TD Bank Personal Loan Review: Good for Existing Customers Who Don’t Want to Branch Out

TD Bank Personal Loan Review: Good for Existing Customers Who Don’t Want to Branch Out

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TD Bank makes unsecured and secured personal loans, and you don’t have to be a member of the bank to apply. However, we only recommend TD Bank for existing customers who have good to excellent credit and want to keep their financial accounts in one place. This is because the rates at TD Bank are high compared to other lenders that require borrowers have good to excellent credit.

TD Bank Personal Loan Review: Should You Apply?

  • on TD Bank's secure website
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We think a TD Bank personal loan is the best choice for existing customers of the bank who want to keep their banking and borrowing at one place. While you don’t have to be a bank customer to apply, you may be able to score a lower interest rate elsewhere -- especially because the bank requires a 680 credit score for unsecured loans.

Good for...Bad for...
  • Existing TD Bank customers who want to keep their borrowing and banking in the same place
  • Borrowers with good to excellent credit who can get a better deal elsewhere
  • Borrowers with credit scores under 680

For existing TD Bank customers with a checking or savings account, the bank provides a 0.25% APR discount for enrolling in automatic payment from the account. This APR discount is fairly standard across banks that offer personal loans as way to incentivize current customers to stay with the bank for their borrowing needs. While you won’t save a ton through this discount, it can amount to a hundred or so dollars over the life of your loan for doing something very simple. On a $10,000 five-year loan, for instance, you could save over $70.

While TD Bank has competitive loan amounts and terms, we think the bank falls short with its rates, especially since the bank requires a 680 credit score to qualify for unsecured loans. Rates on unsecured personal loans range from 6.99% and 18.99% with AutoPay. If you’re not an existing TD bank member and you have a credit score of 680 or higher, we recommend checking your rate at other lenders before applying to TD Bank.

Eligibility Criteria

TD Bank requires borrowers have good to excellent credit, which is any FICO score above 680. We look at eligibility criteria below, as well as our recommendations for improving your chances of getting approved.

  • Must be in an area TD Bank serves
  • At least 18 years old
  • Credit score of 680 or higher for unsecured loans

TD Bank mainly serves the East Coast, including New York, New Jersey, Pennsylvania, Virginia, Florida, Maryland and Washington, D.C.

TD Bank Personal Loan Terms and Requirements

TD Bank makes both secured and unsecured personal loans. You can also opt to take out an unsecured personal line of credit if you want more flexibility.

Unsecured Personal Loan Terms and Requirements

You can borrow between $2,000 and $50,000 with terms from one to five years. TD Bank also offers an express version of its unsecured loan, allowing you to apply for up to $15,000 with funds in as fast as two days.

Loan Amount Range$2,000 - $50,000
APR Range6.99% - 18.99% with AutoPay
  • No origination fee
  • Late payment fee: Lesser of 5% of minimum payment due or $10
  • No NSF/returned payment fee
  • No check processing fee
  • No prepayment penalty
Loan Terms1 to 5 years
Repayment OptionsMonthly
Direct Payment to CreditorsNo

Unsecured Personal Line of Credit Terms and Requirements

If you want more flexibility, the bank also offers an unsecured personal line of credit with long terms.

Loan Amount Range$20,000 - $50,000
APR Range10.50% - 15.50% with AutoPay
  • Annual fee: $25
  • Late payment fee: Lesser of 5% of monthly past due or $10
  • No NSF/returned payment fee
  • No check processing fee
  • No prepayment penalty
Loan Terms10 year draw period followed by 10 year repayment period
Repayment OptionsMonthly
Direct Payment to CreditorsNo

Secured Personal Loan Terms and Requirements

For borrowers who need more than $50,000, the bank makes secured loans up to the value of your TD deposit account with terms from one to five years.

