Best Banks for Personal Loans in August 2026
SoFi offers the best bank loan because of its fast funding, low rates, no required fees and other perks
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- Bank loans are typically harder to qualify for than online loans, but they often come with lower rates and fewer fees.
- Bank loans may be best if you have excellent credit and if your current bank offers an incentive for borrowing, like rate discounts or larger loan amounts.
- Finding an affordable loan from a reputable institution should be your goal, no matter if you get it from a bank, credit union or online lender.
Read more about how we chose the best bank loans.
Best banks for personal loans, based on our expert review
Best for: Excellent customer service – Discover
- APR
- 7.99% to 24.99%
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- High ratings from LendingTree users
- Willing to work with you if you’re having trouble making payments
- U.S.-based customer service, with extended business hours
- No autopay discount
- Need at least good credit
If you want experts to walk you through the personal loan application and repayment process, consider borrowing from Discover.
Discover has extended customer service hours, U.S.-based loan specialists and a 97% approval rating from LendingTree users. Discover also offers repayment assistance if you’re having a hard time keeping up.
Unlike the other lenders on this list, Discover doesn’t offer an autopay discount. You’ll also need a good credit score to qualify for a loan, so take a look at online lenders if your score is fair or below.
You’ll need to meet these eligibility criteria to get a Discover loan:
- Age: Be at least 18
- Citizenship: Have a Social Security number
- Administrative: Have a physical address, email address and internet access
- Income: Minimum income of $40,000 (individually or as a household)
- Credit score: 599+
Banks vs. credit unions vs. online lenders
Not all personal loans are created equal. But speaking in general terms can help you understand the pros and cons of working with a bank, credit union or online lender.
Here’s a quick table to show you the typical strengths and drawbacks of each. In the end, finding an affordable monthly payment from a reputable company is the most important, no matter what type of lender you use.
| Banks | Credit unions | Online lenders | |
|---|---|---|---|
| Send money fast | 🟡 | 🟡 | ✅ |
| Low maximum rates | ✅ | ✅ | 🟡 |
| Autopay discounts | ✅ | 🟡 | 🟡 |
| Fair or bad credit OK | ❌ | 🟡 | 🟡 |
| Skips upfront fees | ✅ | ✅ | 🟡 |
| No membership requirements | 🟡 | ❌ | ✅ |
= Typically yes = Sometimes = Typically no
Tying it all together
If you have good credit and aren’t in a major hurry, a bank or credit union loan may be the best option for a personal loan. This is especially true if your current institution offers extra perks for account holders.
Online loans can offer very low starting rates for excellent credit and same- or next-day funding. You may also have an easier time qualifying if you have bad credit, but rates and fees will be high.
Should you get a bank loan?
Most major banks have an online footprint, so bank loans and online loans might not seem all that different. While personal loans work similarly no matter where you get them from, bank loans can be the best option in some situations.
A bank loan may be best for…
-
Borrowers with good credit.
The credit score needed for a personal loan varies by institution, but bank loans are generally harder to qualify for. -
Existing bank customers.
Many banks offer better deals to current account holders. You could get an extra discount, bigger loan, longer term or faster funding. -
People who want a traditional banking experience.
Banks can be great if you prefer doing business in person or want to keep all of your financial products under one roof. -
Borrowers looking to avoid origination fees.
An origination fee is an upfront fee that some lenders deduct from your loan proceeds. Origination fees increase the cost of borrowing and are more common with online lenders than they are with banks.
When a bank loan may not be the best fit…
-
If your credit score is lower.
If you have less-than-perfect credit, you may have better luck with a community-centered credit union or online lender. -
If you need money as fast as possible.
Some online banks (like SoFi and Discover) offer fast funding, but loans from traditional banks can take longer to process. -
If you aren’t already a customer.
Some banks only lend to current customers, which can limit your options. -
If you’re shopping for the absolute lowest minimum APR.
If you have excellent credit, some online lenders have lower starting rates. Just make sure that any potential fees are worth it.
Choosing a personal loan lender is a big decision. Before you apply, take a few minutes to research the company, compare reviews and look for warning signs that could indicate a predatory lender or scam.
- Use the Consumer Financial Protection Bureau’s consumer complaint database to see what others say about the company
- Look over LendingTree personal loan reviews to get a broad overview
- Read LendingTree user reviews to get an idea of the application experience
- See if the Federal Trade Commission has placed an enforcement action on the lender
How LendingTree works
You could be leaving money on the table by limiting yourself to just banks. Why limit yourself to just banks? LendingTree makes it easy to compare offers from both banks and online lenders — helping you find the best rate from a company that you can trust.
Tell us what you need
Take two minutes to tell us who you are and how much money you need. It’s free, simple and secure.
Shop your offers
Our users get 11 personal loan offers, on average. Compare your offers side by side to get the best deal.
