Regions Bank Personal Loan Review (2017): Should I Borrow from Them?

We recommend Regions Bank for borrowers with average credit who may not qualify for a low rate elsewhere. Regions Bank only has branch locations in the Midwest and South.

Editor's Rating

4.0

Good for

  • Small-dollar lines of credit
  • Borrowers with average credit who can't get better deals elsewhere
  • Flexible term lines of credit

Bad for

  • Borrowers with good to excellent credit who can get a better deal elsewhere
  • Fee-conscious borrowers
  • Borrowers outside the Midwest or South

Regions Bank Personal Loan Review (2017): Should I Borrow from Them?

We recommend Regions Bank for borrowers with average credit who may not qualify for a low rate elsewhere. Regions Bank only has branch locations in the Midwest and South.

Good for

  • Small-dollar lines of credit
  • Borrowers with average credit who can't get better deals elsewhere
  • Flexible term lines of credit

Bad for

  • Borrowers with good to excellent credit who can get a better deal elsewhere
  • Fee-conscious borrowers
  • Borrowers outside the Midwest or South

Editor's Rating

4.0

Regions Bank Personal Loan Review (2017): Should I Borrow from Them?

Editor's Rating

4.0

Good for

  • Small-dollar lines of credit
  • Borrowers with average credit who can't get better deals elsewhere
  • Flexible term lines of credit

Bad for

  • Borrowers with good to excellent credit who can get a better deal elsewhere
  • Fee-conscious borrowers
  • Borrowers outside the Midwest or South

Because of Regions Bank’s lower maximum interest rates, we’ve found it a good choice for borrowers who might not have the best credit and can only get a higher rate somewhere else. Regions Bank offers customers both secured and unsecured loans and lines of credit ranging from values such as $500 for small-dollar lines of credit and even $100,000 for secured personal lines of credit. The bank only services customers in the Midwest and South and has a fairly quick application process and funds within a business day.

Regions Bank Personal Loan Review: Should You Apply?

Borrowers who might not qualify for better rates elsewhere should consider a Regions Bank personal loan as the bank’s highest rates are much lower than the highest at other lenders. Regions Bank is also a great option for taking out lines of credit, due to their wide range of loan amounts and flexible terms. Regions Bank only has branch locations in the Midwest and South.

Good for...Bad for...
  • Small-dollar lines of credit
  • Borrowers with average credit who can't get better deals elsewhere
  • Flexible term lines of credit
  • Borrowers with good to excellent credit who can get a better deal elsewhere
  • Fee-conscious borrowers
  • Borrowers outside the Midwest or South

When compared to other banks, Regions Bank had fewer minimum requirements for its personal loans. Customers only need a small balance in their checking accounts and be over 18 years of age to qualify. The bank even permits non-U.S. citizens to apply at physical branch locations, which is rare amongst most institutions in the U.S. Finally, we liked the flexibility Regions Bank offered on both its range of loan amounts and maturity terms, especially for small-dollar loans. Regions Bank lets customers take out some of the smallest secured personal loans and lines of credit on the market, starting at $250. Furthermore, unlike most institutions that require lines of credit to be repaid over a specific time period, Regions Bank has no such requirements on either its unsecured or secured lines.

In terms of the rates, we found Regions Bank’s upper interest rate limits to be lower than those offered by most competitors. Individuals who don’t normally qualify for more competitive rates should consider using Regions Bank for a personal loan. Regions Bank also gives customers a 0.25% interest rate discount if they enroll in automatic repayment (AutoPay) from a qualifying Regions account. The rates for the bank’s lines of credit are based on the Wall Street Journal’s prime rate with an additional margin on top, and are in line with what’s offered at other banks. On the other hand, the rates for the bank’s loans vary depending on a customer’s credit history and score, income and debt-to-income ratio. The interest rates for the loans were not listed on the bank’s website so we had to call them for the range. We suggest you do the same to find out which rate specifically applies to your personal case.

We don’t recommend Regions bank for customers who qualify for better rates elsewhere, need to take out a long term loan and are looking to avoid fees. The lower bound interest rates for Regions Bank unsecured personal loans are generally higher than those at other institutions -- some lenders, such as SoFi and LightStream, have starting rates under 6%. We found Region Banks charges higher fees, on average, for all of its loans and lines of credit when compared to other banks and online lenders. Each personal loan comes with a fixed origination fee, so if you get a smaller loan, the origination fee works out to be a larger percentage of the loan amount. In addition, every line of credit has an annual fee of $25 or $50. Another expensive fee we found for Regions Bank was the late fee, which can reach up to $100 depending the amount of your missed payment.

Eligibility Criteria

To be eligible for a Regions Bank personal loan, you must meet the following criteria:

Minimum CriteriaRecommended Criteria
  • At least 18 years old
  • Must have a Regions checking account at time of loan closing
  • Several years of credit history
  • Average or better credit
  • Enough annual income to support loan repayment

Regions Bank Personal Loan Terms and Requirements

Regions Bank offers both unsecured and secured personal loans and lines of credit. Loan amounts go up to $35,000 and $50,000 for an unsecured personal loan and line of credit accordingly, and up to the value of the deposit account or $100,000 for secured loans and lines of credit.

Unsecured Personal Loan Terms and Requirements

Loan Amount Range

  • $2,000 - $35,000 for applications submitted online
  • $2,000 - up to 25% of annual gross income for applications submitted by phone or in branch
APR Range7.74% - 17.74% with AutoPay
Fees
  • Origination fee: $150
  • Late payment fee: Lesser of 5% of monthly past due or $100
  • No NSF/returned payment fee
  • No check processing fee
  • No prepayment penalty
Loan Terms3 to 5 years
Repayment OptionsMonthly
Direct Payment to CreditorsNo

Unsecured Personal Line of Credit Terms and Requirements

Borrowers can also opt to take out an unsecured line of credit, either a traditional line or a small-dollar credit line.

