TD Bank Personal Loan Review

(May 2024)

TD Bank Personal Loan Review

In This Article

Our Verdict

TD Bank is a reliable and customer-focused banking institution that provides a wide range of financial products and services. TD Bank offers personal banking services like checking accounts, credit cards, and personal loans. TD Bank’s user-friendly website provides easy access to accounts, loan applications, and financial resources.

Headquartered in Cherry Hill, New Jersey, and operating in 15 states in the Eastern United States, Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and Washington, D.C.

Pros

  • Absence of origination or application fees
  • Quick approval and funding
  • Flexibility to adjust payment due date
  • Various loan amounts to choose from

Cons

  • Limited availability
  • Strict eligibility requirements
  • No interest rate reduction

Who This Product Is Best For

TD Bank personal loan is suitable for individuals who:

  • Need to borrow a moderate to high amount of money, as TD Bank offers loan amounts up to $50,000.
  • Live in one of the 15 states where TD Bank operates.
  • Prefer to work with a traditional bank rather than an online lender.
  • Value the option to pre-qualify with a soft credit check before formally applying for a loan.
  • Want the flexibility to change your payment date.

Who This Product Isn't Right For

TD Bank personal loan might not be right for individuals who:

  • Have a credit score lower than TD Bank’s minimum requirement of 680.
  • Need a loan for a purpose not covered by TD Bank’s loan options.
  • Live in a state where TD Bank does not operate.
  • Prefer to work with a lender that offers rate discounts or other incentives.
  • Want to make direct payments to creditors with a debt consolidation loan.

What This Product Offers

TD Bank currently offers TD Fit Loan, an unsecured personal loan:

TD Fit Loan: If you’re looking to invest in your health and wellness, TD Fit Loan can be a great option for financing your expenses. With this unsecured personal loan, you can cover the costs of gym memberships, fitness equipment, vacation, renovation, and medical expenses. This loan can be a helpful tool for achieving your wellness goals while managing your finances.

Product Details

The TD Fit Loan offers loan amounts ranging from $2,000 to $50,000, with interest rates ranging from 8.99% to 21.99% and terms ranging from 30 to 60 months. It also offers flexible payment options and no prepayment penalties, allowing you to pay off the loan early without incurring any fees.

To apply for a TD Fit Loan, you can visit a TD Bank branch, call their customer service number(1-888-751-9000), or apply online through their website(www.td.com). The application process typically involves providing personal and financial information, and TD Bank will use this information to evaluate your creditworthiness and determine your eligibility for the loan.

Where This Product Stands Out

Wide Range of Loan Amounts

It’s important to choose a personal loan that fits your financial needs, and TD Bank’s wide range of loan amounts can make that possible. Whether you need to borrow a small amount for a quick expense or a larger amount for a significant purchase or project, TD Bank has you covered. Having the ability to choose a loan amount that fits your specific needs and budget can make all the difference in managing your finances effectively. So, if you’re looking for a personal loan that can provide the flexibility you need, TD Bank’s loan options are definitely worth considering.

No Origination Fee

If you’re mulling over taking out a personal loan, it’s important to keep in mind that some lenders charge an origination fee. However, with TD Bank’s personal loans, you won’t have to worry about paying this additional fee. This can make your loan more affordable and accessible, as you’ll be able to avoid the upfront cost that other lenders charge just to apply for a loan. Instead, you can focus on the loan’s interest rate and monthly payment terms to make sure that it’s the right fit for your budget and financial goals. By choosing TD Bank’s personal loans, you can potentially save money in the long run and get the funding you need to cover your expenses.

Fast Funding

After TD Bank approves your personal loan application, you can expect a rapid turnaround time for funding. In fact, in most cases, you can receive your funds as soon as the next business day. The timing of the disbursement method you choose and the time of day your application is approved can affect how quickly you receive your funds. If you have an urgent expense or unexpected financial need that requires immediate attention, TD Bank’s fast funding can be extremely helpful. You can access the money you need quickly and efficiently, without enduring a long wait to receive your funds.

Option to Pre-qualify

 TD Bank’s pre-qualification process with a soft credit check can give you peace of mind and help you make an informed decision. You can explore your loan options without worrying about hurting your credit score or committing to a loan that’s not a good fit for your budget. Plus, the quick and easy pre-qualification process can give you a sense of whether or not TD Bank’s personal loans are right for you. Overall, TD Bank’s option to pre-qualify with a soft credit check is a valuable tool for borrowers who want to explore their loan options before committing to a formal application.

