Truist Bank, formerly known as BB&T, provides personal loans with quick funding. However, it's worth noting that these loans do not include certain features that other lenders, such as pre-qualification or a rate discount, typically offer.
Truist Bank offers lending services in 17 states and Washington, D.C., and they do not require you to be an existing customer in order to borrow money.
Features
- APR. The Annual Percentage Rates (APR) for Truist Bank personal loans range from 8.19% to 17.24%. The specific rate you receive will depend on various factors, including your creditworthiness.
- Fees. Truist Bank does not charge any origination fees for some of its personal loans. This means you won't have to pay any upfront costs to initiate the loan.
- Loan Amount. Truist Bank offers personal loans with loan amounts starting from $3,500. This gives borrowers the flexibility to obtain the desired funds based on their financial needs.
- Repayment Terms. The repayment terms for Truist Bank personal loans typically range from 2 to 5 years. This allows borrowers to choose a repayment period that suits their budget and financial goals.
- Time to Fund. Once your loan application is approved, funds from Truist Bank personal loans may be available on the same day if it's a banking business day. This ensures quick access to the funds you need.
- Loan Availability. Truist Bank provides personal loans in the following states: Alabama (AL), Arkansas (AR), Florida (FL), Georgia (GA), Indiana (IN), Kentucky (KY), Maryland (MD), Mississippi (MS), New Jersey (NJ), North Carolina (NC), Ohio (OH), Pennsylvania (PA), South Carolina (SC), Tennessee (TN), Texas (TX), Virginia (VA), West Virginia (WV), and Washington, D.C. Residents of these states can apply for personal loans from Truist Bank.
- No Collateral Required. Truist Bank personal loans do not require collateral. This means you don't need to pledge any assets or property as security for the loan.
Truist Bank Personal Loan Options
Personal Loan. This option provides fast approvals and same-day access to cash. It is suitable for various purposes, such as debt consolidation, home improvements, weddings, or vacations. The loan offers a minimum borrowing amount of $3,500 and does not require collateral. There are no origination fees, and the interest rates range from 8.19% to 17.24% APR.
Truist Ready Now Loan. Designed to address unexpected expenses, this loan is available in $100 increments, ranging from a minimum loan amount of $100 up to a maximum of $1,000. It is exclusively offered to clients with a Truist personal checking account that has been open for at least six months. The loan carries a $5 origination fee per $100 borrowed.
Personal Line of Credit. This option provides a low-rate line of credit that can be utilized for various opportunities as they arise. The personal line of credit has a minimum credit line of $5,000 and does not charge application, cash advance, or annual fees. The variable rates can be as low as 13.44% APR.
Physician Line of Credit. Tailored specifically for medical professionals, the physician line of credit offers easy, low-cost access to cash for interns, residents, fellows, and board-certified physicians, dentists, and podiatrists. Medical residents and fellows can access a maximum line amount of $50,000, while board-certified physicians, dentists, and podiatrists can access up to $100,000. The variable rates for this line of credit start as low as 12.25% APR.
Pros and Cons
- Fast Funding. Truist Bank offers fast funding, allowing borrowers to quickly access the funds, particularly on banking business days.
- Direct Payment to Creditors. Truist Bank provides the option of direct payment to creditors for debt consolidation loans. This can simplify consolidation by ensuring payments are made directly to the appropriate parties.
- Option to Add a Co-Signer. Truist Bank allows borrowers to include a co-signer on their personal loan application. Adding a co-signer with good credit can increase the chances of loan approval and potentially result in more favorable loan terms.
- No Collateral Required. Truist Bank's personal loans do not require collateral. Borrowers can access funds without having to pledge assets or property as security for the loan.
- No Option to Pre-Qualify. Truist Bank does not offer the option to pre-qualify for a personal loan with a soft credit check. This means that potential borrowers would need to submit a formal loan application, which could result in a hard credit inquiry and potentially impact their credit score.
- Limited State Availability. Truist Bank's personal loans are available only in a limited number of states. This may restrict access to their loan products for individuals residing outside of the eligible states.
- No Rate Discount. Unlike some other lenders, Truist Bank does not provide a rate discount feature on their personal loans. Borrowers will not receive a reduced interest rate based on factors such as automatic payment setup or existing customer status.
- Lack of Clear Loan Amount Display. Truist Bank's website may not clearly display the available loan amounts for their personal loans. This could potentially make it more challenging for borrowers to determine the loan options that best fit their financial needs.
How to Apply for a Truist Bank Personal Loan?
To apply for a loan with Truist, you have two options: either apply on their website or visit a branch in person. Keep in mind that Truist does not offer pre-qualification for their loans. Therefore, your initial step would be to complete a formal personal loan application. This process may require you to provide documentation such as W-2s, pay stubs, and bank statements to verify your information. It's important to note that Truist will conduct a hard credit check during the application process, which could temporarily impact your credit score.
Managing your loan payments is crucial. Truist reports your payments to the three major credit bureaus, so making timely payments will contribute positively to building your credit. Conversely, missed payments can have a detrimental effect. Consider setting up automatic payments and closely monitoring your budget to stay on top of your payments. These strategies can help you effectively manage your loan payments.