Loan Amount Range

  • Line of credit: $3,000 - $50,000
  • Small-dollar line of credit: $500 - $3,000
APR Range
  • Line of credit: 8.24% - 18.74% with AutoPay
  • Small-dollar line of credit: 21.9%
Fees
  • Line of credit:
    • Annual fee: $50 (waived for first year)
    • Late payment fee: $35
    • No NSF/returned payment fee
    • No check processing fee
    • No prepayment penalty
    • Over-the-credit-limit fee: $29
    • No cash advance fee
  • Small-dollar line of credit:
    • Annual fee: $25
    • Late payment fee: $29
    • No NSF/returned payment fee
    • No check processing fee
    • No prepayment penalty
    • Over-the-credit-limit fee: $29
    • Credit advance fee: Lesser of 10% of advance or $10
Loan TermsFlexible
Repayment OptionsMonthly
Direct Payment to CreditorsNo

Secured Personal Loan Terms and Requirements

Regions Bank also allows customers to take out loans that are secured by funds in customers’ Regions CD accounts, savings accounts, or money market accounts.

Loan Amount Range
  • $2,000 up to 100% of CD account
  • $250 up to 100% of savings or money market account
APR Range
  • 3.75% with AutoPay for loans of at least $3,000
  • 5.75% with AutoPay for loans less than $3,000
Fees
  • Origination fee: $8 for loans less than $2,000, $150 for loans greater
  • Late payment fee: Lesser of 5% of monthly past due or $100
  • No NSF/returned payment fee
  • No check processing fee
  • No prepayment penalty
Loan Terms3 to 5 years
Repayment OptionsMonthly
Direct Payment to CreditorsNo

Secured Personal Line of Credit Terms and Requirements

If you're looking for a secured line of credit, the bank also offers this product.

Loan Amount Range$250 - $100,000 (up to 100% of your deposit account balance)
APR Range
  • 7.00% with AutoPay for lines under $3,000 (Prime Rate + 2.75%)
  • 6.00% with AutoPay for lines of at least $3,000 (Prime Rate + 1.75%)
Fees
  • Annual fee: $50
  • Late payment fee: $35
  • No NSF/returned payment fee
  • No check processing fee
  • No prepayment penalty
  • Over-the-credit-limit fee: $29
  • No cash advance fee
Loan TermsFlexible
Repayment OptionsMonthly
Direct Payment to CreditorsNo

Application Process

You can apply online, by phone, or in person. You don’t need a Regions Checking Account to apply but in order to actually get the funds, you will need to make one if you don’t have one already. If you are applying for a secured loan or line, or a non-US citizen, you must go into a branch to apply. To get your rate estimate, you’ll be required to submit some personal information regarding your home rental or mortgage, income, social security number, and the purpose of your loan. The bank will then conduct a hard credit check. It will generally take one business day to receive credit approval and funding.

Application ProcessOnline, by phone or in person (secured loans and lines require a branch visit)
Time to Get Funds1+ business days
Credit CheckHard credit check when you apply
Credit ReportingYes
Cosigners/Co-borrowers Allowed?Yes, but each joint applicant is considered individually

How Does Regions Bank Compare to Other Lenders?

If you have a better credit score, we prepared some other personal loan options for you to consider below. You can read about our top picks for borrowers with good credit here.

Regions Bank vs. Prosper

If you are a customer with a higher credit score (700 or above), you might be able to qualify for a lower interest rate with Prosper instead (review here). Still, anyone with a credit score above 640 should look into this option. Prosper may not be the best option for individuals who need to take out larger loans as their maximum loan amount is capped at $35,000. Prosper is also a peer to peer lender which means it generally takes three to five business days before you can receive your funds. The company generally is better for individuals with debt-to-income ratios below 40% and several years of credit history. But anyone with a debt to income ratio under 50% and at least three open trades on their credit report is still eligible to apply.

Highlights

  • APRs: 5.99% - 36.00%
  • Terms: 3 or 5 years
  • Amounts: $2,000 - $35,000
  • Origination fee: 1% - 5%

Regions Bank vs. U.S. Bank

US Bank customers might be better off taking out loans with US Bank, especially if they already hold a premier checking account with the bank, or plan to open one. The bank did not explicitly state its APR ranges but it only offers its best rates to customers who have high credit scores and hold Silver, Gold, or Platinum Checking accounts. Enrolling in automatic repayment will also lead to a rate discount. US Bank may not be suitable for customers who want to take out small dollar or very large loans though as customers are required to take out at least $5,000 but no more than $25,000. US Bank has a wider geographic reach than Regions Bank and services residents in the Midwest, West, Southwest, and North.

Highlights

  • APRs: Starting at 5.99% with AutoPay
  • Terms: 1 to 5 years
  • Amounts: $3,000 - $25,000
  • Origination fee: $50

Regions Bank vs. FreedomPlus

Customers taking out personal loans as a means to consolidate debt should consider FreedomPlus as a loan option instead. The best rate offered by FreedomPlus is only eligible to customers with high credit scores and loans of at least $15,000, where at least half is used for paying off debt. Customers will also need to prove that they have sufficient income or high retirement savings in order to qualify for this rate. FreedomPlus also takes a “relationship approach” to lending and all potential customers need to participate in a phone call before ironing out loan terms. To learn more about FreedomPlus, click here.

Highlights

  • APRs: 4.99% - 29.99%
  • Terms: 2 to 5 years
  • Amounts: $10,000 - $35,000
  • Origination fee: 0% - 5%

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