PNC Personal Loans: Apply or Not? (Straight Talk on Pricing Specifically as of February 2025)

In This Article

PNC Bank, one of the largest banks in the United States, offers personal loans and lines of credit to help consumers finance various needs, from debt consolidation to home improvements.

However, before you rush to apply for a PNC personal loan, it’s crucial to understand the ins and outs of its offerings, potential pitfalls, and how the personal loans stack up against competitors. This buyer beware analysis helps you make an informed decision about whether a PNC personal loan is right for you.

Let’s Cut To The Chase!

BUY IF
  • You need a small loan amount (as low as $1,000)
  • You have good to excellent credit and can qualify for competitive rates
  • You’re already a PNC customer and can benefit from rate discounts
  • You want the option to apply with a co-borrower

You prefer a lender with physical branch locations

DON'T BUY IF
  • You need to borrow more than $35,000
  • You have fair or poor credit
  • You live in a state where PNC personal loans aren’t available
  • You want to use the loan for post-secondary education expenses or to refinance student loans
  • You’re looking for the absolute lowest rates on the market

The Bottomline

PNC personal loans can be a solid option for borrowers with good credit who need relatively small loan amounts and live in eligible states. However, its maximum loan amount is lower than some competitors, and it’s not available in all states. Additionally, while PNC offers competitive rates, it may not be the lowest on the market. Carefully compare PNC’s offerings with other lenders before making a decision.

Now, Let’s Detail Things For You

PNC Bank provides two primary personal borrowing options: Personal Unsecured Installment Loans and Personal Lines of Credit. Personal Unsecured Installment Loans are available in amounts ranging from $1,000 to $35,000, with APRs starting around 7% for well-qualified borrowers and terms from 6 to 60 months. There are no origination, application, or prepayment fees, though a late payment fee of 10% of the payment amount or $40 applies, whichever is greater.

Personal Lines of Credit offer credit limits from $1,000 to $25,000 (or $5,000 maximum in California), with a variable APR based on the Wall Street Journal Prime Rate, a continuous draw period, a minimum draw amount of $50, and an annual fee of $50.

PNC does not publicly disclose the full range of APRs for either product on its website. Instead, it advises potential borrowers to check its rates by entering their zip code and other details, which can complicate comparisons with other lenders without undergoing the prequalification process.

WHAT'S THE CATCH WITH PNC PERSONAL LOANS?

Yes, the PNC Bank is a reputable financial institution, but there are several potential drawbacks to consider when evaluating PNC’s personal loans withal. PNC personal loans have limited state availability: the Personal Installment Loan is offered in 23 states plus Washington D.C., and the Personal Line of Credit is available in 25 states plus D.C., which may be inconvenient for borrowers residing in multiple states.

Moreover, the maximum loan amount for personal installment loans is $35,000, which is lower than some competitors who offer up to $100,000 or more, potentially posing a challenge for those needing larger loans. Rates starting around 7% are likely reserved for borrowers with excellent credit, with those having average credit scores facing potentially higher rates, making PNC less competitive for this segment.

PNC’s lack of transparency regarding the full range of APRs and specific credit score requirements can complicate the process of comparing offers with other lenders. The $50 annual fee for the Personal Line of Credit might reduce the overall benefit of the product, particularly for borrowers who don’t use the line frequently. PNC also restricts the use of personal loan proceeds for post-secondary educational expenses or student loan refinancing, which may be inconvenient for those looking to consolidate various types of debt.

The late payment fee of 10% of the payment amount or $40, whichever is greater, could be substantial, especially for larger loans with higher monthly payments.

Lastly, while personal installment loans can be applied for online, the Personal Line of Credit requires a phone call or branch visit, which could be inconvenient for those preferring a fully online process.

WHAT YOU NEED TO KNOW

To fully understand PNC’s personal loan offerings, delve deeper into its pricing model, terms and features. First, regarding interest rates and APR, PNC offers fixed rates for personal installment loans and variable rates for lines of credit. The APR you receive will depend on several factors, including your credit score, credit history, income, debt-to-income ratio, loan amount, term, and whether you opt for autopay from a PNC checking account.