Where This Product Falls Short

Late Fees

In the case of TD Bank personal loans, if you miss a payment or pay after the due date, you may be subject to a late fee of up to 5% of the payment amount. For example, if your monthly payment is $500, you could be charged a late fee of up to $25 if you miss the due date. While this may not seem like a significant amount, late fees can add up over time and make your loan more expensive overall. Additionally, late payments can have a negative impact on your credit score, which can affect your ability to qualify for credit in the future.

Limited Availability

TD Bank operates in a limited number of states within the United States. As a result, personal loans from TD Bank are only available to customers who live in these states. Currently, TD Bank personal loans are only available to residents of the following states: Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and Washington, D.C.

If you do not live in one of these states, you will not be eligible to apply for a personal loan from TD Bank. Additionally, even if you do live in one of these states, you will still need to meet TD Bank’s eligibility requirements and undergo a credit check to qualify for a loan. 

Limited Repayment Terms

TD Bank offers a maximum repayment term of 60 months, which is five years. While this can be sufficient for many borrowers, some may need a longer repayment period to comfortably afford their loan payments or to fit the loan into their budget. For example, if you’re taking out a loan for home renovations, you may need more time to pay off the loan than five years, especially if the project is extensive.

No Co-signer Option

TD Bank does not allow co-signers on their personal loans, which could be a disadvantage if you need a co-signer to help you qualify for a loan. This policy means that you must meet TD Bank’s credit and income requirements on your own, which could limit the pool of eligible borrowers.

How to Qualify for This Product

To qualify for a TD Bank personal loan, you must meet certain eligibility requirements. Here are some of the factors TD Bank considers when evaluating loan applications:

 Credit score: TD Bank generally requires a minimum credit score of 660 for personal loan approval. However, meeting the minimum credit score requirement does not guarantee loan approval.

US citizenship or permanent residency: To be eligible for a TD Bank personal loan, you must be a US citizen or have permanent residency status.

Income: You must have a steady source of income and be able to demonstrate your ability to repay the loan. TD Bank may require proof of income, such as income statement or tax returns.

How to Apply for This Product

TD Bank did not provide specific information on its application requirements for personal loans. However, TD Bank mentioned that the requirements vary depending on the borrower’s situation, and a TD banker can guide applicants through the application process. In general, most personal loan applications require certain documents, and some lenders may have additional requirements specific to their institution:

  • Personal identification (Name, SSN, Photo ID, Driver’s license)
  • Bank statements
  • Income verification
  • Credit report
  • Loan application

Alternatives to This Product

Wells Fargo: Wells Fargo offers personal loans ranging from $3,000 to $100,000 with repayment terms of 12 to 84 months. Interest rates range from 5.74% to 24.49%, and there are no origination fees, prepayment penalties, or late fees.

SoFi: SoFi offers personal loans ranging from $5,000 to $100,000 with repayment terms of 24 to 84 months. Interest rates range from 5.99% to 20.01%, and there are no origination fees, prepayment penalties, or late fees.

Discover: Discover offers personal loans ranging from $2,500 to $35,000 with repayment terms of 36 to 84 months. Interest rates range from 6.99% to 24.99%, and there are no origination fees, prepayment penalties, or late fees.

Customer Reviews

Reviews for TD Bank personal loans are mixed, with some customers reporting positive experiences with fast approval times and helpful customer service, while others report frustration with lengthy application reviews and difficulty contacting customer service. Some customers have also reported issues with hidden fees and unexpected changes to loan terms.

Despite receiving an A- rating from the Better Business Bureau (BBB), TD Bank has mostly negative customer reviews on the site. With 319 reviews, the bank has an average rating of only 1.31 out of 5 stars. Similarly, on TrustPilot, TD Bank has a rating of 1.3 out of 5 stars based on over 1,700 reviews.

Methodology

We reviewed *this product* based on 20 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We rated *this product* based on the weighting assigned to each category:

  • Loan cost: 35%
  • Loan details: 25%
  • Customer experience: 20%
  • Eligibility and accessibility: 10%
  • Application process: 10%

Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and time in business requirements and the geographic availability of the lender. Finally, we evaluated *this product* customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.

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