TD Bank Personal Loan Review

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What is TD Bank?

TD Bank is the U.S. arm of Canadian bank TD Canada (the “TD” is short for Toronto-Dominion), in operation within the states since 2005. Before that, however, the bank’s history dates back to 1855.

Its U.S. headquarters are in New Jersey, and there are nearly 1,300 TD Bank branches along the East Coast from Maine to Florida. This bank offers a wide range of financial products.

This TD Bank loans review will focus on TD Bank’s personal loan options to see how they stack up to the competition.

TD Bank personal loan highlights

  • Three personal loan options: With a TD Bank Express Loan as an option for quick cash, the  TD Bank Unsecured Personal Loan for financing large loans and the  TD Bank Secured Personal Loan for building credit, almost any borrower can find a loan that meets their needs.
  • Low or no personal loan fees: The TD Bank Express Loan and unsecured loan charge no origination fees, while the secured loan has a flat $50 origination fee withheld at disbursement. None of these TD Bank loans charge a prepayment penalty.
  • Option to apply jointly: TD Bank allows you to add another applicant to a personal loan (up to five, in fact) to be considered together for this loan. This can be ideal for people who want to borrow and share responsibility for the loan with a partner. It can also be a good option for borrowers worried about qualifying on their own.
  • Limited by geographic location: TD Bank is primarily on the East Coast and does not service borrowers nationwide. You’ll need to live close enough to a TD Bank branch to be able to show up in person to sign and finalize the loan agreement.
  • APR range: 6.99% to 18.99% for Express and unsecured loans
  • Credit requirements: 660 minimum credit score for Express and unsecured loans
  • Terms: 12 to 60 months for all three types of loans
TD Bank Personal Loan Details
Terms
Fees and Penalties
  • Term lengths: 12 to 60 months for all three types of loans
  • APR range: 6.99% to 18.99% for the unsecured and Express loans
  • Loan amounts: $2,000 to $25,000 for the Express loan; $2,000 to $50,000 for the unsecured loan
  • Time to funding: 48 hours or more
  • Credit check: Hard Pull inquiry through loan application for the Express Loan.
  • Origination fee: No origination fee on Express and unsecured loans; $50 for secured loans
  • Prepayment fee: None
  • Late payment fee: Lesser of 5% or $10 on Express and unsecured loans; none for secured loans

TD Bank product details

The choices reflected in these three TD Bank loans make them a smart fit for a range of needs. All three offer competitive APRs with no fees — or a low $50 for a secured loan. These low costs make TD Bank’s personal loans a good option for debt consolidation and a smart alternative to financing purchases with credit cards.

The TD Bank Express Loan, for example, is a great option for a borrower who needs fast cash and is seeking a quick personal loan. The online application can be submitted in minutes, and funds can be disbursed as soon as 48 hours later. It could be perfect for someone facing a time-sensitive or emergency expense and needing to borrow $2,000 to $25,000.

The TD Bank Unsecured Personal Loan has terms similar to the TD Bank Express Loan, but it does not guarantee the same fast application process. But it allows applicants to request much larger loans with offered amounts of $2,000 to $50,000.

Last is the secured loan, which can be ideal for someone who wants to build credit and has savings available to use as collateral for this loan. The borrower will even continue earning interest on their deposited funds, even as that deposit is securing the personal loan.

Eligibility requirements

  • Minimum credit score: 660 for Express loans; 660 for unsecured loans; none for secured loans
  • Minimum credit history: Not specified
  • Maximum debt-to-income ratio: Not specified

TD Bank does make it clear that applications and offered rates are subject to credit approval. It does specify that the minimum credit score requirement for Express loans is 660. The bank will also consider your full credit history, the amount you’ve requested to borrow and your geographic location.

That’s because instead of looking at credit on a secured personal loan application, TD considers collateral such as funds in a TD savings, money market savings or certificate of deposit account. TD Bank looks at other factors such as employment details, income and housing costs. In return, you can get a secured personal loan equal to your savings balance, in the range of $5,000 to $50,000.

Applying for a personal loan from TD Bank

Before you start an application, it can be helpful to make sure you have the right information on hand. For TD Bank loans, you’ll need:

  • Your Social Security number
  • Listed expense amounts, including for your rent or mortgage
  • Employment history and income from all sources such as bonuses or side gigs

You may apply for the TD Bank Express Loan or unsecured loan online through the bank’s website, by phone or in person at a TD branch. But the secured loan does not have an online application, which means you need to visit a branch in person or inquire by phone (800-937-5020) to submit an application.

The first information you’ll be asked for when filling out an online application is your ZIP code. Provide it and the TD Bank site can immediately tell you if it accepts personal loan applications for your area and will list the branches closest to you.