Notably, PNC provides a 0.25% interest rate discount for borrowers who set up automatic payments from a PNC checking account, which is already factored into the rates you see when checking your offer.

When considering loan amounts and terms, PNC offers personal installment loans ranging from $1,000 to $35,000 with terms from 6 to 60 months, while personal lines of credit range from $1,000 to $25,000 (or $5,000 maximum in California) with a continuous draw period. This flexibility allows borrowers to tailor their loans to their specific needs and budgets; however, be mindful that longer terms will result in more interest paid over the life of the loan.

In terms of fees, PNC prides itself on having no origination, application, or prepayment penalties for its personal installment loans. Nevertheless, there are potential fees to consider, such as a late payment fee of 10% of the payment amount or $40, whichever is greater, and a $50 annual fee for lines of credit. Additionally, while the amount for a returned payment fee is not disclosed on PNC’s website, it may still apply.

Regarding eligibility requirements, PNC does not publicly disclose its minimum credit score requirement. However, based on industry standards and the competitive rates advertised, a credit score of at least 660 to 680 is likely needed to qualify for the best rates. Other factors affecting eligibility include being at least 18 years old (19 in Alabama), being a U.S. citizen or permanent resident, having stable and sufficient income to repay the loan, and maintaining a debt-to-income ratio typically below 40-45%.

PNC allows joint applications for personal installment loans, which can be advantageous for qualifying for a better rate or higher loan amount, though both applicants are equally responsible for repayment. While PNC does not specify exact funding times, once approved, you can generally expect to receive funds within a few business days, with faster processing for existing PNC customers. Repayment options include online through PNC’s website or mobile app, automatic payments from a PNC checking account (with a 0.25% rate discount), phone, mail, or in-person at a PNC branch.

For prequalification, PNC offers an online option for personal installment loans, allowing you to check potential rates without impacting your credit score, which can aid in comparison shopping. However, prequalification is not available for lines of credit. PNC provides customer support through various channels, including phone, online chat, in-person at branches, and email for specific inquiries. Additionally, PNC offers a mobile app for managing your loan and making payments, potential hardship assistance programs, and educational resources and calculators on its website to help borrowers make informed decisions.

WHAT ARE PNC'S COMPETITORS OFFERING?

  • SoFi: It offers loan amounts ranging from $5,000 to $100,000, with APRs from 8.99% to 29.99%, and terms of 24 to 84 months. It charges no origination fees and provides features like unemployment protection and career coaching, making it a competitive option if you’re seeking larger loans with extra benefits.
  • Lightstream: This provides loans from $5,000 to $100,000 with APRs from 7.99% to 25.99% and terms up to 144 months, depending on the loan purpose. It has no fees and offers same-day funding and a Rate Beat program, making them appealing for you if you’re looking for flexibility and potentially lower rates.
  • Marcus by Goldman Sachs: The global bank offers loan amounts from $3,500 to $40,000, with APRs from 6.99% to 24.99% and terms of 36 to 72 months. Its no-fee structure and on-time payment reward feature make them an attractive option if you prioritize customer-centric features.
  • Discover: Discover’s personal loans offer amounts from $2,500 to $40,000 with APRs from 7.99% to 24.99% and terms of 36 to 84 months. It provides a unique 30-day guarantee and free FICO Credit Score, making it a strong contender if you value flexibility and transparency.

When comparing PNC to these competitors:

PNC’s maximum loan amount of $35,000 is lower than most competitors, which could be a limitation for those needing larger loans. While their starting APRs are competitive, the lack of transparency on the upper range makes a full comparison difficult. PNC’s no-fee structure for personal installment loans is a plus, but the annual fee on their lines of credit is a drawback.

Eligibility requirements may be stricter at PNC compared to lenders like Upgrade, and PNC lacks some of the unique features offered by competitors, such as unemployment protection or on-time payment rewards. Finally, PNC’s limited state availability is a significant disadvantage compared to nationwide online lenders.

