TD Bank Personal Loans Review 2021: Competitive Rates, but Not Available in Every State

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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Whether you need cash to cover a major car repair or simply want to redo an outdated kitchen, a personal loan gives you a lump sum of money to cover the expense.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 to get you back on track. You can find a list of approved agencies on the U.S. Trustee Program site

Pros and Cons of TD Bank Personal Loans

Pros

  • Quick loan disbursement

  • No origination fees

  • Wide range of loan amounts

  • Loan prequalification with soft credit inquiry

Cons

  • Only available in 16 states

  • 5% late fee

  • No discounts for existing customers or enrolling in autopay

  • Co-signers and co-applicants not permitted

TD Bank Compared to Other Lenders

TD BankDiscoverMarcus by Goldman Sachs
Current APR6.99% to 21.99%6.99% to 24.99%6.99% to 19.99% (0.25% autopay discount available)
Loan Term Range36 to 60 months36 to 84 months36 to 72 months
Loan Amount$2,000 to $50,000$2,500 to $35,000$3,500 to $40,000
Credit Score NeededNot specifiedNot specifiedNot specified
Prepayment Penalty$0$0$0
Origination Fee$0$0$0
Unsecured or Secured DebtUnsecuredUnsecuredUnsecured

The above rates and loan information are accurate as of October 25, 2021. The NextAdvisor editorial team updates this information regularly, though it is possible APRs and other information have changed since the page was last updated. Some of the lowest advertised rates might be for secured loans, which require collateral such as your home, car, or other asset. Also, some loan offerings may be specific to where you live.

How to Qualify for a TD Bank Personal Loan

To qualify for a TD Fit Loan, you must be the age of majority in your state. In most locations, that means the minimum age is 18. You also must live in an eligible state. According to a company representative, TD Bank personal loans are only available in 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.

When you apply, TD Bank will ask for the following information: 

  • Your Social Security number
  • The cost of your mortgage or rental payments
  • Your employment history and income

TD Bank does not list a minimum credit score or income requirement. We contacted TD Bank to ask about its borrower criteria, but company representatives declined to provide any additional information about specific requirements. 

The initial approval can be in as little as 60 seconds. If approved, you can access the money as soon as the next business day. 

Who Should Get a TD Bank Personal Loan

For those with good credit, TD Fit Loans have competitive interest rates and no origination fees. In general, TD Fit Loans are best for individuals who live within the lender’s service area and need a loan quickly. Since TD Bank offers quick approvals and quick loan disbursement, you can get the money you need for emergency expenses within a short time. 

With loans up to $50,000 available, a TD Fit Loan could be a useful option for those with substantial expenses planned, such as home improvements or repairs. The loan can also be good for existing TD Bank customers who want to keep all their finances in one place, although TD Bank doesn’t offer any special perks or discounts for existing customers like some other lenders do. 

However, those who don’t live in a state where the lender operates will be out of luck. Since TD Bank doesn’t advertise a minimum credit score or income requirement, it’s hard to tell whether those with poor credit can qualify for a loan. TD Bank also doesn’t allow co-signers or secured loans, which are two common ways for borrowers with poor credit to improve their chances of qualifying for a loan.

However, you can see if you pre-qualify without a hard credit inquiry, so there are few downsides to checking out your options. If you can’t qualify for a TD Fit Loan because your credit score is too low, you may have better luck with one of the lenders on our best personal loans for bad credit list. 

How to Apply for a TD Bank Personal Loan

To apply for a TD Bank personal loan, follow these steps: 

  1. Prequalify online: Fill out the TD Fit Loan prequalification form, accessed through the personal loans page on TD Bank’s website. The form will ask for your contact information, rent or mortgage payment, employment information, and income. It will also ask how much you want to borrow and your intended use for the money. 
  2. Check loan options: Once you’ve completed the form, you’ll be prompted to agree to undergo a soft credit check. Soft credit checks don’t affect your credit score. 
  3. Review your loan options: Based on the soft credit check, TD Bank will make an initial pre-approval decision. If you are eligible for a loan, TD Bank will list your available rate and term options.
  4. Submit an application: Once you’ve picked a loan that works for you, you can fill out the full application. Once you submit it, TD Bank will perform a hard credit inquiry to determine whether to issue you a loan. Unlike a soft credit inquiry, a hard credit inquiry could lower your credit score by a few points. If approved, you can receive your loan in as little as one business day. 

TD Bank Personal Loan FAQs

Is TD Bank good for personal loans?

A reputable lender and one of the largest banks in the country, TD Bank offers personal loans as large as $50,000, and you can have up to 60 months to repay the loan. It offers competitive interest rates, no origination fees, and the potential for same-day approval. However, the lack of availability in many states, as well as the unclear credit score and income requirements, can make it inaccessible for some borrowers.

What credit score do you need for a TD Bank loan?

TD Bank doesn’t disclose its minimum credit score requirements, and a company representative declined to provide any specifics on its borrower criteria. In general, you’ll need good to excellent credit to qualify for a personal loan.

Can I get a TD Bank personal loan with bad credit?

Although TD Bank doesn’t specify its credit score requirements, you typically need good to excellent credit to qualify for a loan. While some banks allow applicants with poor credit to apply with a co-signer, TD Bank doesn’t have a co-signed loan option.  If you have poor credit or need a co-signer, you’ll need to work with another lender that offers bad credit loans.

Does a TD Bank loan hurt your credit?

Taking out a personal loan from TD Bank or any lender can affect your score in the following ways:

  • Improved credit mix: Lenders like to see that borrowers can responsibly manage multiple forms of credit, such as credit cards and installment loans. By adding an installment loan to your credit report, you could positively impact your credit.
  • New credit inquiry: When you submit a loan application, the lender will perform a hard credit inquiry. Each hard credit inquiry can lower your score, and multiple lines of new credit could negatively affect your credit.
  • Payment history: Your payment history plays an important role in determining your credit score. If you miss payments on your loan, the missed payments can cause your score to drop.