If approved for a loan, you will need to visit a TD Bank branch in person to sign its final loan agreement and designate how you will receive your loan funds. The website requires that you select the branch that you can visit to complete your loan paperwork.

Once you complete and submit an application, a TD Bank representative will get in touch within a day. As mentioned above, you can then visit the branch to review and sign a loan agreement and receive your funds.

Pros and Cons of a TD Bank Personal Loan
Pros
Cons
  • Rate discount for members: If you have a TD checking or savings account, you can shave 0.25% off your APR by setting up automatic payments out of that account.
  • Apply with poor credit: You can access a secured personal loan if you have savings to use as collateral or add a well-qualified co-applicant to compensate for poor credit.
  • Low fees: There are no origination fees on TD’s Express and unsecured personal loans, and a fee of just $50 for its secured loans. There are no other fees or prepayment penalties, however, except for a nominal late fee.
  • Joint personal loan: TD Bank allows joint applications for its personal loans, which is ideal for people applying with a family member, spouse or other partner.
  • Limited service area: TD Bank doesn’t offer personal loans nationwide. You’ll need to live close enough to a TD Bank branch to visit and sign your loan paperwork.
  • Good-credit applicants should shop around: The APRs offered by TD Bank are competitive, but they might not be the best. If you have good or excellent credit, shop around to see if you could do better.
  • Hard credit check: You won’t be able to get a rate quote to compare the terms TD Bank can offer with other personal lenders. And if you do take the step to apply, it will incur a Hard Pull credit check that could affect your score.
  • Loan use limits: TD Bank’s personal loans may not be used for educational expenses or business purposes.

Who’s the best fit for a TD Bank personal loan?

With three personal loan options, TD Bank can be a smart borrowing solution for some (but not all) borrowers. Here’s who would benefit the most from using these TD Bank loans.

You’re an existing TD Bank member: If you already live near and bank with TD Bank, it can be convenient to stick with this bank for your personal loan, too. TD Bank members will also know if they live close to a TD Bank branch they can visit to close on a loan. And as a member, you’ll be set up to easily take advantage of the 0.25% rate discount offered for automatic payments made out of a TD Bank account.

You’re interested in a secured personal loan: Secured personal loans and joint personal loans can be hard to come by, so providing these options makes TD stand out. A TD Bank Secured Personal Loan can help you get an installment loan with poor credit and improve your credit as you repay it.

You need a joint loan: Some personal loan shoppers might need to get a loan for a joint expense. You might be paying for a wedding with your fiance or helping an adult child get a loan. TD Bank allows multiple people to apply for an unsecured personal loan together and share the responsibility for its repayment.

Alternative personal loan options

Even if a TD Bank loan is the perfect fit for you, it’s still wise to look around and compare your options to be sure.

As mentioned, TD Bank’s personal loan rates are competitive — but they aren’t the best we’ve seen. Other lenders with similar credit requirements offer personal loan APRs starting as low as 3.99%. Here are some other personal loan providers that are worth checking out alongside TD Bank.

LightStream

  • APR range: 3.99% to 16.99%
  • Credit requirements: 660 minimum credit score
  • Terms: 24 to 144 months
  • Origination fee: No origination fee

LightStream is a division of SunTrust Bank that offers personal loans from $5,000 to $100,000. It offers some of the lowest advertised APRs, and even promises to beat any other personal loan rate you’re offered by 0.10%. But like TD Bank, LightStream doesn’t offer preapprovals, so you’ll have to apply for a loan and incur a Hard Pull credit inquiry to know what loan terms and APR the lender would offer you.

BestEgg

  • APR range: 5.99% to 29.99%
  • Credit requirements: 700 minimum credit score
  • Terms: 36 or 60 months
  • Origination fee: 0.99% - 5.99%

BestEgg is an online personal loan provider that offers loan amounts from $2,000 to $35,000 with APRs that start as low as 5.99%. It also provides fast processing for personal loans, funding approved loans as soon as a day after the application is submitted. But applicants should weigh fees, as BestEgg charges an origination fee of 0.99% - 5.99%, which is reflected in the APR.

Peerform

  • APR range: 5.99% to 29.99%
  • Credit requirements: 600 minimum credit score
  • Terms: 36 or 60 months
  • Origination fee: 1.00% - 5.00%

A peer-to-peer lender, Peerform offers loan amounts from $4,000 to $25,000, with similar APRs and origination fees to BestEgg. You can check your rate with Peerform, which uses a Soft Pull credit check to see if you could get a personal loan from the platform and what kind of rates you would pay. It also has a lower minimum credit score, which means it can be an option even for borrowers with fair credit.

The information in this article is accurate as of the date of publishing.

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