History. Assess your credit history to determine if you meet Frost Bank's eligibility criteria for their loans. A good credit score can lead to more favorable loan terms.
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Purpose of the Loan. Clearly define the purpose of the loan and ensure it aligns with your financial goals. Whether it's for debt consolidation, home improvements, or emergencies, understanding the purpose will help you use the funds wisely.
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Financial Stability. Assess your financial stability and ensure you have a stable source of income to manage the loan payments throughout the loan term comfortably.
Alternatives
Personal Loans from Other Banks
Explore individual loan options from different banks, such as Discover Bank, Bank of America, First Citizens Bank, and Keybank.
Credit Union Loans
Check out personal loan offerings from credit unions like Navy Federal Credit Union, ENT Credit Union, and Mountain America.
Online Lenders
Consider online lenders like Oportun, SoFi, Best Egg, and others, providing streamlined application processes for personal loans.
Peer-to-Peer Lending
Explore peer-to-peer lending platforms where individuals can borrow from individual investors like LendingClub, Prosper, and Upstart.
Home Equity Line of Credit (HELOC)
Consider HELOC options from banks like Wells Fargo, Chase, and TD Bank, which allow you to borrow against your home's equity.
Credit Cards
Consider credit cards offered by Capital One, Citibank, and other reputable providers for more minor financing needs.
Editorial Opinion
Important
Methodology
At Finanso, we've carried out a comprehensive analysis of over 100 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.
In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.
At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.
Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.
Additional resources
To learn more about personal loans and best practices, check out some of the following resources:
- Discover the Best Personal Loans Available Online in the U.S.
- Understanding the Power of a Line of Credit
- Harnessing the Power of Credit Builder Loans for a Strong Credit Score
- Instant Loans: Quick Cash When You Need It Most
- Exploring Best Online Cash Advance Loans for 2024
- Best No-Credit-Check Loans
- Your Guide to Loans with Bad Credit in the U.S.
Sources
- Frost Bank. Personal Loans 28.08.2023
- Bankrate. Frost Bank: 2024 Home Equity Review 28.08.2023
- WalletHub. Frost Bank 28.08.2023