Best places to borrow a loan with bad credit
Upgrade
Upgrade is a prominent online lender that offers personal loans to borrowers with bad credit. They provide loan amounts ranging from $1,000 to $50,000, making them suitable for various financial needs. The minimum credit score required by Upgrade is relatively low, typically around 580. This makes it accessible to individuals with a less-than-stellar credit history. One notable advantage of Upgrade is its flexible repayment terms, which can extend up to five years. This longer repayment period allows borrowers to manage their monthly payments more effectively. However, it's worth noting that Upgrade charges origination fees ranging from 2.9% to 8%. Additionally, while they do not have any prepayment penalties, borrowers should be aware of the interest rates, which can be relatively high for individuals with bad credit.
Upstart
Upstart is another online lender that specializes in providing loans to borrowers with bad credit. Their loan amounts range from $1,000 to $50,000, allowing borrowers to access the funds they need for various purposes. Upstart utilizes a unique underwriting model that takes into account factors beyond just credit scores, making it more inclusive for individuals with limited credit history or low credit scores. The minimum credit score required by Upstart is typically around 580. One of the significant advantages of Upstart is its soft credit check, which means that applying for a loan does not negatively impact your credit score. Repayment terms offered by Upstart range from three to five years, providing borrowers with flexibility. While they do charge origination fees of up to 8%, it's important to note that they don't impose any prepayment penalties. However, borrowers with bad credit should expect higher interest rates.
LendingPoint
LendingPoint is a bad credit lender that offers personal loans ranging from $2,000 to $36,500. They consider borrowers with credit scores as low as 585, making them accessible to individuals with bad credit. LendingPoint prides itself on providing fast funding, often disbursing funds within one business day. Their repayment terms typically range from two to four years, allowing borrowers to tailor their loan duration according to their needs. It's important to note that LendingPoint does charge origination fees that can be up to 6%. They also have a slightly higher interest rate compared to traditional lenders, which is to be expected when borrowing with bad credit. However, they do not impose any prepayment penalties, enabling borrowers to pay off their loans early if they desire.
Universal Credit
Universal Credit is an online lender that specializes in bad credit loans, offering loan amounts ranging from $500 to $15,000. Their minimum credit score requirement is relatively low, typically around 550, making them accessible to borrowers with poor credit. Universal Credit offers repayment terms ranging from six months to five years, allowing borrowers to choose a duration that aligns with their financial situation. While they charge origination fees, the amount may vary based on the borrower's creditworthiness. One notable advantage of Universal Credit is its willingness to consider applicants who have previously filed for bankruptcy. However, borrowers should be aware that the interest rates associated with bad credit loans from Universal Credit may be higher compared to traditional lenders.
OneMain Financial
OneMain Financial is a well-established lender that specializes in bad credit loans. They offer loan amounts ranging from $1,500 to $20,000, making them suitable for various financial needs. OneMain Financial requires a minimum credit score of 600, slightly higher than some of the other lenders in this category. However, they have a reputation for considering other factors beyond credit scores when evaluating loan applications. OneMain Financial provides repayment terms that range from two to five years, allowing borrowers to select a term that fits their budget. It's important to note that OneMain Financial charges origination fees, which can vary depending on your residence state. While they do not disclose their interest rates upfront, borrowers with bad credit should expect higher rates.
Avant
Avant is an online lender that specializes in offering personal loans to individuals with bad credit. They provide loan amounts ranging from $2,000 to $35,000, catering to various financial needs. Avant has a minimum credit score requirement of 580, making them accessible to borrowers with less-than-ideal credit histories. Repayment terms offered by Avant typically range from two to five years, giving borrowers flexibility in managing their monthly payments. While Avant charges origination fees up to 4.75%, they do not impose any prepayment penalties. It's important to note that Avant's interest rates can be relatively high for borrowers with bad credit. However, they provide a transparent prequalification process that allows borrowers to check their potential loan offers without affecting their credit scores.
Requirements
Truist Bank doesn't publicly disclose many of its borrower requirements. However, a loan specialist says the bank accepts applications from good- and excellent-credit borrowers (690 credit score or higher). To apply, you need:
- Provide personal and contact information, including a U.S.-based cell phone number.
- Provide two years of address and employment history.
- Provide financial information, including income, debts, and other personal obligations, like rent or mortgage.
- Check your credit. Doing so will help you spot and fix any errors before you apply.
- Calculate your monthly payments. Use a personal loan calculator to determine what APR and repayment term you’d need to get a loan with affordable monthly payments.
- Make a plan to repay the loan. Review your budget to see how the loan’s monthly payments affect your cash flow. If you have to cut other expenses to repay the loan, it’s better to know that before you borrow.
- Gather your documents. Truist Bank may request proof of income, which can be a W-2 or paystub and photo identification, like a driver’s license or passport. Having these documents handy can speed up the application process.
Ways to Receive the Money
Truist Bank typically sends borrowed money to borrowers through electronic funds transfer (EFT) directly to the borrower's account. Once a personal loan application is approved, the funds are disbursed by depositing the loan amount into the designated bank account provided by the borrower during the application process.