WHAT AFFECTS PNC'S PRICES?

Several factors influence the rates and terms PNC offers on its personal loans:

  • Income and Debt-To-Income Ratio: PNC will assess your ability to repay the loan based on your income and existing debts. A higher income and lower debt-to-income ratio can lead to better rates and higher loan amounts.
  • Credit Score and History: Your credit score is one of the most significant factors in determining your interest rate. Borrowers with higher credit scores typically qualify for lower rates.
  • Loan Amount and Term: Generally, smaller loan amounts and shorter terms may qualify for lower rates. Conversely, larger loans and longer terms might come with higher rates to compensate for the increased risk.
  • Relationship with PNC: Existing PNC customers, especially those with checking accounts, may qualify for better rates or higher loan amounts.
  • State Regulations: Since PNC operates in multiple states, local regulations can affect the rates and terms offered in different locations.
  • Purpose of the Loan: While PNC doesn’t explicitly state that loan purpose affects rates, some lenders do consider this factor. For example, debt consolidation loans might be viewed differently than loans for discretionary expenses.

WHAT AFFECTS PRICES IN THE INDUSTRY OVERALL?

The personal loan industry as a whole is influenced by several factors that can affect pricing:

 

  • Federal Reserve Policy: Changes in the federal funds rate can impact the cost of borrowing for banks, which in turn affects the rates they offer to consumers.
  • Credit Reporting and Scoring Models: Updates to credit scoring models can affect how lenders assess risk and price their loans.
  • Economic Conditions: Factors such as inflation, unemployment rates, and overall economic growth can influence lenders’ risk assessments and pricing strategies.
  • Competition: As more fintech companies enter the personal loan market, traditional banks like PNC may need to adjust their offerings to remain competitive.
  • Funding Costs: The cost of capital for lenders, whether through deposits, wholesale funding, or securitization, can affect the rates they offer to borrowers.
  • Default Rates: Industry-wide trends in loan defaults can cause lenders to adjust their pricing to account for perceived risks.
  • Alternative Data: The increasing use of alternative data sources in underwriting (such as utility payments or rental history) may influence how lenders assess creditworthiness and price loans.

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HOW TO GET THE BEST DEAL WITH PNC?

To maximize your chances of getting the best possible deal on a PNC personal loan, consider the following strategies:

  • Check and improve your credit score
  • Calculate your debt-to-income ratio
  • Choose the right loan amount and term
  • Consider becoming a PNC customer
  • Get prequalified
  • Apply with a co-borrower
  • Compare offers
  • Read the fine print
  • Consider a secured loan alternative

CAN YOU AFFORD PNC'S PRICES?

Before committing to a PNC personal loan, it’s essential to evaluate whether you can genuinely afford the payments. Consider this question to guide your assessment, as your answers will help you make an informed decision.

Have you used PNC’s online calculator or a general loan calculator to determine your monthly payment based on the loan amount, term, and estimated APR, and evaluated your budget while factoring in potential rate increases, accounting for fees, planning for emergencies, assessing the long-term impact, and considering your job stability?

FINALLY: SHOULD YOU BUY PNC PERSONAL LOANS OR NOT?

After carefully analyzing PNC’s personal loan offerings, its terms, rates, and how it compares to competitors, the best advice would be to consider alternatives, because choosing PNC personal loans for you or most borrowers might not be the best fit due to certain factors. In light of the limited online application capabilities, among others, exploring alternatives could provide better options with more flexibility, transparency, and competitive rates. Do you fall under this category?

If you find that PNC’s personal loan limitations, such as its availability being restricted to only 23 states plus Washington D.C., the maximum loan amount of $35,000 may not meet your needs if you require larger sums, PNC’s lack of transparency regarding APRs and credit score requirements, potentially higher rates for average credit, and restrictions on loan use which reduce the appeal of its offerings affect your needs, then yes, you might fall under this category.

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