Get your money
Pick a lender and sign your loan paperwork. You could see money in your account in as soon as 24 hours.
Does your bank offer personal loans?
Not all banks offer personal loans and some that do only lend to current account holders.
For banks, a personal loan is risky. Unlike a mortgage or car loan, personal loans are usually unsecured, which means they don’t require collateral. If the borrower defaults, the bank has nothing to repossess to make back some of its losses.
Banks that offer personal loans to non-customers
- bank
- Discover
Banks that only offer loans to customers or members
Banks that don’t offer personal loans
- Citizens Bank
We systematically rated and reviewed top lenders to show you the top bank loans on the market.
, and didn’t make our final cut, but you can get a personal loan at any of these banks. It’s worth your time to check your rates if you’re already a customer. You can apply online directly on their websites.
LendingTree expert weighs in: Where would you shop for a loan?
I recently shopped around for a personal loan with 15 different loan providers, including several banks. If I had to do it again, I’d apply with loan marketplaces like LendingTree first, then check my rates with any banks that hadn’t made me offers through the marketplaces.
Can you qualify for a bank loan with bad credit?
You might be able to get a personal loan from a bank with bad credit, but it will probably be tough. Banks tend to be more risk-averse than online lenders and have stricter borrower requirements.
There is an exception, and that’s if the bank is a Community Development Financial Institution (CDFI).
Consider a CDFI if traditional banks say no
A CDFI is a financial institution that is committed to bringing access to credit and other banking products to underserved communities. A CDFI could be a bank or credit union, and they are aimed at helping borrowers with low to moderate incomes and rocky credit.
Use the Minneapolis Fed’s locator tool to find a CDFI near you.
What our marketplace data shows about personal loan rates
Rates can vary widely depending on your credit score and the type of lender you choose. Across the LendingTree marketplace — including banks and online lenders — borrowers with stronger credit scores generally receive lower average APRs.
| Credit tier | Average APR |
|---|---|
| Excellent (800 and above) | 15.75% |
| Very good (740-799) | 17.89% |
| Good (670-739) | 23.27% |
| Fair (580-669) | 27.79% |
| Poor (under 580) | 30.25% |
Calculate your monthly bank loan payments
Use our bank loan calculator to see how different rates and loan terms affect your estimated monthly payment. Keep in mind you’ll need excellent credit to score the lowest rates.
If you aren’t sure what rates you might qualify for, check out our marketplace data or prequalify with no credit impact.
What sets LendingTree content apart
Expert
Our personal loan writers and editors have 52 years of combined editorial experience and 42 years of combined personal finance experience.
Verified
100% of our content is reviewed by certified personal finance professionals and meets compliance and legal standards.
Trustworthy
We put your interests first. We’ll tell you about any loan drawbacks and be clear about when to consider alternatives.
How we chose the best banks for personal loans
We reviewed more than 12 banks to determine the overall best bank loans. To make our list, banks must offer personal loans with competitive annual percentage rates (APRs) to customers and non-customers alike.
All banks on this list offer traditional banking products like checking and savings accounts in addition to personal loans. Some of them have physical branch locations, while others operate entirely online. We did not include banks that do not offer traditional banking products.
According to our standardized rating system, the best bank loans come from , bank, Discover, and .
Our categories
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from lenders through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings.
Why trust our methodology?
LendingTree’s writers and editors diligently vet dozens of lenders to narrow down which ones offer the most affordable rates and a customer-centered experience. We have ongoing conversations with loan companies to ensure accuracy and collect first-person feedback to understand the holistic process of getting and repaying a loan.
Using my financial health counseling certification, I’m here to walk you through the important — and sometimes stressful — process of understanding your personal finances and credit.
Amanda’s experience in editing and financial education helps shape LendingTree articles that are clear, accurate and truly useful to readers. Her certification means our recommendations are built on a foundation of consumer-first financial knowledge — not just numbers.
Frequently asked questions
Banks that offer loans typically allow you to use them for debt consolidation. If you need to consolidate debt, check our list of banks that offer personal loans or use LendingTree to find a debt consolidation loan.
Applying for a bank loan is essentially the same as applying for a loan with any lender. Learn more about how to apply for a loan.
Here’s a quick summary: Banks typically allow you to apply or check your rates directly on their websites. They’ll pull your credit to make sure you qualify, and once you’re approved and agree to the rates, you can sign a loan agreement. Then, they’ll send you money — typically through direct deposit.
LendingTree is an online loan marketplace that helps borrowers compare personal loan offers from multiple lenders in one place.
In 2025 alone, LendingTree helped borrowers find nearly $3.2 billion in personal loan funding and connect with more than 360,000 loans. By shopping and comparing rates through LendingTree, users save $1,659, on average.