How to Pay Off a Truist Bank Personal Loan?
- Review the Loan Agreement. Carefully review the terms and conditions of your personal loan agreement from Truist Bank. Take note of important details such as the loan balance, interest rate, repayment period, and any applicable fees or penalties.
- Determine Your Repayment Strategy. Evaluate your financial situation and determine your personal loan's most suitable repayment strategy. Consider factors such as your budget, income, and other financial obligations.
- Set up Automatic Payments. Contact Truist Bank or access your online account to set up automatic payments for your personal loan. This ensures that your monthly payments are deducted automatically from your designated bank account, helping you stay on track with your repayments and avoid any late payment penalties.
- Make Extra Payments if Possible. If you have the means to do so, consider making extra payments towards your personal loan. By paying more than the minimum required amount, you can reduce the total interest paid and shorten the repayment period.
Things to Consider
- Lack of Pre-Qualification Option. Unlike some competitors, Truist Bank does not offer the option to pre-qualify for a loan. This means you cannot determine your potential loan amount, interest rate, and monthly payment before formally applying. It is advisable to compare loan offers from multiple lenders by pre-qualifying, as it does not impact your credit score.
- Absence of Rate Discounts. Truist Bank does not provide rate discounts on their personal loans. Other lenders may offer reduced interest rates for actions such as setting up automatic payments or using loan funds to pay off existing creditors. Truist Bank does not offer such incentives.
- Transparency. While Truist Bank's website provides information on certain loan features like rates and funding timelines, it may not clearly display the full range of available loan amounts. Additionally, the website lacks a dedicated FAQ page to address common loan-related questions, such as the application process or repayment options.
- APR Range. Truist Bank's personal loan Annual Percentage Rates (APRs) range from 8.19% to 17.24%. The specific rate you qualify for depends on various factors, including your creditworthiness.
- No Collateral Requirement. Truist Bank's personal loans do not require collateral, meaning you do not have to pledge any assets or property as security for the loan.
- Limited Availability. Truist Bank's personal loans are only accessible in specific states. This restriction may limit access to their loan products for individuals residing outside of those eligible states.
Alternatives
Credit Union Loans
Many credit unions, like Navy Federal Credit Union (NFCU), offer personal loans with competitive interest rates and favorable terms. They may also provide additional benefits to their members, such as lower fees or flexible repayment options.
Online Lenders
Online lenders such as SoFi and Avant provide a convenient and streamlined application process for personal loans. They often offer competitive rates and may be more flexible in their borrower requirements.
Peer-to-Peer Lending
Peer-to-peer lending platforms such as Prosper connect borrowers directly with individual lenders, cutting out the traditional banking system. These platforms often offer competitive rates and flexible loan terms.
Credit Card Balance Transfers
If you have existing credit card debt, transferring the balance to a credit card with a lower interest rate or a promotional 0% APR period can be a cost-effective way to consolidate debt and save on interest. Chase Bank as an example. Chase offers credit cards with balance transfer capabilities. One of their popular cards for balance transfers has been the Chase Slate card.
Home Equity Loans or Lines of Credit
Home equity loans and home equity lines of credit (HELOCs) are secured against the equity of your home. They are ideal choices if you're a homeowner seeking significant funds. Institutions like Wells Fargo, Bank of America, and U.S. Bank provide these home equity services.
Editorial Opinion
Truist Bank, formerly known as BB&T, offers personal loans with a range of features and benefits. However, a closer examination reveals a mixed bag of pros and cons. In this editorial opinion, we will evaluate the strengths and weaknesses of Truist Bank's personal loan offerings. Truist Bank's personal loans come with several advantages worth considering. Firstly, the absence of origination fees is a major plus for borrowers, allowing them to save money during the loan initiation process. Additionally, the availability of fast funding ensures that borrowers can quickly access the funds they need, providing a convenient solution for urgent financial requirements. Despite the positive aspects, Truist Bank's personal loans have notable drawbacks. One major downside is the lack of a pre-qualification option. Unlike some competitors, Truist Bank does not allow borrowers to assess their potential loan amount, interest rate, and monthly payment before submitting a formal application. This limitation can hinder borrowers' ability to compare loan options effectively. Another disadvantage is the absence of rate discounts, which other lenders often provide as an incentive for actions such as setting up automatic payments or paying off existing creditors. Truist Bank's personal loans present both advantages and disadvantages. The absence of origination fees, fast funding, and the option to include a co-signer are commendable features that make their loans attractive to certain borrowers. However, the lack of a pre-qualification option, rate discounts, and transparency in loan amount display are notable downsides that may deter potential applicants.
Important
Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.
How to Choose a Lender
Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.
Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.
Carefully review all the terms and conditions of your payday loan contract.
Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.
Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.
Additional Resources
- What Credit Score Do You Need for a Personal Loan?
- How to Get a Personal Loan in 7 Steps
- Personal Loan Pre-Approval
- How to Apply for a Personal Loan
- Personal Loan vs Personal Line of Credit
