TD Bank Personal Loans Review 2022: Competitive Rates, but Not Available in Every State

TD Bank is one of the ten largest banks in the U.S., with over 1,000 branches primarily located on the East Coast. The lender offers a full suite of personal and business banking services, from checking and savings accounts to credit cards to personal loans. Despite the similar names, TD Bank is not affiliated with the investment brokerage TD Ameritrade.

TD Bank offers personal loans with competitive interest rates and an easy online application. However, it’s not available to everyone; TD Bank personal loans are only available in 16 states. Individuals that live outside of TD Bank’s service areas are ineligible for its loans.

While TD Bank used to have multiple personal loan options – the TD Express Loan and TD Fit Loan – a company representative informed us that the Express Loan was discontinued; only the TD Fit Loan is available now. You can borrow up to $50,000, and, if approved, you can receive your money in as little as one business day. Repayment terms are as long as 60 months, and there are no application or origination fees.

The TD Fit Loan may be a good match if you’re looking for a loan with a quick approval process and rapid loan disbursement. With the TD Fit Loan, your application could be approved as soon as the same day you apply. However, the location limitations and the undisclosed credit score and income requirements mean that a TD Fit Loan may not be accessible to all borrowers.

What to Know Before Getting a Personal Loan

Whether you need cash to cover a major car repair or simply want to redo an outdated kitchen, a personal loan gives you a lump sum of money to cover the expense. Although rates and terms can vary by lender, the interest rates on personal loans are often lower than the rates on credit cards, and you can have several years to repay the loan.

When evaluating your personal loan options, understand the difference between secured and unsecured loans. Secured loans tend to have lower interest rates, but they require you to supply your property – such as a car – to act as collateral. Unsecured loans don’t require any collateral. Instead, lenders decide whether to approve you based on your creditworthiness, which they determine by looking at factors like your credit score and income.

Each lender will have its own loan terms and fees. For example, some lenders don’t charge origination fees, but others do. A high origination fee can add to the total cost of your loan, so it’s wise to shop around and compare offers and fees from multiple lenders to ensure you get the best deal.

Alternatives to Personal Loans

Personal loans can be a quick and easy way to pay for an emergency expense, consolidate debt or finance a large purchase, but there may be other financing methods that are a better fit for your needs:

  • Home equity line of credit (HELOC) or home equity loan. If you’re a homeowner and are considering taking out a personal loan to pay for home renovations or another large expense, a HELOC or home equity loan may be a better choice. With a HELOC and home equity loan, your home acts as collateral, so you may be able to get a lower interest rate than you’d get with a personal loan. And, the repayment terms for HELOCs and home equity loans tend to be much longer; you could have 10 to 30 years to repay the loan or line of credit. Just keep in mind that your home secures the loan, so you risk the bank foreclosing on it if you can’t afford your payments.
  • A balance transfer credit card. For individuals looking to tackle high-interest credit card debt, a balance transfer to another card may be a solution. Some cards offer 0% APR during an introductory period that can be as long as 18 months. The introductory APR offer gives time to pay down your balance without interest accruing. Just make sure you have a plan to pay off the entire balance before the intro period ends so you won’t have to pay high credit card APRs.
  • Savings strategy. If you have a non-urgent expense coming up, you can focus on saving money ahead of time so you can pay for it in cash rather than going into debt. By setting up automatic deposits every pay period, you can gradually increase your savings. It’s also a great way to build an emergency fund so you can cover any unexpected costs that pop up in the future.
  • Free or low-cost credit counseling. There may be times when you’re overwhelmed by your debt and don’t know where to start. If that’s where you find yourself, set up an appointment with a credit counselor from a non-profit credit counseling organization. During your session, you’ll discuss your situation, create a budget and develop a debt repayment plan a fantastic read to get you back on track. You can find a list of approved agencies on the U.S. Trustee Program site.

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