Loan Amount Range$5,000 - $50,000
APR Range7.92% variable rate
  • Origination fee: $50
  • No late payment fee
  • No NSF/returned payment fee
  • No check processing fee
  • No prepayment penalty
Loan Terms1 to 5 years
Repayment OptionsMonthly
Direct Payment to CreditorsNo

Application Process

You can apply online for an unsecured loan or line of credit, but you may need to visit a branch to sign closing paperwork. If you want a secured loan, you’ll need to call or make a visit in branch.

Application ProcessOnline + potential in-branch visit (unsecured loan and line of credit only), by phone or in person
Time to Get Funds2+ days
Credit CheckHard credit check when you apply
Credit ReportingYes
Cosigners/Co-borrowers Allowed?Yes

When you start the application, you’ll need to select whether you’re applying for a loan or line of credit. You’ll also need to put in your ZIP code and select the closest TD Bank to your location. You’ll then need to provide some information about the loan you’re seeking, including the number of co-applicants, if any; whether you want to enroll in AutoPay; how much you need and how you plan to use the funds. You’ll then need to select the term for your loan (the bank will provide estimates of monthly payments to help your decision).

After completing that portion, you’ll need to provide the bank with personal information, such as your name, address, phone number, birthdate and Social Security Number. You’ll also need to provide information on your employment and annual income, as well as major monthly expenses, such as mortgage or rent payments and other debts. You’ll then be able to submit the application for approval. If approved, you may need to visit the TD branch you selected to sign your closing paperwork. Funding takes at least a few business days.

How Does TD Bank Compare to Other Lenders?

If you’re planning on getting a personal loan, it’s generally recommended to shop around before you commit to one lender. We take a look at some of the other lenders who offer unsecured and secured personal loans.

TD Bank vs. SoFi

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We recommend SoFi over TD Bank that need larger loans with longer terms. SoFi makes unsecured loans up to $100,000 with longer terms up to seven years. Another thing we like about SoFi is that the company offers other financial products and services, such as mortgages, student loans and wealth management, and provides free career development resources to its members. This includes social events such as networking events as well as one-on-one career coaching for resumes, interviews and more. To be eligible at SoFi, you must be employed full-time or have sufficient income, be the age of majority in your state of residence and be a U.S. citizen or permanent resident. If you want to improve your chances of getting approved, we recommend borrowers have good to excellent credit, several years of employment and a demonstrated ability to save.

TD Bank vs. LightStream

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Like SoFi, we think LightStream is a better choice for borrowers with excellent credit. LightStream offers lower rates, larger loans and longer terms than TD Bank. You can borrow anywhere from $5,000 to $100,000 with low annual percentage rates that vary by loan purpose and terms from two to seven years. The lender is also great for fee-conscious individuals as there are no origination fees, late fees, check processing fees or prepayment penalties. LightStream looks for borrowers with good to excellent credit, several years of credit history and a variety of account types, a demonstrated ability to save and a low debt-to-income ratio. LightStream is a division of SunTrust Bank and is available in all 50 states.

TD Bank vs. PNC Bank

  • on PNC Bank's secure website
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You also don’t need to be a member to apply at PNC Bank, and this lender has better rates on unsecured and secured installment loans -- but the loan amounts are lower. Like TD Bank, you can apply for an unsecured personal loan or line of credit or a secured loan. Rates start at 5.99% for unsecured loans and 3.99% for secured loans (rates for the line of credit are variable and based on the Prime Rate). You can borrow up to $25,000 for unsecured loans and lines and up to $100,000 for secured loans. Terms range from six months to five years on unsecured loans and up to 15 years on secured loans. Terms for the line of credit are flexible. PNC Bank also offers qualifying customers a 0.25% AutoPay discount, so it can be a good option if you already have an account with the bank. You can apply online for unsecured loans, and by phone or in person for secured loans. For either product, you need to live in an area PNC Bank serves, which is primarily the East Coast and the South.

Madison is a former Research Analyst at ValuePenguin who focused on student loans and personal loans. She graduated from the University of Rochester with a B.A. in Financial Economics with a double minor in Business and Psychology.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.