Most banks offer personal loans, but the ones that will lend to you depend on your credit score and income
Nearly every bank with a retail branch offers personal loans. The catch is that banks use different credit score thresholds, income requirements, and debt-to-income limits to decide whether to lend to you. A bank that turns you down is not rejecting you because personal loans don't exist — it is rejecting you because you don't meet that bank's specific lending criteria. The difference between a bank that will lend to you and one that won't often comes down to your credit history and how much you already owe.
Personal loans from banks are unsecured, meaning you don't pledge collateral like a car or house. The bank is lending based on your promise to repay and your financial history. That is why credit score matters so much. Banks typically want to see a score of 620 or higher, though some require 700 or higher. A few banks will lend to people with scores below 620, but at higher interest rates.
Key Takeaways
- Large national banks like Chase, Bank of America, and Wells Fargo offer personal loans, but each has different credit score and income requirements.
- Credit unions often have lower credit score minimums and lower interest rates than banks, even if you have fair credit.
- Online banks and fintech lenders typically approve faster and have more flexible credit requirements than traditional banks.
- The interest rate you receive depends on your credit score, income, loan amount, and repayment term — not just whether you are approved.
- You will need to provide recent pay stubs, tax returns, and bank statements to any lender before they fund the loan.
What the major national banks require
Chase, Bank of America, Wells Fargo, and Citibank all offer personal loans through their retail branches and websites. Chase typically requires a credit score of 670 or higher and a minimum annual income of around $25,000. Bank of America has similar thresholds. Wells Fargo and Citibank also generally require scores in the 620 to 700 range, depending on the loan amount and term you request.
These banks set loan amounts between $3,500 and $35,000, with repayment terms ranging from 24 to 84 months. The interest rate you receive will be lower if your credit score is higher and your income is stable. If you have an existing checking or savings account with the bank, you may see a slightly lower rate than a new customer would receive.
The process process at a national bank usually takes one to three business days. You can start online or in a branch. You will need to provide recent pay stubs (usually the last two), a recent tax return, and permission for the bank to pull your credit report. Some banks will also ask for bank statements to verify your savings and checking account activity.
Credit unions often have lower barriers than banks
Credit unions are member-owned financial institutions that typically have lower credit score minimums and lower interest rates than banks. Many credit unions will lend to people with credit scores as low as 580 or 600, whereas most banks start at 620. If you are a member of a credit union, this is often your fastest and cheapest route.
To join a credit union, you usually need to meet a membership requirement — this might be working for a specific employer, living in a specific county, or belonging to a specific organization. Some credit unions have opened membership to anyone in the United States. You can search for credit unions you are may be able to access to join at CO-OP.org or Shared Branch Locator, both of which are industry directories.
Credit union personal loans typically range from $500 to $50,000, with terms from 12 to 84 months. The process process is similar to a bank — you will need income verification and permission to pull your credit — but credit unions often move faster because they have fewer layers of approval. Many credit unions can give you a decision within 24 hours.
Online banks and fintech lenders have faster approvals and more flexible credit requirements
Online lenders like LendingClub, Upstart, and SoFi operate without physical branches and can approve loans faster than traditional banks. Many will lend to people with credit scores as low as 600, and some consider factors beyond credit score — like education, employment history, and income stability — when deciding whether to lend.
The trade-off is that online lenders often charge higher interest rates than banks, especially if your credit score is below 650. However, if you have good credit (700 or higher), online lenders sometimes offer rates competitive with or better than banks. Approval timelines are typically 24 to 48 hours, and funding happens within one to three business days after approval.
Online lenders require the same documentation as banks: recent pay stubs, tax returns, and bank statements. The process is entirely digital, and you never speak to a human unless something is unclear. This speed comes with less flexibility — if the algorithm says no, there is usually no appeal process or loan officer who can override the decision.
How interest rates are set and what affects your rate
Your interest rate depends on four things: your credit score, your income, the loan amount you request, and the repayment term. A higher credit score gets you a lower rate. A longer repayment term (60 months instead of 36 months) gets you a higher rate, because the bank is taking on more risk over a longer period.
Banks publish a range, not a single rate. You might see "personal loans from 6.99% to 29.99% APR" on a bank's website. Where you fall in that range depends on your individual credit profile. If you have a 750 credit score and stable income, you might get 7.5%. If you have a 620 score and recent late payments, you might get 24%.
You can compare rates across multiple lenders without hurting your credit score if you do it within 14 days. Each lender will pull your credit report, but the credit bureaus treat multiple inquiries from different lenders within two weeks as a single inquiry. This is called rate shopping, and it is a standard practice.
What happens if you don't meet a bank's requirements
If your credit score is below 620 or your income is too low, you have three options: wait and rebuild your credit, find a lender with lower requirements, or add a co-signer.
Rebuilding credit takes time. Paying bills on time for six months to a year will raise your score. Paying down existing debt also helps. If you need money now, a credit union or online lender is more likely to work with you. If you have a family member or spouse with better credit who is willing to co-sign, some banks will lend to you at a lower rate, because the co-signer is legally responsible if you don't pay.
A co-signer does not need to put up money — they are just promising to pay if you don't. This is a real obligation, and it affects their credit if you miss payments. Make sure any co-signer understands what they are agreeing to.
The documents you will need to provide
Every bank and lender will ask for the same basic documents. Have these ready before you explore: two recent pay stubs (usually from the last 30 days), your most recent tax return (1040 form), and a recent bank statement showing your checking or savings account. Some lenders also ask for a government-issued ID.
If you are self-employed, you will need two years of tax returns instead of pay stubs. If you receive income from Social Security, disability, or unemployment, bring documentation of that income. The lender needs to verify that your income is real and stable enough to support the monthly payment.
If you are explore with a co-signer, the co-signer will need to provide the same documents. The lender will pull both of your credit reports and verify both of your incomes.
How long it takes from process to funding
The timeline varies by lender type. National banks typically take three to five business days from process to funding. Credit unions often move faster — 24 to 48 hours. Online lenders usually approve within 24 hours and fund within one to three business days after approval.
The clock starts when you submit a complete process. If you are missing documents, the timeline pauses until you provide them. Some lenders will ask follow-up questions about your income or employment, which can add a day or two. Once the lender approves the loan and you sign the final documents, the money usually hits your bank account within one business day.
Frequently Asked Questions
Can I get a personal loan from a bank if I have no credit history?
Most banks require a credit score, which means you need some credit history. If you have never borrowed before, you may need to start with a credit-builder loan from a credit union or a secured credit card. After six months to a year of on-time payments, you will have a credit score and can explore for a personal loan.
What is the difference between a personal loan and a line of credit?
A personal loan gives you a lump sum upfront that you repay in fixed monthly payments. A line of credit is like a credit card — you draw money as you need it and pay interest only on what you use. Personal loans have fixed rates and fixed terms. Lines of credit have variable rates and no set payoff date.
Do I have to use the loan money for a specific purpose?
No. Personal loans are unsecured and have no restrictions on how you use the money. You can use it for debt consolidation, home repairs, medical bills, or anything else. The bank does not ask what you are spending it on.
Will explore for a personal loan hurt my credit score?
Yes, but only slightly and temporarily. Each process triggers a hard inquiry, which lowers your score by a few points. The impact fades within a few months. If you explore to multiple lenders within 14 days, the inquiries count as one, so the damage is minimal.
What if I want to pay off the loan early?
Most banks allow early repayment with no penalty. Check the loan agreement before you sign — some lenders charge a prepayment penalty, though this is becoming less common. Paying early saves you interest and improves your credit score faster.