It can be better to get a personal loan from your own bank if you’ve done a lot of business together. Having a positive and long-standing relationship with your bank may improve your odds of getting approved for a loan with competitive terms. Getting a loan from your bank might also make the account easier to manage.
Before deciding if you should get a personal loan from your bank, it’s a good idea to compare offers from other banks, credit unions and online lenders. You can see how traditional bank loans compare to personal loans from other institutions in the table below.
Popular Personal Loans Compared
| Lender | Lender Type | Loan Amount | APR | Credit Score Required |
| Bank | $1,000 - $100,000 | 10.34% - 18.51% | Not disclosed | |
| Bank | $2,500 - $40,000 | 7.49% - 24.99% | 660 | |
| Credit Union | $500 - $50,000 | 8.99% - 17.99% | 650 | |
| Credit Union | $250 - $50,000 | 8.99% - 18% | Not disclosed | |
| Online lender | $5,000 - $100,000 | 7.49% - 25.99% | 660 | |
| Online lender | $2,000 - $50,000 | 7.99% - 35.99% | 640 |
Note: Credit score requirements are according to either the lender or multiple third-party sources.
While it can be a good idea to get a personal loan from your own bank, you should always compare your options before applying. You can get started by checking out WalletHub’s picks for the best personal loans. You can also use our free pre-qualification tool to estimate your potential rates with multiple lenders.
This answer was first published on 08/15/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
